Silicon Valley Watcher - Former FT journalist Tom Foremski reporting from the intersection of technology and media

GigaOm Raises $6m For PayWall - Total: $15 million

Posted by Tom Foremski - May 25, 2011

GigaOm, founded by Om Malik, a former business reporter, said it had raised an additional $6m.

The money comes from Reed Elsevier Ventures and current investors Alloy Ventures and True Ventures (Om Malik is a partner at True Ventures.)

This brings a total of $15 million raised by GigaOm, reports Staci D. Kramer at PaidContent and it comes just one year since its previous round of capital.

That's a lot of money raised by GigaOm compared with other similar size publishers: VentureBeat and ReadWriteWeb.

The new capital will be invested in the subscription part of the business: GigaOm Pro where news and analysis is available for $299 a year.

Mr Malik told Alyson Shontell at Business Insider: "We're going away from the whole page view model and focusing on paid content."

Earlier today, Mr Malik was singled out for potential conflicts of interest because of his role as a partner in True Ventures.

Jay Yarow at Business Insider, wrote: It's Hilarious That Mike Arrington Gets Beat Up For Investing In Startups When Om Malik Is A Partner At A VC Firm

Mr Malik said he handles his conflict of interest by keeping his editorial and VC work separate and "siloed."

Mike Arrington, the editor of Techcrunch, a competitor to GigaOm, admitted that his investments would produce "conflicts of interests" but that he could handle it.

Earlier today, Business Insider Alyson Shontell reported: Armstrong To Arrington On Investing In Startups: "If You Mess Up, You'll Destroy TechCrunch"

At the Techcrunch Disrput conference in New York, Tim Armstrong CEO of AOL, and Mr Arrington's boss, told him:

"If you mess up, you'll destroy the credibility [of TechCrunch] and the brand," he said...

"I agree with Tim," Arrington said in a later interview. "If I screw up on that, I'll screw up TechCrunch."

Techcrunch is no longer owned by Mr Arrington so there is little downside for him if the Techcrunch brand is damaged by his actions.


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