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The Cat Just Got Richer (that’s the Twitter Cat for you at home)
Twitter, the company that hasn't made a dime since their explosion at SXSW earlier this year, just secured a round of cash (and cats) from the likes of Union Square Ventures (led round), Charles River Ventures, Marc Andreessen, Dick Costolo, Ron Conway, and Naval Ravikant. More info on TechCrunch and Mashable.
Fred Wilson of Union Square Ventures notes on his blog:
As we stated when we made our investment in Delicious, The question everyone asks is "What is the business model?" To be completely and totally honest, we don't yet know.
The capital we are investing will go to making Twitter a better, more reliable and robust service. That's what the focus needs to be right now. We'll have plenty of time to figure out the business model and there are many options to choose from.
I struggle with the "biz plan or no biz plan" argument. Upon thinking harder about it, it might actually be easier to get VC funding without a biz plan because then there is nothing to pick apart or disagree on. Of course having a biz plan means that you know what profitability looks like. Which do you think is the better option when seeking VC funding?
Congrats to Twitter on the funding. I am sure the cats who handle the servers are eating some fine Kibbles 'n Bits tonight!