Twitter’s habit of raising tons of money – and not having any significant and regular source of income – has led different onlookers to theorize that its burn rate is anywhere between “moderate” and “Hindenburg.” However, one investor recently shared what fans should find to be some comforting details about the company’s finances.
According to Caroline McCarthy, “Twitter didn’t rake in $100 million because it was about to run out of money, investor and board member Bijan Sabet of Spark Capital said in a panel at the 140 Conference on Tuesday morning.”
Sabet maintained that Twitter didn’t need to buy new servers to keep the infamous fail whale at bay, either. (Which is an interesting claim, given recorded increases in unique visitors and several recent appearances of the beast.)
Instead, McCarthy wrote that Sabet said Twitter “raised the money from Insight Venture Partners and T. Rowe Price last month because it wanted to grow up: hire new people, launch new products, strike partnerships, and the like.”
So keep an eye out for official Twitter blog posts and press releases about steps forward, not cost-cutting measures or bankruptcy announcements. $100 million could fund some very interesting moves.
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