Is there a filter to look like a banker on snapchat? It’s okay if there isn’t because Snapchat has bankers already lining up for real. Let’s explain. The social technology company secured a credit line led by Morgan Stanley and possibly with other banks participating according to reports.
Basically Snapchat can borrow against this line and pay it back later if it needs some cabbage in what some say is the lead up to a probably 2017 IPO. Flexibility is the focus here as it will allow the company to raise another round of equity financing to pay expenses during the process. Keep in mind that the tech giant has already been able to raise nearly $2Billion in series F funding earlier this year. But there’s more. The credit line also allows Snapchat to use fund for potential acquisitions.
And the company’s already started to do this. A few years ago the company bought smart glasses maker Vergence Labs for a cool $15 mil. They also picked up QR startup Scan.me for “only $50million” and rumor has it that the recent acquisition of Looksery, an AR filter company, went down for $150million. They’ve also spent a reported total of over $200million on things like Bitmoji (a sticker app) and Vurb (a social planning and mobile search platform).
At this point though it’s not 100% crystal clear of how much credit Snapchat will be looking to obtain and with blooming potential from ad revenue, the street has started to show faith. According to the company, their goal is to be doing somewhere in the realm of $1billion in business by next year .