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.
Children's bookseller wins The Independent's new author search
Board creates magnetic field to achieve lift
Follow the latest news and score as Chelsea take on Maribor at Stamford Bridge.
Company reveals $542m investment in start-up building 'a rocket ship for the mind'
Singer says the track was 'force-fed down people's throats'
- 1 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 2 Banksy arrest hoax: Internet duped by fake online report claiming artist's identity has been revealed
- 3 Former East 17 frontman Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
- 4 The inventor of the Facebook 'like' button says he never made a 'dislike' button because he feared the 'unfortunate consequences'
- 5 Russell Brand threatened with arrest after filming outside Fox News headquarters
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Oscar de la Renta dead: Legendary US fashion designer dies after long cancer battle aged 82
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy arrest hoax: Internet duped by fake online report claiming artist's identity has been revealed
Super-sized ships arrive in Britain: How big can they get?
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Lord Freud: Tory welfare minister apologises after saying disabled people are 'not worth’ the minimum wage
Lord Freud hangs on as MPs of all parties 'call for his head' over disability comments
iJobs Money & Business
£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...
£27000 per annum + pension, 22 days holiday: Ashdown Group: An established ind...
£23000 - £26000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...
£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...