Snapchat is claiming it’s worth around $25 billion up front. However, in order for investors to be pleased, the company will need to be worth more than $25 billion within a short period of time.
The company is known for being secretive and an IPO requires disclosures. This means Snapchat’s inner workings may be revealed. Snapchat is becoming more friendly for advertisers and it has been expanding what it’s technology can do.
Facebook launched its IPO back in 2011. That same year the company took in $3.7 billion in ad revenue. Meanwhile, Snapchat has projected its ad revenue in 2017 to be $940 million. Snapchat believes investors won’t regret their decision because of its multi-faceted advertising opportunities.
Evan Spiegel, 26, started Snapchat. He launched it in a way that wouldn’t leave a paper trail that allowed people’s social exploits to come back to bite them. It only took a few years for Snapchat to become wildly popular. The company eventually launched their first physical product, Snapchat Spectacles.
Kate Mitchell, co-founder of technology investment firm Scale Venture Partners, told CNBC that Snapchat developed themselves initially as a social environment. She added that Snapchat is off to a promising smart and they are thinking big.
