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Summary:

I spent most of the day digging up more information on Twitter and its new round of funding that I reported last night. The update is that Twitter reached an agreement with investors today to raise $15 million in funding at around $80 million pre-money valuation. […]

I spent most of the day digging up more information on Twitter and its new round of funding that I reported last night. The update is that Twitter reached an agreement with investors today to raise $15 million in funding at around $80 million pre-money valuation. A new investor is leading the round with existing investor Union Square Ventures also participating. With this round, the company will have raised a little over $20 million in VC backing thus far.

Official news of the deal is eventually going to percolate out, and hopefully I will be able to nail down the specifics on who is the lead investor. Valleywag and Silicon Alley Insider had mentioned Spark Capital as a potential investor. Meanwhile, I am told that Charles River Ventures, after fighting a bit, is now out of the race. The news of new funding comes at a time when Twitter is dealing with a whole slew of scaling and infrastructure issues. Today, the folks there almost threw their proverbial hands up in despair.

Update: Twitter the great facilitator of e-narcissism also can’t keep secrets. As Michael Arrington points out, two tweets from two parties add fuel to the rumors of Spark being the mystery investor in the San Francisco company.

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  1. The turnaround begins? Twitter gets its $15 million funding » VentureBeat Wednesday, May 21, 2008

    [...] Today was a very bad day for Twitter. Yes, it was down on and off throughout the afternoon, but that is really a given at this point. The bigger news was its admission that it had no idea what the problem was that was causing its downtime. The service has reason to smile tonight through as its closed its second round of funding, according to GigaOM. [...]

  2. I don’t understand | Oh my bloog! Wednesday, May 21, 2008

    [...] twitter raides $15M [...]

  3. Twitter Raises $15 Million in Funding? Wednesday, May 21, 2008

    [...] has some slightly vague, but still convincing news confirming the recent rumor of Twitter’s new VC funding round. Details aren’t all fleshed out yet, but it seems that the existing investor, Union Square [...]

  4. $80 MM pre-money – wow! Congrats to the team.

  5. Twitter Closes Third Round Of Financing From Spark Capital Thursday, May 22, 2008

    [...] has closed their third round of financing, says Om Malik. He pegs it at a $15 million raise at around an $80 million valuation, but doesn’t know the [...]

  6. Twitter: How do you keep customers coming back? The importance of switching costs « These two cents Thursday, May 22, 2008

    [...] 2: With all of my talk, Twitter just closed a $15MM round of funding at a reported $70MM valuation Possibly related posts: (automatically generated)Chat Rooms Could [...]

  7. Twitter Raises $15 Million in Funding? | World News Thursday, May 22, 2008

    [...] has some slightly vague, but still convincing news confirming the recent rumor of Twitter’s new VC funding round. Details aren’t all fleshed out yet, but it seems that the existing investor, Union Square [...]

  8. Twitter’s Got More Money, But Can It Scale? Thursday, May 22, 2008

    [...] I saw Om Malik tweet that Twitter made their Series B funding round ($15 million), my reaction was fairly simple: ok, they’ve got money. But do they have a plan [...]

  9. michaelwales.com » I Don’t Notice When Twitter Is Down Thursday, May 22, 2008

    [...] itself is dead. With a third round of funding complete and no business model they’ve placed themselves into a position of debt (without the ability [...]

  10. So what is Twitter’s plan to make money? Investors can’t just be throwing money into a hole? Can they? Waiting for a buyer?

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