Twitter new source of funds for start-ups

New York, June 29: Coming as a shot in the arm for fledgling businesses, the US Securities and Exchange Commission has given its nod to start-ups for using the social network to drum up interest in future stocks and debt offerings, engadget.com reported.

Though this would only work for small companies raising less than $50 million per year, the move would go a long way in helping young companies get funding when many venture capitalists thrive online, the report said.

While this probably won't be a make-or-break matter for many companies, it shows that the Securities and Exchange Commission (SEC) is aware that stuffy official filings will only get you so far in the internet era, it added.

Nevertheless, it is exciting to think that a 140-character Twitter spiel may be enough to jumpstart the next tech firm that may eventually grow very big, the report observed.

IANS