Turns out, Twitter’s value and extreme success have not only benefitted the company itself and its investors, but have created a trickle down effect to other tech start-ups.
A Reuters report featured on Yahoo News details some of the major investors in Twitter, and what new companies they have shown interest in since.
Bijan Sabet for example, is the partner at Spark Capital who led the 2008 investment in Twitter. According to the report, Twitter was then valued at $100 million. At the time of the IPO in the beginning of November, Twitter sought a valuation of up to $13.6 billion.
Now Spark has invested in the mobile app Lift, and another mobile-based company, Jelly.
Other companies who saw potential in Twitter were Floodgate Fund, Charles River Ventures and Union Square Ventures. The new – and relatively unheard of – start-ups these companies have taken interest in include Lyft, Taskrabbit, Pebble and Udacity.
While the investments in Twitter have definitely paid off, it’s hard to imagine another company being so successful at the time of its IPO. There is also talk that this influx of investing in tech companies may lead to a repeat of the dot com boom.
After all, though Twitter is valued at over $13 billion, it has yet to turn a profit. Hmmm.