maybe we can arrange a 3 way-Why Investors Are Interested To Invest On Snapchat?

Snapchat became the most sensational app in just a limited time of two years. Its popularity

with the teenagers and the engagement of the teenagers in the social networking app made it the

most suitable investing ground for the investors worldwide. Snapchat apparently has no source of

generating revenue. It serves as the platform for the teenagers to share the fun of sharing photos

and videos that self-destructs itself within the stipulated time. Still it managed to attract many

investors worldwide like IVP. Snapchat officially announced IVP as their leading investor.

Why IVP invested on Snapchat?

IVP is one of the leading investors of the world who are famed to make only 8 to 12 investments

in a year. Then company generally invests on organizations that generate 20 to 100 million

dollars in a year. Now, the question that inevitably comes up is that why investors like IVP are

interested to invest on Snapchat even when it has not yet started off the monetization engine. The

probable reasons for which Snapchat is becoming popular with investors are as follows:Maybe We Can Arrange A 3 WayMaybe We Can Arrange A 3 Way

• Mobile platform: The reason why IVP chose to invest on Snap chat is may be because

of the wide popularity of the mobiles and tablets than the PCs. Snapchat becomes the

app of this generation which prefers to replace PCs with mobiles and platforms for

computing. So, it is obvious for a company like IVP to invest on a mobile-based app.

• User engagement: The next USP of Snapchat is probably the statistics of user

engagement. It is surprising to note the momentum it got within a couple of years of its

inception. It gained more engagement than many of the popular social networking sites

which is further increasing day by day.

• Unique concept: This generation of social networking users prefer to snap than to text

and Snapchat provided them a unique platform to snap and text with the feature of self-
destructive Snapchat photos that disappears within a few moments.

• Viral app: The founders of Snapchat came up with the idea of this unique app which has

set the app world of the teenagers on fire.

• Effect of the network: Investors find the ripe grounds of social networking apps worth

of investing as more and more people sign in to it day by day in order to build their

network. The investors know the advantage they can have from this network effect.

Just like other social networking sites, Snapchat never fails to increase its fan base and

investors know the potentiality of that fan base which increases like a chain reaction.

• Big opportunities: investors will surely like to invest in companies with the most

talented base of employees. Snap chat managed to hire some of the most capable young

engineers of the country with the lure of working with the cutting-edge technologies to

initiate something new and unique in the world of mobile apps.

To sum up

Investors prefer to invest on companies with elite entrepreneurs and the company at its hyper-
growth stage. Undoubtedly, Snapchat has managed to obtain this status and eventually became

the Mecca for the investors.

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