Wondering How Hot Twitter Is? Ask The VC’s.

TechCrunch reported this week that Twitter will soon be joining a select group of startups with private venture round valuations of $1B (yes, as in “billion”).

Twitter raised $35M+ earlier this year led by Benchmark Capital (zipRealty, business.com, handspring/Palm, shopping.com) and Institutional Venture Partners (TIVO, mySQL, business.com).

Sources tell TechCrunch that Insight Venture Partners (early investors in Photobucket) will be the lead investors in the new round of money.

The big money says you better be paying attention to Twitter because everybody else will be soon.