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Category: Money

Twitter-y Startups Found Tiresome by Venture Capitalists

Written on September 07, 2010 by Rudfer Tyron

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Drastic drop: Investment financing on pure-play Twitter startups reached its lowest this year, an indicator of resignation from venture capital firms.

Here are the stats: In the June 2008-May 2009 time frame, and angel investors spent $21.6 million for . The figure fell to $10.4 million in the June 2009-May 2010 time span. What could have caused this dramatic decrease?

Research firm CB insights attributed this episode to a number of theories including “feeling of uncertainty by application developers and investors alike about the direction Twitter will go” and the analysis of the real role of startups in creating products for Twitter.

Twitter’s control left other platforms on an uncertain ground, as developers’s products could be packaged as part of the core offering. Not to say that Twitter wanted only the profit for themselves, but the startups should look further into their role in the ecosystem Twitter built, and do something more innovative to mitigate the risks.

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