The entertainment website BuzzFeed founded in 2006 by Jonah Peretti has since grown to become an international media and technology company providing its users with news and articles on a myriad of subjects. News from the world of entertainment figures highly, but politics, business, animals and DIY are subjects that attract the website’s visitors.
News has broken today that a $50m investment is to be made into BuzzFeed by Andreessen Horowitz, an entity created by two individuals involved in the creation of the Netscape browser. Now this may be considered by some to be an investment with some degree of risk, however, what internet investment doesn’t carry risk? BuzzFeed could well prosper further and make all those involved into multi-millionaires.
One of the Andreessen Horowitz partners, Chris Dixon, is to become a member of the board at BuzzFeed. He has stated in a blog post: “Many of today’s great media companies were built on top of emerging technologies.” He went on to illustrate this by quoting Viacom, CBS and Time (colour printing) as examples.
When BuzzFeed first appeared it mainly consisted of memes and other amusing images and was derided by many. Things have moved on though and BuzzFeed looks to become a main player as it spreads its wings into numerous areas of content. This investment should facilitate a move into higher quality content that should create even more BuzzFeed fans.
It will be interesting to see if this investment turns out to be a wise one or as many before it an investment decision that is eventually regretted.
Good luck BuzzFeed.