Twitter, the Microblogging site, is in talks for extra hundreds of millions of dollars in financing. This round is expected to value the company at close to $7 billion dollars. In Dec 2010, it got $200m and was valued at about half of this value.
Does it mean that Twitter has appreciated in value within about six months? We do not think so. It is largely the model now where the succeeding tech companies are getting more money with the thinking that if anything goes wrong, they will be the ones that will survive. Watch out for the season of bubble, but only the strong will succeed.
Similarly, we are seeing a lot of tech partnerships as companies create synergies to better position them for competitions. IBM and Cable Wireless Worldwide announced plans to develop a smart energy cloud in Britain. In the same light, Tesco and J Sainsbury have rolled out energy saving services.