The image messaging app Snapchat differs from Facebook and Twitter with its early focus on monetization, an investor has pointed out – adding their opinion that, were the app’s parent company Snap Inc. to make an initial public offering, it would be attractive to investors.
Jonathan Teo, now a founding partner at the venture capital firm Binary Capital, put money into Snapchat in 2013, when the app’s user base was only 120,000 and he worked for General Catalyst. Snapchat’s number of daily active users has reportedly since reached 150 million.
Snap Inc. is said to be mulling over going public next year, and Teo expressed optimism about how investors seeking to pick up Snap Inc. shares would perceive the company. At the Web Summit tech conference in Lisbon yesterday, Teo told CNBC: “Snapchat has obviously been experimenting a lot with monetization and they’ve got a lot of really innovative products”.
He added: “Because of the company’s real focus on monetization, I think you are going to see some of those efforts really play out in terms of the business model that the company has compared to some of the companies that were focused on getting to growth and scale first,” referring to the likes of Facebook and Twitter.
The Snapchat app is available as a free download for both iPhone and Android.
