We’re hearing from multiple sources that private social network Path is raising a new round of funding that could value the company as high as $1 billion. According to one source, the company is in the process of seeking between $75 million to $100 million in financing and is aiming for the aforementioned number as a valuation.
We hear investors are approaching Path after a period of high growth, but as of yet no one has tossed out a valuation number or an amount that has stuck.
These reports come amidst controversy surrounding Path’s growth tactics and rumors that it is seeking an acquisition (which could still be the case as an alternative to raising more money). To date, Path has raised nearly $42 million in funding from VCs like Kleiner Perkins, Index Ventures and Redpoint among many others.
Path, which now has 12 million users, was founded in 2010 and is led by former Facebooker Dave Morin. The startup has had a frenzied past few months. The company’s app was accused of spamming users, had its hand slapped by Facebook and was forced to pay an $800,000 fine to the FTC over uploading user address books in their entirety to its servers.
Last year, Path raised $30 million at a $250 million valuation, so $1 billion is a pretty big jump for the social network. Google offered over $100 million for Path back in 2011, but Morin famously turned down the acquisition in favor of raising more money.