Social Content Web Site Digg Secures $2.8 Million Series A Funding

SAN FRANCISCO )-- Oct. 31, 2005 -- Digg, Inc., a pioneering Web community that enables the mass Internet audience to prioritize news and content, today announced that it has closed an initial round of funding in the amount of $2.8 million led by Greylock Partners with Omidyar Network and several angel investors, including Marc Andreessen, Reid Hoffman, Ron Conway, Mike Maples, Jr. and Al Avery. Proceeds from this round of funding will be used to expand Digg's San Francisco headquarters, hire additional developers, and enhance the infrastructure supporting the Digg Web site to accommodate the site's strong growth. As a part of the funding, David Sze, a partner at Greylock Partners, will join Digg's Board of Directors.

Digg has developed a large community that allows users to submit any Internet content (news, blogs, commercial offerings, etc.) for review. Then, based on whether the community likes, or "diggs," the content, it moves up the Digg hierarchy according to its popularity. Digg takes editorial decisions from a few editors and brings them to the mass Internet audience. With 80,000 registered users and more than 500,000 unique daily visitors, Digg is creating a new form of "social content" that instantly reflects Internet user interests.

"The Internet has become the central source of information for individuals," said David Sze, partner at Greylock Partners. "But the enormous velocity and growth of content has made it impossible for the individual or a small group of editors to keep up. In a short period of time, Digg has become one of the fastest growing sites on the Web by harnessing the collective wisdom of its users to surface the most valuable, timely content for everyone. We believe it has the potential to radically change the way people consume news and virtually any Web content."

"Digg has created a dynamic, community-driven environment, where Internet users can participate in the prioritization and generation of news and information," said Rob Hayes, director of investments at Omidyar Network. "By allowing users to connect over shared interests, access relevant information and take ownership of the information shared with the rest of the community, Digg has created a compelling example of social self-empowerment."

Digg allows anyone to see, in real-time, what Internet content is the most popular within the Digg community. Registered users are allowed to submit any content available on the Internet for consideration by the community. Stories move up in the viewing hierarchy according to how many registered Digg users are "digging" them. In some cases, Digg has broken news stories before media institutions, as raw content available on the Internet can quickly move up the hierarchy long before newsroom editorial cycles can process and publish news. Digg also incorporates an element of social networking, as users can share the content they digg with others, and they can add their comments to content, enabling the creation of communities with thought leaders.

Digg brings together media visionary Kevin Rose with successful entrepreneur Jay Adelson. While the content on Digg is presently focused on technology news, issues and products, the Digg community is already expanding into other content areas, such as science and finding the best deals for making online purchases. The vision of the company is to harness the power of the community to provide a real-time assessment about the popularity of content in any subject area: from business to entertainment to sports. As the community grows, the efficacy of the Digg prioritization process increases, giving a true snapshot of public opinion and the ability to watch news move up the Digg hierarchy as it breaks.

About Greylock Partners

Founded in 1965, Greylock Partners is one of the world's leading venture capital firms. Over the past 40 years, Greylock has funded and helped build several hundred successful companies. The Greylock approach uniquely puts the entrepreneur first, with Greylock working as an 'invited guest' in a highly supportive yet consultative way to help entrepreneurs build market-leading companies. Companies Greylock has funded include Ascend Communications, Continental Cable, DoubleClick, Internet Security Systems, Legato, Millennium Pharmaceuticals, Phone.com (now OpenWave), Tellabs, Trilogy, Red Hat and Sungard. Greylock's offices are located in the Boston area, Silicon Valley and Israel. For more information, visit www.greylock.com.

About Omidyar Network

Omidyar Network is a mission-based investment group committed to fostering individual self-empowerment on a global scale. Established in June 2004 by Pierre and Pam Omidyar, the Network is founded on the simple core belief that every individual has the power to make a difference. Omidyar Network funds for-profits, nonprofits and public policy efforts that promote equal access to information, tools and opportunities; connections around shared interests; and a sense of ownership for participants. To date, Omidyar Network has created a diverse portfolio that fosters individual self-empowerment across the economic, political and social realms, with investments in areas such as microfinance, bottom-up media, open source, and transparency in government. Through its work, Omidyar Network intends to catalyze a new breed of business for which social impact directly drives profitability. To learn more about Omidyar Network and the organizations it has funded, please visit http://www.omidyar.net.

About Digg

Digg is a Web site that utilizes a large community of users to prioritize Internet content from news stories to blogs to commercial offerings, in real-time. Digg takes the editorial dictates of news and other Web sites and leverages the Internet to enable these decisions to be made by a broad audience. With 80,000 registered users and more than 500,000 unique daily visitors, Digg is creating a new form of "social content" that is more congruent with Internet user interests. Digg was founded in October 2004 by journalist and technology visionary Kevin Rose, best known for hosting TechTV's "The Screen Savers," and it is led by CEO Jay Adelson, the founder of Equinix (Nasdaq:EQIX - News). The company is funded by leading venture capital firms Greylock Partners and eBay founder Pierre Omidyar's Omidyar Network.