Snapchat Raises $175M in Funding, But Company Valuation Is Flat
News broke last last week that video and photo social platform Snapchat has raised an additional $175 million in funding, this time from Fidelity Investments. The company didn't issue a press statement or say how it would use the new funds.
The hiccup in this story is that Snapchat's valuation—$16 billion—hasn't changed from the year before. That makes this a "flat round," and suggests that investors believe the company was overvalued before and are now adjusting expectations. As Reuters points out, Snapchat is the sixth most highly valued venture-backed company.
This investment is an extension of Snapchat's Series F round, which began in 2015. Previous investors include Alibaba Group, Benchmark, General Catalyst Partners, Glade Brook Capital Partners, HDS Capital, Institutional Venture Partners, Kleiner Perkins Caufield & Byers, Lightspeed Venture Partners, York Capital Management, and Yahoo, notes Variety. The company has raised over $1.3 billion in funding.
Last week, Snapchat broke news that it will continue its partnership with Major League Baseball this season. March 11 will be Snapchat Day in the league's spring training ballparks. Players will use "SnapBats," which are selfie-sticks with a bat design, during the games to create unique experiences for fans. The SnapBat was first introduced during the 2015 Home Run Derby.
The social video platform has found success working with established media properties; now, it wants to produce and promote original series, as well.
Snap's value tumbled quickly from its IPO high while Facebook continues to eat its lunch, but don't count the social video service out just yet.
The disappearing picture and fun filter company plans to cash in with a valuation of up to $25 billion, but does the still unprofitable Snap have staying power?
Snap Inc. has dropped between $30 million and $40 million on an Israeli augmented reality company, but the real prize might be the company founders.
The social network's members can now slow down, speed up, or reverse a video, but the updated terms of service caused a commotion.
Facebook and Twitter are making substantial investments to bring more video to their users. Learn how these new video platforms differ from established online video providers.