WSJ: Twitter Will Raise Another $100 Million in VC Funding Today
According to the Wall Street Journal, Twitter is about to close a $100 million funding round from as many as seven investors, including T. Rowe Price, Insight Venture Partners, Spark Capital, and Institutional Venture Partners. Even though Twitter has yet to actually make money, these investors are valuing Twitter at about $1 billion. The Wall Street Journal, which is relying on information from an anonymous person "close to the deal," states that the deal could close today and would be Twitter's third and largest round of VC funding to date.
Rumors about this new round started to appear about one week ago, though at the time, the actual amount was rumored to be around $50 million. Around the same time, we already wondered a bit about Twitter's $1 billion valuation, which seems somewhat disproportionate to Twitter's current revenue stream. While companies around Twitter are using the ecosystem that Twitter has created to make money, Twitter itself still hasn't announced how it plans to make money.
This kind of valuation is going to give Twitter a long runway before it actually has to make money, but at the same time, it also makes it unlikely that anybody is going to acquire Twitter in the near future.
We will obviously keep an eye on this developing story and will update it once we get more information.
Image used courtesy of Flickr user tao zhyn
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amazing! twitter really isn't that easy to use and doesn't DO all that much. the real movers and shakers in the twitter-sphere are the app. developers like nambu, tweetdeck and seesmic. they're the ones who should be getting funding. twitter is more like a commodity (corn) that the apps are able to take and develop into something substantial (4 course meal).
i've been using twitter for years and years but it didn't really WORK until the apps came out that transformed the raw material into something golden.
i honestly don't understand what the VC's are thinking.
Here is a tool to calculate website value(Calculated twitter value too):
http://www.how-much-is-my-website-worth.info/
100 million for a company that has no significant revenue or a proposed revenue model. It reminds me of 1999 where an idea that involved the internet could result in funding. In addition, what will the funds be used for?
Twitter is big and has gained a lot of mind share but it could evaporate just as quickly. The service is easily replicated (low barriers to entry and exit) and has little or no switching cost. There will be competitors in the future and then the typical consolidation. Not worth my 100mil.
Just see an report that people click more ads on twitter, I agree, so I think there'll be soon some new biz plan, might be something like adwords
i've been using twitter for years and years but it didn't really WORK until the apps came out that transformed the raw material into something golden. özel ders