Rather than flirting with internet giants such as Facebook and Google, Snapchat decided to take the road of independence, and its founders may have just become billionaires as a result. The company is reportedly in the process of raising another round of funding which could value the company ay somewhere around $10 billion.
This could seal Snapchat’s place as one of the most valuable private technology startups in the world, despite the fact that it has yet to make a single dime in revenue. The two founders of the company, Evan Spiegel and Bobby Murphy, each owned about 25% of the company back in December of last year according to reports, meaning that the two could be billionaires.
Snapchat is currently the third-most popular mobile app among millennials behind only Facebook and Instagram. According to ComScore, somewhere around 33% of all people in the United States between the ages of 18 and 34 use the app. This new funding would value the company at more than three times what Facebook offered to pay for it last year, before CEO Evan Spiegal turned down the offer.
“The valuation of our business and our capital requirements are the least exciting aspects of supporting the Snapchat community,” Mary Ritti, a spokeswoman at Snapchat, wrote in an e-mail yesterday.
Read more about the story at BBC.