Give yourself five chins, take a snap, and send it to twenty of your closest friends. There, in a nutshell, is the concept behind Snapchat, the addictive app that has generated $60 million in enterprise funding for future investment.
Snapchat allows users to send pictures of themselves that disappear after being viewed for a few seconds. The service is used by five million users daily, who send on average 200 million photos and videos daily. That’s a lot of unflattering selfies.
During a successful round of funding, the picture messaging app was valued at $800m. This was despite the fact that the app has yet to generate any earnings in sales or advertising, as it is available for download at no cost.
Institutional Venture Partners, General Catalyst Partners and Benchmark Capital were among the investors that pledged funds to the service based in Los Angeles. Michael Lynton, Sony’s Entertainment chief executive, was recently added to the company’s board of directors.
In a message to its users, the founders of Snapchat said, "We’re committed to building a big company around an innovative and fun product. And we know we can’t do it without you. So thank you for your endless support and enthusiasm for Snapchat. It means the world to us."
Incoming new funds are predicted to be invested in the further expansion of the company’s engineering team, and additional features to the app.