Dec

28

Digg is Going it Alone

December 28, 2006 |

Looks like Digg raised more venture capital. Good for them, but if they could not get acquired for $150 million, now that they have raised more VC, wouldn’t the VC’s be shooting for an even higher return on their investment?

I also but I agree with some of the comments on TechCrunch that wonder why Digg isn’t cashflow positive yet. Why? I think the answer is pretty straight-forward: those who read Digg don’t click on ads. Simple as that. I wonder if most people on Digg even know there are ads on the site.

As a remedy for that, Digg would have to attract a more mainstream audience, but that would alienate the current tech geeks that hang out there. I don’t think there is an easy answer for this dilemma.

One thing is for certain, though, fortunes can turn quickly on the web and tech geeks are a fickle group - if a better digg comes along, people will jump ship and digg will be worth $0.

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