Report: Snapchat Valued At $10 Billion With New Kleiner Investment
Snapchat prefers the road of independence and venture capital, to dancing with Internet giants like Facebook and Alibaba.
Silicon Valley venture capital firm Kleiner Perkins Caufield & Byers has agreed to invest in Snapchat in a round that values the ephemeral messaging service at $10 billion, according to a report in the Wall Street Journal that cites people familiar with the matter.
It seals Snapchat's place as one of the world's most valuable private tech startups, despite the fact that it has yet to make a penny in revenue. According to a separate report, Snapchat's user base has grown to 100 million monthly active users as it explores nascent business models such as advertising, money-transfer and content discovery.
Last month Bloomberg reported that Snapchat, which had spurned a $3 billion takeover offer from Facebook last December, was in talks with Alibaba over a funding round that would also value it at a much-higher $10 billion. Weeks later, reports indicated those talks had broken down.
Earlier this month we reported that Snapchat had mysteriously authorized the sale of 17.4 million shares at just $0.001 each. While it seemed at the time that the shares might be tied to some other investment that could be related to Alibaba's looming IPO, that wasn't the case.
Now it appears Snapchat held firm on the reported-$10 billion valuation, but with the same, storied venture capital firm best known for backing Facebook, Google, Zynga and Amazon.
Snapchat has raised $163 million to date in five funding rounds from seven investors, including $50 million from hedge fund Coatue Management.
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