TechCrunch is reporting that Twitter has raised more funds, this time with a $250 million valuation. Last fall, Facebook was said to have made an offer to buy Twitter worth as much as $500 million.

That certainly would be a boon for Twitter, which until now has not shown signs of a viable business model to the world.  However, it seems the valuation is certainly based on future potential for monetization of its users and that Twitter has managed to show investors enough of a structure of a business model to loosen up the money.

Robert Scoble put the announcement in perspective “That means that if you are one of the six million people on Twitter that you’re worth $42.”  (Jeremiah Owyang was quick to point out “Assuming all six million are active – the valuation is more like $73).  Kind of rich for an open source platform – unlike Linkedin which sells out premium services that allows users greater access to data/users – Twitter has an API and a whole lot of spin off applications (sponsorships, advertising, friend harvesting have all been mentioned as possible revenue streams).

Congrats to the Twitter team - If you’d like to follow me at Twitter -  www.twitter.com/tmaduri