Snapchat is an app which lets you communicate and share photos, videos with your friends. The
app was designed and launched in 2011. It has found tremendous success in its nascent years.
The app is available across Andriod, iphone and iOs platforms and is absolutely free and easy
to use. There are options of saving a message or sending something to your friends for a short
period before they are erased within a stipulated time frame. These features have taken Snapchat
leaps & bounds over other similar apps in the market. Now the time has come for the founders of
Snapchat Evan Spiegel and Bobby Murphy to take the next step.
The next step
The success of Snapchat prompted the founders to raise funds and take Snapchat further in the
field of communication. This Los Angeles based company has raised an astounding $80 Million
at a pre- money valuation. According to the founders of Snapchat, the money will be used to
scale up each features of the app and increase its foothold all over the world. Currently there
are approximately 50 million Snaps shared every day. The purpose of raising the money is to
increase the Snaps shared which the young generation of teens and young adults find amazing
because of the self- destructing nature of the messages.
The Billion Dollar Club
After successful funding of $80 Million, Snapchat is now looking at a second fund raising. It
is touted that this funding will take Snapchat at an impressive $800 valuation. However, it is
lower than the expectations. Further, with the second funding, Snapchat will be on a league of
its own. The funding will give enough cover from the internet big- boys to take over. One of the
potential threats for Snapchat is Facebook, but with the current valuation and further funding
spree, Snapchat will be a bridge too far even for Facebook to takeover. According to the venture
capital firm named Kleiners, Perkins, Claufield & Bayers, Snapchat is at an impressive rank 2
in terms of content sharing among users. It is clear that Snapchat can become numero uno with
correct use of the funding. Though, Snapchat is yet to reach the ‘Billionairs Club’ the future is
very bright for the company hailing from LA, USA.
Another opportunity that Snapchat took with both hands was by introducing adverts. Although
this may sound disturbing for the users, in reality, it is not as intrusive as it is in Youtube.
This feature is just one of the many updates that you see in your Snapchat interface and it is
completely upon the user’s discretion to view. One of the very first ads that Snapchat put was
the trailer of movie called Ouija. The users were usually attracted to upcoming movie trailers but
their first experience was spooky as Ouija is a horror movie from the house of Universal studios.
Featuring adverts is a natural way for Snapchat to tread, however, they should remain careful to
scare their users away.
If Snapchat is able to steer clear of controversies like the leaked private photos of the users and
hacking, the future looks very bright. With steady cash flows providing the backbone, the team
has a clear road in front of them to soar to new heights.