Snapchat Files for IPO; Company’s Value is Predicted to Reach $25 Billion
Snap Inc. filed its long anticipated IPO on Feb.2 to begin trading the company's shares in New York Stock Exchange. The company is known as the maker of Snapchat mobile application and expected to go public in March.
Snap Inc. choose the New York Stock Exchange for the company’s initial public offering, as reported by CNBC, and will begin listing as early as March. The company’s highly anticipated public offering is predicted to raise the company’s value to $25 billion, even more.
Since its founding in 2012 the company is known to make a unique photo and video sharing application. When the photo and video which called Snaps has been viewed, they were immediately deleted. Up to now, there are 161 million active users interacting daily, with 60 million of them are in North America.
Within five years, the company has grown from small company into the company with more that 1,800 employees. In 2016, according to Wall Street Journal, the company posted $404.5 million revenue, a seven-time increase from previous year. Its astonishing number of daily users make the companies line up to advertise their products in Snapchat.
Snapchat was created by three Standford University students Evan Spiegel, Bobby Murphy and Reggie Brown as a class project. They created the application as the image sharing application with self-delete feature. Snapchat first appeared as the iOS app in July 2011.
Spiegel and Murphy then founded Snap Inc. in September 2011 and registered the company in Venice, Los Angeles. It received the $485,000 seed funding from Lightspeed Venture, followed by $13.5 million Series A funding two years later from multitple investors led by Benchmark Capital.
The company has been so successful, as Spiegel was even able to reject funding from Facebook that offer $3 billion in 2013. Now, as the IPO is at hand, Snapchat’s value has increased tenfold from fours years ago.
Watch the report from CBS News, regarding Snapchat IPO below: