Twitter Is Worth HOW Much??

F My Life: It's Funny, It's True, Except When It Happens to You

: Image via CrunchBase

Twitter looks to be dipping back into the venture capital market.

Having just turned down a $500 million acquisition bid from Facebook, they've just signed a term sheet with at least one venture fund to raise a new round at a $250 million valuation.

It's believed that they've just raised around $25 million.

Yep, a company that has never made any revenue has been valued at $250 million. That's $250 MILLION.

, which just recently turned down a half billion dollar acquisition offer from Facebook (albeit to be paid mostly with Facebook stock), is dipping back into the venture capital market, we’ve heard from a source with knowledge of the deal. They’ve signed a term sheet with at least one venture fund to raise a new round at a $250 million valuation. We are still gathering information on how much they’re raising and from whom.

It’s likely they’ll raise more than the $20 million in capital they’ve taken in over two previous rounds. Their last round, raised in June 2008, was a $15 million raise from new investors Spark Capital and Bezos Expeditions. Union Square Ventures and Digital Garage increased their previous investment.

Rumor is Twitter hit up more than a few venture firms to pitch the $250 million valuation, and got more than one “no.” But someone’s bit, perhaps encouraged by Twitter’s breakneck growth and the interest from Facebook. That means Twitter gets a new cash injection and time to figure out its business model at an even more leisurely pace.

Their last round of capital, raised in June 2008, was a $15 million raise from Spark Capital and Bezos Expeditions. Union Square Ventures and Digital Garage increased their previous investment.

Twitter likely hit up more than a few firms to pitch the $250 million valuation and got a few no's in the process. Someone took the bait, however.

Let's see what they can do with it. Hopefully, they will learn how to make some money, other than by going out and getting venture capital.

Exclusive Twitter report - get it now