HuffingtonPost.com raises $5 million, but East Coast money

August 7, 2006 | Michael Bazeley | Comments | |

Updated

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HuffingtonPost.com, the online news site and group blog focused on politics, just announced that it has raised a $5 million round led by venture capital firm SoftBank Capital. East Coast’s Alan Patricof’s Greycroft Partners also invested in the round.

The media landscape is changing by the minute. Unlike business and tech, which is drawing interest by West Coast firms like Elevation, the politics stuff is attracting the East Coast folks, which makes sense.

We have no idea how Huffington is going to return money on this very large investment, but there are some suggestions given in the press release (we’re searching for a link), including — surprise — video: “The HuffingtonPost has just introduced video blogs and will soon be launching web video newscasts…”

Update: More on back-story about how this came about: Eric Hippeau at Softbank Capital, former chief executive at Ziff Davis, was looking for a news investment.

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  • whenwego
    Well, if you count visits and ad revenue, HuffPo is a bargain at $5M for 30% of the company...
  • I can't figure out why someone with her money and friends with money would go to a VC firm.
  • Ed, why is it so difficult to understand. If it is true she's only giving away 30 percent, she's not giving up control -- and at the same time, she's getting $5 million in cash, a great deal and something she could probably only do in this bubbly environment. Take the money!