Snapchat valued at $10 billion after Kleiner Perkins investment
Snapchat's Evan Spiegel famously rejected a $3bn takeover bid from Facebook
Snapchat, the popular mobile app which allows users to share photographs that are automatically deleted within seconds, has been valued at a staggering $10 billion.
In the latest investment round, renowned venture capital firm Kleiner Perkins Caufield & Byers agreed to pump $20 million in Snapchat, effectively valuing the company at $10 billion, according to The Wall Street Journal citing sources familiar with the matter.
The valuation means Snapchat is now among the most valuable private tech start-ups and its co-founders, Evan Spiegel and Bobby Murphy, are set to join Silicon Valley's elite group of young billionaires even-though Snapchat lacks a clear business model.
A Snapchat spokeswoman added: "The valuation of our business and our capital requirements are the least exciting aspects of supporting the Snapchat community. We have no further comment at this time."
The mobile app is very popular among teenagers, a key demographic for advertisers, and allows users to send pictures to friends that can only be viewed for a set period of time before they are automatically deleted.
Spiegel first made headlines after he rejected a $3 billion cash offer from Facebook to buy Snapchat in 2013. At the time, the California-based start-up was valued at $2 billion.
Snapchat now has 100 million monthly users and is the third most popular mobile app among millennials, only after Facebook and Instagram, according to ComScore.
Earlier this year, Spiegel was forced to apologise for a series of e-mails in which he made a series of sexist remarks and references to drug use while he was a student at Stanford University. He dropped out of university to work on Snapchat in 2012.
In a statement, Spiegel said he was "mortified" and "embarrassed" that his "idiotic" conversations were made public, adding the e-mails “in no way” reflect his views about women.
- 1 Video shows how to turn your phone into a 3D hologram
- 2 Artist Jamie McCartney: How The Great Wall of Vagina is a stand against 'body fascism'
- 3 Katie Hopkins reveals fear she will die during brain surgery to cure epilepsy
- 5 Dutch King Willem-Alexander declares the end of the welfare state
Katie Hopkins reveals fear she will die during brain surgery to cure epilepsy
Tensions flare as Confederate flag supporter reaches for gun when confronted by protests – in pictures
'Gene drive': Scientists sound alarm over supercharged GM organisms which could spread in the wild and cause environmental disasters
The Vatican on space: The discovery of intelligent life wouldn't mean there's an alien Jesus somewhere in the universe
Tom Cruise: Reporters banned from asking actor about Scientology
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Calais crisis: The seven claims made about the migrants - and the reality
Jeremy Corbyn's anti-austerity agenda will harm the poor, says Labour shadow Chancellor Chris Leslie
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: This is an exciting opportunity...
£13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...
£22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...
£35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...