Snapchat Raises Another $200 Million for $20 Billion Valuation
Posted on May 23, 2016
Snapchat has reportedly raised another $200 million giving the chat-based social network that relies on photo and video sharing a staggering $20 billion valuation. Facebook once offered $4 billion for the company. The offer was turned down.
TechCrunch reports that Snapchat is in the midst of a new round that will bring in about $200 million in financing. The latest round could be as high as $30.72 per share which would give the company a valuation as high as $22.7 billion. USA Today says Snapchat has raised $1.3 billion in financing to date which is an enormous amount.
The TechCrunch article says Snapchat is basically always raising money because they are getting so many offers from interested investors. Everyone has certainly noticed Snapchat's rise in popularity simply through the number of major brands and celebrities that have started using it. The company says there are over 100 million daily active Snapchatters. The vast majority of the users of the network are aged 34 and under. It is an enormously popular app and community but at this frenzied pace the valuation for Snapchat is going to be exceed the company's revenue earning potential, if it hasn't already.
Snap Chat co-founder and CEO explains Snapchat using notebook paper in this video. He explains how today young people use photographs to communicate. He also explains the concept of "instant expression." Take a look: