Snapchat Has Raised $ 537 Million

Snapchat Has Raised $ 537 Million

Snapchat which allows sending messages that are erased once read, has obtained $ 537 million. According to various news sources, the transaction values the company between 15 and 16 billion.

The announcement made by Evan Spiegel, “We need an IPO, we have a plan for it,” commented the young founder of the company at the conference “Code” in California, without giving a specific timetable. For the record, Snapchat had rejected a bid for Facebook to $ 3 billion in 2013.

Among the new investors, we find the giant Chinese e-commerce Alibaba (which would have injected $ 200 million, stated by the “Wall Street Journal” in March. The new shareholders have had to settle for ordinary shares. But for such large amounts, investors still are granted preferred shares that allow them to have more voting rights or to be paid first in the event of a takeover. Snapchat shows its ability to seduce potential investors.

Moreover, the round is perhaps not complete. Snapchat reported to the SEC, the US stock market watchdog, they wanted to rise up to $ 650 million. In six months, the potential valuation of the company jumped 60%. In December, the site invited his Yahoo! and Kleiner Perkins Caufield & Byers, a veteran Silicon Valley fund that has invested in Facebook, Zynga or Amazon. At that time, Snapchat was already worth $ 10 billion.

Evan Spiegel, twenty-four year old, keeps a cool head. He said he expected a “correction” in the market after a boom in fundraising, supported by low interest rates.

Each day, 100 million users log on Snapchat, with three short years of existence. The application is all the rage among young people, who do not want to be scarred for life by messages they send. Snapchat started only derive revenue this year by selling advertising space to major advertisers such as Samsung Electronics and Universal Pictures.

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