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Why Snapchat Gained Valuation over the Years?

Snapchat managed to grasp the teenage market and the loyal teen following with its unique

feature that catered to the imagination of the teenagers. The app with its feature of appearing

and disappearing images became the call of the day with its unique features and user-friendly

interface. The app offered enough scope for the teenagers to depict their creativity and give

wings to their imagination. The controversies the app indulged in made the app more popular

rather than declining its popularity. After a couple of years of its inception, the zero-revenue app

attained a valuation of multi billion dollars and the company was courted by a host of some of

the best investors.

Growing valuation of Snapchat

You may wonder that if the app fails to generate any revenue then how can it attain a valuation

of multi-billion dollars and can be courted by investors worldwide. The reason for the growing

valuation of the app is probably the engagement of the teenagers in the app. Snap chat does

not miss a chance to get the attention of the teenagers. The company even endeavors to upgrade

the apps and introduce new features. The constant upgrade of the app is helping it to stay in the

competitive market of social networking apps.

Other social networking apps

Many social networking apps followed the footprints of Snapchat and introduced identical apps

with similar features but it failed to strive in the market or get popular with the teenagers. The

famous social networking site Facebook tried to counter the popularity of Snapchat with Poke

but in vain. Facebook’s Poke failed to have any effect on the teenage market and disappeared

into oblivion. It will take much time and innovation for other apps to surpass the popularity of

Snap chat. The user-friendly interface, the freedom of expression through images and videos

make the app popular and incomparable.

How the app gained its valuation over the years?

The app Snapchat gained its valuation with time as the investors realized the potential of

the loyal following of the teenagers. The only asset of Snapchat is its teenage fan base which

seems to be growing each day. The controversies regarding the social networking app boosted

the interest of the teenagers for the app. The investors looked through the potential market of

teenagers that they can reach through this app. Snapchat discarded its non-monetizing policy and

welcomed the investors to invest in the company. The meteoric rise of the fan base of Snapchat

is the reason the social networking app reached the valuation of muti-billion dollars which seems

to be increasing with the passage of time.

Snap chat was able to capture the teenage market with the app that did not only offered social

networking but allowed the users to snap and share instantly. The stronger user engagement,

the constant growth of the app and the endeavor of Snapchat to introduce unchartered features

signifies that the popularity of Snapchat is here to stay in the future and its valuation will

probably change according to it.

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