• by Laurie Sullivan  @lauriesullivan, September 26, 2009

Twitter reported Friday that it has closed a "significant round of funding." Insight Venture Partners, T. Rowe Price, Institutional Venture Partners, Spark Capital, Benchmark Capital, and Morgan Stanley made the investments, cofounder Evan Williams wrote in a blog post.

But new money doesn't necessarily mean new traffic. Internet research firm Hitwise took a look at Twitter traffic to see if the visitors match the hype. Hitwise General Manager for Global Research Bill Tancer in a blog post shows traffic to Twitter as a percentage of overall U.S. Web visits peaked in April. Since then, the number of Web searches for Twitter has slowed.

While the San Francisco-based Twitter did not disclose financial details, reports across the Internet on Thursday suggest the company had raised around $100 million at a valuation of $1 billion.