Is Snapchat Really Worth $10 Billion?

New valuation exceeds everyone's estimates

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If a picture is worth a thousand words, then how much is one that disappears worth? $10 billion, apparently, according to Wall Street Journal.

Last year the startup was valued at $2 billion and this year it has risen again, with Kleiner Perkins Caufield & Byers supposedly agreeing to invest millions in the ephemeral messaging service. The Silicon Valley venture capital firm has invested in a variety of successful tech companies thus far including Amazon, and is reportedly committed to invest as much as $20 million into one of the most valuable private tech startups. Other investors that have raised Snapchat to the $163 million investment mark include Google, Twitter and Uber, as well as Facebook, who Snapchat CEO Evan Spiegal turned down a $3 billion offer from back in December. However, Zuckerberg did manage to acquire at least one messaging app last year, paying a whopping $19 billion for Whatsapp, which recently declared it has over 600 million active users. Although Snapchat pales in comparison with just 100 million, a recent study found that college students actually use Spiegel’s ephemeral messaging service more than Facebook.

Based on the company’s newest shares, founders Evan Spiegel and Bobby Murphy could be billionaires, despite the fact that they are still holding back from earning revenue through advertisements.