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."