Will Snapchat Survive Without Facebook’s $3B?

Remember the Internet bubble when venture capitalists were throwing cash against online startup walls to see what would stick? Apparently, Snapchat remembers those days and is holding out for a big payday.

But will Snapchat, the mobile app that lets you send photos that appear for 10 seconds or less to your friends, live to regret its decision to snub a $3 billion acquisition offer from Facebook? Some industry watchers think so. Others donEUt.

According to the Wall Street Journal, the 23-year-old CEO of Snapchat rejected the $3 billion buyout offer despite the fact that the two-year-old social media phenom has zero revenue to build on. Apparently, Evan Spiegel thinks he can do better with one of his other suitors, like Tencent Holdings. The Chinese Internet giant previously offered to lead an investment that would value Snapchat at $4 billion.

Believing in the Vision

Neither Facebook nor Snapchat could immediately be reached for comment. Snapchat, though, is not without funding. Lightspeed Venture Partners, Benchmark Capital, SV Angel, General Catalyst Partners, and Institutional Venture Partners led a round of funding that raised about $73 million.

But with Instagram grabbing $1 billion from Facebook in 2012, some are questioning the wisdom of Spiegel declining an offer three times that size for an app thatEUs less established. Julie Ask, an analyst at Forrester, pondered SnapchatEUs rejection in a Forbes column:

EUThere could also be some technology, patents and people in the mix -- but less likely though possibly to be the drivers of billions in valuation at an early stage,EU she said. EUThe founders most likely have a belief or a vision of great things to come -- itEUs at the heart of why entrepreneurs do what they do.EU

Déjà vu of 1999?

We asked Marcus Nelson, former director of Social Media at Salesforce.com and CEO of Addvocate, a social platform...

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