Snapchat on Monday announced a new $60 million round of funding. Based on its new cash influx the company has raised $75 million to date for a market valuation of $800 million.
The social messaging platform raised its Series B funding from VP, General Catalyst, Benchmark Capital and others.
Snapchat will use the new money to continue scaling its operations.
According to IVP the company invested in Snapchat even though it usually likes to put money behind firms that are already generating between $20 million and $100 million in revenue. Snapchat in comparison has yet to start monetizing its platform. IVP likes Snapchat for its younger users, mobile-first strategy, and the founders vision for the future.
According to Dennis Phelps, general partner at IVP:
“They have a vision for building Snapchat into a core utility that sits atop the home screens of billions of mobile devices. We believe it could grow into one of the most successful consumer applications to date.”
Snapchat is now passing along 200 million “snaps” per day, not bad for a service that launched less than two years ago.
Investing in Snapchat makes sense from a competition point of view. Facebook wasn’t able to top the program with the Poke app, even though the network has a user base of more than 1.1 billion users. With that type of loyalty behind the Snapchat program the future is looking very bright.
The new round of funding arrives on the same day that Snapchat revealed its new ’13 and under app’ known as SnapKidz.
Do you think Snapchat is worth $800 million?