Teens Like Snapchat, Which Means Investors Like Snapchat

Snapchat's biggest strength is the highly engaged teen audience using the service because their friends are using it. And that’s also the draw for investors.

snapchat

Snapchat recently turned three, and despite a period of waning press interest, the app’s user base has continued to grow. Now, there are rumors that Yahoo is investing $20 million into the photo- and video-sharing service, valuing the company at $10 billion. Indeed, even with the mounting security concerns, nothing seems to dampen the investor enthusiasm for Snapchat.

The biggest reason to invest in Snapchat is its highly engaged audience. ReadWrite contributor Selena Larson outlines why the Snapchat audience is so valuable:

Instead of friends posting old photos to Facebook or Instagram, (Snapchat users) said that knowing what their friends were doing in the moment, letting them glimpse into their personal life without filters or tailored posts, was more meaningful.

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