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 Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
- 2 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 4 John Travolta addresses former pilot's gay romance allegations publicly for the first time
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
Portuguese academic says British are 'filthy, violent and drunk'
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
iJobs Money & Business
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...
£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...