Twitter – Reasons for being an Investors Choice
Twitter, one of the hottest free social networking platforms in the web, has evolved to be the first choice when it comes to micro-blogging. Just like a tweet which is restricted to just 140 characters, Twitter was launched with a minimum required capital. From that kick start, Twitter succeeded in raising sufficient funds for operation from venture capitalists, partners and investors.
Why Twitter?
Within years, Twitter has jumped to a $1 billion company. The most recent one was a $100 million funding to aid the explosive growth of the company. Twitter is backed by majors like Spark Capital, Benchmark Capital and Institutional Venture Partners who understand the huge potential Twitter can bring about once it launches it online marketing and advertising strategies.
Why should people be interested in investing in a social networking company which was just launched a couple of years ago? The answer to this would certainly point out the new business strategies achieved through online networking and blogging.
Twitter has immense potential in getting information out during emergencies. Any local disasters, accidents etc are very quickly communicated between the followers. Twitter finds its application in sending updates and news on any important incidents which are eagerly monitored by the public. People who tweet and follow fellow tweeters are an untapped marketing base. Social networking platforms are the best place for advertisements, and Twitter is the new find.
Twitter- An online necessity?
Since Twitter is growing at a good pace, there are speculations that it may be bought over by any giants like Yahoo Inc or Google Inc. Not many start-up companies get funding from established mutual fund investors like T Rowe Price, but Twitter has achieved it. Does that point out to a case where Twitter’s next move is in public offerings? Just a speculation, but it adds more value to Twitter.
Investors know, Twitter offers a play ground with acceptable risks but higher returns. The ever increasing visitor database proves that Twitter will do the business for tomorrow. The member database has increased more than fifteen times in last one year to turn Twitter into a multiple audience platform for any kind of advertisements. When many start-up companies are struggling to raise capital, Twitter enjoys enough financial backup as they spread and multiply over the web to convert themselves as an online necessity.
