The Wall Street Journal reported that venture capitalists have “poured” money into Twitter Inc., supporting its continued existance.
Here’s the full article:
Venture-capital investors have poured an additional $35 million into Twitter Inc., an Internet service that enables users to spontaneously post brief messages online.
Benchmark Capital and Institutional Venture Partners led the financing round, which comes as Twitter, of San Francisco, has yet to unveil how it plans to make money off the popular “micro-blogging” service.
A person familiar with the matter said the round valued the nearly two-year-old company at between $200 million and $250 million. A spokesperson for Twitter could not be reached for comment.
The round included existing Twitter investors Union Square Ventures and Spark Capital, along with several others. Twitter had previously raised some $20 million in funding.
The infusion comes as Twitter’s popularity is surging. In a blog post announcing the funding, Twitter co-founder Biz Stone said that the service’s number of active users has increased 900% in the past year. He also said the business requires relatively little investment to maintain.
“We weren’t actively seeking more funding,” Mr. Stone wrote, because the company still has money in the bank from its previous round of funding.
But the company faces growing pressure to prove that it is more than a novel way to share short messages online. Twitter executives have said they are exploring ways to charge for additional offerings for businesses, but have yet to announce any details. Twitter enables users to allow friends and contacts to follow their “tweets,” or brief messages, which are used for everything from disseminating breaking news to providing snap travelogue to posting random thoughts.