Anytime you raise capital by selling shares of your company, you're doing so because you believe with that money you can make your existing shares worth more, in some reasonable amount of time.
With this infusion of cash they can now expand much quicker and, in turn, increase the overall value of the company. The goal when taking VC/investor money is to either raise your remaining shares' value by more than the money taken (even better: more than you would have increased it without the capital), take some cash for yourself, or some mixture of both.
It works both ways. The folks buying the shares believe that Twitter can put that money to good use, thus increasing the value of the shares they've purchased.
While it's easy to hate Twitter because their idea is so simple, yet profound, and because you personally aren't involved with them, they have a lot of options ahead of them and their growth is phenomenal.
Finally, it's easy to criticize when you're not putting your own money on the line. VC's, if they want to stay in the business, need to put their money where their mouth is. They wouldn't invest such huge amounts at a high valuations unless they thought it was worthwhile. They likely demanded details on plans for profitability, and/or know a lot more about what's going on than you (or any of us) do.
With this infusion of cash they can now expand much quicker and, in turn, increase the overall value of the company. The goal when taking VC/investor money is to either raise your remaining shares' value by more than the money taken (even better: more than you would have increased it without the capital), take some cash for yourself, or some mixture of both.
It works both ways. The folks buying the shares believe that Twitter can put that money to good use, thus increasing the value of the shares they've purchased.
While it's easy to hate Twitter because their idea is so simple, yet profound, and because you personally aren't involved with them, they have a lot of options ahead of them and their growth is phenomenal.
Finally, it's easy to criticize when you're not putting your own money on the line. VC's, if they want to stay in the business, need to put their money where their mouth is. They wouldn't invest such huge amounts at a high valuations unless they thought it was worthwhile. They likely demanded details on plans for profitability, and/or know a lot more about what's going on than you (or any of us) do.