On the heels of Instagram’s $1 billion exit to Facebook, investors are hoping a new buzzy startup, Viddy, can share a similar fate.Viddy, an Instagram-like app for video, is raising at a $350 million valuation, sources say.
Hats off to Alexia Tsotsis at TechCrunch, who first reported the insane Series B financing round. We held out because we were trying to confirm it was a new round of financing, separate from the February Series A, which PandoDaily reportedly was at a $300 million valuation.
It was not. This is an entirely new infusion of cash, which Tsotsis pegs at $30 milion at a valuation slightly higher than what we’ve heard, $370 million.
Tsotsis says NEA is involved. We heard the firm was considering investing.
“Everyone is expecting Google to make a large social network acquisition, but no one has any idea who,” says a source with regards to the high valuation.
Viddy, in a conversation separate from the funding news, tells us it has 10 million registered users with 500,000 new users per day. The company also says it is averaging over 100 million plus video views per month, doubling every month.
Viddy is the same company that Shakira and a slew of other celebrities just invested in. The New York Times attributed the celebrity investments to Viddy’s $6 million round which closed in early February. But it could have been a part of this new Series A financing.
Still, the valuation hardly seems justified.
“That valuation is bizarre — Viddy only speaks about signups but never about engagement, which I’d assume is very low,” says another source.
Socialcam, a Viddy competitor, has similar numbers. The Justin.TV spin-out just got 4 million new users last weekend and also has a reported 10 million users.
Once Instagram launches its video product, it will be hard for Viddy or Socialcam to compete with Facebook.
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