VC Rating: HuffingtonPost.com
Company: HuffingtonPost.com
Description: Online commentary
Competitors: Slate, Salon
Location: New York
Amount Raised: $5 million
Round: First
Date Announced: 8/7/06
VC Firms: Softbank Capital, Greycroft Partners
VC Directors: Eric Hippeau
Quick Take: Is content king this year, or was that last year? Whenever it was, investors are smart to think that recognizable brands that own their content will be able to profit as digital media evolves. It's both content distribution and creation that matters. Venture capitalists know this and have proven it with the recent fundings of the companies operating GigaOm, JibJab, PaidContent and now, The Huffington Post. With a recognizable face for the company in the form of Ariana Huffington, an advertising partnership with InteractiveCorp. and a bunch of impending product launches, the company has the potential to grow through advertising. But, it's not as if political analysis web sites have a stellar track record. To make this investment even a mild success, HuffingtonPost.com will have to quickly broaden its coverage, secure valuable distribution deals and negotiate lucrative partnerships; all the while continuing to churn out its unique opinion pieces.
Technology (1 out of 10): 2
Market: 6
Management: 4
Chances for IPO: 2
Overall VC Rating: 5
