Deals

Who needs Facebook? Snapchat is raising another $55M, with a $2B valuation

Say what you will about Snapchat’s usefulness — you can’t deny the company excels at attracting money.

Just six months after its $60 million Series B round, the chat app is at it again. This time it’s raising another $55 million, according to a recent filling pulled up by VCExperts (see below). The funding pushes Snapchat’s valuation up to roughly $2 billion, more than double the company’s worth at the time of its last round.

That’s a lot of money for a company that’s keeping its most important numbers close to its chest (and has just about no revenue).

Snapchat did not immediately respond to our request for comment on the round.

Snapchat’s latest raise comes just a few weeks after the Wall Street Journal reported the company was looking to raise $200 million, with a valuation of up to $4 billion. One company named in the rumors was China’s Tencent Holdings, which would love to be a part of a growing American tech company like Snapchat.

Snapchat’s  funding also comes a few weeks after the company reportedly turned down a $3 billion dollar offer from Facebook, taking the company’s meteoric rise to bizarre new heights.

While it’s not clear what became of that rumored $200 million round (and that $3.6 billion valuation), VC Experts director Justin Byers told VentureBeat that the latest round proves one thing: Considering that the company has raised $127 million in three rounds this year alone, it’s clearly moving very quickly.

Byers also speculates that the round could be a part of a liquidity event for Snapchat’s founders, which means that if CEO Even Spiegel sells the company, it won’t be because he needs the money. (Not that he did before, anyway.)

blog comments powered by Disqus