2 years to go from 0 to $3B

Two years after the app’s debut, its two creators received a $3 billion dollar offer to sell it.


What does this app’s name mean, and how did they accomplish this?


Their brief tale is as follows:


  1. In 2011, Reggie Brown suggested to his undergraduate friend Evan Spiegel that an app called Picaboo be developed that would let users exchange photographs that would eventually disappear.


  1. To make this concept a reality, they employed Bobby Murphy as a developer. The iOS app was operational in 18 hours.


  1. Evan presented their app to a panel of venture capitalists, but nobody seemed to care.


  1. They were chatting about the app with all of their loved ones. There were just 127 users in a month.


  1. The software was rebranded as Snapchat in September 2011.


  1. When the user base gradually reached 1000, they made an unusual discovery: activity always peaked between 9am and 3pm. school day.


It turns out that Spiegel’s mother informed her niece about the programme, who subsequently told her Orange County high school about it. Students started using the Facebook software on the high school iPads after the social media site was forbidden at the school.


That was the pivotal moment. The creators concentrated solely on the requirements of kids between the ages of 8 and 12: new design (fun and simple), new mission, new purpose, new placement, new tech. The revised design had three essential components:


7.1. Snapchat is more private and exclusive (you won’t find any out-of-date offensive content you’d like no one knew about).


7.2. Snapchat is viewed as being hip and young (your grandma won’t fit in here).


7.3. Snapchat enables you to relax self-censorship concerns (self-destructing photos).


  1. The proprietors distributed the iPhone software to colleges and schools in California.


  1. There were 20,000 users by January 2011. 100,000 by April.


  1. Lightspeed invested $485,000 in April 2012 at a $4.25 million valuation.


  1. Referrals from others The New York Times and TechCrunch both highlighted Snapchat, giving the app a tonne of free press that helped it swiftly take off across the nation.


  1. They had 5 million members in June 2012, and 14 million in November.


  1. Zuckerberg introduced Poke in December 2012 with the intention of eliminating Snapchat. But it didn’t go like that. Poke’s ranking on the iPhone app store dropped.


  1. In 2013, Zuckerberg made an unrestricted cash offer of $3 billion for a two-year-old Snapchat programme that had no revenue and no projected revenue (the founders declined the offer).


Source: Forbes

Scroll to Top