Twitter is raising new cash at 250 million valuation

http://www.techcrunch.com/2009/01/24/twitter-raising-new-cash-at-250-million-valuation/

by vaksel • 18 years ago

33 34 18 years ago

techcrunch.com

nazgulnarsil3• 18 years ago

what was the facebook offer assuming that their stock is toilet paper?

brianr• 18 years ago

It was $500 million total including $100m in cash -- http://www.alleyinsider.com/2008/11/twitter-rejects-500-mill...

ojbyrne3• 18 years ago

$100 million in cash? Passing that up looks pretty dumb right now.

zain• 18 years ago

Wow, a $250 valuation with 6 million users? That's $41.66 per user. It is ridiculously high, especially with no business model in sight.

arockwell• 18 years ago

Twitter has got some pretty impressive growth right now. I'm sure they are pitching reasonable plans to their investors for how they are going to make money. However, Twitter does seem overly cautious with rolling out any attempts to generate revenue.

I honestly think that Twitter could become The Next Big Thing(TM), so I don't think the investors are crazy for investing at a high valuation.

axod6• 18 years ago

I think it's more likely investors have believed the hype rather than actually do any rigorous business analysis based on potential profit.

old-gregg• 18 years ago

Make it something like $400/user. Having been an insider of 3 "Internet startups" in the past, I am assuming a 1:10 ratio of real active users vs total number of accounts in the database. BTW investors always asked us about the number of active users, followed by a question of "how do you define active"? Something like "logged into his account at least once within last week" is considered a very good measure of an active user.

axod6• 18 years ago

It's simply ridiculous. Maybe we'll soon see a return to the dotcom tactics of alladvantage,themutual etc,etc - Pay people to become your "Users" so you can get more funding.

rgr• 17 years ago

You can't ignore growth though. In many cases it's much more important than current active users. A product with 1mil active users and a 10x growth rate is much more valuable than a product with 5mil users and a 2x growth rate. The same calculation applies to stock valuations. A stock isn't priced by current earnings, but by expected future earnings.

endtwist• 18 years ago

Perhaps I'm missing something important here, but how are these companies (Facebook, Twitter, et al) being valued? I know there is "potential" value here, but who comes up with the actual numbers?

eru• 18 years ago

Everybody guesses and whoever guesses too high by the largest error, gets his bid accepted.

http://en.wikipedia.org/wiki/Winner's_curse

fallentimes• 17 years ago

Poorly.

With many assumptions and the ignoring of many variables combined with one (or more) of these business valuation methods:

http://en.wikipedia.org/wiki/Valuation_(finance)

jonursenbach4• 18 years ago

Once they start cranking out new features and hire some competent people who know how to _properly_ run a website with an accompanying API then I'll believe a 250m valuation.

siong1987• 18 years ago

So, you think that the people there are not competitive enough?

jonursenbach4• 17 years ago

Competitive? I said that they aren't competent enough.

axod6• 18 years ago

Have you run a website with that many users? Harder than it looks...

josefresco• 18 years ago

His website is clearly up: http://jon.ursenba.ch/

jonursenbach4• 17 years ago

I worked at AmateurMatch.com until June of 08.

http://siteanalytics.compete.com/amateurmatch.com+twitter.co...

Twitter is raising new cash at 250 million valuation

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