Snap Inc. (the parent company of Snapchat) priced its IPO yesterday evening ahead of entering the public markets today. Pricing their 200M share offering at $17 a share, the total offering equaled $3.4B and gave Snap, Inc. a market cap of $23.6B on a fully-diluted basis. This represents the largest IPO of a US-based tech company since Facebook in 2012. We dug into the numbers to examine how Snap’s exit compares to those of other social and messaging properties and also compared Snap to comparable companies at the time they entered the public markets.
We also used CB Insights’ Enhanced Valuation capability to track Snap, Inc. and its historical value rise against other high-flying unicorns, tracked the company’s private market metrics relative to its peers, and benchmarked the company’s IPO valuation against comparable social media companies (on price-to-sales, price-to-user and total valuation bases).Exit valuations
Compared to other social media and messaging companies that exited after 1999, Snap, Inc. has the highest valuation at exit since Facebook went public in 2012, narrowly beating out WhatsApp’s acquisition valuation of $22B.
Afterall, the Snapchat IPO may lead to a $1.5B exit for Lightspeed Venture Partners’ $8M investment into the company.