ReportTT: Snapchat founders each got $10 million in secondary offering

Snapchat founders reportedly each pocket $10 million from secondary funding round.

@tracehagan
Published Tue, Jun 25 2013 8:03 PM CDT   |   Updated Sat, Aug 8 2020 10:29 AM CDT

Snapchat founders Evan Spiegel, 22, and Bobby Murphy, 24, have reportedly each pocketed $10 million a piece through a secondary offering. A secondary offering is one in which the founders of the company offer up some of their shares to be sold to investors. This usually only occurs with a hot property, such as Snapchat, and allows the founders a bit of liquidity, since they likely won't be making money off of Snapchat for a while.

ReportTT: Snapchat founders each got $10 million in secondary offering | TweakTown.com

Yesterday we reported that Snapchat raised $60 million during a funding round, however, other reports have surfaced that that the company raised a total of $80 million through the two funding rounds, with the secondary funding round being done by the founders. Snapchat has not yet disclosed the secondary funding round that others have reported.

It looks as though Snapchat could be poised to become the next Instagram and investors clearly don't want to miss out on the opportunity.

NEWS SOURCE:news.cnet.com

Trace is a starving college student studying Computer Science. He has a love of the English language and an addiction for new technology and speculation. When he's not writing, studying, or going to class, he can be found on the soccer pitch, both playing and coaching, or on the mountain snowboarding.

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