According to the technology blog TechCrunch, Twitter has penned a term sheet with one or more venture capital firms that would help the microblogging company in raising new round of funding at a valuation worth $25million.
Back in June 2008, the company was able to raise around $15million, with the help of couple of investors, including Bezos Expeditions and Spark Capital; in addition, the company had also turned down a $500million acquisition offer from Facebook last November.
Citing two anonymous sources, TechCrunch asserted that there is rumour about Twitter approaching a couple of venture capital firms to pitch the whopping $250million valuation, and “got more than one no”.
But the interest of Facebook and Twitter’s “breakneck growth”, perhaps lured some of the companies around, which means “Twitter gets a new cash injection and time to figure out its business model at an even more leisurely pace”, TechCrunch wrote in its post.
Twitter is basically a microblogging firm that enables its users to send short messages, which have less than 140 characters, popularly referred to as “tweets”. It seems that in spite of high valuation of Twitter in such a gloomy economic state, the company has yet to discover how to make money from its services.
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$250 million for Twitter? It is the only company in the world to be worth that much and STILL not have a proper business plan. Yes, there is lots of buzz around the service and Yes, it is highly addictive, even more than Facebook. BUT it has yet to make some serious money for those who have invested in the company. Will it end in tears? Possibly not, but we can't help but think that betting that its valuation will go up and up again is probably not the best decision.
(Digital Media Wire)
Twitter Gets Valuation Estimated at $250 Million