Snapchat has filed for an IPO that could value the company at $25 billion

Alex Heath and Portia Crowe
Nov. 15, 2016, 4:02 PM
Source: Business Insider

Snapchat’s parent company, Snap Inc., has quietly filed paperwork for an initial public offering, setting the wheels in motion for what’s expected to be the largest tech debut in years.

Snap, which is based in Venice Beach, California, confidentially filed its paperwork with the Securities and Exchange Commission before the presidential election, a person familiar with the matter told Business Insider.

Snap’s IPO could come as early as March, but it could also occur in the second quarter of 2017, the person said. The company is seeking a valuation of $20 billion to $25 billion.

Some people think the offering could be even larger. Bloomberg has reported that Snap’s IPO valuation could swell as high as $40 billion.

Morgan Stanley and Goldman Sachs will lead the deal, while JPMorgan, Deutsche Bank, Allen & Co., Barclays, and Credit Suisse will be joint bookrunners.

Revenue engine
Snapchat Spectacles filter
A Snapchat selfie “lense” that lets you try on a virtual pair of the company’s Spectacles camera glasses. Melia Robinson/Business Insider
Snapchat has emerged as one of the most popular consumer internet services, challenging Facebook, Twitter, and Google for users and advertising dollars. With the tech IPO market stuck in the doldrums over the past year, investors are hoping Snap’s offering could open the gates to more IPOs, including closely watched tech companies like Uber.

Snap has told investors that it expects to make $250 million to $350 million in advertising revenue this year. A recent eMarketer report predicted the company would near $1 billion in revenue in 2017 — meaning an IPO that valued the company at $25 billion would be 25 times its projected revenue numbers.

It’s not clear whether Snap is profitable, however, and the company is aggressively expanding into new businesses and markets that are likely to eat into margins.

Snap’s main business is advertising in the Snapchat app, which has over 150 million daily users. But Snap recently rebranded itself as a camera company and started selling $130 camera-equipped sunglasses called Spectacles.

The company most recently raised $1.81 billion in private funding in May, which pegged its valuation at $18 billion to $22 billion.

With annual revenue under $1 billion now, Snap was able to file its Form S-1 with the SEC confidentially under the JOBS Act. News of the filing was first reported by Reuters on Tuesday.

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A Day of Wins! STRIVE raises $10k and wins the 2016 Exile Island Competition!



A day of wins! STRIVE Recruitment Inc. is proud to have participated in The Children’s Wish Foundation of Canada Annual Exile Island Challenge. Not only did we raise $10,000 for our awesome wish kid, Crystal; but we also competed against KPMG, BCLC, Teekay Corporation, Gowlings  & others in a  survivor-like challenge.. and we won ! From the Mind-Breaker to the Hidden Treasure, STRIVE was tasked with navigating several gruelling challenges that required strategy and teamwork (right up our alley!).  Fulfilling Crystal’s wish is one of the proudest moments of our company’s history and we are grateful to all of the fantastic people at Children’s Wish Foundation BC for the amazing experience.





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STRIVE Pub Night with The Children’s Wish Foundation



STRIVE hosted a fantastic evening with some gracious folks at the Moose’s Down Under to help fund Crystal’s Wish! On behalf of The Children’s Wish foundation, STRIVE was paired with Crystal and her awesome family (especially Little Benny!) to help fund her wish of taking a family vacation to Turks and Caicos.  (You can read her ful story here!: )

We had a great turnout, some really great silent auction items and a big winner on the 50/50. Thanks to all who came out. We are half way to our $10,000 goal! If you haven’t already, you can donate here!



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