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Holy smokes: Snapchat just raised an incredible $1.8B!

Leaked documents also show Snapchat with $33M in revenue in Q4, and 110M DAUs

Financial trends and news by Steven Loeb
May 26, 2016 | Comments
Short URL: http://vator.tv/n/45c2

If you ever had any doubts about Snapchat, you can now, finally, put those to bed, as the company has just raised a record breaking round of funding.

Snapchat has just raised $1.8 billion in venture funding, according to a document filed with the Securities and Exchange Commission this week.

This is the first funding that the company has raised since completing $537 million of a $650 million funding round in May of last year. This latest round effectively doubles Snapchat's total venture funding, bringing it to $2.63 billion.

The document does not list any of the investors who contributed to the round, but TechCrunch, who first reported the fundraising, lists General Atlantic, Sequoia Capital, T. Rowe Price, Lone Pine, Glade Brook Capital, IVP, Coatue Management and Fidelity, among those who participated.

TechCrunch is also reporting that the round has valued Snapchat at $20 billion; it had been valued at $16 billion last year. 

VatorNews reached out to Snapchat to confirm these details, but the company would not comment on the report. 

Snapchat's financials

In addition to the new funding round, TechCrunch also got its hands on a leaked deck, which shows Snapchat's revenue and user growth.

In terms of revenue, it shows Snapchat growing its revenue by leaps and bounds in 2015, growing by more than 8x, from $4 million Q1 to $33 million in Q4. 

Of course, this doesn't show the complete picture. Leaked documents that came out in August of last year shows that Snapchat made $3.1 million from January to the middle of November 2014, but wound up with a net loss of $128 million.

Obviously Snapchat really stepped up its revenue game in 2015, but without seeing if the company is profitable, it's hard to put these figured into their right context. 

The other figures released involve Snapchat's daily active users, and it shows a company that is growing quickly, though it still lags behind many of its rival networks.

From March of 2014, to December 2015, Snapchat more than doubled its total daily active users. In North America, it went from 27 million to 50 million, while in Europe it more than doubled, from 15 million to 35 million. 

It was in the "rest of the world" where Snapchat saw the most growth, more than tripling its DAUs, from 7 million to 26 million. 

When VatorNews asked Snapchat to verify these documents, the company, once again, would not comment. 

(Image source: money.cnn.com)


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