Felix Investments is setting up a “special purpose” secondary fund to invest in Twitter. The valuation of Twitter connected to this special purpose fund is $4.1 billion. This valuation isn’t too exaggerated when comparing Twitter’s valuation on their venture capital term sheets. When Kleiner Perkins invested $200 million in Twitter last month, the Internet company became valued at $3.7 billion. Below is an e-mail that Felix sent to potential investors [Note: Pipio is “tweet” in Latin]:
We are closing next week on our Twitter fund (Pipio Associates). This stock is series C and it is priced at $22 per share which is an implied valuation of $4.1 billion. That is just $200 million more than the value Kleiner Perkins just put their $150 million in. Our next close after this will be $26 per share. If you do not own stock in Twitter already it is a must. If you already own Twitter you need to add to your position. There are two absolute must have positions – Facebook and Twitter! This is the first Twitter stock we or anyone else has had in the past six months and like Facebook it will continue to trade up in price rapidly!
[Wall Street Journal]