Twitter Gets $35 million Funding from Venture Capital Firms

Microblogging phenomenon Twitter has received $35 million of additional funding from Institutional Venture Partners and Benchmark Capital although it still has money remaining from the $20 million it received during two earlier funding rounds.

According to a note posted on their website, Twitter received an offer they couldn't refuse from the two aforementioned companies and the company has taken on board Peter Fenton, from Benchmark Capital, as one board director. Twitter also counts Amazon founder Jeff Bezos amongst its investors as well as Union Square Ventures and Spark Capital. The latest funding round values Twitter at around $250 million.

Biz Stone, Twitter's co-founder has also revealed that Twitter's active user base shot up by 900 percent in the last year alone thanks in great part to the role played by numerous Twitter tools - like Twitterholic or Twitter feed, that allows developers to extend Twitter's ecosystem well beyond its initial reach.

Twitter currently employs 29 staff and has recruited a new Director of Mobile Business developer in December 2008 followed by a business product manager earlier this year, in a bid to turn its phenomenal growth rate into a monetizable traffic. The site, which had attracted a $500 million bid from social networking website Facebook, counts a number of well known figures amongst its regular users.

The service has managed to become one of the best loved and respected web 2.0 icons in only three years. But the issues it has been facing regarding revenue generation will only get worst with the current economic situation. With falling advertising rates, Twitter's options for raking in millions in the next few months are quite limited.

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Twitter has managed to fend off competition from the likes of Tumblr, Identi.ca and many more to impose itself as the most prominent microblogging website. Latest figures show that one in every nine American adults use Twitter or a similar service with that ratio rising to one in five for adults aged between 18 and 34.

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