Tech Crunchies

Twitter has recently announced a fourth round of raising capital and guess how much the company was value at in this newest round? $1 billion! The investor happens to be primarily the New York Based Insight Venture Partners.

I don’t really understand how long can VCs keep funding companies based only on potential. And this is not a company that is lesser known, so you can talk about potential. Twitter is a big time phenomenon whose business model has been discussed to death, and I really can’t see where the $1 billion valuation comes from.

For the record, the newest round of financing will give the company $50 million more of cash to splurge while they can think of how to make money. The total money raised so far now adds up to $105 million.