Twitter with a 1 Billion worth of valuation!

Posted on 26 September 2009 by author

Finally, after the long-pause Twitter confirmed that it will go partnership with multi-million mogul investors like Insight Venture Partners, T. Rowe Price, Institutional Venture Partners, Spark Capital and Benchmark Capital.

insight venture capitalT. Rowe Price other capitals

The said process is speculated to boost the venture capital of Twitter to $100 million dollars with an estimated valuation of a whooping 1 billion USD! But that’s not all, on a recent press-release statement of Twitter yesterday. They concealed the exact amount of the capital being raised and use the term “significant round of funding“ instead. Here’s the full report:

New Twitter Funding

There’s a lot of talk today about our financing. Yesterday we closed a significant round of funding with a group of investment firms that we’re excited to publicly thank: Insight Venture Partners, T. Rowe Price, Institutional Venture Partners, Spark Capital, Benchmark Capital, and Morgan Stanley.

It was important to us that we find investment partners who share our vision for building a company of enduring value. Twitter’s journey has just begun and we are committed to building the best product, technology, and company possible. I’m proud of the team we’ve built so far and I’m confident in the future we’ll build together.

It’s also worth including that the valuation technique applied to twitter is the same process being done to Facebook which has a current valuation of 6.5 billion USD. Today, FB is known to have 300 million registered users while Twitter is aiming to close the 25 million user mark by the end of 2009.

A brief history about the financial-ascend of Twitter:

It’s said that the micro-blogging sensation surprised the world with its amazing increase in terms of gaining traffic and services it provide with the users. Looking back on this article about Twitter dethroning Myspace’s rank, there’s no more question if twitter really was hitting humongous traffic. ‘Coz in fact, it does!

On February, 2009, Twitter increased its venture capital to 35 million dollars with a current valuation of 250 million USD. Just after a couple of months (7 months). Twitter quadrupled its valuation and now flying high to One Billion dollars!

Underlying Problems:

On a recent report by hitwise.com, they made a detailed review about the rapid-growth of twitter users from (0.1%) september, 2008 soaring up to (0.20%) on April, 2009. However, hitwise noticed that the “blue-chick’s users” has some tendency to decline.

On September, 2009 it seems the social-network has reached its “saturation-point”  and since then it dropped to 0.17%. (click the pictures below to enlarge)

The decreasing of users could be pin-pointed to a lot of saddle factors. But that even said, BIG investor groups like Insight Venture Partners and the rest of the “gang” partnered with Twitter to change this “saturation” phenomenon.

Noticeable problems why Twitter users are declining:

Twitter has been known to be spammed by millions of botters around the world.

It’s one of the prime “factor” we see why twitter users are declining. Starting “twitterers” are becoming bit disappointed with these nuisance. They get inundated with so many automated messages, they just want to close their twitter window and find another social-network for their satisfaction.

Twitter without “external applications” is good as a “little chick with no wings”.

If you will merely use the twitter main page, you have a tendency to be bored, ‘coz of the limited functionalities. Due to that reason, users are apt to use twitter external API to meet their demands.

Gaming application’s for twitter is not yet visible.

If you have been using Facebook you might encountered their “social-networking games” making the whole FB experience fun. Take for example Mafia Wars, today it’s said that the game is being played by 6.5 million users already. That alone already constitutes the 1/3 population of twitter, surprise?

mafia wars play now!

“Same old” twitter pages for advertisers, normal users, celebrity etc.

At first glance, twitter is really big and you’ll find it hard to disseminate the users who you want to follow, the advertisers you want to have business with and the pipz you want to gossip around. You even need to check twittercounter.com to see who’s the most popular.

If you will collect all these “redirected traffics” and pull it inside twitter. This will undoubtedly play a major role of twitter’s traffic increase.


I for one, love the simplicity of twitter, but it doesn’t mean that it has to stop from there. If only twitter will have an official API page wherein twitter users will not tediously go out and search for applications, then twittering will be a whole new experience. Spammers and Bots are naturally part of a social-network but it can be sorted out right? Users want to talk to real people and not with automated messaging system. Also, searching for the people we want is important, the featured twitter users should be in the official page of twitter not in another external websites.

Twitter-connected games is a bonus too! Like what we have said above, this will boost the user’s traffic to unimaginable rate if  games will finally surface.

Hopefully, due to the estimated 100 million dollar worth of venture-capital acquired. Twitter can finally revolutionize how the user utilize this microblogging site. A little bit ads? Some addictive games perhaps, official twitter api page, a more user-friendly searching of users are just some of the things we could think of to shatter that “user-saturation” and raise the traffic of Twitter.

Guys, feel free to submit more ideas on how twitter company could give us, users; that “whole new experience” we are clamoring for!

twitter scream!

(sources: mashable, twitter official blog, wall street journal)


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One Comment

  1. alde (Reply) Posted on November 27th, 2009 at 9:46 am

    Bad story of mine that twitter had suspended my account for strange activity reason that i didn’t know. Twitter should give me the specific and detailed one or warn me before so i could avoid the arbitrary penalty. Now i must begin fresh start again.


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