An estimated $35M has been injected into Twitter, the fast-growing microblogging service, in Twitter’s latest VC round.  The funding comes from Benchmark Capital and Institutional Venture Partners according to Biz Stone on the company’s blog.

According to Stone, Twitter’s active users have increased 900% over the past year.  Traffic through the APIs has been amazing and are said to be twice the web traffic to Twitter, Twittering via SMS is becoming more and more popular.

With the VC injection, Twitter’s 29 person staff and infrastructure will grow to support the incredible growth and build revenue-generating products.  There has been a lot of speculation about how the service will eventually make money, but so far the company has declined to comment on exactly what it will do.

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