A few days back, I wrote that blog networks are alive and still is attractive for investors when B5media secured $2 million in financing. I guess I am vindicated today when another blog network, Sugar Publishing the publisher of the popular blog PopSugar has secured some funding from Sequoia Capital and this time the amount is around $5 million.
To be honest, with the current funding trend of blog networks with the acquisition of Weblogs Inc by AOL, funding of B5media and now Sugar Publishing, I cannot help but say that blog networks are indeed hot investments now.
However, the question I asked then is still relevant, which is what they intend to do with all the money? Does a blog network really need $5 million? If so, then for what purpose? I have read what Duncan had to say about how it plans to utilize the money in B5media; however, I am not entirely convinced.
News: Techcrunch
