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Snapchat Lands $13.5 Million in Round Led By Benchmark
- theschnabler 14y agook, this might be a weird question (as in "hard/impossible to answer"), but how are they possibly going to spend 13.5 million reasonably?
- jacquesm 14y agoDon't worry, they'll find a way. Spending money is ridiculously easy, making money, that's hard.
- deleted 14y ago[deleted]
- PanMan 14y agoI made a rough estimate what instagram spend on hosting just before FB bought them, and I wouldn't be surprised if that was a few 100K/month. At this scale, and especially AWS, this isn't cheap. If snapchat supposedly does 50 mln imgs/day, their hosting also won't be free. Also, if they could raise this at a nice valuation, it gives them a nice runway.
- halcyondaze 14y agoI don't understand this from Snapchat's side and from the investor's side...anyone care to enlighten a confused soul?
- wamatt 14y agoWhile I'm not privy to the specifics of this specific deal, I believe often the point of raising large amounts of capital, is to secure and ensure continued market dominance, in winner-takes-all stakes. It's usually not the primary goal to innovate new features per se, although that is often what is stated publicly. Furthermore, when it comes time to exit, a premium will likely be paid, for the competitor in pole position.
- halcyondaze 14y agoThanks for the response. I guess I am confused at what market they are dominating and if it is a market if they aren't making money off of it...I can't see the monetization angle (maybe I'm just missing something obvious).