Digg has raised $8.5 million more in funding in a round led by return investors Greylock Partners and the Omidyar Network, it emerged today - that's on top of the $2.8 million they already received. That puts the rumors to rest that Digg is set to sell imminently. Instead, they want to help others add Digg's features to their sites.
Like many startups these days, Digg is reportedly having statistics woes, which may have put halt to a potential acquisition - ComScore reports far lower figures than Digg's own stats, while Greylock Partners say that ComScore is underestimating the site's traffic by three or four times. Alexa, meanwhile, inaccurately reports that Digg and other tech sites are some of the biggest on the web. The issue with Alexa, as reported before, is that many Digg users downloaded the Alexa toolbar in reaction to a story that Digg was about to surpass Slashdot in the Alexa rankings.
Digg is in an interesting position right now - they just improved the site with a redesign and the addition of podcasting, plus a better video section, but they're also facing rumors that the some of the top Diggers, who have more probability of getting stories to the front page, have been taking cash for Diggs.