Snapchat Gets Valued At $10 Billion
The market is always filled with new speculations which are termed as ‘market bubbles’
because they have stark deviations from the logical stock values. The recent valuations of the
technology start-ups highlight a unique trend among the capitalists who raises the valuation
of the companies which are yet to generate any revenue with their investment decisions.
Earlier this year the acquisition of the WhatsApp by Facebook for $19 billion was amazingly
higher than the American Airline and Harley Davidson. Similarly the popular social media
messaging app was valued at $10 billion after a robust investment by Kleiner Perkins.
Large Investment Boosts Valuations
In the latest round of generating investments, one of the renowned venture capital firm named
Kleiner Perkins Claufield and Byers agreed to give a boost of 20 million in Snapchat. This
resulted in valuing the company at $10 billion. Snapchat is a photo-video messaging app
which enables the users to share their pictures and videos with other users for designated time
period which ranges from 1 to 10 seconds. Despite the concerns that this app might promote
sexting which involves the texting with sexual images, investors are actively pumping in the
money. Furthermore the media content shared on its platform doesn’t genuinely disappear
from the user’s device rather it remains hidden from them.
Valuation Takes Snapchat To Big League
This valuation promotes the Snapchat among one of the most valuable private tech start-ups.
Its co-founders Evan Spiegel and Booby Murphy are Stanford University mates and they are
set to join the Silicon Valley’s elite group of young billionaires. Interestingly Snapchat has
not generated any revenue since its inception though the founders are actively thinking on
introducing an advertising campaign on its platform.
The Snapchat spokes person had humbly declared that the valuation of their business and
their capital requirement are least exciting aspects of supporting the Snapchat community.
Snapchat Growing Popularity Set To Increase Further
Snapchat is a mobile application provides self-destructing photos and videos messaging
service which is designed to save the users from worrying about their digital content which
remains on the web for a long time. It is highly popular among the teenagers which are a key
demographic for the advertisers. Snapchat allows the users to send and receive photos and
videos which ultimately gets deleted after a short time span.
Snapchat had made a bold attempt when it rejected the $3 billion cash offer from Facebook
in buyout in 2013. At that time Snapchat was valued at $2 billion.
Future Prospects For Snapchat
Currently Snapchat has 100 million active monthly users as well as it remains in the top 20
apps on the pouplar App stores. It has also become the third most popular mobile app among
the smartphone users, only after the social media giant Facebook and Instagram according
to the ComScore. Snapchat is also strengthening its app platform to answer the privacy and
security concerns raised by the authorities and users alike. It will be unveiling an advertising
feature titles ‘Snapchat Discovery’ which would provide valuable content for its users on its
app in a convenient way.