More thoughts on Twitter

Image via CrunchBase

Last week I reported on Twitter valuation of $1 billion and stated conclusions from first few moments after news.
Days have passed but my interest in this topic did not decline. I was interested in others opinions, true or false and made some adjustments on conclusions.
First, this is not sign of new Dot Com Boom - since level of VC investition level is on 1996. At least we ALL have 3 or more years to figure out correct model before new BOOM( mental note, start freaking project!!! )... if it ever repeats :)

Second. One thing we all should know is that Silicon Valley consists of finest minds in world. Meaning, that every move is carefully planned from a lot of angles.

Final conclusions? Lets start. One of mayor investors in Twitter - Betaworks has been building Twitter ecosystem. They have invested in round 20 diverse companies forming ecosystem skeleton. "Its a feature, not a bug" - John Borthwick. Top companies that distinguish are bit.ly, stocktwits, tweetdeck, TipJoy.
What might happen is M&A of some Betaworks founded company from ecosystem by Tweeter. Betawork will receive early ROI of their investment and found even more companies that supports ecosystem. This scenario happen before with Google and Youtube M&A having same investors. And, Twitter pulled its micro-blogging service into real-time web search by Summize acquisition. Above all, it was mainly talent acquisition that lifted quality bar of whole service. One, note on TipJoy that supports previous story. It almost got acquired by FB, but they bailed-out at last moment. But, they hired TipJoy CEO - Ivan Kirigins!
Founder will get early ROI, Twitter might get another great acquisition. But, they still don't have clear business plan nor revenue follow. Also, part of this $100 million investment is buying time. Any offer round $5-$10 billion will be easily rejected. With recent hire of Dick Costolo and future acquisition of great talent - right people will get into buss. Right people will sit in right seats and then will have time to decide where will this buss head. Simple as that. With current money burn and possible M&A, they will have about 2 year to figure out revenue stream and I'm sure that its not gonna be simple ad-based-web2.0 business plan.