Print 5 comment(s) - last by xii.. on Feb 19 at 11:21 AM

Twitter gains more momentum to continue its social gains

Twitter, a web messaging service which allows you to type short status updates, is one of the hottest web properties.  It is among select elite like Facebook, Google, and Yahoo, whose name commands instant recognition among internet users.  Everyone from Britney Spears to Barack Obama "twitters", and the site seems to be gaining momentum.

Now it has secured the capital to continue its infiltration into our daily lives, raising $35M USD in a second round of capital funding to secure cash for new projects.  The funding came from two partners -- Institutional Venture Partners, which contributed $14M USD, and Benchmark Capital, which contributed $21M USD.  Twitter had raised $22M USD in a previous effort, and with the new round raises its total venture capital acquisitions to around $57M USD.

The company, based out of San Francisco and founded in 2006, cheered the news and says that the funding will help it stay independent. 

Last year, Twitter rejected an advance from Facebook that sought to acquire its hot competitor.  Chief Executive Officer Evan Williams with partners Biz Stone and Jack Dorsey were key players in reaching this decision.  Institutional Venture Partners' Todd Chaffee praised the company's spirit, stating, "This is going to be a very large media property.  Any time you have millions of users engaging with your service multiple times a day, there are a lot of monetization opportunities."

Despite having only 30 employees, the company continues to show strong growth.  After considering charging companies for access to its users to avoid seeking more venture capital due to the bad market, it decided to try its luck anyways.  The emphatic response seems to show that the company is a favorite, even in these tough times.

Twitter looks to use the funds, in part, to continue to drive its mobile efforts.  Many smart phones are now Twitter-equipped and the company continues to look at developing different applications for mobile users.

In its blog Twitter reacted to the news, stating, "We are now positioned extremely well to support the accelerating growth of our service."

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So they still haven't come up with a revenue model
By joey2264 on 2/18/2009 9:13:26 AM , Rating: 2
I think Twitter is very cool and hope they are successful. But the fact that they still haven't seemed to find a way to generate revenue is disconcerting. I certainly wouldn't put money into them unless I had control to force them to start putting ads on the service or something.

By Zensen on 2/18/2009 10:24:39 AM , Rating: 2
I've got a twitter account a year or so ago and have to say, I can't see where the point of all of this is. You can already post status messages in social networks already via mobile and there's a limit to what you can write on twitter.
I have seen random messages, i seriously don't care if you had a pancake for breaky.

One things for sure, its one big waste of time and seemingly a lot of people have time to waste.. shame.

Just another way to spam you willingly.

By xii on 2/19/2009 11:21:53 AM , Rating: 2
Yup, I totally agree, as far as I am concerned twitter is pretty worthless.

But we have to acknowledge that twitter is probably not targeted to our type of people. The simplicity of the user interface and the whole point of typing status updates is clearly a joke for any techie. But perhaps that is precisely what might make it appealing to, for example, your mother-in-law who, is right in the middle of a lonely mid-life-crisis, has the need fill up her time and, needs to feel that people care about her worthless minute after minute activities...

By isorfir on 2/18/2009 9:35:22 AM , Rating: 2
By martinrichards23 on 2/18/2009 11:34:06 AM , Rating: 2
In 3 years no one will even remember what twitter is.

They'll keep adding features, it will eventually become facebook and then users will get bored with it.

To consider it a decent investment is crazy.

"This is from the It's a science website." -- Rush Limbaugh

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