In February, Twitter turned more than a few heads by raising $35 million at a $250 million valuation. Now, people should be careful that they don’t break their figurative necks, since the company’s reportedly upped the ante by raising around $50 million at a $1 billion valuation.
Crazy as it may sound to some folks, the rumor’s almost certain to be true. Michael Arrington received word of it from several sources, and so did Peter Kafka. Plus, Biz Stone tweeted last night that he’d spent part of the day in a board meeting.
Then you have to consider that some experts believe Twitter’s worth much more than $1 billion. (Robert Scoble considers the company worth $5 billion to $10 billion, for example.)
So let’s look at the ramifications of Twitter’s $1 billion valuation. It implies that Twitter’s backers think the site will continue to grow at a ferocious pace. They must be confident that achieving a profit’s possible, too, and they can’t view direct competitors – as well as Facebook – as much of a threat.
Anyway, Arrington reported that Insight Venture Partners, which has invested in companies like Divx, Hitwise, and Newegg, is leading the funding round.