The shiniest nugget in this BusinessWeek
story about the tough times facing technology startups is this: Digg Inc., whose enormous popularity is visible in the thousands of groupies that throng the news-sharing company's periodic
love-ins, last year had a grand total of $4.8 million in revenue. That's 'm,' as in, not the letter used in "billion." It lost $2.8 million. Through the first nine months of 2008, Digg has lost $4 million on sales of $6.4 million, according to BusinessWeek.
Let's recite the usual disclaimers: Business models in social networking are still evolving; old media is retreating, leaving gaping holes for new media to run through; emerging Web technologies are re-writing rules; history shows that commercial opportunities can take decades to emerge from fundamental shifts in tech; business models in social networking are still evol... right, we already said that.
Still, $6.4 million? I patronize delis that make more money than that. Come to think of it, I'd be more likely to "Digg It" if it came with curly fries and a Tab. In all seriousness, I'd probably go with a soft pretzel over the fries. Naturally, Digg's fame could well eventually lead to fortune, as its venture investors
expect,
hope, pray to all that is holy it will. But it's a mighty hill to climb in the best of times, let alone when an icy wind is howling through Silicon Valley. Dig that. -
- Alain SherterSee Dec. 18 story on falling startup valuations from BusinessWeekSee June 8 post about Digg co-founder Kevin Rose from Tech Confidential
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