Seattle based Cheezburger Network – creators of virally popular sites like icanhascheezburger.com and FailBlog, scored a $30 million Series A funding today. The funding was led by Foundry Group, with participation from Madrona Venture Group, Avalon Ventures, and SoftBank Capital.
The original site – Icanhascheezburger.com – was created by Eric Nakagawa and Kari Unebasami in January of 2007. The site quickly surged in popularity and 6 months into it, the duo were bringing in 10s and 1000s of dollars per month in ad revenue. They later sold it to the current owner and Cheezburger network founder Ben Huh.
Huh says that the site has been profitable from the beginning, and that shouldn’t come as a surprise. Since almost all the content is user generated there really isn’t much of an overhead in terms of running the website. Of course hosting and hardware could get expensive with increasing site traffic, but then so does the ad revenue.
What is he going to do with all the Money?
Huh says that he hopes to add about 50 more employees to the existing 50. Huh also plans to use the capital to buy more companies. He’s allegedly looking for Web ventures with strong brands and user communities that would complement Cheezburger’s network of 50 sites.
( photo credit: “unknown” on cheezburger / caption by Puddin33ICHC )