New documents filed with the SEC show that
Snapchat has raised another $US50 million in investment, with a big name investor: Micheal Lynton, CEO of Sony Entertainment.
Lynton is on Snapchat’s board of directors, the filing confirmed. This latter news was previously reported in June.
As we previously reported, new regulatory filings showed that Snapchat was about to raise a hefty chunk of money. It authorised 1,600,000 shares @ $US34.0893 per share, or just over $US54.5 million, and with that transaction, the company would be valued at about $US2 billion, according to Justin Byers at VC Experts, a site that tracks the financial information of private companies.
This new regulatory filing says that Snapchat is selling off $US50 million worth of equity.
And that’s interesting because it’s still far less than the $US200 million they were rumoured to be seeking. (Prior to this, Snapchat has raised $US73 million to date, according to its CrunchBase profile._
And a $US2 billion valuation, while still impressive for two-year-old company with no visible business model, is less than the rumoured $US3 billion or $US4 billion valuation the some were speculating it had.
It’s still too early to know if saying no to billions was a wise choice. But the addition of tech powerhouse Michael Lynton is a good sign. Lynton can certainly help advise Snapchat on capturing the advertising dollars of Sony and his previous employer, Disney.
Here’s a link to the full SEC document.