Posted September 24, 2009 1:41 pm by with 0 comments

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Twitter iconThe Wall Street Journal is reporting that Twitter is on the edge of raising another $100 million in VC from around seven investors. Just last week the scuttlebutt was that this round was going to be in the range of $50 million but hey, what’s an extra $50 million amongst friends, right?

The Journal reports

Twitter, the messaging web site that has become an Internet sensation, is nearing a deal to close as much as $100 million of new funding from as many as seven investors, according to people familiar with the deal.

The investor group includes mutual fund giant T. Rowe Price and private-equity firm Insight Venture Partners, which are new investors to Twitter. The $100 million investment is about twice as much as Twitter was reportedly expected to haul in this latest round of fund-raising.

Other investors in this round include venture-capital firms Spark Capital and Institutional Venture Partners, which have previously invested in Twitter.

Of course, the valuation is what everyone is interested in and it looks like the $1 billion mark is the one that has stuck for now. All of this activity once again will stir the “How will Twitter make money?” pot but that probably needs to be answered sooner than later, don’t ya think?

They must have something planned because one would hope that the days of investing in a great idea without any real revenue potential are long gone. I guess stranger things have happened but there must be something that is compelling enough to generate that kind of investment.

So go ahead, Pilgrims, give us your Twitter will or will not make money scenarios. What can they do to merit the $1 b valuation? In five years will Twitter be a rockstar or a footnote in the evolving Internet industry?