Business Insider gets venture funding

Paul Boutin of VentureBeat writes that the Business Insider site started by former analyst Henry Blodget has gotten a round of funding from investors.

Boutin writes, “It’s another open secret that Henry Blodget’s ‘sources close to the deal‘ are often his business partners, specifically his own parent company’s CEO, Kevin Ryan. For a token investment, Business Insider’s new funders get to tip one of the most widely read, widely-quoted voices in the business press.

“I’ve never met Blodget, but Henry and I both contributed to Slate a few years ago. The guy can tell a story, and he’s willing to admit his ignorance when it counts. What’s not to like? Influential people read him and believe him.

“But there’s a downside to the new money: By raising millions, it puts more pressure on the company to perform. For his new investors to be seen as successful,  CEO Ryan will need to figure out how to sell Business Insider for far more than $10 million. Had the company not raised money, it could sell for a much lower price and everyone would still be happy. Two years ago that would’ve been a snap. Now, sources close to the deal will report that it’s not gonna happen.”

Read more here.