BuzzFeed gets $50M from venture cap firm Andreessen Horowitz
Media company BuzzFeed has been valued at a reported $850 million after a major Silicon Valley venture capital investor pumped $50 million into the company.
Andreesson Horowitz announced Monday it is investing $50 million in the upstart media startup, and Chris Dixon, a partner at the firm, will be joining the company's board.
"We’re presently in the midst of a major technological shift in which, increasingly, news and entertainment are being distributed on social networks and consumed on mobile devices," Dixon said of the transaction in a web posting. "We believe BuzzFeed will emerge from this period as a preeminent media company."
BuzzFeed is just the latest new media company that the venture cap fund has a stake in. Andreessen also owns stakes in Facebook, Twitter, Skype, Pinterest and Foursquare, among others.
Founded in 2006 with a skeleton crew in New York City, BuzzFeed has grown in leaps and bounds by creating hundreds of short, punchy web stories full of lists, GIFs and short videos, which are frequently shared on social media. Currently, the site boasts 150 million viewers per month, and has started pursuing more long-form journalism and has even opened a video production studio in Los Angeles.
The company said in a release it plans to use the funds to expand its editorial and video offerings, as well as expand internationally.
According to the New York Times, which cited people close to the matter, the deal values the whole company at $850 million. Based on how much they've invested, that would mean Andreesson has bought about six per cent of the company.
When asked for comment from CBC News, a spokesman for BuzzFeed declined to offer any more financial specifics.
As a private company, BuzzFeed's finances are not public, but Dixon said Monday the company has been "consistently profitable, and will generate triple digit millions in revenues this year."