Retweet This: Twitter Raising $50M at $1B Valuation

Forget learning how to increase your Twitter followers ten-fold. What I want to know is how is it that Twitter supposedly is raising $50 million in venture capital at a $1 billion valuation?

TechCrunch reports that Twitter CEO Ev Williams spilled the beans about the funding during an all-hands meeting at the San Francisco HQ of Twitter.

What surprises me most, apart from the large valuation, is that I thought the company already had raised plenty of cash and had gobs more stashed away in its nest.

If you’ll recall, in February, Twitter raised $35 million in a Series D funding round from Benchmark Capital (which provided $21 million) and Institutional Venture Partners ($14 million).  In addition, Twitter raised a still undisclosed amount of capital from previous investors Spark Capital and Union Square Ventures, at a valuation of about $230 million. At the time, colleague Dan Primack reported that Twitter was expected to have more than $50 million in cash on hand, which included some old VC money that has not yet been spent.

Stay tuned. I’m certain peHUB will have more on this later.