Snapchat, a photo messaging application, announced that International Venture Partners was its biggest investor in the company's latest round of Series B financing. Other investors named were General Catalyst, Benchmark Capital, and Lightspeed Venture Partners. SV Angel was also included in the investors' roster. The financial round reached an amount of US$60 million.
Snapchat has a reputation of not gaining any revenue as of the moment. General Partner of International Venture Partners Dennis Phelps cited several reasons as to why the investment was placed on Snapchat.
Phelps said that because smartphones and tablets are replacing desktop and laptop computers, Snapchat's mobile platform is beneficial to growth. The company's recent boom in registration numbers also helped, with 200 million photos created every day.
"Seldom have we seen a consumer application with this type of user momentum and excitement," stated Phelps. "Think Twitter... Think Instagram... Think Pinterest... and Snapchat is just getting started."
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