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Technorati scrapes together more cash
Blog search engine Technorati is the ego-boost of choice for bloggers who use it to track how many other blogs link to their posts. So the news that the startup raised $7.6 million in a third round of venture financing, according to the PE Week Wire newsletter, is a hot topic. Garnering more cash normally bodes well for a startup, but this investment doesn't seem to spell good things for Technorati, which, TechCrunch notes, hasn't seen the increases in traffic that other blog-related businesses have enjoyed.

How could more money be bad news? For one thing, the money came from earlier investors Draper Fisher Jurvetson and Mobius Venture Capital. When venture capitalists aren't able to convince buddies at other firms to sign up for a new round of financing, it likely means that the startup's a dog. And the $7.6 million investment isn't much more than the $6.5 million the company raised in 2004, which means Technorati's backers may now have a controlling stake in the company -- and thus could force a sale.
Posted by Owen Thomas 10:37 AM 0 Comments comment | Add a Comment

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