So, here’s the deal (literally and figuratively): Twitter wasn’t seeking any more financing because it still has money in the bank from its last financing – no surprise given it raised $15-million and only has 20 employees.
Nevertheless, Twitter has happily taken $35-million from Benchmark and IVP because Benchmark and IVP really wanted to invest and when someone wants to give you money, I guess you take it if the terms are acceptable, right?
So, what will Twitter do with the cash? (If you do the math, it could last more than 15 years without raising more money based on costs of $100,000/employee)
According to Twitter, “we are in a position to move more confidently toward our vision for a robust and successful Twitter, Inc.”.
Interesting to say the least.
So, the question is how does a 20-person operation spend $35-million – and why does a 20-person operation need $35-million if it still has cash in the bank?
Should we expect a flurry of deals, for example? Maybe Twitter will buy TweetDeck, the most popular Twitter desktop software that features all kinds of great functionality that would give Twitter an opportunity to launch premium services.
Even after buying TweetDeck, Twitter would still have $30-million or so left in the bank for other things such as launching a Twitter directory or launching Facebook-like financing arm for cool apps, or launching an e-commerce/affiliate business.
Or maybe Twitter will buy Google. Sorry, that’s the other way around but….
One Comment
I don't think the cash can last for 15 years. There are some other cost like hosting and internet bandwidth which might cost a lot if Twtiter want to serves all of us well without having much service interruption.
4 Trackbacks
[...] Techcrunch. Mashable. ReadWriteWeb. Fred Wilson. Wired. Twitterati. Techcrunch again. Oh, and the official Twitter [...]
[...] Please, Take Our Money! [...]
[...] Naval Ravikant would be extremely pleased, especially those IVP and Benchmarket, which just pumped $35-million into a start-up with lots of users but no revenue or a business plan. It would show the classic Web [...]
[...] few weeks ago, Twitter closed a $35-million financing round – cash that didn’t necessarily need but, nevertheless, accepted. It was an interesting move [...]