VCs give Twitter a Valentine’s Day gift
Venture capitalists are stingy with their money right now, but that doesn’t mean they won’t shell out a few dollars for a hot Internet startup like Twitter.
The micro-blogging website announced on its blog it had received new funding from venture capital firms Benchmark Capital and Institutional Venture Partners, although they didn’t say how much. Some folks are reporting it’s in the neighborhood of $35 million.
Twitter co-founder Biz Stone said in a post Friday morning they weren’t looking for more funding. “Nevertheless, our strong growth attracted interest and we decided to accept a unique opportunity to make Twitter even stronger with a very attractive offer,” Stone wrote.
Twitter, which said its active users had grown 900 percent in a year, actually promises to use some of the funds to “begin building revenue-generating products.”
Maybe the guys over at Benchmark will be able to steer Twitter — the latest Web sensation with no surefire way of making money — toward this revenue-generating goal. Or if not, maybe they’ll be able to sell it for a neat profit at least. Last year, Benchmark sold open source company MySQL to Sun Microsystems for a whopping $1 billion, which some people now say was an inflated price.