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Twitter valued at $4bn in latest funding round

December 15, 2010 Leave a comment Go to comments

Venture capital firm Kleiner Perkins reportedly set to trump Russia’s DST in bid to invest in microblogging service; questions remain over future direction.

Twitter is close to securing a fresh round of funding, this time from venture capital firm Kleiner Perkins that values the microblogging service at $4 billion.

Techcrunch reported late Tuesday that Kleiner has emerged as the frontrunner ahead of Russian investment company DST, which revealed two weeks ago that Twitter is on its radar. Twitter at the time was valued at roughly $3.4 billion by Sharespost, a company that connects buyers and sellers of shares in privately held companies.

John Doerr, partner at Kleiner, is heading up the bid, according to Techcrunch, and people close to the situation expect him to win.

“Doerr wants to own part of Twitter, and Doerr generally gets what he wants,” said one source, in the report.

Indeed, the venture capitalist recently revealed that Kleiner Perkins earlier turned down the opportunity to invest in Twitter in its early days, a move he admitted at San Francisco’s Web 2.0 summit “was wrong”.

Meanwhile despite boasting 175 million users as well as the high valuation, Twitter’s recently-appointed CEO Dick Costolo earlier this week attracted attention after admitting he is still unsure of the Website’s purpose.

“I am currently trying to define what Twitter’s purpose is in the long term,” he said in a report on Monday by the Telegraph. “We will be able to be more specific on that answer in the near future.”

Costolo had been serving as chief operating officer but replaced co-founder Evan Williams as CEO in October, as Twitter sharpened its focus on turning a profit.

Furthermore, Costolo is not the only one unsure of Twitter’s purpose, after a report by CB Insights recently revealed that venture capital investment in pure-play Twitter start-ups – companies that develop specific services and applications for users of the microblogging site – dropped by 50% between June 2009 and May 2010.

According to the company, Twitter start-ups attracted $21.6 million from venture capitalists and angel investors between June 2008 and May 2009. That figure fell to $10.4 million between June 2009 and May 2010.

“There are lots of theories on why the amount invested has dipped with the most popular explanation being a feeling of uncertainty by application developers and investors alike about the direction Twitter will go,” said CBI, in a research note.

Originally posted at: http://www.totaltele.com/view.aspx?ID=460707&G=5&C=5&Page=0

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