VCs Like Technorati

from Business Week: Ask David Sifry when his little San Francisco startup called Technorati will turn a profit, and he laughs contagiously. No, Technorati, which tracks Web logs, or blogs, and will soon offer blog searches, is a long way from turning a profit. But it has big-league venture-capital backers like Draper Fisher Jurvetson and Mobius Venture Capital, and they’re willing to wait as blog entrepreneurs cast around for a good business mode.
The independent-minded blogging community may be chagrined to see, however, that the most obvious money in blogging is in the software that helps big companies establish and manage corporate blogs, as well as software that culls data from the ever-growing blogosphere. It’s much like the early days of e-commerce. While e-tailers were spending and spending to build their Web sites, e-commerce software makers were raking in the cash. To use an analogy to California’s gold rush: It wasn’t the miners who got rich, it was the people who sold the picks and shovels.

About David Burn

Co-founder and editor of AdPulp. I wrote my first ad for a political candidate when I was 17 years old. She won her race and I felt the seductive power of advertising for the first time. I worked for seven agencies in five states before launching my own practice in 2009. Today, I am head of brand strategy and creative at Bonehook in Portland, Oregon.