Highland leads $29m social networking investment

The Boston-based venture firm was joined by Greylock Partners, Omidyar Network and SVB Capital in the Series C financing for Digg.

US venture firm Highland Capital Partners has led a $28.7 million (€19.6 million) Series C financing round for social news website Digg.

Highland was joined in the financing by US early-stage technology investor Greylock Partners, eBay founder Pierre Omidyar’s philanthropic investment firm Omidyar Network and SVB Financial Group’s private equity arm SVB Capital. All three were previous investors.

Highland partner Richard de Silva will join Greylock partner Davis Sze on Digg’s board of directors.

Digg is a website where users can browse and share online content. User votes determine which stories appear on the homepage.

The capital will be used to fund a corporate expansion programme that includes doubling the staff, moving to a larger corporate headquarters and moving into international markets and foreign languages.

Digg previously raised $2.8 million in its October 2005 Series A financing round and $8.5 million in its December 2006 Series B financing round.

Established in 1988, Highland invests in seed, early and growth stage companies in the consumer, healthcare, consumer, digital media and IT sectors. The firm manages assets of about $3 billion across eight funds.

Highland most recently closed its first consumer and retail-focused growth fund on $300 million in July 2007.

The firm’s previous internet investments include Ask.com, Lycos, MapQuest, Quigo and VistaPrint.