Twitter’s Biz Stone just blogged that Twitter closed a third round of funding led by Benchmark and Institutional Venture Partners (IVP) last night. Techrunch is reporting that they have confirmed from IVP that the round was $35 million and that Union Square Ventures and Spark Capital also participated. Here’s how Stone explains the offer they couldn’t refuse:
Twitter is growing at a phenomenal rate. Active users have increased 900% in a year and even though our web traffic is amazing, we see twice that traffic to the APIs. Interacting with Twitter over SMS is also getting more popular every day. Our relatively small team of 29 employees has accomplished quite a bit lately but it’s obvious that we have the world ahead of us.
An Offer We Couldn’t Refuse
We weren’t actively seeking more funding because significant capital from last year’s partnership with Bijan and his team at Spark is still in the bank. Nevertheless, our strong growth attracted interest and we decided to accept a unique opportunity to make Twitter even stronger with a very attractive offer.
Last night, we closed on funding with our friends Peter Fenton from Benchmark and Todd Chaffee from Institutional Venture Partners. When Ev and I visited IVP we were very impressed and Benchmark’s approach regarding teamwork was equally inspiring—every partner is invested in each others success. Peter will be joining our board of directors which means we gain his experience and savvy in addition to that of all his partners.
This gives Twitter plenty of resources to accelerate growth of the service while continuing to enable the ecosystem sprouting up around Twitter. Stone even promises to “begin building revenue-generating products”.