Snapchat is reportedly looking to raise as much as $4B in its upcoming IPO

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In May earlier this year, Snapchat raised around $1.8 billion in a financing round that valued it at around $18 billion — and now it looks like that valuation could double in its upcoming IPO.

Bloomberg is reporting that Snapchat is looking to raise as much as $4 billion in its initial public offering that could value it as high as $35 billion. Previously, the company was reportedly planning to IPO as early as March, though, as usual, all these things are subject to change.

There are a couple of important footnotes in these kinds of situations. First, these discussions seem pretty early in the process, and we probably won’t know where things finally land until the IPO is priced closer to its listing. So setting these kinds of early expectations is often a tactic used to entice potential investors to the IPO. The company has chosen bankers, according to that report, but it’ll still take a couple of months to pan out before we see some final details.

Second, as a result of them seemingly being pretty early in the process, everything could change wildly. According to leaked documents attained by TechCrunch, the company is looking to generate around $1 billion in revenue next year. It’s already hit 150 million daily active users, making it one of the fastest growing and most appealing new platforms for advertisers. But we still have to see if the plans fully pan out. Snapchat’s 2015 revenue was $59 million, according to those documents.

In addition, those documents suggested that Snapchat estimated it would generate between $250 million and $350 million in revenue this year. A $25 billion to $35 billion valuation is quite a large range, but given that the discussions seem quite early, it looks like bankers are still working to nail down the overall appetite for Snapchat’s IPO.

Raising that much money wouldn’t be outlandish for a company like Snapchat, however. Facebook, in its IPO, raised around $16 billion, while Twitter raised around $1.8 billion. Obviously the former has proved to be more successful than the latter, but if Snapchat can capture early interest and raise a large amount of capital, it can get ahead of future potential waning interest.

Raising that much money is also important to work on its hardware plans, like its Spectacles sunglasses, and making large acquisitions like its reportedly $100 million acquisition of Bitstrips.

Featured Image: Snap