Aren't they afraid that if Twitter fails their investments will fail as well? I mean Twitted is enough of a risk as it is but something based on it is already starting as a multiple of that risk.
It's a risk, but it's pretty easy to diversify. For Tipjoy and I'm sure for others, it isn't about betting on Twitter -it's just organicly pursuing what is working better than other things.
It's not just Twitter, it's Bubble 2.0 TM. Everyone seems to think if you have the words 'cloud' and 'social' in your business description then money just magically appears. I can't wait for investors to wise up so we can get back to some form of reality.
Aditya - Thanks for the comment. You're right that we did not include acquisitions in the numbers as we were primarily interested in investment into these startups.
If there any specific startups based on Twitter that you can point us to, do let us know? We'd like to ensure that the list is complete.
To further clarify, we included companies that have been funded by Angels and VCs in the analysis, not acquisitions. Summize received funding from VCs before it was purchased by Twitter. Thus, Summize's VC funding was included but its acquisition was excluded. I hope this eliminated confusion.