Sequoia Loves The UG Product Space, Chucks $8.3M Into The CafePress Furnace. UPDATE: False

CafePress just raised $8.3M in a Series C venture funding from Sequoia Capital.
This brings the entire funding up to $23.8M (Sequoia accounts for $22.3M of that)
CafePress lets users design, buy and sell merchandise such as t-shirts, hats, bags, mugs, bumper stickers and they take care of the manufacturing and shipping.
The user-generated retail site claims they have over 6.5M members trading 150M+ products @ 11M uniques a month.
Their biggest competitor, Zazzle, just announced a break-through in the user-generated products space by introducing an automatic design to embroidery technology. They have raised twice as much money as CafePress.
It’s very interesting to follow Sequoia Capital’s investments. They were so eager to tell the world about how Good Times Are Over. Will they be so kind to tell us when they think it’s picking up again? Probably not.

Update: We are getting word that the funding rumors are false. Sounds like another case of false citizen journalism.