Rumor: Snapchat To Raise $100 Million With Nearly A $1 Billion Valuation
Snapchat is a picture-chatting app for iOS and Android that is up to 10x faster than MMS. In April 2013, Snapchat was hitting around 150 million photos taken per day. Users can take photos, record videos, add text, and create drawings using the app. You can set a time limit for how long recipients can view their photos, up to 10 seconds, and then they will be hidden from the device and deleted from the company’s servers.
Now Snapchat is aggressively recruiting several salespeople from Stanford University and the University of Southern California. Snapchat is raising $100 million with a $1 billion valuation. The funding will be used for their salesforce, to buy more servers, and hire additional employees.
While many people believe that the valuation is too high, Snapchat is growing at a rapid pace. Kleiner Perkins partner Mary Meeker said that Snapchat surpassed Instagram in terms of the number of photos shared. And we all know that Facebook acquired Instagram for $1 billion.
Snapchat has around 12 employees so far and they are starting to outgrow their beachfront office in Venice. They are going to move to a larger office in Los Angeles.
Snapchat is especially popular with high school and college students.