Tumblr might not have figured out how it’s going to make money, but that isn’t stopping a number of investors from throwing capital at the blogging site.
The Wall Street Journal reports that the company is close to raising $75 million to $100 million in venture capital—an investment that will value Tumblr at $800 million.
The site’s current lack of revenue deterred some Silicon Valley VC firms from signing on, but sources said that at least one big firm is participating: Greylock Partners, which has previous investments in Facebook and Groupon.
With 13.4 million users in the U.S., Tumblr still lags far behind WordPress’ 44 million users and Google-owned Blogger’s 64 million users. But its page views are much higher. In July, Tumblr had 3.8 billion U.S. page views, while WordPress had 282 million and Blogger had 718 million.
The company has also begun experimenting with ways to create revenue. In an email, founder and CEO David Karp told the WSJ, “While our early initiatives are already generating meaningful revenue, there's much more in store.” Karp added that Tumblr is also rapidly growing overseas.