Snapchat files IPO amid subdued investor appetite for technology stocks and launch of new wearable glasses

Briefing

Snapchat files IPO amid subdued investor appetite for technology stocks and launch of new wearable glasses

December 16, 2016

Briefing

  • IPO filing – Snapchat secretly filed for initial public offering with company expected to be valued between $20 billion to $25 billion, biggest US tech IPO since Facebook’s IPO debut in 2012 for $81.2 billion
  • First decacorn IPO – Could test public investor appetite for decacorns, private venture-backed companies worth more than $10 billion like Uber and Airbnb
  • Subdued investors appetite – Volatile technology stock performance and uneven returns from IPOs lead to more scrutinizing investors with 123 technology companies’ IPO filings year-to-date raising $7.1 billion, a 58% decline in proceeds and 20% drop in number of offerings from last year
  • Wearable glasses – Company debuted video camera sunglass this month worth $130 which can take and send snaps quickly on app, positioning Snapchat as a camera company

Accelerator

Business Model and Practices

Business Model
and Practices

Sector

Information Technology

Organization

Snapchat Inc.

Source

Original Publication Date

November 15, 2016

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