Twitter is with Facebook, Groupon and LinkedIn, one of the divas if the web 2.0. This morning, I read about a new rumor that the start-up received a new investment valuing Twitter at $4.5B. Twitter has already raised more than $250M and the latest valuation was $3.7B for only $45M in revenues in 2010 with 300 employees. If this is true, Evan Williams, Jack Dorsey et Biz Stone, the 3 founders, are already wealthy, all the more that it seems that some of the investors did not buy new shares from the company, but existing shares from management and employees.
I tried to read the crystal ball and guess how the shareholding is structured. Given the number of unknown parameters, I am probably quite far from the current status, but, thanks to a simple analysis of the financing rounds, a standard stock option plan and a quora article on the founders, here is the result:
The rumor was wrong, there is no new investor at $4.5B (see How Chris Sacca And J.P. Morgan Acquired 10% Of Twitter Via Huge Secret Secondary Fund http://techcrunch.com/2011/02/27/jp-morgan-twitter-chris-sacca-10-percent-secondary)
Thanks for your contribution and I will use it for my work research that I am doing for this website.
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