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.
The 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.