Twitter gets $800 million in venture capital, at $8 Billion valuation

Critics of Twitter, who questioned Twitter's business mode, have got a slapping answer. The microblogging site has just pocketed the largest venture capital investment in history as part of an $800 million funding deal.

Although Twitter has not confirmed the size of the round led by Russian venture firm DST Global (the same guys who put big money in Facebook a few months ago), it only described the funding as "significant,”. The regulatory documents, submitted at the secretary of state's office in Delaware, where Twitter is incorporated, indicate the company has sold $400 million in new shares. These shares are about 24.9 million in number, priced at $16.09 per share.

The new funding values Twitter at $8 billion. This is double its worth after closing its last venture round in December last year.

Along with the $400 million investment, another $400 million are also provided to Twitter to let Twitter's employees and investors cash out some of their shares. The main reason to make Twitter's employees and investors sell out some of their shares, is to give insiders liquidity while easing pressure on management to go public.

The latest funding takes Twitter’s funding rounds tally to seventh. The latest vaultion of Twiiter, at $8 billion, is 40 times the $200 million annual revenue Twitter earns [Data: research firm Hudson Square]. --------

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