Snapchat is a popular social media platform that has been captivating users for years. It has become one of the most successful and widely used apps in the world, but many are unaware of who owns it.
The answer may surprise you – Snapchat is owned by Snap Inc., a technology and camera company founded by two Stanford University students, Evan Spiegel and Bobby Murphy. In this article, we will take a look at the company and its founders.
What is Snapchat
Snapchat is a popular social media platform that has been captivating users for years. Snapchat was founded in 2011 by Evan Spiegel and Bobby Murphy, two Stanford University students. They created the app as an alternative to traditional messaging apps with an added emphasis on photo-sharing.
The app proved popular among young users due to its unique design and features such as “Stories” which allowed users to share a collection of photos and videos with their friends.
Early ownership by co-founders Evan Spiegel and Bobby Murphy
Evan Spiegel and Bobby Murphy are the original founders of Snapchat. After creating the app, they were able to secure funding from Sequoia Capital in 2012 and launched it publicly the following year. The two co-founders had full ownership of the company until 2015 when they sold a portion of their stake to outside investors for $537 million, valuing the company at $16 billion. This investment gave them the capital needed to continue growing Snapchat.
Investment from venture capitalist firms
Since its inception, Snapchat has seen investments from a wide range of venture capitalist firms. In 2013, the company received a $60 million investment from Benchmark Capital and in 2014, it secured another round of funding from Kleiner Perkins Caufield & Byers. Over the next few years, several other venture capitalist firms invested in Snapchat including Lightspeed Venture Partners, Coatue Management, and Yahoo Japan.
IPO in 2017
In 2017, Snapchat made its Initial Public Offering (IPO) on the New York Stock Exchange. The shares sold by Snap Inc. were priced at $17 each and raised a total of $3.4 billion, valuing the company at over $24 billion. This made it one of the largest tech IPOs in history and showed that investors had faith in the future success of the company.
Current ownership
Parent company Snap Inc
Snap Inc. is the parent company of Snapchat and is currently owned by its two co-founders, Evan Spiegel and Bobby Murphy, as well as various venture capital firms. The company was founded in 2011 and has since become one of the most successful technology companies in the world. Snap Inc. offers products such as Snapchat, Spectacles (camera glasses), and Bitmoji (personalized emojis).
Major shareholders
Evan Spiegel and Bobby Murphy are the two major shareholders of Snap Inc. Currently, Evan Spiegel holds a 22.9% stake in the company while Bobby Murphy holds a 19.2% stake. The remaining shares are owned by venture capitalist firms such as Lightspeed Venture Partners, Benchmark Capital, and Kleiner Perkins Caufield & Byers. Other notable investors include Yahoo Japan and Coatue Management.
Impact of ownership on Snapchat
Management decisions
The ownership of Snap Inc. by Evan Spiegel and Bobby Murphy has had a major impact on the strategic direction of Snapchat. Under their leadership, the company has focused on creating innovative products that appeal to young users, such as Snap Maps, Discover, and Bitmoji. They have also been aggressive in their marketing strategy, investing heavily in advertising campaigns to increase user engagement.
Financial performance
Snap Inc. has seen impressive financial performance since its IPO in 2017. The company reported revenues of $1.7 billion for 2020, an increase of 44% from the previous year. Snapchat’s user base has also grown exponentially over the years and reached 265 million daily active users in 2020, up from 229 million in 2019. This growth shows that Snap Inc.
Product development
The ownership of Snap Inc. by Evan Spiegel and Bobby Murphy has had a profound impact on the product development strategy of Snapchat. Under their leadership, the company has focused on developing innovative products that are tailored towards young users. This includes features such as Snap Maps, Discover, and Bitmoji, which have become popular with millennials and Generation Z. The company also puts a strong emphasis on user experience, striving to make its products easy to use and enjoyable.
Conclusion
Snapchat is currently owned by its two co-founders, Evan Spiegel and Bobby Murphy, as well as various venture capital firms. Since the company’s IPO in 2017, Snapchat has seen impressive financial performance with revenue increasing 44% year-over-year and user base growing to 265 million daily active users.
The ownership of Snap Inc. by Evan Spiegel and Bobby Murphy has had a major impact on the strategic direction of Snapchat, leading to the development of innovative products such as Snap Maps, Discover, and Bitmoji. They have also been aggressive in their marketing strategy, investing heavily in advertising campaigns to increase user engagement.
