Local blogging platform Tumblr has raised a staggering $125 million in venture capital. Tumblr is now hosting more than 53 million blogs with images, video and a complex system of duplication via reblogs, all for free, so the company needs the cash. “In about six months, the word ‘Tumblr’ will eclipse ‘blog’ in Google popularity,” wrote the web comic artist and statistician Randall Munroe of XKCD.
Welcome to the big leagues. And at its size, Tumblr’s investors are keeping a closer eye on the goings-on at the wildly unprofitable startup. After years of leaving Tumblr’s magical fairyland largely to its own devices, two recent major changes suggest the company may be feeling pressure from investors (and its burn rate).
John Maloney previously ran the forum for Upper East Side moms UrbanBaby, where he employed David Karp. Four years ago, Mr. Karp then hired Mr. Maloney to serve as president and resident adult of Tumblr. Last week–late on a Friday, naturally–Mr. Maloney announced he is stepping down from the company. Read More