5 The second coming of snapchat: sequoia,meritech, spark invests $1.8billion as valuation jumps to $18billion
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At $19 billion, Snapchat would rank third among all venture-backed companies in terms of value, behind Xiaomi and Uber |
Snapchat has recently secured $1.8bn in funding, increasing its valuation to $18bn. The startup received this round of funding from Sequoria Capital, Spark Capital, Meritech Capital Partners and Dragoneer Investment Group. This valuation is higher than the previous valuation of Snapchat given by its investors in March 2015, which was about $16bn.
Previously, Snapchat had received $175m funding from Fidelity Investments for an overall valuation of $16bn. Shares of Snapchat were bought by the investors for about $30.72 per share. Experts say that the venture capital firms Sequoria and Spark are reluctant to invest in tech companies.
Reportedly, even Chinese company Alibaba also wanted to invest about $200m in Snapchat, after its $16bn valuation last year.
These companies are said to be investing in Snapchat as many investors believe the app firm has the potential to overtake other social media giants such as Facebook and Twitter.
snapchat's $19 billion valuation means that in terms of pure valuation among the unicorn companies , Snapchat would rank third among all venture-backed companies in terms of value, behind Xiaomi and Uber. If you took its reported valuation as a (very) rough proxy for what it would fetch on the public market, Snapchat would sit among some very big, and very profitable, companies listed on US stock exchanges:
