Snapchat is a video messaging application created by Evan Spiegel, Bobby Murphy, and Reggie Brown Poster when they were students at Stanford University. Snapchat has reportedly raised $175 million in funding from venture capital firm, Fidelity Investments. According to reports, the latest investment puts overall valuation of the company at $16 billion valuation.FMR LLC (Fidelity Management and Research) or Fidelity Investments is an American multinational financial servicescorporation. It is the second largest mutual fund and financial services group in the world. Founded in 1946, the company has since served North American investors. Fidelity Ventures was its venture capital arm, which has since been shut down, with many of the employees moving on to create Volition Capital. Fidelity International Limited (FIL), was an affiliate founded in 1969, serving international markets and the rest of the world; FIL was spun off as an independent business in 1980, and has since been rebranded as ‘Fidelity Worldwide Investment’.
Although Snapchat’s total valuation remains unchanged which has been so since its last funding round in March 2015, which took the company’s valuation to $16 billion. The fresh round is in continuation of the investment round that took place in last year. The company had previously allocated a set of shares for selling to investors last year itself, which explains why Snapchat’s valuation has remains unchanged post this funding round.
Snapchat has, over 2 billion photos and videos being shared on its platform each day. Not just that Snapchat’s overall user base stands at over 100 million users, its popularity is growing by the day. Snapchat has been instrumental in raising investments so far, however, the company is yet to show substantial profits to its investors.