You won’t see Snapchat on the growing list of “downrounds” any time soon.
As more and more tech startups are forced to slash their valuations in order to raise funds, Snapchat reportedly is raising money at a $20 billion valuation — a jump up from its current $16 billion price tag.
Anonymous sources close to the deal told TechCrunch that Snapchat is in the process of raising about $200 million, as a follow-on to a $175 million Series F round led by Fidelity. The new round could bring the company’s valuation to as high as $22.7 billion.
The new funding round comes as investors worry that some private “unicorn” companies may not live up to their $1 billion-plus valuations. As a result, companies including Jawbone and Foursquare have had their valuations scaled back.
Snapchat users watch more than 7 billion videos per day on the app, Bloomberg reported in January. At the time, Snapchat, which had more than 100 million users, was rivaling Facebook’s video views.
Fidelity slashed Snapchat’s valuation by a quarter last year. The fund manager marked down its stake in Snapchat to $34.5 million.
Image: Snapchat logo (Snapchat).
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