Ludicrous. How is sexting worth $70M? Insanity. I hear the doubters.
I would take that deal in a second. In a second!
When I went home to Michigan in December, my friends were talking about Snapchat. I’d only heard of this thing a month before, and I live and breathe the tech industry. I’ll miss a meal before I miss a checking twitter or Pando. How has this thing made entrance into the midwest? They don’t even get pop music until 6 months after it becomes popular in California – what’s going on?
Somehow Snapchat has managed to get talked about on non-tech blogs before it got widespread tech-press. It’s caught on with hardly any coverage in industry blogs, until recently. It’s incredible.
That alone makes me want to invest.
But there’s more. I buy into Evan Spiegel’s vision – it’s a new way of communicating, visually, temporarily. The permanence of digital was its promise – we could archive everything that happens in our lives. It’s like having a photo album of everyday!
Turns out, we don’t want that. There’s some things I just don’t want to remember. There are some things I want to be private, just for the moment, not forever. Privacy settings aren’t enough. Because documented is documented, even if it’s in a vault, it’s still documented. There’s no escaping it.
Snapchat’s changing that. They’re on the forefront of ridding the world of complex privacy settings and keeping things that are meant to be impermeat, exactly that. Temporary, fleeting. All while still having the speed and convenience of technology. Just without the exposure.
I buy it hook, line, and sinker.
It’s a huge problem they are solving. It’s the pencil to Mark’s ink.
I love the investment, $70M might be high, it might not be. But it doesn’t matter – as an investor, it’s better to be approximately right than exactly wrong. I like Snapchat as an investment because:
- It’s solving a fundamental problem of the internet
- It’s a defensible brand (sorry Poke, people just don’t trust the Facebook brand anymore)
- It’s widely applicable, everyone can use it just like everyone can text
This is such an easy deal for a VC to make.
Congrats Snapchat –
I think I speak for everyone in LA Tech when I say we’re rooting for you.