Like with the old .com boom, the explosion of the blogosphere is bringing in a lot of investment capital.

I found this article in yesterday’s Wall Street Journal.

Patricof’s firm (Greycroft Partners LP) has invested under $1 million for a minority stake in PaidContent.org’s parent company ContentNext Media Incorporated. Mr. Patricof feels blogs are a good area to invest in, because blogs cost less to get off the ground and show a quicker return on investment. He mentioned that starting a magazine cost $15-$25 million and have a few years of losses, but with blogs the numbers look much more promising.

Plenty more people are doing the same as Rafat Ali. And Mr. Ali says that ContentNext Media will bring in over $1 million this year from ads and event sponsorships. He says the company made $60K just 3 years ago. So he is moving upward.

How long will the blogosphere boom last? Is this just the start? We won’t know all those answers till it’s over, but for now things are looking good and those with the skills are cashing in big. Many are former journalists. Will traditional journalists turned bloggers get the major share or will pajamas bloggers with no prior journalism experience? Again time will tell.

Wired News interviewed Mr. Ali a few years ago.

Back then Mr. Ali estimated he would earn $60-$80K that year. I guess he came in at his low end estimate. But he’s in the UK, so taxes are eating him up . Which means it is much better to be a blogger in America .

Any blogger that wants to grow in the field would do well to read his interview.