Get All Access for $5/mo

Snapchat Seeks New Funding at Up to $19 Billion Valuation The popular messaging app is looking to raise as much as $500 million.

By Reuters

This story originally appeared on Reuters

Snapchat is looking to raise as much as $500 million in a new funding round that would value the mobile messaging company at up to $19 billion, Bloomberg reported on Tuesday, citing a person with knowledge of the matter.

The latest valuation is a massive increase for the company, which Facebook Inc offered to buy for $3 billion in late 2013. Snapchat's previous funding round, completed late last year, valued the company at more than $10 billion.

Executives of the company, which allows its more than 100 million users to send messages that disappear after a few seconds, are in advanced talks with fund managers, the person told Bloomberg. (bloom.bg/1AiWtif)

The investments being discussed would value Snapchat between $16 billion and $19 billion overall, Bloomberg reported.

Los Angeles-based Snapchat could not be reached immediately for comment.

The drastic increase in valuation comes as Snapchat continues to add to its active user base and extends its service. Last month it added videos and articles by mainstream media outlets such as CNN and ESPN, bringing Snapchat into closer competition with Facebook Inc and Twitter Inc.

It is also the latest evidence of a surge in venture capital financing for technology companies, that has produced some eye-popping valuations.

Even at $19 billion, Snapchat would only be the third-most valuable tech startup that does not trade its shares publicly. According to research firm CB Insights, Chinese smartphone maker Xiaomi is worth $46 billion and app-based taxi service Uber is valued at $41 billion.

(Reporting by Abhirup Roy in Bengaluru and Bill Rigby in Seattle; Editing by Sriraj Kalluvila, Bernard Orr)

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Growing a Business

How to Determine The Ideal Length of Your Marketing Emails Your Customers Will Actually Read

Wondering how long your marketing emails should be? Here's what consumers say — so you can send them exactly what they like.

Leadership

Tech Overload Will Destroy Your Customer Relationships. Are You Guilty of Using Too Much Tech?

Technology's value in our world is undeniable. However, there can be a point where it is ineffective and possibly counterproductive. See where it can negatively impact your product, brand, and business.

Devices

Clean up Your Mac Software with This $12 Family Plan, for One Week Only

Save on a program that can optimize your company's Mac computers.

Management

Most Gen Z Workers Want This One Thing From Their Employer. Are You Providing It?

Millions of college graduates are entering the workforce, and many feel unprepared. Here's the one thing they're looking for from potential employers — and how providing it will benefit you and your business in the long run.

Operations & Logistics

How to Know It's Time to Add an HR Department

HR activities at startups are often reactive in nature instead of proactive. That leaves gaps in the system.