Investors reportedly buying into Snapchat at $10B valuation

The valuation of Snapchat is absolutely crazy. There is no revenue and barely a hint of a revenue model (possible location based ads and news). I don't really understand the $10B let alone the $3B offer.

For those who want to non-mobile link (I hate subdomains for mobile sites instead of using a responsive design): http://www.theverge.com/2014/8/26/6071911/snapchat-finds-inv...