Funds ATWITTER

Even as startups battle funding nightmares, they were surprised by tweets from two of the valleys biggest, and toughest to crack, venture capitalists – Benchmark Capital and Institutional Venture Partners. Together, the duo led a $35 million funding round for Twitter, the booming social networking and micro-blogging Company. Benchmark partner Peter Fenton joined the Twitter board as well. About two weeks later, reports streamed in that Facebook tried to buy Twitter, but the two companies could not agree on a take over price or company structure.

Some say the VC funding as a ray of hope in what has become a funding drought. Others were plain envious. Most of all, people were surprised because, although social networking is a big current favorite of venture capitalists and Twitter is immensely popular, the fact remains that Twitter isn’t making any money yet. Industry estimates shows that as of January, Twitter had sold no advertising and had generated no revenues.

But given the flurry of activity, it seems Twitter is all atwitter about making money, and making it quick. The company is rumored to have rejected 186 candidates for the position of business product manager, the messiah who is supposed to think up revenue models for Twitter. The company is setting new standards, whether in communication of in being choosy.

Source: Outlook Business