Apparently, Twitter is raising a VC round:
VB: Are you raising a round of capital now?
Williams: We are raising our first outside round.
VB: Can you disclose the amount?
VB: You just starting that round now?
Williams: We are about half-way through the process. We’ve been trying to decide who we want to work with, and we’ll probably be done in the next few weeks.
VB: Why are you raising the money?
Williams: There’s so many pieces of the application that we haven’t really built out yet: simple things like search and being able to find other people in the system are pretty much non-existent at this point.
… but wait. Isn’t raising a VC round the non-obvious thing to do (pun intended) …
In a list of ways that Odeo screwed up Ev adds:
“Raising too much money too early” – Williams seeded the money with $70,000 of his own money, and after the TED excitement added another $100,000. After he tied up over a million in angel funding, a term sheet came through from Charles River Ventures at three times the angel round valuation. They took the money.
… they’ve gone down this path before with mixed success:
Today it emerged that Evan, Biz Stone and the other Odeo folks have acquired the company, buying back the share owned by the investors – Charles River Ventures, Mitch Capor, Ron Conway, Josh Kopelman and others.
I’m not saying that Twitter shouldn’t raise a VC round of course. The right amount of money at the right time can really help a certain class of startups. It just seems a shame that they’re going down this path as Obvious seemed like the anti-VC startup based on past statements.
Ev follows up……… sounds like they’re just looking for the middle path.