Snapchat Expands Shareholder Base and Raises US$1.8 billion

What: Photo-messaging app Snapchat Inc. keeps growing its business and expanding its shareholder base. The company raised US$1.8 billion with a Series F funding round, according to an SEC filing from Thursday.
Why it matters: The Venice based company expects the business to grow by a lot more in 2017, to somewhere between US$500 million and US$1 billion.

syFSpLD0_400x400The photo-messaging app Snapchat Inc., which has more than 100m daily active users, keeps growing its business and expanding its shareholder base with 120 investors and US$1.3 billion in cash to its fold since last May.

The social net has now about 200 distinct investors and has raised more than US$2 billion from them.

The Venice based company expects the business to grow by a lot more in 2017, to somewhere between US$500 million and US$1 billion. Snapchat is targeting revenue of US$250 million to US$350 million in 2016. In 2015, It reached US$57 million in revenue.

Growth expectations are quiet appealing for investor, who just invested US$1.8 billion into the company's Series F funding round, according to an SEC filing from Thursday.

Snapchat is targeting revenue of US$250 million to US$350 million in 2016

Some of the more recent investments valued Snapchat at over US$17 billion, according to Techcrunch, which cited anonymous sources. New investors include Sequoia Capital, General Atlantic and T Rowe Price, with participation from existing investors in the round.Existing investors in Snapchat include Silicon Valley venture capitalists Kleiner Perkins and Benchmark Capital, tech companies Alibaba and Yahoo, and fund manager Fidelity.

The latest Snapchat investors are paying approximately US$30 per share, but they're hoping that they will be worth much more when Spiegel takes Snapchat public.

Money from the round will be investing in hiring (approaching 1,000 employees across a handful of countries), buying and investing in smaller start-ups (about eight deals) and researching and developing new offerings (smart glasses among the rumors). In addition, the funding allows the social net to challenge stong existing social media rivals such as Facebook and Twitter, specially now the app has expanded beyond its initial 10-second snaps to include 24-hour stories and a section for publishers to show news stories and videos, called Discover.

Get ready for #Portada17 on Sept. 14 in New York City! The Hispanic Sports Marketing Forum on September 13, and the 11th Annual Hispanic Advertising and Media Conference on September 14 will provide you with the best content and unparalleled networking opportunities to succeed in Multicultural America.

 


Editorial Staff

Portada Staff

MORE FROM PORTADA

Verizon to Launch AdFellows Program to Promote Diversity in the Marketing Industry

Verizon to Launch AdFellows Program to Promote Diversity in the Marketing Industry

Verizon has launched  AdFellows program, a paid fellowship that will give diverse young marketers internships at companies & agencies.20 diverse young marketers will have the chance to work within Verizon & its partner agencies (McCann Worldwide, Momentum, Rauxa, Weber Shandwick, and ZenithOptimedia) over the course of eight months


Brand Marketing Research: Amazon Most Trustworthy Brand, American Millennials Spending Less on Luxury

Brand Marketing Research: Amazon Most Trustworthy Brand, American Millennials Spending Less on Luxury

A summary of the most exciting recent research in brand marketing in the U.S., U.S.-Hispanic and Latin American markets. If you're trying to keep up, consider this your one-stop shop.


6 Things We Learned During Day 1 of #Portada17

6 Things We Learned During Day 1 of #Portada17

After an exciting day in New York, during The Sports Marketing Forum, with top speakers presenting insights and best practices on how to use sports and soccer content to connect to the rapidly growing multicultural demographic in the United States, this is what we learned: