Twitter hears static from SoundCloud. Under former CEO, Mike Gupta, Twitter set up a very small venture capital operation two years ago. Then last year, Twitter placed a very large bet on SoundCloud. At the time, SoundCloud closed a funding round that valued the company at $700 million.
SoundCloud is rumoured to be running out of cash after Spotify decided against making an acquisition in December 2016. Troubles at SoundCloud could eventually impact Twitter’s private company portfolio. In recent filings, Twitter’s portfolio companies were valued at $90 million at the end of last year.
In today’s latest 10-Q, Twitter reported its current investments in privately held companies, or its corporate venture capital investments made through Twitter Ventures.
Investors may be interested due to the size and timing of the investments; especially given Twitter Ventures recent activity.
At the end of last year, Twitter Ventures had investments in private companies totaling $14.2 million. A modest amount considering the corporate venture capital units of other tech companies such as Intel Capital and GV (Google Ventures).
By the end of June 2016, Twitter Ventures had invested $76 million and now its portfolio totals $90.2 million. In the last six months, Twitter Ventures had only one major investment: SoundCloud.
Now based on Twitter’s recent disclosure, the actual SoundCloud investment was $76 million; which is higher than the $70 million reported last month by numerous news outlets.