The world of technology is moving at such a fast pace, so much so that the companies in the scene, too, have valuations that do seem to be right off the charts. Just rewind the clock back to 2013, and you will find that messaging app Snapchat picked up $60 million in a funding transaction, valuing the company at no more than $800 million. Since then, however, Snapchat’s valuation has not looked back, and it seems that the company behind the must-have app for teens is valued at a whopping $17 billion – which is many more times over than what it was perceived to be worth just three years ago.
Are we supposed to be surprised by this development? After all, with more and more features being introduced to the app, including its ability to purchase the latest X-Men movie tickets, it goes to show that more people have faith in the product, and so too are investors who have been forking out $30 a share not too long ago in the later financing rounds, as they are waiting for the company to go public in order to experience a nice payday.
Greed is good, as per what Gordon Gekko believes, and it does seem to be the case this time round with Snapchat.