Photo: Ryan King
Twitter just scored a $200 million investment from Kleiner Perkins and friends at a $3.7 billion valuation. And that’s great news, but there is a downside worth mentioning.The competition for talent in Silicon Valley is fierce, and Twitter just put itself in a weaker position to fight for it.
Because the deal raises Twitter’s valuation by ~3X, we can imagine it might be harder going forward for Twitter to entice new recruits with stock. There just isn’t as much upside anymore. Facebook, which also took a similar late stage investment, was able to overcome this challenge with ridiculous revenue-growth in the past year. We haven’t seen any signs of that happening from Twitter.
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