Snapchat close to raising as much as $100 million at a jaw-dropping valuation

13 thoughts on “Snapchat close to raising as much as $100 million at a jaw-dropping valuation”

  1. I think Snapchat is going to have a very difficult time monetizing its community. It’s a basic service that’s all about its simplicity. It will be interesting to see what they come up with.

  2. @Mike — They won’t come up with anything. And, won’t have to. This is yet another service that will be M&A fodder…continuing the corporate funding of free, consumer web services that simply build goodwill and add little to earnings.

  3. @Om You would think $100 million would be better spent on developing ACTUAL technology which positively impacts the world, renewable energy, hardware not a teen sexting app. You can only blame VC’s for lacking vision and giving such ridiculous valuations based on hype.

    1. Please don’t ever expect VCs, who are self interested by nature and only motivated by profit, to solve global problems. Those can only be solved through political means with the full weight of government efforts backing public sentiment. Witness the successes of the civil rights, environmental rights, and gay rights movements. Please do not wait around for rich people to solve your problems. They won’t.

      1. Not ALL VC’s are self interested by nature and only motivated by profit. The ‘premier’ VC’s in the world (Vinod, Doerr) don’t throw their weight behind fleeting garbage like SnapChat, nor do they rely on government or politicians to step up to the innovation plate. Witness Uber, Airbnb etc who are changing social norms and transforming government supported monopolistic industries. 99% of VC’s are sheep, and as Gordon Geeko correctly said – sheep get slaughtered.

  4. “In February 2013, the company was valued at around $70 million and now is being valued around half-a-billion dollars.”

    How does one either undervalue or overvalue a company that much in 5 months? I agree with all the comments above. I hope they find a path to making money but I am getting a very uneasy feeling in my stomach by all the consumer apps that have little to no chance of making money other than sell to a larger company who then has to figure it out.

    The moment they turn on the “revenue engine” is the moment we will see if the house of cards falls, what they are really worth in terms of actual dollars and cents and who the last one standing is if it does fall. Again, I still do wish these guys the best of luck and hope they have it all figured out.

  5. There is no one face to Snapchat. Every day millions of us in the Snapchat community share how we feel, where we are, and what we are doing. Sometimes its happy or funny, sometimes sad or bored, but most importantly – we communicate who we are in the moment.

  6. Umm The reason Snapchat is hot is not because of mobile first (what isnt ?) but because its a transient experience. Expect that to catch on more and more now…

    Interestingly that is driven by Mobile because where else would you catch a fleeting memory ?

    And as for crazy money / crazy valuations etc etc Thats always a part of the Silicon Valley star culture. Best of luck to the Snapchat founders 🙂 I do not want to be them 🙂

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