26Sep2009
Micro-blogging site Twitter is close to securing $100 mn funding from about 7 investors (incl T Rowe Price Group, Spark Capital) led by New York-based venture capital firm Insight Venture Partners. This would buy the fast-growing Internet-messaging company more time to chalk out its business model.
The proposed funding companies are valuing Twitter, which is yet to generate more than a trickle of revenue, at about $1 bn. That’s more than triple the valuation Twitter received during its last round of capital raising in Feb’09 when it raised $35 mn from Benchmark Capital and Institutional Venture Partners, valuing the micro-blogging site at $250 mn, underscoring how quickly the company has grown.
The company had 54.7 mn unique visitors worldwide in Aug’09, up from 4.3 mn in Aug’08. Twitter is facing competition from companies such as Facebook that have also rolled out Twitter-like features. Twitter, which rejected a $500 mn takeover proposal from Facebook last year, has preferred to rope in financial rather than strategic investors.
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