News and Views
Here’s Why One Snapchat Investor Thinks the App Is Worth Billions
You may have heard by now — Snapchat is worth a lot of money to a lot of important people.
If the app doesn’t end up selling to Facebook for billions (and, for now, it looks like it won’t), the company looks to soon raise hundreds of millions of dollars in venture capital.
So, why, pray tell, is everyone from Mark Zuckerberg to most of Sand Hill Road willing to throw oodles of cash at a startup that makes zero revenue?
The answer, according to at least one Snapchat investor, is all in the push of a button.
For those who haven’t used Snapchat, a quick primer: Users send photo or video messages to one another, which can be viewed for a limited period of time before vanishing from the other person’s phone. In order to view those messages, one must press and hold their finger against the phone’s screen for the length of the snapchat message — anywhere from one to 10 seconds.