Another $8.5M for Digg – No Need for Outside Investors

Venturebeat has more on Digg’s recent $8.5M Series B:

We’ve just talked with Greylock investor David Sze, who says Greylock and Omidyar weren’t interested in having an outside investor dilute their holdings, and that Digg’s management didn’t want to waste time in trying to raise money at a higher value from other parties.

Valuation is only one reason to solicit outside investors. The other is term negotiation. I’d be more inclined to believe that either Greylock/Omidyar agreed to Digg’s demands or the numbers were too low to risk soliciting an outside investor which would require full disclosure and have this potentially leak to the press.

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