Snap Inc., Snapchat's parent company, has now officially released its roadshow materials, which includes a 35-minute video about Snapchat's identity, in an attempt to lure investors to put cash in its coffers.
Snap Inc. Roadshow
Snap is planning to officially go public at the beginning of March, and is seeking a valuation of $22 billion. Evan Spiegel, Snap's wunderkind cum CEO, prefaced the video by introducing just exactly what Snap is.
"Snap is a camera company," he said, noting that cameras were historically used as a means of memory-keeping. "Now, cameras augment the way that we talk."
Spiegel said that with Snapchat, the primary input for the phone has been the camera, comparing his company's product to the keyboard, and in turn, its impact to the computer. What's interesting about its roadshow materials is that it includes a guide to using Snapchat, an odd, if expected, choice, certainly, since the company has been around for five years now, although Snapchat's user interface does seem "user-unfriendly" for a beginner.
Snapchat How-To Video
The how-to video follows basic camera operations, how filters are used, and different lenses which overlay augmented reality animations, such as animals, flowers, hearts, and such. The video also went into making bitmojis, adding geofilters, sending Snaps, adding friends, and engaging in a chat to make a string of Snaps that last for a day, called "Stories."
"Snap tapped into that human desire to communicate in a way that feels like you're face to face, even if you're far away," he said in the roadshow video. "The first time you use it, and can see what they're seeing, makes you feel close."
For Snap Inc., It's About Quality, Not Quantity
The video also had Spiegel along with other Snap executives explaining their business strategy, which has always been based on undermining typical social media norms — if Facebook and Twitter are about gaining as much friends or followers as possible, Snap has a different route, focusing on the best friends you have, according to Spiegel.
It's going to be a busy week ahead for the company. Spiegel, alongside his management team, will officially kick off the roadshow Friday, Feb. 17. Then, on Monday, they'll speak with smaller investors in the Mid-Atlantic before heading out to London, and New York on Tuesday and Wednesday, as per a report by Business Insider. They'll travel all throughout the United States until March 1.
In larger forthcoming group meetings, the company is expected to present the video, and then open the floor to questions — much like what Facebook has done in its IPO roadshow.
Citing a source familiar with the matter, Snap is expected to stress the app's focus on engagement: rather than sternly aim for a high number of users who get on board with the app, Snap would rather users use the app regularly and enjoy it.
Snap Inc. official filed for an IPO early February, which was seen as this year's biggest tech-related IPO, and the biggest U.S. IPO since Facebook's in 2012.
