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Snapchat Series C: The $50 Million Coatue Funding Round

By TheFinanceBase Team5 min read
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Snapchat confirmed a $50 million Series C on December 11, 2013, with Coatue Management as the reported investor. The company did not announce a valuation. A filing discussed before the announcement pointed to authorization for up to about $54.5 million in Series C shares and implied a valuation near $2 billion—but neither figure establishes that Snapchat sold $54.5 million of shares or officially set its valuation at $2 billion.

The distinction matters: the confirmed financing was $50 million. The larger number and valuation estimate came from analysis of the share authorization, not the company’s public confirmation. The round was part of Snapchat’s rapid growth as a private startup, before its much larger 2014 fundraising and eventual transition to public company Snap Inc.

Snapchat Series C at a glance

Confirmed amount $50 million
Confirmation date December 11, 2013
Reported investor Coatue Management
Valuation Not officially disclosed; a prior filing analysis implied roughly $2 billion
Stated purpose To grow the business

“Snapchat Series C” refers to a venture financing round, not an app feature or content series. At the time, the company was known as Snapchat and was privately held.

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What happened in December 2013?

On December 11, Snapchat co-founder and CEO Evan Spiegel confirmed that the company had raised $50 million in Series C financing. Contemporary reporting identified Coatue Management as the investor and described it as a single-investor round. Snapchat said the money would help it grow the business, but did not publish a detailed spending plan or the full financing terms. TechCrunch’s report on the confirmation and Fortune’s coverage both reported the $50 million figure.

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The public announcement did not spell out how much went to hiring, product development, infrastructure, or other expenses. Those are plausible needs for a fast-growing technology company, not disclosed line items for this round.

Why do some accounts say $54.5 million?

Before the confirmation, reporting on a securities filing said Snapchat had authorized up to approximately $54.5 million in Series C Preferred shares. The filing’s share price and authorization were interpreted as indicating a valuation of about $2 billion. TechCrunch’s analysis of that filing described the proposed amount and valuation implication.

An authorized or contemplated sale is not the same as a completed financing. Snapchat later confirmed $50 million raised; the available reporting does not establish that all $54.5 million of authorized shares were sold or explain precisely why the reported amounts differ. Use $50 million for the confirmed Series C raise, and treat $54.5 million as the maximum share-sale amount reported from the earlier filing—not as the closed round total.

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Was Snapchat valued at $2 billion?

Not as an officially announced Series C term. Snapchat did not disclose its valuation when confirming the round. The approximately $2 billion figure was an estimate inferred from the share authorization and related reporting. It is best described as a filing-based indication, not a verified post-money valuation or a company statement.

The distinction is important because a financing headline can compress several different things: the amount a company actually raises, the amount of securities it authorizes or offers, and a valuation inferred from share terms. The evidence here supports the first figure clearly; it does not establish the final capitalization table, exact post-money value, or preferred-share rights.

Who invested in the Series C?

Contemporary coverage identified Coatue Management as the investor and described Coatue as the sole investor in the round. The available reports do not clearly confirm that existing Snapchat investors also participated on a pro-rata basis. It is therefore safer to say that Coatue invested the reported $50 million than to characterize another investor as a co-investor or to add unconfirmed participants.

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How the Series C fit Snapchat’s earlier funding

Snapchat’s prior 2013 rounds were reported with some differences in how financing was counted:

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Round Reported amount Context
Series A $13.5 million Announced in February 2013 and led by Benchmark. TechCrunch covered the round.
Series B $60 million in company financing; some reports cited $80 million total activity Institutional Venture Partners was associated with the round. The difference may reflect about $20 million in secondary sales alongside the $60 million primary financing; the secondary component should not be counted as money raised by Snapchat itself. See Forbes’ $60 million account and TechCrunch’s discussion of the $80 million figure.
Series C $50 million Confirmed in December 2013, with Coatue Management reported as the investor.

Contemporary accounts said Snapchat’s cumulative venture funding after the Series C exceeded $120 million, with some putting it around $123 million. Totals vary according to which earlier financings and any secondary transactions a source counts. A secondary share sale provides liquidity to existing holders; unlike a primary investment, it does not put that sale price into the company’s operating funds.

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Why the round drew attention

The financing arrived during a period of rapid expansion and intense interest in Snapchat. The company was still private, scaling its users and operations, and had recently hired Emily White, formerly associated with Instagram, as chief operating officer, according to contemporary Los Angeles Times coverage.

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Reports around the same period said Facebook had made a multibillion-dollar acquisition proposal that Snapchat declined. That was surrounding acquisition reporting, not a Series C term, and the financing announcement did not say the reported offer caused or shaped Coatue’s investment. The round’s significance is more straightforward: Coatue supplied substantial private capital while Snapchat was still a young company whose financial details and final valuation were not publicly disclosed.

What came after Series C?

The $50 million Series C should not be confused with Snapchat’s later, larger financings. In 2014, reports described a subsequent round as a Series D and cited a valuation around $10 billion; that was a separate financing, not a revised valuation for the 2013 Series C. Later that year, a filing was reported to show approximately $485 million raised from 23 investors, though the round’s precise structure and leadership were not fully clear in the coverage. The 2014 valuation report and the December filing report concern those later events.

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Those later financings show how quickly Snapchat’s fundraising evolved, but they do not resolve the undisclosed terms of Series C. In particular, they should not be used to treat the roughly $2 billion Series C estimate as an official valuation.

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Written by TheFinanceBase Team

The Team behind TheFinanceBase.

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