Twitter Cuts Overhead, Raises Money

Silicon Alley Insider is reporting that Twitter is closing in on a Series C round. The valuation? Apparently $60 million up from a previous round at a $20 million valuation. So Twitter, one of the hottest startups in Silicon Valley is worth $60 million and Slide is worth $500 million? Apparently!

The biggest challenge to Twitter is figuring out how they are going to make money. Twitter could attract over 100 million people and theoretically shut off the system because they couldn’t afford to keep it up and running. Would people start paying for the site if it ends up going down? Given the amount of time I spend on the site, I’d be willing to pay $5 a month to keep it up and running.

This round of funding comes days after two lead developers have left the company. There are still few details about why the developers left but given the slow pace of innovation at the company due to their overwhelming focus on scaling, a few extra dollars in the bank will definitely be useful for attracting new talent and also protecting against and downturn.