Los Angeles Business Journal

Snapchat Seeking More Money

By Natalie Jarvey Friday, October 25, 2013

Fresh off the heels of raising a monster $60 million in venture capital over the summer, Snapchat appears to be looking for more.

A report from tech blog AllThingsD on Friday indicates that the company is considering raising hundreds of millions in funding that would value the company at $3.6 billion. The money would likely come from Asia.

The Venice company has quickly become one of the fastest growing startups in the Los Angeles area. The service, which allows people to send self-destructing photo messages, launched in 2011 and was generating more than 200 million "snaps" a day by June this year.

Snapchat announced its $60 million series B round in June. Investors included Institutional Venture Partners, General Catalyst Partners, Benchmark, Lightspeed Venture Partners and SV Angel.

AllThingsD ruled out China’s Alibaba Group or Japan’s Rakuten as possible investors for a forthcoming round, but noted that Chinese Internet giant Tencent would be an interesting candidate. Tencent owns a majority stake in Santa Monica game maker Riot Games.