Messaging app Snapchat has raised a further $1.81bn (£1.38bn) in funding following an equity offering, demonstrating that investor interest in the platform remains strong despite concerns over the company's ability to attract advertisers.
The new round of investment is estimated to place the company's value at around $20bn, although the firm did not disclose its valuation in the latest round of investment in its filing with the SEC.
While Snapchat has had a number of notable successes recently, passing the milestone of 10bn daily video views, signing a multi-year deal with Viacom to power its exclusive video content and lining up brands including Amazon, Budweiser and Pepsi as sponsors for its Super Bowl coverage, there are still concerns over whether or not the firm's huge valuation is justified by its revenue stream.
Investors in the latest funding round include General Atlantic, Sequoia Capital, Lone Pine, Fidelity and T. Rowe Price, according to TechCrunch. This Series F financing had been sourced largely in the last five months, as the company has ramped up its advertising efforts. In April, Snapchat closed its only paid-for service, meaning that advertising is now the platform's only revenue source.