Snapchat, the app that allows users to post pictures and videos that self-destruct after a set time, has just joined the ranks of the most valuable venture-backed startups behind Uber and Xiaomi. The four-year-old company’s value is now estimated at $16 billion, according to a report by CNBC.
Messaging services have become some of the most valuable startups in the entire technology industry, and Snapchat was even approached by Facebook’s Mark Zuckerberg in 2013, though it refused his offer of $3 billion to sell. It appears that was a wise decision on their part.
And Tuesday, Evan Spiegel, Snapchat’s 24-year-old CEO, said for the first time publicly that the company is considering going public, though rumors were already circulating, prompting investors to pitch in $537.6 million just since March.
While the company is obviously quite good at raising funds, it is still somewhat struggling to produce them. Despite efforts to attract advertisers, it has yet to generate much in terms of revenue. In January, it released a feature called Discover, which delivers videos from such major companies as CNN, Yahoo News, ESPN, and National Geographic, among others. This feature may help on the advertising front, but for now, the company is still relying heavily on investors.
However, the app has become extremely popular, especially among 18-34 year-olds, who are a key advertising demographic. As of January, it already had 200 million active users, which is double what they had just five months before. This already puts Snapchat among a very select few apps that have been able to go viral and to ride that viral wave to such amazing levels. If it continues this upward trend in popularity, especially among this particular demographic, the sky could be the limit.
For information about our services or how we can make technology work for you, contact Enstep today!
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.
