Funding Slows For Twitter-Related Startups


Just over a year ago, we called attention to the big flow of funding going toward Twitter-related startups, noting that $23 million had been put into 11 startups hoping to make a business around the microblog over the preceding year. The trend has reversed itself over the last 12 months.

Research firm CBInsights says $10.4 million was invested in 10 Twitter-related startups over the last year, not counting Twitter itself. Not a drought, but certainly, as the market research firm says, a fairly dramatic drop, considering Twitter’s own growth during the same period.

The main theory for the decline, according to CBInsights: Twitter’s steady expansion into areas it had previously left to other startups — including mobile apps, URL shorteners, advertising and sharing — has scared some investors away.

Here’s the chart (via Mashable and GigaOm). The green line marks twelve months ago:


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