Digg Raises $8.5 Million From Existing Backers
Popular social bookmarking website, Digg, raises another $8.5 million form existing investors. This means someone believes in the sites future and well being, well into the near future. Digg claims they have 20 million in users, while other sources report a significantly less number. 
Either way, Digg is growing, and one of the last good services out there that has not been acquired yet. With this round of funding Kevin and the gang can continue to expand the service, which has recently seen a steady flow of new services and features including video and a site redesign as of late.
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Comments
You think? They get a ton of page hits, and have Ads on all of those pages… now that might not mean they are making a profit but they have to be making some money.
I know they order a ton of servers, and a ton of bandwidth. If they were going to sell out, they probably would have done it by now.
But what do I know
I doubt the ad revenue covers the monthly payroll.
It’s a great idea, but finding a way to make it profitable may prove impossible.
And investors eventually will cut their losses.
Or start demanding some control of the venture in order to keep the cash flowing.
Of note though: I predicted that Google stock was way overpriced @ $90.00 in the IPO and would be in the $30.00 range within a few weeks so…
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It doesn’t mean they believe in anything except hedging their original bets and that Digg is burning cash at an astounding rate with no profit in sight.
If new investors stepped up to the plate and wagered their money, then it would indicate that someone believes in the site’s future.