socialmedian: What Would Twitter Do With $15 Million? Buy a Business Model (I Hope)

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What Would Twitter Do With $15 Million? Buy a Business Model (I Hope)

Source: Mashable!

Apr 25, 2008

Summary

Silicon Alley Insider has been all over the Twitter beat this week (re: the engineering coup), and today reports that the company is looking to raise a fresh $15 million in venture capital at a $60 million valuation. The company’s last round came last summer, when they raised $5 million from Union Square Ventures and others.

Aside from hiring a few more engineers, the question is: what will Twitter do with all of that money? Unlike other hot startups like FriendFeed and UStream who are constantly adding innovative features to keep the momentum going, Twitter rarely makes major changes and most of the innovation at the company actually comes from the third-party developers building applications using the Twitter API. According to some reports, traffic to these apps is also as much as 10x that of the actual Twitter web site.

As Peter Kafka points out in his coverage at SAI, Twitter has made virtually no money yet, and doesn’t appear to have a clear business model in mind. However, as I’ve suggested in the past, there are so many opportunities for Twitter to m

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Comments (2)

Jlombardi,

Apr 26, 2008

I think Twitter is beyond buying a business model. Twitter needs to be acquired and if they keep building the audience they are they will be. The problem is that Twitter will end up being yet another example of how not to build a business for 95% of the companies out there.