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Twitter receives multi-million dollar cash injection

Two new investors agree with Twitter’s co-founder that the micro-blogging site has money-making potential by giving it new funding.

By Asavin Wattanajantra, 16 Feb 2009 at 11:47

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Although Twitter hasn’t yet found a way to make money, it’s still receiving financial support, winning a reported $35 million (£24.6 million) from two US venture capitalists.

Silicon Valley investors Benchmark Capital and Institutional Venture Partners gave Twitter the cash boost, with Benchmark's general partner Peter Fenton joining the board.

Co-founder Biz Stone claimed on the Twitter blog that the microblogging site wasn’t actively seeking more funding, as it still had money left from a partnership with Bijan Sabet and Spark Capital last year.

However, thanks to Twitter’s massive explosion in popularity, it had attracted more interest and a financial offer which the micro-blogging site accepted.

Biz Stone said that with the financial backing, Twitter was now well positioned to make become more robust and even more successful.

He said on the blog: “We are now positioned extremely well to support the accelerating growth of our service, further enable the robust ecosystem sprouting up around Twitter, and yes, to begin building revenue generating products.”

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1 comments

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Millions spent on the wrong platform

Twitter is in its 4 round of funding and has generated $55 million in start up capital without making one dime. They don't have a monetization model and rumors state that Twitter is gearing up to charge commercial users a subscription fee. They are hoping to create a revenue model with Spark Capitals $35 million in investment. If you take a hard look at this economy
and technology, one player that is making money is Google. Internet advertising is a $57 billion dollar industry and growing. Google & Yahoo both recently stated that the future in is "human edited search" and
http://www.Boomja.com may have created the formula for the next big internet company. Check out this article by David Krechevsky; http://www.rep-am.com/articles/2009/02/12/business/397274.txt (not the full story), David may have stumbled on to the future of search and Boomja.com has a monetization model that works. According to David, Boomja is a combination of "Google and Wikipedia", think of it as a Wikipedia on steroids. Users organize the internet and make half of the advertising dollars. Limitless content, Limitless jobs, limitless income, now that is
the future of search.

By Ip_wmaharis7b8ef on Tuesday Feb 17