Twitter investor: 'We didn't need the money'
Although the company hasn't put a long-term revenue strategy in place, one of its backers says Twitter didn't raise $100 million last month out of a need for cash.
LOS ANGELES--Twitter didn't rake in $100 million because it was about to run out of money, investor and board member Bijan Sabet of Spark Capital said in a panel at the 140 Conference on Tuesday morning.
There was still money left over, Sabet explained,from Benchmark Capital and Institutional Venture Partners in February, which followed Twitter's Series C round in the spring of 2008. Twitter, according to Sabet, last month because it wanted to grow up: , launch new products, , and the like. Contrary to , Sabet insisted that the money wasn't needed for an emergency server shopping spree or anything. (Some may disagree.)
"The expectation when you raise a lot of money, it's a statement that you want to build a company, an independent company," Sabet said when moderator Robert Scoble asked him what he thought of the fact that Twitter has not yet put forth a long-term business model. "We didn't need the money...it was a very purposeful kind of commitment to try to make a company."
A billion-dollar valuation is pretty nice to have, too.
A correction was made at 2:13 p.m. PT: a source with knowledge of the deal confirmed that Twitter's April 2008 and February 2009 rounds of funding are considered to be separate rounds.