Twilio Is Raising A Series D Of Around $50M

Posted: May 11, 2013 in GT, Venture

I’d been hearing whispers as of late that Twilio is
meeting with VCs to raise another round, and I just
got the good word from a very, very solid source. I’m told that Twilio is in the process of raising a
Series D, with a goal of raising around $50 million. The talks are still rather early on. In fact, when I first
got wind of the round last week, the first folks I asked
were shocked that we’d already heard about it. At this
point, it sounds like Twilio is aiming to close the
round within the next 2 to 3 weeks. The total amount
raised might change by then, but $50M is the current target. Wondering what the heck a Twilio is? Twilio lets
developers easily build things that require phone
functionality. Want to build a customer service line
with menus narrated by Morgan Freeman? Sure (note:
bring your own Morgan Freeman. Also, someone
please do this. I’ll totally write about it.) Want to build a tool that’ll text you the second Netflix’s Arrested
Development revival season goes live? Already done.
If you need to programmatically do something that
goes down over the phone — be it SMS, voice calls,
or VoIP — Twilio can probably do most of the leg
work with just a few lines of code. Twilio is actually one of my favorite companies in the
valley right now, for at least two reasons: they make
a damned cool product that in turn enables other
damned cool products to be made, and very few
people seem to realize how well they’re doing. While
their CEO Jeff Lawson seems to prefer keeping their financials hush, every whisper I hear about the
company suggests that they’re quietly kicking ass. Amongst other good signs: the company is hiring like
mad, to the point that they just (as in, this week) had
to move into a much bigger office. They actually
couldn’t find a ready-to-go office in SOMA with
enough space for their growing team, so they spent
the better part of the last year retrofitting a spot on Harrison Street that once served as a paper/textile
factory. Twilio has raised $33.5M to date, having most
recently closed a $17M Series C at the end of 2011.
If they successfully raise $50M, it’d be an injection
roughly 1.5x larger than everything they’ve raised so far. When I first started digging around this story, no one I
spoke to could seem to agree on which VC firms were
involved. Turns out, Twilio is just talking to a lot of firms. Two names that seem quite certain to be in
talks at this point are Union Square Ventures and
Bessemer Venture Partners — which makes sense,
as USV has been re-upping with Twilio since their
Series A, and Bessemer has supported them since
their Series B. Keep an eye on these guys, if you’re not already. If
things keep going as they are, I’d bet on them going
public within the next year.


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