Deals
Snapchat Is Justifying Its $20 Billion Valuation by Emphasizing User Engagement
- Bankers given engagement metrics to calculate market valuation
- Company said to tout more than 150 million daily active users
Snap Hopes to Convince Investors It's Worth $20 Billion
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Snap Inc. is hoping to convince public market investors it’s worth upwards of $20 billion by stressing how important its app is to users’ daily lives.
That’s what Snap’s management highlighted this month to analysts from banks underwriting its initial public offering, according to people familiar with the matter. The company laid out a slew of engagement metrics that will be used to build financial models to determine the valuation it will seek, they said, asking not to be identified as the details aren’t public.