Los Angeles Business Journal

Snapchat Raises Another $50 Million

By Natalie Jarvey Originally published December 11, 2013 at 11:58 a.m., updated December 11, 2013 at 12:20 p.m.

Snapchat, the Venice messaging startup, has filed documents with the Securities and Exchange Commission saying it has raised another $50 million. With this investment, the company has raised more than $120 million in less than two years.

The SEC filing does not name participants in this latest round, and company officials did not immediately respond to a request for comment. Previous investors included Benchmark, Lightspeed Venture Partners, Institutional Venture Partners and General Catalyst.

VC Experts, a site that tracks private companies, last week reported that Snapchat had submitted a regulatory filing to raise up to $54 million at a $2 billion valuation. That’s only two-thirds the amount that Facebook reportedly offered Snapchat in November. The company turned down the $3 billion cash offer, according to Wall Street Journal.

Rumors have been swirling for months over whether Snapchat would raise another mega round or get scooped up by a Silicon Valley giant. Tech blog AllThingsD reported in October that Chinese investor Tencent was circling a round that would have valued the company at nearly $4 billion.

The SEC filing came a week after Snapchat named former Instagram executive Emily White as its chief operating officer.

The funding and rising valuation also comes amid the backdrop of a lawsuit brought by Reggie Brown, a Stanford classmate of co-founders Evan Spiegel and Bobby Murphy. Brown alleges that he was involved in the formation of the business and that Spiegel and Murphy pushed him out of the company, denying him an equity stake.

UPDATE: Spiegel confirmed with blog TechCrunch that the company has raised $50 million from a single undisclosed investor. He added that the money will be used to help grow the business.