Company: Sugar Publishing
Description: Blog network and social network
Competitors: Glam, InStyle, Us Weekly
Location: San Francisco
Amount Raised: $5 million
Round: First
Date Announced: N/A
VC Firms: Sequoia Capital
VC Directors: Mike Moritz
Quick Take: I guess blog networks are legitimate VC investment targets. Accel-backed Glam has launched women's blogs, Softbank Capital-backed Huffington Post is marking out the political terrain, True Ventures-backed GigaOmniMedia is beginning with technology news and Benchmark-backed Seeking Alpha is focused on the investment segment. And why not? The costs are labor and web hosting. No trees or postage here. And no legacy publications that have to be protected. With consumers increasingly asking for content delivered online and ad dollars following, these blog networks have bright futures ahead of them. And when it comes to news, nothing is more lucrative than Sugar Publishing's initial area of interest, celebrity gossip.

Technology (1 out of 10): 2
Market: 9
Management: 5
Chances for IPO: 2
Overall VC Rating: 7

For more on the PopSugar financing, see:
TechCrunch
GigaOm
Sramana Mitra

Tags: popsugar, blogs, vc, venture+capital