NEW YORK, Aug. 27 (UPI) -- Is an app whose content evaporates in seconds worthwhile? Apparently: Despite its ephemeral nature, Snapchat is pulling in the big bucks from investors.
Silicon Valley powerhouse venture capital firm Kleiner Perkins Caufield & Byers is reportedly making a $20 million investment into Snapchat, the disappearing photo messaging app, at a valuation of nearly $10 billion, according to a Wall Street Journal report.
"The valuation of our business and our capital requirements are the least exciting aspects of supporting the Snapchat community," a Snapchat spokeswoman said. "We have no further comment at this time."
Just a year ago, Snapchat was valued around $2 billion. More than 100 million people use Snapchat each month, sending 700 million snaps, up from 350 million in October. And though it has yet to make any profit off its popularity, Snapchat is expected to introduce advertising later this year.
The Kleiner funds follow an investment earlier this year from Russian firm DST Global, which valued Snapchat at $7 billion. It has accumulated more than $160 million in investments from investors such as Benchmark, Institutional Venture Partners, Lightspeed Venture Partners, Coatue Management and Tencent Holdings.
Facebook reportedly made a made a "http://www.upi.com/blog/2013/11/13/Snapchat-turns-down-buyout-offer-from-Facebook-for-3-billion/8281384371673/?ilink=1" target="_blank", t $3 billion offer to acquire Snapchat last year, which the three-year-old company turned down. It made a successful bid to buy WhatsApp for $19 billion, which has 600 million monthly active users, and bought Instagram for $1 billion in 2012.