Congratulations Automattic!

Automattic, WordPress’ parent company raised Series B round of funding of $29.5M! A company with hardly any revenue and undefined business model got a whooping 29.5M. Is is bubble 2.0 yet? (BTW I really loved Richter Scale’s performance at Crunchies.) I don’t think so.

Automattic is not making much money because they choose not to. They can run ads and make some quick bucks, but they are not doing it. Why do they need 30M then? OM Malik mentions about a social network on WP.com. That might be possible and one of the things they might be working on. However, I think power lies in Akismet. It saved me and others off millions of spammy comments. They can take it out of comments (hint: email) and serve enterprise as well as SMEs. I would like to see what they do with this money in coming months.

Congratulations again!

You should follow me on Twitter at @gsharma.