Snap raised $2.3 billion at gigantic valuation of $34 billion after one day of trade

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Snap Inc’s IPO valuation at $22 billion invokes speculation and debate. After a day of trading the value of the mother of Snapchat – that lost $500 million in 2016 – rose even to $34 billion. It would mean a revenue multiple of 84 as Snap’s sale was $404 million in 2016. Amazon, Netflix, Alphabet (Google) and Facebook are “only” trading at a revenue multiple range of 3-14. Snap has to invest the $2.3 billion fresh capital in its coffers wisely and with a huge return, but still then it’s hard to imagine how Snap can underpin it’s gigantic valuation.

Martijn Hoogeveen

Founder and CEO of Icecat NV. Investor through iMerge. PhD Multimedia at Delft University of Technology. Former Professor at Open University Netherlands/Technical Sciences & Environment.