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Summary:

[qi:004] Some days you read something that makes you go: What the…? I got that feeling when I read Peter Kafka’s report that Tweetdeck, one of the many Twitter desktop apps that use Adobe Air and has been downloaded 250,000 times, is getting just shy of half […]

[qi:004] Some days you read something that makes you go: What the…? I got that feeling when I read Peter Kafka’s report that Tweetdeck, one of the many Twitter desktop apps that use Adobe Air and has been downloaded 250,000 times, is getting just shy of half a million bucks from New York-based incubator Betaworks. I’m not quite sure why! Though I think I understand — it uses Bit.ly, a service that shortens URLs to be exchanged on Twitter and is also backed by Betaworks. Since Bit.ly wants to mine the information associated with URLs being swapped around and build some sort of a value-add experience, this is a good way for them to get data from Tweetdeck. Maybe they want to flip this to Twitter — after all, Betaworks sold Summize to San Francisco-based Twitter last year and are shareholders. Otherwise, this investment doesn’t make sense. Why won’t someone else build a Tweetdeck-like offering? Or maybe it’s just a sign of Twitter-related insanity.

  1. I did find it interesting. Twitter gets just over 20 million to run a company and one of the hundreds of apps that interface with TWitter managed to snag 500K.

    It is pure craziness. For the record, I prefer Yoono for my twittering.

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  2. I met Ian, the tweetdeck founder, in betaworks’ office yesterday. i’m not privy to the plan, but I’m willing to bet their investment thesis is broader than bitly data. At first impression, Ian’s got a lot more potential than Tweetdeck.

    I also happened to be standing there with Ian and the bitly team as the airplane in the Hudson news hit Twitter. It was an education on 21st century news.

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  3. @scott

    I remain skeptical till i am convinced otherwise. On the issue of hudson news etc. I think this is a sad reflection of the times and where news is headed. it is going to be interesting to see how it pans out.

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  4. Paul Capestany Friday, January 16, 2009

    Tweetdeck getting $500k is indeed insanity. Twitter will never IPO, and already tried selling itself to no avail. While it’s a fun fad, it’s not a business, it’s a feature if anything. Twitter will implode the minute their VCs decide to stop bleeding money, and then where will all these third party apps like Tweetdeck be? Unless these investors know something that we don’t, they must be on crack.

    BTW, I think it’s pathetic that the only way to get BASIC functionality out of Twitter is by using third party apps like Tweetdeck et al. Seriously?

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  5. Om – you write “I remain skeptical till i am convinced otherwise”

    why not be psyched that stuff is happening? Enjoy seeing new apps and people. If it doesnt work – who cares, someone tried. Next. The negativity is horrible. “Insanity” really? A little one person all that some people or no people care about.

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  6. @Jeff W

    Psyched about what — an adobe air desktop app. Give me a break.

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  7. Om:

    Damn! Just ignore it then why waste the effort and anger – seriously? Write about something that makes u happy then but its a fucking app, your anger is ridiculous. You’ve lost one reader with this.

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  8. Paul Capestany Friday, January 16, 2009

    @Jeff W

    In case you hadn’t noticed, we ain’t in a bubble anymore. $500k is a lot to flush down the toilet in these times.

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  9. @Om,

    I think you nailed this one. While I personally enjoy Twitter, I wonder how it will survive over the long term given Twitter doesn’t have a scalable business model. That said, i’d like to see Twitter survive. However, I don’t understand funding an ecosystem for Twitter given its’ questionable viability over the long term. I think $500K just got wasted due to “eyeballs”. Perhaps $500K should have been invested in a business with a scalable revenue model?

    It was great meeting you at the Crunchies by the way.

    Cheers,

    Curtis

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  10. [...] Om Malik thinks Iain getting $500k in angel funding is a sing of Twitter insanity, I have to strongly disagree. [From Tweetdeck Funding…a Sign of Twitter Insanity] [...]

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