It’s not even four years old, yet it could be valued at $19bn
And you wonder why people talk about another tech bubble.
Messaging app Snapchat is looking to raise $500m in a funding round that would value the company from $16bn to $19bn, according a report from Bloomberg.
The business is not even four years old yet.
The $19bn top valuation would make it the third-most valuable start-up in the world, behind only Uber (valued at $40-41bn) and Chinese smartphone maker Xiaomi ($45bn).
In case you’ve missed it thus far on your phone, Snapchat lets users send text, photo and video messages to each other, which then disappear in a matter of seconds.
It has more than 100 million users, and is particularly popular among younger people – an audience Facebook is starting to lose.
That’s perhaps part of the reason Facebook tried to acquire Snapchat for $3bn in late 2013 – an offer that was turned down by then-23-year-old Evan Spiegel, co-founder and CEO, despite Snapchat having no revenue at the time.
Back then, commentators were critical about Snapchat’s ability to generate enough revenue to justify the bonkers high price tag and doubted the longevity of its popularity.
But Snapchat has since introduced advertising and sponsored content from big-name brands.
And, unlike its messages, it doesn’t look like it’s disappearing any time soon.