Greylock Partners is talking to Meerkat about a potential investment, according to a new report from The Information.
That matches what a source told Business Insider. In addition to Greylock's involvement, the Business Insider source also indicated Meerkat was raising at a $40 million pre-money valuation (another source says $50 million), although we haven't been able to confirm that amount. Greylock declined to offer much insight into the deal when we inquired yesterday. From what we understand, the round is "very verry" over-subscribed with lots of angel investors trying to get a piece of the company.
The fundraise is technically a Series B round, not a Series A or seed, since Meerkat is a spin off of another venture-backed company, Yevvo.
The Information's report states that Meerkat was hounded by venture capitalists during last week's South by Southwest conference in Austin, Texas, and that while "talks are progressing quickly," it is still "unclear where the valuation will land or whether Greylock will win the deal."
Meerkat, a much-hyped live-streaming app that makes it easy for people to broadcast live video on Twitter of what they're doing, has grown quickly to over 120,000 users in just two weeks.
Meerkat has gained widespread acclaim from the media, and while it has yet to have a large impact beyond Twitter users, the app has seen Jimmy Fallon, the BBC, and Ashton Kutcher all begin using the app.
While initially dependent on Twitter for its user information and social graph, Twitter recently crippled Meerkat and limited its access the same day it acquired Periscope, a Meerkat rival that has yet to be released.
In wake of Twitter's limitations, Meerkat says it's actually grown 30% as a result, according to Mashable.
Meerkat CEO Ben Rubin promised that Twitter's imposed limitations would only force the Meerkat team to introduce new features faster to make up for Twitter's loss of support, and the app recently introduced a slew of new features to begin building out it's own social platform independent of Twitter.
Business Insider has reached out to Meerkat for comment on the reported funding talks, and will update this post if we hear back.
More From Business Insider