Twitter closes massive funding round

Sep 08, 2011

Dan Primack was a senior editor at Fortune from 2010 to 2016. He was also the author of Term Sheet, Fortune's daily newsletter about deals and dealmakers.

Late last month, All Things D reported that Twitter’s recent $800 million funding round was actually two funding rounds: A $400 million direct investment led by DST (already closed), and a $400 million secondary offering for existing Twitter shareholders (in process). Both were at a valuation in excess of $8 billion.

A source familiar with the situation tells me that the above breakdown is accurate, and that the secondary piece has now closed. Some early investors, like Spark Capital and Union Square Ventures, took advantage of the ability to swap in (some of their) shares. Some later-stage investors, like Benchmark Capital and Insight Venture Partners, did not...

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