Two weeks ago we reported that Twitter was mulling over raising a big new round of financing and the expected valuation was in the $3 billion range. Things have developed since then, it seems.
The bidding has gotten more intense from what we’re hearing. Russian firm DST, among others, submitted offers to invest valuing the company above $3 billion, say multiple sources. But the current leader, and likely winner, is Kleiner Perkins, say multiple sources. And the likely valuation when the smoke clears will be close to $4 billion.
Alpha investor and Kleiner investor John Doerr is personally leading the charge, we’ve heard, and is acting something like a dog with a bone that won’t let go. “Doerr wants to own part of Twitter, And Doerr generally gets what he wants” says one person with knowledge of the negotiations.
Is the deal done? No. Another investor could step up with an even higher valuation, forcing Twitter to make a difficult (even legally difficult) decision to pass on Kleiner. But as things stand right now, our understanding is Kleiner is in the pole position on the round, and unless something dramatic happens, they’ll soon be an investor.
This fits in neatly with Kleiner’s push to invest in the “third wave” of technology disruption. See his April guest post here on TechCrunch for more details on how they’re thinking about their current investment strategy.
Created in 2006, Twitter is a global real-time communications platform with 400 million monthly visitors to twitter.com, more than 200 million monthly active users around the world. We see a billion tweets every 2.5 days on every conceivable topic. World leaders, major athletes, star performers, news organizations and entertainment outlets are among the millions of active Twitter accounts through which users can truly get the pulse of the planet.
Kleiner Perkins Caufield & Byers (KPCB) is a well known Silicon Valley venture capital firm, due in large part to their past success. They were early investors in many significant companies, including Amazon, AOL, Compaq, Electronic Arts, Google, Intuit, Macromedia, Netscape, Segway, and Sun Microsystems. The name of the firm comes from the four founding partners: Eugene Kleiner, Tom Perkins, Frank J. Caufield, and Brook Byers. In March 2008, KPCB announced the iFund, a $100M investment initiative focused on ideas...
John Doerr is a partner at Kleiner Perkins Caufield & Byers. Together with KPCB’s partners, John has backed many of America’s best entrepreneurial leaders, including: Larry Page, Sergey Brin, Eric Schmidt: Google [GOOG] Jeff Bezos: Amazon [AMZN] Scott Cook, Bill Campbell: Intuit [INTU] Andy Bechtolsheim, Scott McNealy, Bill Joy, Vinod Khosla: Sun [SUNW] And the founders of Compaq, Cypress, Macromedia and Symantec These ventures have created more than 150,000 new jobs. In 1974 John joined a small chipmaker, Intel,...