Tag Archives: Snapchat

Snapchat raises $3.4 billion in its initial public offering

Commentary

Despite experiencing slow user growth and a net loss of $514.6 million in 2016, Snap, the maker of popular messaging app Snapchat, has raised $3.4 billion in its initial public offering at $17 per share, clinching a reported valuation of $24 billion. The company’s stock continued to climb even though it has yet to receive a single “buy” rating from Wall Street analysts. So why is Snapchat so valuable? Goldman Sachs estimate that the company could reach $2 billion in revenue in 2018, with a projected daily average users of 221 million, a 40% growth from 158 million in 2016. The company indicated that they expect the bulk of the revenue to come from advertising as well as from the sales of their new product, the Snapchat Spectacles, which can record snippets of video that are automatically stored to the user’s Snapchat Memories, a feature that saves snaps, stories and locked content.

Top 20 European Deals for February 2017

Deal No. Amount Paid (USD) Company Investor/Buyer Sector Deal Type
1 $1,000,000,000 Outfit7 United Luck Group Holdings Games Acquisition
2 $370,000,000 Comptel Nokia Software & Services Acquisition
3 $333,684,900 Immediate Media Co. Hubert Burda Media Media Acquisition
4 $250,000,000 Social Point Take-Two Interactive Software Games Acquisition
5 $219,000,000 32Red Kindred Group Games Acquisition
6 $124,000,000 SMS Management & Technology DWS Software & Services Acquisition
7 $100,000,000 Funding Circle Consortium Transactions Investment
8 $62,587,750 Timico Lyceum Capital Transactions Investment
9 $50,000,000 ResearchGate Consortium Media Investment
10 $42,246,000 TaxiBeat Intelligent Apps (mytaxi) Mobile & Apps Acquisition
11 $37,512,000 Hotcourses IDP Education Transactions Acquisition
12 $32,209,200 Raisin Consortium Transactions Investment
13 $30,000,000 Frontclear FMO Transactions Investment
14 $28,065,387 solarisBank AG Consortium Transactions Investment
15 $28,000,000 ReviewPro Undisclosed Software & Services Acquisition
16 $26,403,750 Upstream European Investment Bank Software & Services Investment
17 $24,228,750 Monzo Consortium Transactions Investment
18 $23,000,000 Bloomon Consortium Transactions Investment
19 $22,000,000 Soundtrack Your Brand Consortium Software & Services Investment
20 $21,500,000 BOOK A TIGER Coller Capital Transactions Investment

More information

  1. Chinese group buys Talking Tom app maker Outfit7 for $1b (Deal Street Asia)
  2. Nokia to buy Comptel for $370M as it pushes deeper into carrier software (TechCrunch)
  3. Germany’s Hubert Burda Media buys Radio Times and other UK magazines for £270m (City A.M.)
  4. Take-Two buys Spain’s Social Point mobile game studio for at least $250 million (VentureBeat)
  5. Kindred to Buy 32Red for $219 Million in Latest Gaming Deal (Bloomberg)
  6. DWS to acquire SMS Management and Technology in $124M deal (ARN)
  7. P2P lending site Funding Circle raises another $100M led by Accel (TechCrunch)
  8. Cloud services provider Timico raises £50m from Lyceum Capital (Tech City News)
  9. This website is the Facebook for scientists, and it’s growing with a $50 million raise (Mashable)
  10. mytaxi acquires taxibeat, the leading taxi app in Greece, for around €40 million (EU Startups)
  11. IDP Education acquires Hotcourses Group for £30m (The Pie News)
  12. Raisin secures €30 million in Series C funding round (Tech.eu)
  13. Dutch Development Bank FMO Invests USD 30 Million in Frontclear (PRNewswire All)
  14. Japan’s SBI, others invest 26.3 mln euros in Germany’s solarisBank (CNBC)
  15. ReviewPro takes $28 million investment from Chinese hotel IT group (Tnooz)
  16. Upstream Receives €25m in Growth Financing (FinSMEs )
  17. Confirmed: UK challenger bank Monzo raises £19.5M with another £2.5M in crowdfunding planned (TechCrunch)
  18. bloomon Raises $23M in Series B Financing (FinSMEs)
  19. Soundtrack Your Brand, a ‘Spotify for B2B’ nabs $22M for expansion (TechCrunch)
  20. Book A Tiger Raises $21.5M in Funding (FinSMEs)

Snapchat is raising $200 million at approximately $20 billion valuation

Commentary

According to TechCrunch, Snapchat is currently raising $200 million in a funding round, which will value the company at around $20 billion. The fundraising is said to be part of the startup’s $175 million Series F and is based on a share price of $30.72 per share. Once completed, this will boost the company’s total funding to around $1.5 billion. While there’s no doubt that Snapchat continues to attract hordes of millennials and advertisers to its platform, the high valuation could make the company too expensive for potential acquirers and further pushes the company to an IPO, which analysts predict will take place in 2017. According to Statista, Snapchat is one of the most popular unicorns in the private market with the potential to unseat Facebook’s dominance in the social media market.

Snapchat acquires Bitstrips

Commentary

Last week, Snapchat announced it has acquired Toronto-based Bitstrips for $100 million. Bitstrips is the maker of the popular Bitmoji app, which allows users to create avatars who resemble them by choosing from a range of options. The options include face shapes, skin colours, eye colours, hairstyles and outfits. According to analysts, the acquisition will allow Snapchat to integrate Bitstrips’ technology to its platform. The news of the acquisition briefly caused Snapchat to grab the number one spot in the iTunes App Store.

You can read about the acquisition here.