Last Year's Rank / Valuation: #5 / $8 billion
Business: Messaging, microblogging and social networking service
Location: San Francisco, CA
More Info: About Twitter
CEO: Dick Costolo
Investors: Last summer, Twitter raised $800 million in two rounds: one from existing Twitter shareholders and one led by DST, both at an estimated $400 million valuation. Other investors include Charles River Ventures, Union Square Ventures, Marc Andreessen, Dick Costolo, Naval Ravikant, Ron Conway, Chris Sacca, Bezos Expeditions, Spark Capital, Digital Garage, Kevin Rose, Tim Ferriss, Benchmark Capital, Institutional Venture Partners, Insight Venture Partners, T. Rowe Price, and Morgan Stanley (nice IPO leverage).
Analysis: Twitter has been growing very quickly both in terms of users and revenue. Its revenue for 2011 was $139.5 million and it's expected to generate about $350 million this year. Twitter has said it expects its revenue to jump to $1 billion in 2014.
While its valuation has been as high as $10 billion, we're living in a post-Facebook world. We give it a 15X multiple on revenue for a $5.25 billion valuation.
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