Twitter VC Laughs at the Idea that Twitter Has No Business Model

Todd Dagres, founder of Spark Capital and one of the VCs that poured an additional $35 million into Twitter recently, finds it amusing when people talk about Twitter’s lack of a business model.

“We think it’s kind of funny,” Dagres recently told Innovation Economy. “We know how we’re going to do it, and we’re very confident about how we’re going to do it, and it’s not necessarily in our interest to tell people how we’re going to do it.”

Dagres, who claims that Sparks and Union Square Ventures are the two biggest shareholders in Twitter, said that there is a business model – it just hasn’t been implemented yet. But he did provide one clue. “All of a sudden there will be some changes that won’t undermine the experience or the vitality — but it will be pretty obvious how we’re going to monetize it.”

While there has been much speculation about Twitter’s business model, or lack of, could one of the changes that Dagres talks about include the “suggested friends” feature we discussed here on ReadWriteWeb last month? It certainly fits the description.

Like all good things, it has taken time, but fortunately, the wait shouldn’t be too much longer. Although Dagres pointed out that they are in “no rush” to generate revenue right now, he said it is definitely a project for 2009.

On a similar note, if you missed Evan Williams’ talk at TED: How Twitter’s spectacular growth is being driven by unexpected uses, watch it below. Who knows, it may just provide a few more clues about Twitter’s future plans and long anticipated business model.

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