Send-it and forget-it company Snapchat looking for $3.6 billion dollar valuation

Image by Snapchat via DailyMail, hyperlinked video via Bloomberg

Since its inception two years ago, the Venice, California based Snapchat has seen explosive growth within the social media realm.

Recently in September, Snapchat announced that the company was “processing 350 million ‘snaps’ per day”, putting the social media giant on par with Facebook, which also counts approximately 350 million photos/video uploads per day.¹ Despite the lack of revenue streams, its great value proposition has enabled Snapchat to gain great exposure in the market: according insider sources, Facebook  “is willing to dig deep into its cash pile to reach young people” and has offered $3 billion to purchase the company.

Only four months after raising $60 million, Snapchat, the instant photo messaging company is rumored to be in search of a valuation of $3.6 billion. According to AllThingsD, Snapchat has yet to close the immense deal, but an Asian giant is rumored to be in the financing lead.¹

Snapchat’s ambitious plans may net them the capital they value, yet it may parallel a prior social-media giant. Snapchat’s somewhat high-valuation serves as a reminder of Facebook’s IPO mishap, in which ended up being the “biggest IPO flop ever.”² Thus, it is with only time that we will understand if Snapchat’s determined ambitions will serve to benefit them in the long run, rather than just the short run.

Sources: 

¹http://allthingsd.com/20131025/snapchat-is-mulling-another-huge-round-at-a-3-5-billion-valuation/

²http://www.theatlantic.com/business/archive/2013/05/facebook-one-year-later-what-really-happened-in-the-biggest-ipo-flop-ever/275987/