Snapchat: Taking in Investments

Snapchat is making moves ever since they decided to decline a 3 billion dollar offer from Facebook. It is reported that Coutue Management invested $50 million in series c equity. This money will be used to “grow Snapchat.” The way I see it is that Snapchat is a company with $0 in revenue, in debt, and no sustainable revenue structure for the future. I believe that once advertisements are introduced into Snapchat (which is is realistically the only way they can monetize) The user base will fizzle out and it will go down in history as a fad app that turned down a 3 billion dollar offer. Snapchats core competency is that the users messages are private and are deleted after they are seen. If advertisements disappear, a lot of value is lost for the advertiser and it will be hard to judge how effective these ads are. Time will tell if Snapchat will be a success or failure. At least they are taking in investors.