It might be because I just watched August last night but this sounds like a very familiar and scary story. In TechCruch yesterday, Erick Schonfeld, interviewed Institutional Venture Partner’s Todd Chaffee about their joint $35M investment in Twitter. After some banter about the high growth rates and ubiquity of Twitter, Schonfeld gets to the meat of the conversation:

Sounds good, but how will it make money? Chaffee is not so worried about that just yet:

I love that here is this cry for revenue generation out of a company not even two years old. Relax, it is coming.

Anybody else hear that pin drop?

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Addition to my earlier post: This comment on the IVP investment in Twitter from today’s peHUB newsletter:

A lot has been made about how IVP and Benchmark bought in at a valuation of between $230m and $250m for a company without a dime in profit. Not nearly enough has been made of the fact that Twitter accepted that valuation, despite having previously been offered around $500m to be acquired by Facebook.

When’s the last time you heard of a venture deal in which the valuation was just half of what the company could get via a trade sale? Nope, I can’t think of one either.

Lots of strange choices and comments coming out of the Twitter ranks. I’m watching this one very closely.