Snap, Inc., a technology company based in Venice, CA (a neighborhood of L.A.) took steps this week that move it closer to going public early next year. Snap, Inc. is the company behind the popular video-sharing app Snapchat, and Spectacles, the recently launched video camera sunglasses company. Revenues from these two companies could total $1 billion this year.
The Venice start-up’s expected initial public offering is drawing widespread attention in tech and financial circles because it could be one of the largest fundraisings in recent years. Snapchat could generate around $4 billion at a valuation that could reach as high as $40 billion, sources have said, declining to comment by name on private discussions.
News of the possible IPO (initial public offering) came from reports that the company has filed confidential paperwork with regulators. The company submitted the filing to the Securities and Exchange Commission sometime in recent days, according to reports Tuesday by Reuters and other publications.
Now Snap, its bankers and regulators will work to ensure that the company is prepared to share proper financial information and other corporate details with potential investors. The discussions could reshape the filing before it becomes publicly available.
News of this development lends increasing prestige to the reputation of "Silicon Beach", the tech-friendly business community located in and around L.A.'s Venice neighborhood.