Twitter moves towards IPO with another round of fundraising

Twitter has announced that it has received significant funding led by Russian venture capital firm Digital Sky Technologies.

Twitter has announced that it has received significant funding led by Russian venture capital firm Digital Sky Technologies (DST), which has previously invested heavily in social networking firm Facebook.

The micro-blogging site made the announcement in a company blog post, but did not provide details of how much it has received from DST Global and other existing investors.

In recent weeks reports have been circulating that Twitter was working on a round of investment that would value the private company at about $8bn, according to the San Francisco Chronicle.

VCExperts, which monitors the venture capital community, said last week that regulatory filings showed Twitter was issuing 24.8 million shares of preferred stock valued at $16.09 per share.

Sources cited by the Financial Times claim DST has invested $400m for a 5% stake in the company, with US mutual fund T Rowe Price and an internet fund managed by JPMorgan leading a group of other investors.

The soaring value put on the loss-making concern are the latest indication of how rapidly the stakes have been rising for investors in latest round of consumer internet companies, the paper said.

Twitter, which has more than doubled its workforce to over 600 in the past year, said it would use the latest funding to innovate, hire more people and invest in international expansion.

The firm also confirmed that it has opened an office in New York and has added Dutch and Indonesian to take the number of available languages up to 11. It plans to add another two languages shortly.

Pundits say this latest fundraising could be the last before Twitter goes public, but that is not expected before 2013.

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