Business Insider Raises $7 Mln

Today, Henry Blodget announced that Business Insider raised $7 million in funding.

Institutional Venture Partners, a new investor, led the round. Existing investors RRE Ventures, Allen & Co., Marc Andreessen, Gordon Crovitz and Ken Lerer also contributed. Including the $7 million, BI has raised about $14 million in funding, according to TechCrunch.

Business Insider began fundraising this past summer when it hoped to raise an additional $2 million, Blodget writes.

“In the end, we were fortunate enough to have enough interest that we ended up raising ~$7 million,” he says. “For a company that has operated on a shoe-string for the last four years, this injection has made our bank account look positively massive.”

Most of the money will go toward making the BI site better, Blodget says. The Business Insider site gets 12 million visitors each month, including 150,000 visits every day, he says.

In a former life, Blodget was an equity research analyst who famously predicted in late 1998 that Amazon’s stock price, pre-split, would hit $400 (it did). He ended up being banned by the securities industry in 2003. Currently, Blodget is the CEO and co-founder of Business Insider, an online news site. A very prolific tweeter, Blodget hasn’t quieted down. Bank of America, in August, attacked Blodget after he wrote that BofA may need $100 million to $200 million of fresh capital.