Feeds

Saucy selfie app Snapchat hits $800m valuation as VCs chuck cash around

Latest round pumps $60m into popular photo-messaging platform

Build a business case: developing custom apps

Risqué photo-sharing app Snapchat has convinced VCs its saucy-selfie-sending service can provide serious returns for their $60m investment in its latest funding round, led by venture capital company IVP.

The app firm said on its blog that it has also attracted Sony's US chief exec Michael Lynton to its board, after the deal that values the firm at a widely reported $800m.

The latest cash injection will be used to expand the engineering team and hire more servers, the company said, to support over 200 million photos shared every day. The app is popular with da yoof, many of whom are known to use the built-in photo-disappearing function to help them send smutty shots of themselves to world+dog carefully chosen recipients.

Snapchat, set up by Stanford University students in 2011, lets folks share picture messages on Android or iOS. Crucially, it allows the sender to set a time limit for how long the pics can be viewed, after which they're automatically erased. However, the firm has been accused of not being quite foolproof enough, allowing tech-savvy folks to download and save photos that should be deleted.

The app's valuation has led to some incredulity in the marketplace, considering Facebook spent only a little more - $1bn - on picture powerhouse Instagram last year. Funding leader IVP has published a list of ten reasons why the app is worth it.

The firm, whose current fund is capitalised at $1bn, said in a statement that it only makes eight to 12 new investments every year, but it wanted to "follow the smart money" into Snapchat.

"It’s no secret that Snapchat has yet to turn on its monetisation engine. Despite this fact, the financing was intensely competitive – one of the most competitive financings we have been a part of in years," IVP said.

"Snapchat’s early investors include Benchmark Capital and Lightspeed Venture Partners, two of the top venture capital firms in Silicon Valley.

"IVP co-invested in Twitter along side Benchmark in February 2009. That investment has proven to be one of the most successful in the history of our firm. We also co-invested with Benchmark in MySQL, which Sun Microsystems acquired in 2008 for $1bn." ®

Bridging the IT gap between rising business demands and ageing tools

More from The Register

next story
NO MORE ALL CAPS and other pleasures of Visual Studio 14
Unpicking a packed preview that breaks down ASP.NET
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
Mozilla fixes CRITICAL security holes in Firefox, urges v31 upgrade
Misc memory hazards 'could be exploited' - and guess what, one's a Javascript vuln
Put down that Oracle database patch: It could cost $23,000 per CPU
On-by-default INMEMORY tech a boon for developers ... as long as they can afford it
Google shows off new Chrome OS look
Athena springs full-grown from Chromium project's head
Apple: We'll unleash OS X Yosemite beta on the MASSES on 24 July
Starting today, regular fanbois will be guinea pigs, it tells Reg
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.