Sequoia Capital announced yesterday that it will give a third round of cash to a quick-growing media network, Sugar Inc., bringing the Valley-based company's total VC purse to $31 million. Sugar also announced that it would hire the former head of Fox TV to run one of its new businesses. So exactly what does the company do?
If you don't know, you might be male. Sugar is well-capitalized, brightly-staffed, and very much oriented towards women. Its flagship site is PopSugar, a celebrity gossip site. Other parts of the variegated brand include FabSugar, a fashion site, YumSugar for cooking, FitSugar for exercise, and, well, you get the idea. And, according to Quantcast, the company's properties receive over 8 million monthly unique visitors and more than 50 million page views. Compared with the Huffington Post's 13 million monthly unique visitors and $37M total funding, the math for Sugar looks just about right.
Along with its fresh round of funding from Sequoia, Sugar also announced the acquisition of Shopflick, an online video repository where fashion vendors can "tell the story behind their products," creating a more humanized shopping experience. According to TechCrunch, the acquisition will bring on David Grant, former president of Fox TV studios, who had been CEO of Shopflick. He'll head up a new division of Sugar called Sugar Digital Entertainment.
Sugar, Inc, headed by husband-and-wife team Brian and Lisa Sugar, will also use some of Sequoia's money to buy out a $10 million stake from NBC, granted in 2007. According to VentureBeat, Sugar is on the hunt for more acquisitions as well.