B5media Raises $2 Million
Posted on October 5, 2006B5media, a blog network, has raised $2 million in venture capital funding from Brightspark Ventures and J. L. Albright Venture Partner (JLA). Rick Segal from JLA has blogged about JLA's investment $1 million investment in b5media here. Rick Segal doesn't disclose what percentage of b5media his company received for the investment of the $1 million but the investment was enough to make Segal chairman of b5media.
B5media's blog network contains over 100 blogs maintained by over 50 bloggers. Bloggers are paid a percentage of the advertising revenues their blog or blogs earn. They company was founded in September, 2005 and merged with About Weblogs last November. The About Weblogs merger gave the network a much-needed boost and added many female bloggers covering niche topics.
Valleywag tries to rain on b5media's parade with a post saying they don't deserve the $2 million investment.
Squash asks if blog networks are worth investing in.But hey, if someone wants to throw $2 million at the most overhyped of the dozens of small-time blog networks, at least it'll make it more fun when the company implodes.
The flip of Squash's question is do individual blog owners or blog network founders want to give up a stake in their company in exchange for capital? As we have seen in the past few weeks a few individual blog owners and blog network founders are answering yes to that question.B5 have said the money will help them put on a VP of sales and I hope they get a good one. Coming from a media background, its impossible to understate how important it is to have an effective sales function and its no difference with blog networks. Problem is this kind of talent ain't cheap. That's going to hit your margins too...