Snapchat, the buzzed startup, has finally revealed its IPO filing. We all know that Snapchat has raised at least $2.4 billion in capital from investors like Alibaba, Benchmark, Yahoo!, GSV Capital, HDS Capital and several more.
The company filed with an initial value of $3 billion and plans to raise as much as $4 billion in IPO. Experts says that would be for a market value of $25 billion. However, Snapchat’s net loss grown to $515 million in 2016 on a revenue of $404 million.
The IPO filing revealed the pre-IPO values of the shares as well as the ownership percentages. Snap Inc., the parent company of Snapchat was planning to go public in early March. The startup has shared its financial trajectory and other details.
Based on the information from the filing, we see that co-founders Evan Spiegel and Bobby Murphy, each own roughly 22.2% of the company prior to its IPO, though this number will change once Snap goes public.
Here is the percentage of share owned by founders and various investors:
- Evan Spiegal, Co-Founder and CEO – 22.2%
- Robert Murphy, Co-Founder and CTO – 22.2%
- Benchmark Capital Partners – 12.9%
- Lightspeed Venture Partners – 8.5%
- Michael Lynton, Chairman – 0.28%
- Timothy Sehn, VP Engineering – 0.28%
- Imran Khan, CSO – 0.28%
- Other Shareholders – 33.1%
If we calculate their ownership value in dollars, we can find that each of the founders own $3.5 billion worth of shares in the company. While Benchmark and Lightspeed Venture Partners own about $2 billion and $1.3 billion, respectively.
Snap previously authorized a new class of shares that would help founders Evan Spiegel and Bobby Murphy retain control of the company. According to the filing, each co-founder presently holds 44.3% of voting rights. Benchmark holds just 2.7% and Lightspeed has 1.8%.
Snapchat has more than 158 million daily active users, the prospectus shows. Quarterly average revenue per user on a global basis climbed to $1.05 in the fourth quarter of 2016, compared with 31 cents in the fourth quarter of 2015.
The company said it relies on Alphabet Inc.’s Google for most of its computing, storage and bandwidth, and any disruptions to Google’s cloud functioning could “seriously” hurt its business. Snap said it plans to spend $2 billion with Alphabet over the next five years to use Google’s cloud-computing services.