Tumblr is a micro-blogging site and quite a popular one. According the their stats, they’ve had over 20million posts today – that’s a lot.
Last year, Sequoia Captial pumped quite a few $$$ into Tumblr (details of the amount are scarce). And I’m still not really sure how they expect to generate any money. On top of this, they’ve also recently had $5,000,000 thrown at them.
This is not a revolutionary question, but why the hell would anyone invest millions of dollars in to something that doesn’t make any money?
If we had $5,000,000 at PolkaSpots Supafly Wi-Fi, we’d be laughing – the things we could do. And we make money already!
Interestingly, as Tumblr has grown, their service has groaned under the demand with noticeable periods of downtime.
Growing a business from scratch is no easy thing, nor is creating a platform that’ll cope with future demand. Tumblr aren’t the only ones struggling to keep up – Posterous (their biggest competitor) suffered hours down a while back due to a distributed denial of service attack.