Twitter receives record $800m investment

2 Aug 2011

Twitter has something to tweet about: the microblogging site has secured an investment of US$800m, which values the company at US$8bn.

The record investment comes from Digital Sky Technologies (DST), the investment firm that funded social networking site Facebook two years at a valuation of US$10bn.

The US’ National Venture Capital Association has said no company had ever received US$400m in a single financing round, making it the largest venture finance injection in history, the San Jose Mercury News reported.

DST invested US$400m for a 5pc stake in Twitter with a separate group of investors led by the US financial services companies T Rowe Price Group Inc and JPMorgan Chase and Co, adding another US$400m, the Financial Times reported.

Half the investment is to be used to buy back shares from current employees and the other half would go towards issuing new shares. Twitter said it would use the funds for innovation, the hiring of additional staff and international expansion.