In an SEC filing, Snapchat, which is currently privately held, revealed that it raised the majority of this funding ($1.158 billion) since January. The interest from new investors, including venture capital firms Sequoia and Spark, is being viewed by analysts as a sign that the app will one day rival social media giants Twitter and Facebook.
Having only pushed through monetization schemes last year, the app managed to generate a mere $59 million in revenue in 2015. It seems that investors are nevertheless confident that Snapchat will meet its revenue targets of $250-300 million this year.
Additionally, a leaked presentation deck containing a breakdown of the app’s user numbers has been obtained by TechCrunch. The file, provided to potential backers, shows that Snapchat attracted an additional 36 million users last year, bringing its total amount of users at 110 million by December 2015. The presentation shows that the app’s revenue targets are just as strong as ever as it seeks to accumulate as much as $1 billion for 2017.
The ephemeral messaging app has gone from strength to strength since its launch five years ago. The app now boasts an estimated 10 billion daily video views, a figure that has skyrocketed in a matter of months.
Remember when Facebook reportedly attempted to acquire Snapchat for $3 billion. In hindsight, that seems like a paltry sum compared to the numbers being thrown about today.
Snapchat’s swagger isn’t without merit. Investors are reportedly lining up to finance the app, which is likely what is fueling its decision to constantly seek investment on a rolling basis.
Aside from the aforementioned new investors, other backers of the app include Fidelity, Alibaba, Tencent, Saudi investment group Kingdom Holding Company, and Lightspeed, among others.
Meanwhile, the company’s growth continues unabated. It is rolling out new features at a rapid pace, and is constantly expanding its partnerships with the media. Additionally, it recently leased a huge amount of space at Santa Monica Airport (including eight airplane hangars) — an indication of its growing workforce.
