Tumblr Raises Secret War Chest

Filed as News on November 12, 2010 7:46 pm

Unlike Squarespace who was very upfront regarding how much cash they were able to raise from investors, the micro blogging company is being rather quiet regarding the size of their latest investment.

Tumblr has raised a “very big and competitive” round of financing from top Silicon Valley VC firm Sequoia Capital, we’ve learned. [...]

The NYC-based blogging startup’s founder David Karp and president John Maloney went out to the Valley looking for money last month, and it sounds like they came back winners. (Business Insider)

Despite lacking a strong business model (outside of premium themes and listings that is), Tumblr’s interest from investors is probably due to the micro blogging site’s skyrocketing rise (at the expense of Typepad nonetheless).

The company also boasts a high retention rate for users (up to 80%), with the site is quickly gaining the attention of celebrities, one who (more or less) ditched Twitter and asked his followers to embrace Tumblr instead.

Tumblr thus far has declined to publicly disclose the size of the investment (although we will update the post if we hear any figures), although whatever the figure it should be enough to keep the lights on long enough for the company to figure out a way to become profitable in the not so distant future.

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