Snapchat has raised $50 million in funding from private equity firm Coatue Management, according to TechCrunch, officially setting up the big question for CEO Evan Spiegel: whatcha gonna do all that cash?
Spiegel and his co-founder Bobby Murphy each took $10 million away from Snapchat’s $80 million funding round in June, ensuring that even if the photo-sharing app goes kaput tomorrow, they’ll have a solid nest egg. But these boys aren’t going to settle for just a ‘nest egg,’ as is clear from their dismissal of Facebook’s $3 billion acquisition offer. Evan and Bobby want an empire! Of…something!
So once again, Mr. Spiegel…whatcha gonna do with alllll of that cash? Like, really, I’m confused why you need so much…are you going to remodel your L.A. headquarters? Hire some cute biz dev chicks fresh out of UCLA? Or are you going to actually release another product?
The app industry is a lot like the music industry…there are such a thing as one-hit wonders, but as long as you’ve got your smash single the audience is at your fingertips. And turning down Facebook, well, that’s like an indie darling turning down a major label…now you’re really setting your fans up for an amazing second-act. Better perform, Snapchat!