Want to get rich relatively quick? Develop an app around a simple concept and wait for the ridiculous valuations to come rolling in, and then sell to the highest bidder. It's a formula that worked for Instagram
, a photo (and now video
, too) sharing app that Facebook purchased for $1 billion, and it appears Snapchat
is headed in the same direction.
Word all over the web is that Snapchat raised $60 million during its latest round of funding, and did so at an $800 million pre-money valuation. Like Instagram, Snapchat is well on its way to becoming a billion dollar company, which is a little mind boggling for an app that doesn't yet generate any revenue.
The potential to make big money is there, however, as lots of people use Snapchat to send self-destructing photos and videos of themselves. The way it works is you snap a photo or record a video, add a message or a few scribbles, set a time limit for how long the recipient can view your creation (up to 10 seconds), and fire it off. Just be careful what you send -- images and videos are recoverable with a little work, and there's nothing stopping the recipient from taking a screen capture, though you're alerted when that happens.
"The response has been absolutely mind blowing," Team Snapchat stated in a blog post. "Less than two years later, Snapchatters are sharing over 200 million snaps every day. And thanks to our incredible and hardworking team, we've been able to support the growth of Snapchat with minimal overhead."
To continue growing, however, Snapchat needs money, hence the private investments that have Shapchat well on its way to becoming a 10-figure company.