Snapchat Valuation Skyrockets to $10 Billion Following New Funding Kleiner Perkins Caufield & Byers tendered a $20 million investment in the as-yet-unprofitable ephemeral messaging app last May.

By Geoff Weiss

Opinions expressed by Entrepreneur contributors are their own.

Following an investment by Kleiner Perkins Caufield & Byers, disappearing messaging app Snapchat now sports an eye-popping valuation of $10 billion.

While previous reports suggested that Alibaba was considering an investment, The Wall Street Journal alleges that the Chinese tech titan ultimately passed. Kleiner, however, tendered $20 million in May -- which would amount to a stake in Snapchat of less than 1 percent.

The funding round has not yet closed and a Snapchat spokeswoman bristled at the reports. "The valuation of our business and our capital requirements are the least exciting aspects of supporting the Snapchat community," she told the Journal in a statement. "We have no further comment at this time."

Related: Taco Bell Reveals Crappy-Looking Dollar Menu Over Snapchat

As of its last funding round in December 2013, Snapchat had raised a total of $163 million.

It is possible that incoming capital could be allocated towards Snapchat Discovery, a forthcoming service that would disseminate ephemeral news content and ads, marking the company's first play towards monetization.

Despite the fact that Snapchat is virtually unprofitable, the company says that more than 100 million monthly users send roughly 700 million disappearing "snaps" every day.

Its latest funding round now catapults it to the valuation stratosphere alongside startups like Airbnb, Dropbox ($10 billion each) and Uber ($18.2 billion).

Related: This Bar Wants You to Apply for a Job Via Snapchat

Geoff Weiss

Former Staff Writer

Geoff Weiss is a former staff writer at Entrepreneur.com.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Innovation

4 Ways Market Leaders Use Innovation to Foster Business Growth

Forward-thinkers constantly strive to diversify and streamline their products and services, turning novelties into commodities desired by many.

Science & Technology

Is Mental Clarity the Real Key to Success in 2025?

Peak mental efficiency = peak business effectiveness.

Franchise

Jersey Mike's Switched Up Its Strategy for Serving Customers This Year — Then Blackstone Bought the Sandwich Chain for $8 Billion

The New Jersey sub franchise has dialed in on strategies to serve customers in stores and online, as proven by its recent acquisition.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.