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Billion Dollar Club Welcomes Twitter

Even though it remains free of revenue, the latest funding round for Twitter has turned the Internet startup into a billion-dollar company.

A source told TechCrunch that the primary investor in the $50 million dollars the site raised is Insight Venture Partners, which was also an early investor in Photobucket before it was purchased by News Corp./MySpace in 2007. Another source suggested that Twitter may not cap the funding at $50 million in an effort to keep the cash mound rising.

Back in February, the company raised approximately $35 millionin another funding round led by Benchmark Capital and Institutional Venture Partners. At the time, the Twitter was valued at $250 million.

However, Peter Kafka at All Things Digital notes that investors seem to think the company will be worth a bit more than $1 billion; a return on investment would require the company to breach the $3 billion barrier.

The fathers of Twitter have insisted on allowing the site to develop on its own and not be acquired by a larger player such as Google. In November 2008, Twitter turned down an offer from Facebook as executives thought the chatter-site had room to grow.

 

Credit: Adotas