Snapchat Inc., the mobile app sensation infamous for its ephemeral messages, is valued at $10 billion, the Wall Street Journal reports, and Kleiner Perkins Caufield & Byers reportedly agreed to invest millions in the messaging service. A Silicon Valley venture capital firm, Kleiner reportedly plans to invest as much as $20 million in May, a source told the Journal. Other investors include Google, Facebook, Uber and Twitter, USA Today reported.
A spokesperson for Kleiner would not comment, but a Snapchat spokeswoman said the worth of the company was not important. "The valuation of our business and our capital requirements are the least exciting aspects of supporting the Snapchat community. We have no further comment at this time.”
The offer seals Snapchat’s role as one of the most valuable private tech startups, Forbes reported. Its founders, Evan Spiegel and Bobby Murphy, could be billionaires based on the company’s shares. They have not decided to earn revenue through advertisements, but it could happen within the year, the Journal said.
The startup, which was valued at $2 billion last year, has talked to several potential investors in recent months. Snapchat turned down a $3 billion offer from Facebook in December, Bloomberg reported last month. As a whole, Snapchat has raised $163 million from seven investors, which includes $50 million put up by hedge fund Coatue Management.
Snapchat, which has 100 million active users, is an app that allows people to send photos that can disappear within 10 seconds. If a user takes a screenshot of the image, the sender is notified.
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