Twitter Valued At $7 Billion, Nearly Double Its Valuation Six Months Ago

The Wall Street Journal is reporting that Twitter has entered a new round of private funding which puts its valuation at close to $7 billion – nearly double its valuation just six months ago.

Citing unnamed sources familiar with the situation, the Journal reports that, “the round could yield hundreds of millions of dollars and value Twitter as high as $7 billion.”

This $7 billion valuation is nearly double the $3.7 billion valuation that Twitter saw when it last raised funds in just over six months ago in December. This round of funding was led by Kleiner Perkins, and the company raised $200 million.

There is no word on which investors would be part of the private round of funding that Twitter is apparently seeking this time around.

The huge jump in valuation is likely a result of Twitter honing its advertising revenue and maturing as a network. A year ago, Twitter had just launched its Promoted Products to a small beta test group of just six advertisers; now they serve over 600. In 2010, Twitter made $45 million in revenue; in 2011 it is expected to make $150 million. And although this $150 million is roughly one 47th of Twitter’s valuation (if the $7 billion is on the mark), it looks like it’s the start of something big for everybody’s favorite microblogging service.

A Twitter spokesperson has declined to comment on the financials at the company.