Kyle Stanford, Rose Thompson May 12, 2015
Whether you think they produce vapid listicles or real journalism, it’s indisputable that BuzzFeed and Business Insider have garnered some serious VC interest. Each call Lerer Hippeau and RRE Ventures investors, while the likes of NEA, Jeff Bezos and Mark Andreessen have all chosen sides. The two digital media companies started off on a similar path when they raised their respective Series A rounds in July 2008; however, BuzzFeed’s valuation has since swelled close to Unicorn status at $850 million, while Business Insider’s is less than $200 million.
Is it the reader demographics? The cat pictures? The lists and quizzes? We’ve paired their financing histories along with social metrics to shed some light on the differences. Here is how the two stack up:
*To learn how PitchBook calculates social media growth, click here.
After raising Series A rounds less than a week apart, BuzzFeed jumped in the fast lane and started raising much larger rounds. AOL reportedly tried to buy Business Insider in 2013, but no dice. Given the facts that BuzzFeed has raised a Series E and Business Insider a Series G, we expect to see more acquisition (IPO?) rumors circulating.