Twitter raises $100 million in new funding
New round of investment for social networking service would value company at around $1 billion mark
Twitter, the social networking service, has raised a further round of capital that market analysts believe value the company at around $1 billion.
The investment was announced on Twitter's blog, without revealing the amount, although it is thought to have been around $100 million.
The investors were named as Insight Venture Partners, T Rowe Price, Institutional Venture Partners, Spark Capital, Benchmark Capital, and Morgan Stanley.
Evan Williams, CEO of Twitter, wrote in the blog posting: "It was important to us that we find investment partners who share our vision for building a company of enduring value. Twitter's journey has just begun and we are committed to building the best product, technology, and company possible."
The company, which was founded in 2006, still has no revenue model, although co-founder Biz Stone has said that the company will add business services to generate sales, by the fourth quarter of the year. Twitter has some 25 million users worldwide.
Some analysts questioned the investment. "It's interesting to see, almost ten years since we had the first Internet bubble, that we've now got billion-dollar valuations on companies that haven't defined how they're going to monetize their traffic. It would be nice to see how the company is going to, one, generate revenues, and two, generate profits," David Garrity, principal at GVA Research, told Bloomberg.