It should come to no surprise that users are obsessed with Snapchat. Once just a small startup, the company has grown to be one of most popular messaging apps available. And as much as its users believe in it, investors do too, which is why they haven't been shy about helping with funding.
Unlike messages on the platform, the money won't be disappearing any time soon.
Snapchat is now looking to raise about $200 million in new funding, which means that the company can be worth a pretty penny if investors help it out.
This new round of funding is an extension of the Series F round from March, where Snapchat raised $175 million from Fidelity. This fundraising gave the company a valuation of $16 million.
According to VC Experts, if Snapchat is able to raise its desired $200 million the company will then be valued at $22.7 billion. Of course this is just an estimate since this valuation is based on the fact that Snapchat would remain $30.72 per share.
It would also mean that Snapchat has raised a total of more than $1.5 billon in funding.
While this large valuation reveals Snapchat's success, it could also make it harder for another company to acquire it in the future the more expensive it becomes. Facebook attempted to do exactly this when it tried to buy Snapchat for $3 billion back in 2013. Snapchat continues to be privately owned
Popular among teens, Snapchat has exploded as of late. The company continues to roll out new features like giant stickers, one-handed zooming for iOS, new filters almost on the daily, voice calls and audio and video messaging.
Snapchat is also reportedly revamping its Discover section next month, which will include a new layout that won't feature those circular icons that it currently has.
The app's CEO Evan Spiegel revealed earlier this year that it has more than 100 million daily users. With its large user base and investors constantly taking a bite out of the fundraising pie, it's safe to say Snapchat as we know it will be sticking around for some time.
Source: Tech Crunch