Twitter, the digitari it kid of the moment, has raised an additional $35-40 million from new and old investors at a valuation of about $250 million. While Twitter has attractive characteristics, this feels like a go big or go home round for a pre-revenue startup.
Obviously one should raise money when one doesn't need it, but now Twitter has to become a large company if this should work out for both investors, founders, employees and a potential acquirer. It feels a little bit like when Slide and Ning raised around $50 million at valuations around $500 million. Obviously a good thing for the company, but it makes the math harder for both old and new investors.