It would seem that if your company has no discernible source of income, you can still get investors to pour millions of dollars into it.
Twitter, the favorite microblogging service of just about every one under the sun, looks set to bring in a third round of funding in the neighborhood of $100 million. This is impressive for two reasons: the rumored valuation of the company is $1 billion now, four times higher than it was just this past February, and the second aspect is that the company has still yet to earn any money.
The running joke around the tech blogosphere is that the true Twitter monetization plan is to just keep pulling in funding, and with the way things are going at the company, you have to wonder if that is true. Even though the service is now three-and-a-half-years-old, it has not yet made money, or even made clear how it plans to do so. Yet, in spite of this fact, people just keep throwing money at it in the way of funding.
According to The Wall street Journal, the latest round of funding includes some pretty impressive names to boot. The new investors include Insight Venture Partners, a New York venture capital firm, T. Rowe Price, the mutual fund company. Returnign to the table yet again are the current investors Spark Capital and Institutional Venture Partners.
Apparently Twitter was only looking for $50 million this time around, but the investors thought differently and gave them $100 million for future investments in infrastructure and to keep growing the company.
I wish I could sit around making no money and have people just handing me funding.