Snapchat Raises $13.5M In First Round Of Venture Funding

By Alexandra Burlacu email: a.burlacu@mobilenapps.com | Feb 10, 2013 12:00 PM EST

Tags Snapchat

Share This Story

  • Print
  • Email

Snapchat, the social media start-up that inspired Facebook's competing app Poke, has closed its first round of venture funding at $13.5 million.

Basically, Snapchat is an app designed to let users send self-destructing pictures and videos that disappear after a set time.

Follow us

Benchmark Capital led the funding of the app. According to the New York Times' (NYT) Jenna Wortham, Benchmark Capital values Snapchat at $60 million to $70 million, prompting the impressive cash infusion.

"I started hearing Snapchat in the same context as Twitter, Instagram, and Facebook," NYT quoted Benchmark's Mitch Lasky, whose teenage daughter brought Snapchat to his attention. "That got me curious."

Lasky further suggested that the expiration date on content sent via the app allows people to feel more confident and not worry about a digital self that pervades time frames. In turn, this allows for a more authentic experience, in Lasky's opinion.

"People are looking to communicate in a real way. The real self, as opposed to the projected self. That was the piece that resonated the most with me," he told the NYT.

As various reports indicate that Facebook may be losing its edge when it comes to teenage users, venture capitalists are hunting for the next Facebook or Instagram. Facebook itself is well-aware of the issue with youngsters.

"We believe that some of our users, particularly our younger users, are aware of and actively engaging with other products and services similar to, or as a substitute for, Facebook," the social networking giant recently said in its 10-K annual report. "For example, we believe that some of our users have reduced their engagement with Facebook in favor of increased engagement with other products and services such as Instagram."

According to Wortham, Facebook founder and CEO Mark Zuckerberg met the Snapchat team back in December, a couple of weeks before the social networking giant launched a Snapchat knockoff called Poke.

While Facebook's Poke climbed rapidly in Apple's App Store at first, now it doesn't even make the Top 200. Snapchat, meanwhile, sits comfortably on the #22 spot, closely behind Instagram which sits at $19 but ahead of Facebook Messenger, which ranks #29. Twitter's Vine, meanwhile, sits at #42. 

Get the Most Popular Mobile&Apps Stories in a Weekly Newsletter

© 2014 Mobile & Apps All rights reserved. Do not reproduce without permission.

Featured Video : Intel Pocket Avatars

Join Our Conversation

Smartphones
Sony Xperia Z3 leaks with specs sheet taped on its backSony Xperia Z3 full spec sheet leaked – Here’s what to expect
Apple’s iWatch reportedly in ‘engineering verification test’ stage, likely launching in 2015
Sony Xperia Z3 Compact leaks in press shots ahead of IFA 2014 debut
Sony to unveil Android Wear-powered SmartWatch 3, SmartBand Talk wearables at IFA 2014
Tablet / Laptop / PC
Dell Venue 7 and Venue 8Dell unveils Venue 7 and Venue 8 Android 4.3 Jelly Bean tablets
Retina iPad Mini facing delays, may not launch until early next year
Refurbished 128GB iPad with Retina Display now available on the Apple Online Store
Samsung Galaxy Note 10.1 – 2014 Edition: Pricing and availability now official
Gadgets
Amazon LogoAmazon reportedly to launch ‘Firetube’ set-top box before 2013 holidays
Samsung Galaxy Note 3 and Galaxy Gear India launch: Pricing and availability
Samsung Galaxy Gear Android smartwatch now up for pre-order in Canada
Samsung Galaxy Gear 2 reportedly in the works already, may debut at CES or MWC 2014
OS / Software
HTC LogoHTC reportedly considering Android/Windows Phone dual-booting smartphone as Microsoft pushes for deeper Windows mobile integration
iOS 7 Chrome Incognito mode leaks private searches due to bug
Sprint HTC One Android 4.3 Jelly Bean already rolling out, AT&T, T-Mobile & Verizon to follow
Microsoft Windows 8.1 now available for pre-order
Internet / Social Media
Google DowntimeGoogle blacks out for two minutes, causes 40 percent drop in world’s Internet traffic
Xbox Music web player is live and ready for Xbox Music Pass subscribers
Facebook Android app collected phone numbers even if users never logged in
Firefox 22 brings support for web video calls, 3D gaming, and Unreal Engine 3
What's App
Vine update brings new camera experienceVine gets major update, lets you upload previously-shot videos & more (VIDEO)
BlackBerry Messenger (BBM) finally hits Windows Phone – Available as a free download now
Instagram releases Bolt ephemeral messaging app in select markets to challenge Snapchat
PayPal for iOS update brings loyalty card support, other features and enhancements
Copyright © 2014 Mobile & Apps All rights reserved. mobilenapps
Real Time Analytics