Snapchat, the wildly popular smartphone app used for sharing photos, rang in the New Year with a surprise announcement — the barely 3-year-old company raised almost half a billion dollars in investment funding.
In what was the first peek into Snapchat's fundraising, the company revealed on Dec. 31 it had raised a whopping $485.6 million dollars from 23 investors.
According to TechCrunch's sources, Snapchat had originally set out to raise $40 million, raised it to $900 million after interest in the round exploded, then settled for $500 million after that proved to be too much.
And now, after the photo-sharing company fetched nearly a $10 billion valuation in August, TechCrunch's sources suggest Snapchat could be worth upwards of $20 billion.
So much for that $3 billion offer from Facebook the company famously declined in 2013.
But there's still the same issue many tech darlings seem to share nowadays — how will Snapchat generate decent revenue?
But so far there hasn't been anything more concrete in how the company will generate any money off its estimated 100 million-plus monthly active users.
And it wasn't all good news for Snapchat. The Federal Trade Commission revealed on Wednesday it had come to a settlement with Snapchat over privacy concerns and how the company portrayed its security.
This video includes images form Getty Images and Maurizio Pesce / CC BY 2.0.