Despite reporting loses of of over 40 Million dollars last year, Snap is on it’s way to a $20 Billion Dollar IPO.
The company is currently engaged in another round of capital raising in exchange for third-tier stock options.
Morgan Stanley, Goldman Sachs Group Inc, JPMorgan Chase & Co and Deutsche Bank AG are leading the offering as underwriters.
Snap currently hosts it’s data and servers on Alphabit Inc’s Googles’ servers and Snap Inc will pay a hefty $2 Billion Dollars over the next 5 years for it’s services and cloud computing access.
In the filing, Snap said that it wanted to raise $3 billion, an estimate meant to help determine registration fees. The company may seek as much as $4 billion, a figure that would make it one of the biggest tech offerings in United States history, according to Standard & Poor’s Global Market Intelligence.
About 150+ Million users use Snap Chat daily and the company has it’s own advertising platform on it’s website.
Many factors will contribute to this rather high IPO but much like the drive-share service Uber most investor interest is built on the fear of ‘missing out’ on the next big thing.