Archive for September, 2009|Monthly archive page
Rumors earlier this week of Twitter negotiating a new round of funding at a valuation of $1 billion are confirmed today by co-founder Evan Williams on the Twitter Blog. TechCrunch reports this latest round of funding has closed with Twitter receiving $100 million.
Twitter’s previous round of funding raised $35 million in February of 2009 at a valuation of $250 million. The new figure of $1 billion quadruples Twitter’s valuation in just 7 months.
Keeping in the spirit that you have to spend money to make money, Twitter has yet to produce a viable revenue stream. We anticipate that this $100 million injection is contingent on Twitter rolling out a paid advertising platform in the very near future. It’s worth noting that Facebook received $716 million in funding before finally announcing, less than two weeks ago, the company is now cash flow positive.
Evan William thanks Insight Venture Partners, T. Rowe Price, Institutional Venture Partners, Spark Capital, Benchmark Capital, and Morgan Stanley as contributing investment firms. Twitter to date has received $155 million in venture funding.