Friday, September 25, 2009

$100 mil, not a cent more

Hey you…I’ve got this real nice bridge I want to sell. Are you interested?…I’ll give you a great deal.

Twitter executives must be using the same line on industry investors…Here is a company that makes no money, I’m serious no money at all and it just raised another $100 million in capital (yes, I said "another").

This new infusion of money sets the value of Twitter at, are you ready, $1 billion. Can you believe it…the company doesn't make a dime, I mean not a nickel, I mean not a penny and its worth $1 billion.

How many people do you think work for this $1 billion company…1,000 people?. 5,000 people? 10,000 people? Wrong, how about 60! 60 employees running a $1 bllion company. Its incredible…

Twitter is in what experts call the “pre-revenue stage”…in order words, its broke.
Who would lend $100 million to a broke company? Insight Venture Partners, T.Rowe Price, Sparks Capital and Institutional Venture Partners that’s who.
Sure, everyone is talking about Twitter (I love it too), but isn’t it time for the digital superstar to “put up or shut up”. If it doesn't make money, isn’t Twitter just a big hobby for its owners and investors?

And, get ready, check out these quotes from the New York Times regarding the new $100million investment, “the company does not appear to need the capital (NYT)”. And this, “but close followers of Twitter do not sense that the company is in any great rush to prove itself as a profitable venture (NYT)”.

What the heck...first, Twitter raises money it doesn’t need, then is not in a rush to use it to create revenue…I've got to get in on this game.

Hey, anyone interested in buying these pictures of Bigfoot I took in my backyard?

1 comment:

Jeff Welch said...

Didn't we learn our lesson a decade ago with,, and all the other foolishness that led to the dot-com bust?