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Snapchat Valued At $10 Billion But Has Never Made Any Profit

After turning down Zuckerbergs’ check of an amazing  $3 billion, Evan Spiegel, the co-founder of Snapchat, had to explore other options – with the Chinese. As of now, Snapchat is currently dealing with Chinese investors who are giving the company a value of about $10 billion. Amongst the Chinese investors lies Alibaba, the Asian replica of Amazon, which is actually expanding its presence in the US as it soon prepares to go public in the biggest IPO in US history. The Chinese Alibaba has also been investing in several other startups and mobile apps, including: Weibo, Chinas’ version of Twitter and the famous app Lyft in which they poured $250 million last April.

If this investment would go through according to plan, the viral photo-app would be one of very few tech startups that’s valued at 11 digits(!), entering the exclusive Billion Dollar “club” that includes  Airbnb, Dropbox and of course, Uber. The only sad fact is that unlike the other companies, Snapchat has still not drawn in any profit.

Profit or not, the Chinese investors truly believe that the company will be highly profitable in the future due to its increase in popularity, with Snapchat currently processing over 700 million photos a day. Though the LA based tech entity, which was actually founded in a frat-house in 2011, has currently raised over $100 million from a bunch of different venture capital firms – and has even recently hired executives from Google and even Facebook to expand their thriving business.

Picture Credit: Snapchat

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