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GSV Capital is the first publicly traded security giving growth equity investors access to the world's most dynamic, VC-backed private companies.

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NASDAQ: GSVC
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Why We Like

$5.9 million NAV|3.0% of GSVC

Founded

2011

Capital Raised

IPO

Investors

GSV Capital along with Benchmark, Coatue, IVP, KPCB, Lightspeed Venture Partners and others.

GSV Investment Theme

  • Cloud/Big Data
  • Marketplaces
  • Sustainability
  • Education

Overview

Snap is a highly engaging communication app and an emerging digital entertainment platform. Snapchat is a video-first app, allowing users to take snaps and videos and to share with their friends and community. Spectacles are video camera-equipped sunglasses that allow users to record and upload snaps on the go.

4Ps
Why We Like It: The Four Ps

Why We Like Snap

Snap is emerging as the most popular and engaging entertainment platform for the Y and Millennial generations. Driven by innovative new products such as Stories, Discover partners, Lenses, Filters, and Spectacles, Snap is experiencing accelerating user growth with high engagement rates, as evidenced by its well over 10 billion daily video views, up from just 2 billion in May 2015.

People

Founder Evan Spiegel is considered one of the most talented and innovative CEOs in the tech community. While at Stanford and at age 20, Spiegel and his friend Bobby Murphy co-founded Snapchat.

Product

The Snapchat app allows users to send videos, snaps or messages to friends. While the content is ephemeral, users have an option to save. Snapchat offers Lenses and Filters that users can apply to their content. Snapchat also allows for phone and video calls. Snapchat users can post their own Story — a compilation of snaps and videos that is visible to all their friends for 24 hours. Snapchat’s Discover section has multiple media partners that provide daily content curated specifically for Snapchat.

Spectacles are a pair of video camera-equipped sunglasses that allow users to record and upload snaps on the go.

Potential

Snap has the potential to become a leading broadcasting platform not only for Millennials but among all generations. Additionally, Snap has the potential to become a leading entertainment platform driven by Live Events, Celebrities, and self-broadcasting.

Megatrends

Internet; Globalization; Network Effects; Demographics; Free

How Big Can This Be?

Snap with well over 100M daily active users has significant growth potential on a revenue per user basis. Coupled with accelerating user growth, high engagement rates, and increased revenue generation, Snap could be generating multi-billion USD in annual revenue in 3-4 years.

Predictability

While it started as a kids-only communication app, Snap has quickly evolved into a major communication and entertainment platform for Millennials and the Y Generation. Today, it has well over 100M daily active users growing at an accelerating pace, with high engagement rates.

Risks

Failing to execute against the opportunity and not maintaining high user engagement. Facebook with its properties WhatsApp and Instagram is a strong competitor and also a risk.

GSVC percentage figures are based upon the fair value of each holding as of the quarter ended March 31, 2017, or the cost basis of the holding (exclusive of transaction costs) if the investment closed subsequent to March 31, 2017. In either case, these values are divided by the fair value of total portfolio investments of GSV Capital as of March 31, 2017.

GSV stands forGlobal Silicon Valley
Learn more at GSV.com