Only four months after raising $60 million in funding, Snapchat, the time-out message app, is apparently looking for even more money. This time around, the 2-year-old newbie company is searching for hundreds of millions of dollars and a valuation as high as $3.6 billion. After the last round of funding, the send-and-delete app was valued at around $800 million. According to All Things D, the lead investor this time around may be a strategic party from Asia.
Forbes reports that the most logical candidate is Tencent, the Chinese owner of messaging apps QQ and WeChat. In June, when Snapchat raised $60 million at an $800 million valuation, CEO Evan Spiegel openly expressed his admiration for the company in an interview with Forbes. Spiegel also said that Snapchat will also look to make money from in-app purchases. Though that hasn’t happened yet, it would up the lack of revenue the company is now seeing.
As with most tech start-ups, Snapchat hasn’t actually seen much monetary revenue -- the worth of the company is its valuation. Companies like Snapchat generally see their money when they sell out to a bigger company. For example, Instagram was recently sold to Facebook for $1 billion, just as YouTube was sold to Google. If this next round of funding goes as planned for Snapchat, we could be seeing the biggest tech sale ever at $3.6 billion.