$1 billion. Yep, that is the value placed on Twitter today by an investor group providing $100 million in financing. According to the Wall Street Journal this Twitter valuation is quite a lift from the company’s last round of investing earlier this year, in which investors valued the company at around $255 million.
Twitter, a microblogging service -- which allows people to send out 140-character messages -- had 54.7 million unique visitors in August. What it does not have are revenues, nope nothing, zero, makes no money. I don’t think we have seen this kind of pie-in-the-sky valuation since the days of the dot com boom. So what has changed? Didn’t we learn in 2000 that companies who don’t make money can’t live on VC funds forever?