Image via CrunchBaseToday it hit me like lighting! Tweeter raised another founding for $1 billion valuation. Fist I'd like to thank all people I know that where included in previous rounds and I'm very glad for them.
But, 1 billion dollars? For what?
Twitter is generating money out of pure potential! Its not making any money, it did not set straight business course. But, its rapidly growing. Its the brand , the technology, the number of users and user growth rate.
Starting from today they have joined billion dollar club. Dick Costolo, who recently joined Tweeter as COO, before joined company said that Twitter is probably one of the few startup that has the potential to become something equivalent to today’s Google, Yahoo, Amazon or EBay. Dick Costolo is co-founder of Feedburner, that was sold to Google for $100 million. He has been working with Ev at Google, who also sold Blogger to Google. So, we can say that they also have superstar management that has reputation in Valley. And it has PhD Summize team.
Thats great for Tweeter, but $1 billion dollar? Give me a brake! Compared to similar companies from same club Twitter is missing most important ingredient - revenue. In comparison, Facebook generates hundreds of millions in revenue, has $300M active users and is "only" worth $6B. Thats six times in valuation comparison. Wow! This looks like end of nineties and Dot Com Boom, where money was given to companies on sheer potential. Except, US is struggling and in middle of recession.
I'm stunned! I'd like to see some numbers!