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Snapchat Inc., an app for sending disappearing messages, was valued at $18 billion after its latest round of funding, said a person familiar with the matter. The financing pads the startup's war chest as it attempts to evolve from a teen phenomenon into a mainstream media platform.
The funding round totaled $1.8 billion, according to a regulatory filing on Thursday with the Securities and Exchange Commission. The amount includes about $650 million raised last year and an additional $1.2 billion this year, said the person, who asked not to be named because the details are private.
More investors are looking for a piece of Snapchat as the company develops its business. The Venice, California, startup relies on advertising to users who watch videos compiled by its staff and those from media brands. Snapchat generated revenue of $59 million last year, and the company projects that number to rise more than fourfold this year, said the person familiar with the matter.
Investments in Snapchat's latest round came from Fidelity Investments, General Atlantic, Sequoia Capital and other backers, the person said. Mary Ritti, a spokeswoman for Snapchat, declined to comment.