Snapchat is so popular investors are giving up on certain privileges in its latest $650 million round

As reported earlier, Snapchat is planning to raise $US650 million at a $US16 billion valuation.

And according to an SEC filing on Friday, Snapchat has already raised $US537 million of the $US650 million it plans to raise.

But what makes this round different from previous rounds is that the investors are taking common stock, instead of preferred stock, foregoing certain privileges they typically enjoy by investing in startups, The Wall Street Journal reported.

That means investors are giving up on things like voting rights and downside protection, as well as the right to get paid earlier than regular shareholders. It’s uncommon for investors of this size to take common stock over preferred stock. It’s also a reflection of the huge demand Snapchat is seeing from investors.

Investors in the latest round include Alibaba and two hedge funds, Glade Brook Capital Partners and York Capital Management, the WSJ reports.

Snapchat’s last funding came in March, when it raised $US200 million from Alibaba, which put the mobile messaging app’s value at roughly $US15 billion. So far, Snapchat has raised $US848 million in venture capital money.

Snapchat CEO Evan Spiegel said this week at the Code Conference that Snapchat now has nearly 100 million daily active users, and that it plans to go public soon.

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