Posted on 05/29/2015 10:38:11 AM PDT by Citizen Zed
Snapchat is at it again, raising even more funding, $650 million in equity, which values the social network at a staggering $16 billion.
It's the latest funding round which has seen the company grow more than 200 times in value since February 2013 when Snapchat was worth only $70 million.
When CEO Evan Spiegel turned down a $3 billion bid from Facebook for his company later that year, many considered it foolish, but now just 18 months later his company is worth more than four times that, according to CNBC. As well as the $650 million raised, Snapchat has reportedly earmarked a further $112 million in stock for a later sale. The new investors include Alibaba, Fidelity, York Capital and Glade Brook Capital.
The company already raised $200 million from Alibaba in March, bringing the total venture capital raised by Snapchat to $848 million.
Earlier this week Spiegel admitted that Silicon Valley is living in a tech bubble fueled by an easy money policy and low interest rates, a bubble he believes will burst. "I think that people are making riskier investments and ... there will be a correction," he told the audience at Code Conference in LA. His company's giant valuation and relatively meager revenue would appear to put Snapchat at the tip of this bubble.
(Excerpt) Read more at techtimes.com ...
Ah yes Hillary is going to be their spokeshole when she sidelined from running
Never heard of it.
Naked selfies are America’s #1 growth industry.
Who knew??
I remember there was some company pushing the video version of twitter. That is, the ability to post really short videos. What ever happened to them?
Vine, i think. 6 sec videos.
It’s mostly teens,”bros”, women, and gays sending stupid photos of themselves with stupid captions.
And this is “worth” something? I suppose like the Angry Birds company was worth a lot as well, until the next fad came along.
when will the over valuation BS stop?...unbelievable...
I don’t see the value in any of these websites. The only “inventory” is a website address and a fickle public that could stop using it and run to the next fad. Remember myspace?
And a billion bucks ain’t want it used to be. In 1992 Ross Perot was a big deal with 3 billion. Now that won’t even get you on the top ten list.
It’s an “encryption” app for complete morons and can be defeated in less than 1 second with a screenshot.
I can’t believe fools pay to advertise to these people...
Vine and it is fairly big, but I don’t see long term revenue potential for most of these services.
“I remember there was some company pushing the video version of twitter. That is, the ability to post really short videos. What ever happened to them?”
VINE was bought by Twitter.
We but high value on what we feel is important.
The fact that this software used to send selfie pictures that disappear is now so highly valued indicates to me that American society has become pathological.
My niece got ‘caught’ awhile back posting something she shouldn’t have been doing on snapchat. My granddaughters friend took a screenshot with her iPhone and it got passed around part of the family from there.
Low tech solution to snapchat. Lol
I am sorry I do not understand how any of these companies make money. They couldn’t posibly be selling that many adds are there even adds on snapchat?
“Snapchat Now Valued At $16B...”
Ah, yes. The value of nothing.
Ads and in-app purchases.
Millions of users spending a few bucks really adds up.
However, it doesn’t mean they are making Billions every year. The “purchase value” of a social network is primarily based on the number of users, the demographics and how active they are. It is a valuation based on future potential profit and can be completely wrong.
“Ah, yes. The value of nothing.”
Millions of active users are worth billions to advertisers
And this is “worth” something?
...
Advertisers like to be able to reach idiots with money.
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