Blogging service Tumblr has raised 4.5 million Series B in a round led by Union Square Ventures and Spark Capital.
Tumblr plans to use the money to introduce paid “Plus” accounts for users among other things. Currently Tumblr doesn’t generate any revenue at all.
Tumblr has a strong loyal user base and it’s a great service, but like Twitter it has made zero attempt to generate revenue so far. Why you’d need $4.5 million to introduce a paid level of service is beyond me, and so much for the recession. $4.5 million into a company with no revenue shows that the bubble hasn’t completely burst yet.
Silicon Alley Insider has more.