According to a filing uncovered by VC Experts, Snapchat has authorized a new share class called Series C Preferred. The class of 1.6 million shares is set to be valued at $34.0893 each, according to a comment the group provided to Business Insider, or $54.54 million in total.
The funding pegs the value of Snapchat at around $2 billion. Snapchat’s last round, $60 million earlier this year, had a valuation of around half that. Before the Series C Preferred stock class was created, Snapchat had raised $73 million in total.
It is not clear that Snapchat has sold out the Series C Preferred shares that it authorized. So, the round could itself be open and looking for cash. However, the valuation that it implies for Snapchat is lower than many anticipated. Rumors of $3 and $4 billion valuations were standard fare in recent weeks, as were reports that Facebook or other social players were looking at the company.
Snapchat, a quickly growing ephemeral messaging network, is the belle of the tech ball, despite its innocence when it comes to revenue. The company recently hired Instagram’s business head to be its COO, perhaps hinting at monetization in the coming year.
Snapchat is merely one of several companies raising huge sums. Pinterest recently took down $225 million at a valuation of $3.8 billion, and Uber nailed $258 million from Google Ventures at a valuation of $3.76 billion, post-money.
Snapchat’s second tranche of cash this year could indicate that the company suffers from a high burn rate, or that it’s simply looking for fresh capital to help it mature as a business. $2 billion, though lower than some expected, is still a rich valuation for the young company.