Firsthand Technology Value Fund has invested $1.8 million in Twitter on the secondary shares market, purchasing a total of 100,000 shares.
MarketWatch reports that Firsthand’s purchase of the Twitter stock was announced on Wednesday.
Firsthand is a San Jose-based publicly traded venture capital fund, with net assets sitting at about $86 million as of the end of March.
According to StreetInsider, the purchase inspired investors, and sent Twitter’s price-per-share skyrocketing up 2.7% to $27.
Others have made significant investments in Twitter on the secondary market in recent months. Perhaps one of the largest investments was Saudi Prince Alwaleed bin Talal‘s firm investing $300 million for its share of the Twitter pie.
Dick Costolo, Twitter’s CEO confirmed the company’s valuation at $8 billion in October, which is around 50 times its revenue. However, massive valuations like this are more the norm than not when it comes to high-profile tech companies – LinkedIn’s valuation when it went public was about $9 billion.
Twitter brings in the majority of its revenue through selling ads. Early reports suggested that Twitter would bring in only $226 million, but new data incorporating Twitter’s self-serve ad platform targeting small businesses puts that revenue figure closer to $400 million for 2012.
(Stock market image via Shutterstock)
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