Twitter Flutters With New Money

Twitter has been one of the most over hyped web 2.0 companies out there. They have failed to create anything that resembles a business model and have only convinced the technorati to be users. I wrote in earlier post that Twitter would be dead or bought in 2009.

Now Twitter is raising more money to keep afloat after turning down a rumored $500 million offer to be bought by Facebook. Twitter’s new valuation is $250 million and IVP has given them $20 million. This should keep the lights on a little longer as they try to scale their user base and find a business model. Erick Schonfeld of TechCruch, pointed out that Twitter’s user base is growing fast and by some metrics Twitter passed Digg in number of users. Regardless, Twitter is destined for the dead pool or it will get bought by either Facebook, Microsoft, or Google. There is nothing they have which is a real competitive advantage. Twitter is nothing more than a feature in someone else’s product.