Snapchat is now worth a huge $10bn after a fresh round of funding, as the self-destructing photo app continues to thrive despite making virtually no money.
Venture capital firm Kleiner Perkins Caufield & Byer has agreed to invest in the fast-growing messaging startup at a valuation close to £6 billion ($10 billion).
Kleiner, one of Silicon Valley’s best-known venture-capital firms, had already committed to invest up to $20 million in May.
Snapchat, which has talked to several potential investors in recent months, is in the process of raising a large investment round that would make it one of the world’s most valuable private tech startups despite virtually no revenue.
DST Global, the Russian investment firm led by Yuri Milner, also invested in Snapchat earlier this year at a valuation of $7 billion.
Last year Snapchat famously turned down a £1.8 billion ($3 billion) offer from Facebook – a decision that left many stunned considering the company was – and is – yet to make any serious revenue.
Snapchat lets users send photo-messages that vanish within seconds, but is expected to soon begin offering advertising or branch out into additional services. This may include the ability to send instant money transfers to other users.
Though Snapchat and other similar mobile messaging apps don’t have established business models yet, their rapid user growth and perceptions of advertising potential have aroused intense investor interest over the past year or so.
Watch this video from the Wall Street Journal discussing the investment:
