Snapchat sees 200 million snaps a day, announces $60 million funding
Snapchat, the Venice Beach-based fleeting image app, has announced a $60-million round of funding led by Institutional Venture Partners.
The start-up, which enables users to send friends photos and videos that disappear seconds after they're viewed, also said 200 million "snaps" are transmitted through the platform a day -- impressive considering the company is just 2 years old.
"We’ve been able to support the growth of Snapchat with minimal overhead," the company said in a blog post Monday announcing the deal. "But in order to continue scaling while developing the Snapchat experience, we needed to build a bigger engineering team and figure out how to pay our server bills."
General Catalyst, Benchmark Capital, Lightspeed Venture Partners and SV Angel also participated in the round.
Institutional Venture Partners, a later-stage venture-capital firm based in Menlo Park, Calif., said in its own blog post that the financing round for Snapchat was "intensely competitive -- one of the most competitive financings we have been a part of in years."
The firm gave several reasons for investing in Snapchat, including its strength in mobile, its popularity with the younger demographic, its unique position as a tech-start up in L.A. and growth and engagement metrics that "are off the charts."
"Think Twitter...Think Instagram...Think Pinterest...and Snapchat is just getting started," general partner Dennis Phelps wrote in his post, "Ten Reasons why IVP invested in Snapchat."
Last month, Snapchat co-founder and Chief Executive Evan Spiegel said in an interview with The Times that the company had a number of developments in the works and that it would "raise money as necessary to keep the snaps flowing."
"We have a really cool product road map and we're really focused on executing on that," Spiegel said. "We are something like half a percent down the path, if that."
In the last few weeks, Snapchat has rolled out a redesign of the app, followed over the weekend by the launch of SnapKidz, a version of Snapchat aimed at the under-13 crowd.
Snapchat was founded in 2011 by Spiegel and co-founder Bobby Murphy, two former Stanford University students.
*Shared by Jeff Vertun, Scott Steuber & Ted Simpson