The investment brings Snapchat’s fundraising total to $74m. The company’s app enables iPhone and Android users to send out photos and videos that self-delete within 10 seconds of viewing.
IVP said in a statement, “Snapchat has amassed a very large user base within a valuable demographic. Facebook spread like wildfire across college campuses long before it gained acceptance with soccer moms.
“Twitter’s young fan base propelled Ashton Kutcher to a million followers more quickly than it did CNN. Snapchat initially gained popularity among Millenials and ‘Gen Z’ and now it’s the latest craze on Wall Street. This is how Black Swans start.
“Almost by definition, if IVP decides to invest, a company has already proven itself… Snapchat is clearly a huge success, and we wouldn’t have invested unless we believed that it will become a much larger one.”
Last month IVP led a $25m investment round in online radio service TuneIn.
Copyright © 2013 AltAssets