The sleuths at VC Experts,a site that tracks the financial information of private companies, have done it again. They uncovered a new regulatory filing that shows Snapchat is about to raise a hefty investment which is far, far less than the $US200 million they were rumoured to be seeking.
There isn’t enough evidence to prove Snapchat sold all the shares they’ve authorised. But if they have, the company would be valued at about $US2 billion, says VC Expert’s Justin Byers. That’s less then the rumoured $US3 billion or $US4 billion bandied about in the press.
“We pulled their most recent restated certificate of incorporation filed just a few weeks ago 11/26/2013, and it shows that they have authorised a new Series C Preferred for approx. $US54,542,880 (1,600,000 shares @ $US34.0893 per share),” Byers told Business Insider. This could mean that the founders are looking to cash out some of their equity, he speculated.
This filing is a new round since a its huge $US60 million raise from June 2013, which at that time gave it an $US800 million valuation.
Two-year-old Snapchat has raised $US73 million to date, according to its CrunchBase profile.
The currentinvestment round, if it happens, puts it about halfway toward these speculative valuations of the company, and it hasn’t even developed a revenue model yet. However, it looks to be on its way with that. It just hired a new COO, Emily White, who was leading from Facebook’s advertising efforts on Instagram.
We reached out to Snapchat for comment and will update when we hear back.
Here’s the juicy part of the new regulatory filing: