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February 13, 2009 11:09 AM PST

Twitter's Valentine's surprise: More funding!

by Caroline McCarthy
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Forget flowers and chocolate. Valley darling Twitter is going to have a really sweet Valentine's Day. The company announced Friday that it has added some more cash to its most recent round of funding, thanks to an infusion from Benchmark and Institutional Venture Partners.

The deal just closed on Thursday night, according to a post on Twitter's official blog. But the team at Twitter, which has not yet put forth a business model, hopes to make it clear that they weren't desperate for cash.

"We weren't actively seeking more funding because significant capital from last year's partnership with Bijan (Sabet) and his team at Spark (Capital) is still in the bank," the post by co-founder Biz Stone read. "Nevertheless, our strong growth attracted interest and we decided to accept a unique opportunity to make Twitter even stronger with a very attractive offer."

Financial terms weren't disclosed in the blog post. The Silicon Alley Insider said they've heard $35 million from Institutional Venture Partners. We're looking into this; we heard that the company's valuation, meanwhile, may be as high as $250 million.

But wait! It sounds like money's on the way, even though Twitter just keeps raising more venture capital. "We are now positioned extremely well to support the accelerating growth of our service, further enable the robust ecosystem sprouting up around Twitter, and yes, to begin building revenue-generating products," Stone's blog post read. "Throughout this year and beyond, our small team will grow much bigger to meet the challenges and opportunities ahead."

Twitter raised its third funding round, led by Spark Capital, last spring.

This post was updated at 11:33 a.m. PT.

Caroline McCarthy, a CNET News staff writer, is a downtown Manhattanite happily addicted to social-media tools and restaurant blogs. Her pre-CNET resume includes interning at an IT security firm and brewing cappuccinos. E-mail Caroline.
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About The Social

CNET News' Caroline McCarthy is a downtown Manhattanite who believes that, despite popular opinion, the Web can actually help your social life. She's happily addicted to fun social-media tools from Twitter to Yelp to Facebook, sends an inordinate number of text messages, and has a tendency to waste time at the office reading restaurant blogs. Here, she explores all facets of the Web's gregarious side, as well as the unique tech culture in her home city of New York. (Don't call it Silicon Alley.)

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