Twitter raises cash, valued at $250 million

Connectivity addicts should be happy to hear that Twitter has likely raised more than $20 million in a third round of venture funding supposedly lead by Institutional Venture Partners (IVP).

A report by TechCrunch says the new round of investment values Twitter in the neighborhood of $250 million; down from the previous, mostly-stock, half-billion acquisition deal offered by Facebook in the fall. The company's last round of fund raising, which raised $15 million, was conducted in June 2008, with Spark Capital and Bezos Expeditions leading the round along with previous investors Union Square Ventures and Digital Garage.

IVP has invested in a portfolio of companies crossing technology and entertainment, including comScore, NetFlix, and TiVo, so Twitter offers the right blend of a new, enabling concept and a rapidly growing user base. Now the focus returns to how to make money with all those tweeting users.

For more:
- TechCrunch reports.

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