Los Angeles based photo and video messaging app Snapchat has raised USD 80 million in series B funding at an $800 million pre-money valuation led by Institutional Venture Partners, states Techcrunch.
There were reports that Snapchat was close to raising USD 100 million in funding from undisclosed investors at a valuation in excess of half a billion dollars and was aggressively recruiting salespeople from Stanford as well as USC for debut of a monetization scheme. Snapchat co-founders Evan Spiegel and Bobby Murphy were even looking for ambitious valuation at around USD1 billion.
Snapchat is a photo-sharing app that changes privacy norms in a very novel way, calling it a self destructing app. It allows users to send others photos allowing them to control for how long their friends can view message by simply setting up a timer up to ten seconds. The photos can last for up to 10 seconds, before they disappear forever. Also if a receiver tries to take a screenshot of the photo received, the app notifies that sender instantly.
How it works
When someone sends a snap, it is uploaded to Snapchat’s servers, the recipient(s) are sent a notification that they have a new snap and the Snapchat app downloads a copy of the message.
The message is stored in a temporary folder in the device’s memory and when the snap is viewed, the app notifies servers, which in turn notify the sender that the snap has been opened. After notification of message being viewed or when the timer runs out, it is deleted from servers. Even the messages unopened for 30 days are deleted. After a snap has been opened, the temporary copy of it is deleted from the device’s storage as well.
It is available for iOS and Android devices. According to Snapchat, there are over 50 million snaps shared every day on its platform.
According to KPCB Snapchat is at rank 2 in terms of photos being uploaded and shared on the select platforms after Facebook.