Will $30 million in Series B help Path rise to its potential?

Path has confirmed it has raised $30 million in Series B funding. The round was lead by Redpoint Ventures, with participation from Greylock Partners, David Sze, Satish Dharmaraj, Jerry Murdock, Sir Richard Branson, Mark Pincus, Allen & Company and others. Previous backers Kleiner Perkins Caufield & Byers and Index Ventures also participated.

In February, Path revealed it has passed 2 million registered users, more than half of which had joined since the service relaunched in December as a personal journal app, pivoting from its original vision as a private photo-sharing service.

Since switching gears, Path has become considerably more sticky — at least according to users who chose to log in with Facebook. Although logging in with Facebook Connect is an optional choice users can make to find friends on the service, the numbers can be used to estimate the app’s overall growth. According to AppData, a month after the redesign, Path went from 30,000 monthly active users and 5,000 daily active users to 500,000 MAU and 160,000 DAU. In the same period the app’s retention — the amount of DAU as a percentage of MAU — rose from 10 percent to 32 percent, and currently sits at just over 30 percent.

Unfortunately, so far Path hasn’t been able to turn its latest rush of interest into long term growth. Between February and March, Path’s MAU and DAU actually began to dip after hitting a plateau in January. Path currently has 490,000 MAU and 150,00 DAU, down from its all-time peaks of 550,000 MAU and 190,000 DAU.

The $40 million in funding will go a long way to helping Path reach the potential investors think it has, but it also means that right now, each of Path’s 2 million registered users is worth more than $125 each. By comparison, Path’s one-time competitor Instagram was valued at $500 million before it was acquired by Facebook last week. At that time, Instagram had more than 30 million registered users, with 7.3 million MAU and 1.7 million DAU logging in through Facebook Connect according to AppData.

Path has previously raised an $8.65 million round of Series A funding in February 2011. That round was lead by Kleiner Perkins Caufield & Byers and Index Ventures.