It is being reported that Snapchat is aiming to seek new investment that could result in the company behind the popular instant messaging app of the same name being valued between $16 billion and $19 billion.
According to Bloomberg, the company is hoping to raise close to $500 million, with Snapchat executives said to be “in advanced discussion” with global investment fund managers.
If Snapchat is able to secure a new round of funding it would make the company one of three most valuable venture capitalist backed startups behind the taxi app Uber and Chinese smartphone manufacturer Xiaomi.
Snapchat, which was created in 2011 by the then 20 year old Evan Spiegel, a student at Stanford University, allows users to send photo and video messages which then self delete after a matter of seconds. It is mostly popular with teenagers and young adults, who send in excess of 700 million ‘snaps’ daily.
Last year, Snapchat began expanding its operations to include Snapcash, a money transfer service and more recently launched Discover, a news and online content delivery service which partners with the likes of CNN, ESPN, National Geographic, Vice and the Daily Mail.
In 2013 Spiegel reportedly turned down a $3 billion offer from Facebook to takeover Snapchat.
It is also being reported that should Snapchat achieve a valuation of $19 billion, Spiegel’s 15% stake in the company would be worth in the region of $2.85 billion.
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Jonathan is our Google Nexus and Android enthusiast. He is also fanatical about football which makes it all the more strange that he should support Stockport County. In addition to writing about tech, Jonathan has a passion for fitness and nutrition and has previously written for one the UK’s leading watch and horology websites.