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Snapchat raised $1.8B in a Series F round

techcrunch.com

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Re: Snapchat raised $1.8B in a Series F round

#311

Post by wrsh07 »

gjolund wrote: post #238
argonaut wrote: post #234

Earlier quoted context omitted.

I don't buy this scenario. The failure scenario I have in mind is their monetized products fail to catch on, and they are basically like Twitter - no other products that directly compete in that niche, but not a cash cow either. Or WhatsApp - very popular, not a cash cow.

Just as plausible, if not more so. I just view the constantly aging 18-24 year old demographic as the main driver of viral growth these days. As that demographic ages out a new flavor of the week will emerge.

That would make sense if most high school students didn't currently use Snapchat

Re: Snapchat raised $1.8B in a Series F round

#312

Post by joslin01 »

gjolund wrote: post #284
the_watcher wrote: post #270

Earlier quoted context omitted.

Because good VCs make money on the ones that successfully monetize, not on consistent 10% ROI. That kind of return is great, but just be a PE firm if that's your goal.

If you have the money to play the odds like that then more power to you. I just don't like the acknowledgement that most of their investments will fail.

Naw man, that's just how it goes in VC world. You have to play it like that. It's like a roulette table -- hard to hit a number but pays out 33x. Well, similarly, a very successful start-up can pay out 100-1000x and easily carry the other losers.

Re: Snapchat raised $1.8B in a Series F round

#313

Post by joslin01 »

jamiequint wrote: post #266
gjolund wrote: post #258

Earlier quoted context omitted.

Your opinion would change if someone you cared about needed a new liver.

I'm certain that if I knew someone who needed a liver transplant that I would then personally value liver transplant tech over social media, that's completely beside the point though. My feelings in a given scenario don't make work on liver transplants more important than work on social media. What matters is net impact.

Jumping in late, but no. High quality problems solved make a stable future where things like like transplants are just "solved." You cannot say the same for social networks, which are actually much more reflective of the current culture. We will not look back 50 years from now and say "oh man, thank god Snapchat came along" the way we'll be saying "thank god we pioneered that medical tech which continues to save lives to this day"

Re: Snapchat raised $1.8B in a Series F round

#314

Post by jaywunder »

ivanca wrote: post #301
argonaut wrote: post #215

Earlier quoted context omitted.

Yeah but I seriously doubt that will drive them to $1B in revenue. They need one big cash cow rather than a collection of trinkets.

They may learn to use those trinkets. Just imagine a button that says `Buy for $0.20 the X-Men Wolverine Mask filter` or just detecting user patterns: They detect an user mostly uses cat-faces filters, so they try to sell her cat-faces filters. Or that her snap-chats are mostly on restaurants, so they show her some restaurant ads with the same color filters she likes.

They already tried to sell filters. I think selling filters didn't go well because filters are free now.

Re: Snapchat raised $1.8B in a Series F round

#315

Post by MicroBerto »

gjolund wrote: post #223
MicroBerto wrote: post #218

Earlier quoted context omitted.

Your points all well taken, I consider any talented employee at SnapChat to be doing this world a net disservice due to the wasted opportunity costs of other issues they could be attacking. "We wanted flying cars, instead we got 140 characters."

It saddens me that many of the greatest programmers of my generation are just trying to get people to click ads.

(or send dick pics)

Re: Snapchat raised $1.8B in a Series F round

#316

Post by rdl »

puranjay wrote: post #307
milesokeefe wrote: post #84

Earlier quoted context omitted.

Perhaps it doesn't scale well, but their sponsored face filters seem to be getting a good reception. It's rare for people to find ads fun.

Works only for a couple of verticals I'll be darned if an insurance provider can make a filter fun It's also something most small businesses can't really make good use of, unless they are in the entertainment/lifestyle businesses

I'm sure the GEICO lizard could be fun for someone, and an insurer could probably do a "fake accident filter to get out of work" or something.

Re: Snapchat raised $1.8B in a Series F round

#317

Post by malchow »

argonaut wrote: post #274
the_watcher wrote: post #268

Earlier quoted context omitted.

Common misconception: Twitter has actually pretty steadily increased its revenue per user. Their issue is that their user growth has basically plateaued far short of the ubiquitous level they need.

I am aware of that difference. As a company Twitter is not a cash cow.

As a few dozen people managing a webapp on AWS from home while eating udon noodles, it'd be a cash cow.

Re: Snapchat raised $1.8B in a Series F round

#318

Post by robwilliams »

macandcheese wrote: post #157

Snapchat is the medium that most closely represents a real life conversation - between individuals, between friend groups, between performers & fans, etc. That's why it's popular and will continue to be so. The beauty of Snapchat is that you don't need to think about what you are posting: It's ephemeral, it's kept close to the vest (you choose explicitly who sees it), and above all, it's without reservation. I don't…

I just recently got into Snapchat. My fiance and I just snap each other during downtime at work, nothing major. It's a lot of fun but I'm not sure how they could monetize it beyond the sponsored filters they have now.

Re: Snapchat raised $1.8B in a Series F round

#319

Post by robwilliams »

gjolund wrote: post #226
sotojuan wrote: post #100

Earlier quoted context omitted.

People on tech forums are typically negative about social media apps and platforms. It's pretty interesting.

I can only speak for myself here. I have no problem with snapchat the app. I think it is dumb, and don't enjoy using it, but that doesn't mean that it shouldn't exist. What I do have a problem with is Snapchat being put on a pedestal, and perpetuating the SV cash grab business model. Get a bunch of users with a trendy app, data mine the shit out of them, and serve them ads until the app folds. There is no lasting val…

You've made a negative comment in nearly every thread on this post - do you really hate Snapchat that much? Do you not see how some people might enjoy using it?

Re: Snapchat raised $1.8B in a Series F round

#320

Post by partiallypro »

jakelarkin wrote: post #305
partiallypro wrote: post #298

Earlier quoted context omitted.

I think it's more probable that their value will come down from bubbling heights and someone will buy them. To me chat models aren't sustainable without it working in line with your other verticals. It's too hard to monetize. IMO no chat platform can survive without being attached to another product or service; or just a vertical that is similar. Not in the mobile age it's not. There are too many chat apps as it is.…

"Really, if I'm Twitter and want to stop my stock from tanking, I get a line of credit and buy SnapChat" Twitter's valued at only $10 Billion. Snapchat just raised at rumored $18 Billion valuation.

It's equity value is not all that relevant during a buyout, there are different swap methods, etc. It's not unusual for a company with a smaller market cap to buy a larger one. A lot is to be considered, ebitda, debt, liabilities, cash flow, book value etc. I also said that their valuation will eventually fall. We are in a private equity bubble, but credit is still easy to come by.
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