Snapchat Valued at $10bn in Latest Investment Round

[mituozo]

Snapchat Founders Likely Billionaires With New, Reported Investment - Forbes

Who is still selling out at $3bn?

lol wtf is this?

snapchat..

Looked at their website, jeez that's pathetic.

Passing up 3 bill on a website, crazy.

Looks like they're following in the footsteps of Groupon.

Stupid. Everyone knows these social apps are hot for a few years and then immediately die out. Should've cashed it in and invested the 3 bil in bitcoin. smh

Bet they take a deal for a small fraction of $3b in less than three years time. What a horrible move.

That's great but you're ignoring one very important thing. The entire thing that made Snapchat unique (and so popular) was that the pics disappeared after 10 seconds, and that is no longer the case. So now it's an app with no revenue that sends pics that may or may not disappear after 10 seconds. Great product differentiator, clearly worth far more than $3 billion.

Best of luck to the worlds first $100 billion dollar almost disappearing picture taking app. Also, I'm utterly shocked that more people didn't freely admit in that survey to using Snapchat to distribute child porn. Shocked I tell you.

Now taking bets from anyone that wants to bet against an IPO/~WhatsApp size acquisition within the next 3 years.

 

[Mark Lee]

 

[xdemi]

Welp - it may be valued at 10 billlion but I don't see someone dropping 10 Billion in cash on it - now if it were an overseas company it would be possible if for nothing else but the tax advantage.

Now getting a bit of cash and lots of stock for it - I can see happening.

I'm amazed its worth 10 billion though!

 

[Gambit]

Imma just leave this here:

http://www.wickedfire.com/2007386-post22.html
http://www.wickedfire.com/2007805-post37.html
http://www.wickedfire.com/2007824-post39.html

 

[-joe-]

I can't read WSJ, but Forbes suggests they gave Kleiner 3-5% equity. Assuming the lower number, if you multiply the 20m by 33.33, you get 666.6m - where does the 10bn number come from? A $20m investment into a company you value at $10bn would be a 0.2% equity stake, surely?

Am I missing something?

 

[mituozo]

I can't read WSJ, but Forbes suggests they gave Kleiner 3-5% equity. Assuming the lower number, if you multiply the 20m by 33.33, you get 666.6m - where does the 10bn number come from? A $20m investment into a company you value at $10bn would be a 0.2% equity stake, surely?

Am I missing something?

Yeah I'm not sure how the numbers work out. The $20m for 3-5% equity is off I think -- the $10bn valuation is the only thing that seems to be constant everywhere.

$20m is surprisingly low if that's the total value of the round, too.

 

[contract]

Anyone can put a "value" on something...

But until a cash deal is made and it's bought.

It's worthless.

The buyer always decides it's the true worth.

With that said, Snapchat missed out on $3B.

In my book, I don't see them going anywhere in the future. (I'll call it early)

 

[zimok]

Imma just leave this here:

http://www.wickedfire.com/2007386-post22.html
http://www.wickedfire.com/2007805-post37.html
http://www.wickedfire.com/2007824-post39.html

 

[r3p1v]

Great, it paid off for them. But was that really worth the risk?

 

[infoslob]

Now taking bets from anyone that wants to bet against an IPO/~WhatsApp size acquisition within the next 3 years.

I'll fade you, just give me some odds first bruh.

 

[mpbiz]

Great, it paid off for them. But was that really worth the risk?

GO BIG OR GO HOME

 

[mpbiz]

I'm man enough to put these here:

As for snapchat, I still think they're idiots. I would be really surprised if anyone is still using them 2 years from now. Maybe one day someone will be able to quote this post and prove me wrong though.

Un fucking believable. Really thought they would sell to someone for a cool billion and move on.

inb4 groupon repeat.

 

[titanium777]

Until you liquidate your company, or go public, you have no paper cash.

With WhatsApp being purchased for such a high price, I wouldn't be surprised if a tech giant buys them for $10+ billion.

 

[IceToEskimos]

 

[KennyPowers]

GO BIG OR GO HOME

Let's say the co-founder has 10% equity. At $3 billion that's $300 million. At $10 billion that's $1 billion. Though being a billionaire would be nice (which he wouldn't be after taxes), is it worth the risk of losing everything you have? Looking at opposite ends of the spectrum, guy can be a billionaire, or he could be dead broke (which will most likely result in suicide). I'd take $300M over gambling with suicide as the stakes.

With that said, SnapChat already had interest from Alibaba and other groups at a higher valuation during the acquisition talks. The guys made the right call by raising another round instead - which had a lot less risk than everyone plays it out to be.

Also, there's no doubt that the management team already cashed out some of their equity in funding rounds. Going back to my aforementioned note, let's say they already have $20M each set aside. At that point I'd gamble for a billion. The downside would no longer be suicide, but a comfortable life where you never have to work again anyway.

 

[mpbiz]

Let's say the co-founder has 10% equity. At $3 billion that's $300 million. At $10 billion that's $1 billion. Though being a billionaire would be nice (which he wouldn't be after taxes), is it worth the risk of losing everything you have? Looking at opposite ends of the spectrum, guy can be a billionaire, or he could be dead broke (which will most likely result in suicide). I'd take $300M over gambling with suicide as the stakes.

With that said, SnapChat already had interest from Alibaba and other groups at a higher valuation during the acquisition talks. The guys made the right call by raising another round instead - which had a lot less risk than everyone plays it out to be.

Also, there's no doubt that the management team already cashed out some of their equity in funding rounds. Going back to my aforementioned note, let's say they already have $20M each set aside. At that point I'd gamble for a billion. The downside would no longer be suicide, but a comfortable life where you never have to work again anyway.

Both cofounders already received something like $20mm each several months ago. Not sure if that was fact or speculation, but I remember seeing that somewhere.

Also, these guys would not be dead broke even without the $20mm. They would be tech famous for starting Snapchat and would have access to all of the publicity, talent, and capital they could possibly need for the rest of their lives.

How do you think Sean Parker weaseled his way into Facebook? The guy was the cofounder of Napster. Mark Zuckerberg desperately wanted the guy on his team, and he was able to bring a ton of value because he had been spending all of those years networking with everyone who mattered in SV, and he was able to do that networking, once again, because he was famous from Napster.

Even if Snapchat tanks tomorrow, these guys will be fine. They probably realized a long time ago that opportunities like this only come once in a lifetime, and they want to stay on the ride for as long as possible.

They also probably realize that for the rest of their lives, people will want to hear them speak, invest in their new ideas, etc.

 

[(O_o)]

Probably valued that way because of the # amount of users it has + all of its users on mobile devices.

Also a reminder, Janurary 2014 hack throwback!

4.6 Million Snapchat Usernames and Phone Numbers Leaked
CSV: http://gelat.in/test/schat.csv.zip
SQL: http://gelat.in/test/schat.sql.zip

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