Twitter, the microblogging service that is spreading like wildfire, has secured over $50 million in its third round of funding. Strangely, the company was not even looking for the money, but news of such a large sum is placing even more pressure on Twitter's plans to begin generating revenue. The service has become everything to everyone—a microblogging platform, a customer service hub, a replacement for chat and e-mail, a bite-sized newspaper, and even a Pirate Bay trial translation service—so, naturally, everyone is waiting to see what Twitter's first major step into prime time will be.
Twitter's latest funding comes from Benchmark Capital and Institutional Venture Partners. According to the company's announcement, though,Twitter was not even in the market since there was plenty of cash left from the $15 million it raised last May. The company is not generating any of its own revenue yet, though ironically, a growing number of third-parties have cashed in by selling applications or accepting donations for services that work with Twitter (in particular, iPhone clients and sites like Tipjoy that allow users to donate money to friends or organizations).
Still, with everyone from President Obama to Shaquille O'Neal contributing to a 900 percent growth in active users over the last year, Benchmark and IVP clearly must see an opportunity for big ROI.
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