Twitter Raises $15million Through Venture Capital

Twitter has raised a new $15 million round of funding, following a bidding war by venture capitalists interested to get a slice of the micro-blogging start-up, according to a report from GigaOm. According to GiagaOm, a new investor is leading the round with existing investor, Union Square Ventures also participating in this round.

Valleywag and Silicon Alley Insider had mentioned Spark Capital as a potential investor. Meanwhile, I am told that Charles River Ventures, after fighting a bit, is now out of the race. The news of new funding comes at a time when Twitter is dealing with a whole lot of scaling and infrastructure issues.

Twitter is building a formidable reputation in the social networking field, playing on the advantages presented through its service which is actively supported by its loyal user base. As Twitter has grown it has built an impressive membership, including many of the hopefuls in the current US Presidential elections. The service was also notably used by Los Angeles Fire Department when coordinating the fight against the rampaging wildfires of October 2007.

“What is obvious is that VCs are obsessed with the company that started out as a way to group alert to friends via SMS but now has become a communications tool and microblogging service. Several feeder startups that rely on Twitter have formed, and some, like Summize, have decent-sounding business models,” said GigaOM report.

Source: GigaOM

Filed under Micro-blogging, Twitter, Venture Capital, Venture Capital and Angel Investment | Comment Below
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