

Snapchat Lands $13.5 Million in Round Led By Benchmark - ckelly
http://allthingsd.com/20130209/snapchat-lands-13-5-million-in-round-led-by-bessemer-ventures/

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theschnabler
ok, this might be a weird question (as in "hard/impossible to answer"), but
how are they possibly going to spend 13.5 million reasonably?

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jacquesm
Don't worry, they'll find a way. Spending money is ridiculously easy, making
money, that's hard.

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halcyondaze
I don't understand this from Snapchat's side and from the investor's
side...anyone care to enlighten a confused soul?

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wamatt
While I'm not privy to the specifics of this specific deal, I believe often
the point of raising large amounts of capital, is to secure and ensure
continued market dominance, in winner-takes-all stakes.

It's usually not the primary goal to innovate new features per se, although
that is often what is stated publicly.

Furthermore, when it comes time to exit, a premium will likely be paid, for
the competitor in pole position.

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halcyondaze
Thanks for the response. I guess I am confused at what market they are
dominating and if it is a market if they aren't making money off of it...I
can't see the monetization angle (maybe I'm just missing something obvious).

