I’m finding the trend of venture backing for blog networks really fascinating. Looks like Sequoia has jumped in with $5M for PopSugar out of San Francisco.
Techcrunch has some coverage here.
I’m guessing that the venture backing is a bet that this is a disruptive way to build a new media outfit with a fundamentally lower cost structure, but with all the revenue upside. Media has always been profitable – witness the longevity and economics of newspapers – so this theory isn’t completely outlandish.
VentureBeat has coverage here. Interesting deal for Mike Moritz.