Fred shows some VC love for Twitter

by Mathew on July 26, 2007 · 2 comments

File this one under the “No Surprise” heading in the VC database: Fred Wilson of Union Square Ventures, the guy who is probably the most closely identified with Web 2.0 apps — if only because he seems to have one of every kind of Web widget in the sidebars on his blog — has funded Twitter, the micro-blogging service with the 140-character limit.

snipshot_e4197axwj5mt.jpgFor anyone unfamiliar with Twitter, it is like the status update on Facebook but without the Facebook part. It is a quick way of updating people on what you’re doing/thinking/feeling/eating, etc. If you’re Robert Scoble, it’s a way for you to spam thousands of people with details on your every thought and movement (just kidding, Scobie), and there are add-ons like the audio Twittergram and so on that I don’t really know anything about. At the moment, with Twitter and Facebook and Pownce.com and MSN and GTalk and half a dozen other things, I have so many status update services that I’m overwhelmed.

In other words, I’ve pretty much given up, and Twitter now just pushes blog posts out to whoever is following me, and I track some other people’s blog posts the same way. Is it worth investing in? Fred seems to think so (and so do Marc Andreessen and some others), although even Fred admits he’s not sure what the business model is. I’m not sure either.

  • http://www.onlinemediacultist.com Eric Berlin

    Yeah, exactly, “how’re they gonna make their money back?” was the first question to pop in my head when I saw this story.

    Charge businesses for the right to use the service? Put banners on web profiles? Subscription fees for value-added services?

    I love twitter, though like you my usage has dropped way off. And I’m confused as you as to what they will do to build a sustainable business.

  • http://instamls.com Andrew

    Biz model? We don’t need no stinken biz model. Just sell out for millions to a mobile telco in a few months. Now thats the model VC’s love. Fred loves traction and too hear his name in blogland. Well worth a few million. Smart move. I like this investment.

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