Snapchat Receives A Poke of $13.5 Million From Venture Capitalists
Snapchat is a popular social media app which is designed to allow the users to send and
receive pictures and videos which self-destructs after a certain time interval. Snapchat app
is giving direct competition to the social media giant Facebook’s app called Poke which
seems have failed generate interest among the targeted audiences. Snapchat had raised a
$13.5 million from Series A funding round led by the Benchmark Capital’s Mitch Lasky.
Benchmark Capital has valued Snapchat at $60milion to $70 million.
Venture Capitalists Understands The Potential Of Snapchat
Interestingly Mr. Lasky learned about this app from his teenage daughter. He got curious to
hear the Snapchat app in the same context of Twitter, Instagram and Facebook. Mr. Lasky
had also suggested that the ephemeral nature of the app is a blessing in disguise for the users
as it allows them to live free without the worry about their digital self that lives on forever.
Snapchat app provides a real way of communicating. Snapchat helps the users in projecting
a real self rather the projected self which helps in rendering an authentic experience.
Despite Controversies and Concerns Snapchat Woos Investors
Snapchat growth is marred with continuous controversies like the ‘FindFriend’ feature
which disclosed the numbers of the owners, photo leakage and settlement wherein it agreed
to be monitored by the independent authority for next 20 years over privacy intrusion
concerns. Even with all these unwanted controversies Snapchat had not doused the interest
among the investors surrounding its messaging app which transcends the basic SMS in
This giant funding of $13.5 million was first reported by The New York Times and Tech
Crunch. Later on Snapchat CEO Evan Spiegel confirmed this funding on Friday evening.
Benchmark Capital had also been one of early backers of the Instagram.
Snapchat Gets Bigger With Each Passing Month
According the Nielsen statistics about 60 million photos or messages is sent per day on
Snapchat. Just in the month of December Snapchat had grabbed 3.4 million users in
December which more than double of November tally. Snapchat had also introduced videos
on its messaging platform in December which self destructs in same way as the photos.
Recently Snapchat also introduced new and media content along with ads on its platform in
order to generate revenue.
Far Ahead Of Rival Apps
Venture Capitalists are extremely ambitious and optimistic bunch of investors who are
keeping eyes peeled for the next Facebook or Instagram. Facebook had bought the Instagram
recently and it has also made an attempt at buying out the Snapchat for a whooping $3
billion which was simply rejected by the Snapchat founders. Snapchat is making waves in
the app market, currently in the Apple’s App Store it ranks at no.22 while Instagram is at 19,
Facebook messenger at 29 while Twitter Vine is at 42. But Facebook’s Poke app is not even
the top 200 lists which show that Snapchat is far ahead from the rivals and this funding is
just icing on the cake.