Twitter hits $8 billion valuation on funding push

Popular micro-blogging cum social networking service Twitter has successfully completed a new round of funding that sees the company valued at a bumper $8 billion.

Announced by the company late yesterday, the terms of the venture capital funding round - led by DST Global - have not been officially revealed, but figures obtained by The Financial Times suggest that the company has raised $800 million on a valuation of $8 billion.

That valuation comes despite the fact that the company has been making a loss, and has projected revenues of just $100 million for this financial year. While the site, which allows users to communicate in short messages of 140 characters or less, is extremely popular, it has traditionally struggled to turn its millions of users into revenue.

Recent moves by the company to introduce corporate features - including 'Promoted Tweets,' which are messages from companies which stay in a user's timeline for an unnatural length of time to ensure they are seen - could turn that around, but the valuation appears to be projecting a revenue for the company that seems somewhat implausible.

The investment appears to have come half from DST Global - which has also invested in social networking giant Facebook and casual gaming behemoth Zynga - and half from a fund managed by JP Morgan.

The fund-raising push comes ahead of a rumoured initial public offering for the company, but the FT source suggests such a move is unlikely before 2013 at the earliest.