NEW YORK (TheStreet) -- Today we heard the rumor that the three-year-old Snapchat is worth roughly $10 billion dollars. Seems staggering, no? In a vacuum, yes, but in the current state of the market, there's little surprise in this latest round valuation.
Kleiner Perkins, one of the most respected long-term investors in the Valley, is reported to be picking up about $20 million in shares from the instant photo messaging service at a valuation of $10 billion. This report comes from the Wall Street Journal's Evelyn Rusli and Doug Macmillan.
Read More: 10 Stocks Carl Icahn Loves in 2014
The number is jaw-dropping at first glance, but the size of the add-on is what seems most curious in the situation. The company just serviced a round earlier this year from DST Global for an undisclosed amount, according to WSJ. That round valued the company at $7 billion. This time last year, Snapchat underwent an $80 million Series B, which valued the company at only $2 billion.
How quickly can you outpace investment logic?
With at least seven separate venture capital firms involved in the company already, and a large handful of both private investors and public companies circling around the idea of a buyout, it makes sense that Kleiner would take a bite while the food's on the table.
Snapping up a $20 million buy in would give Kleiner well under 1% of the company, which is run by 24 year-old Evan Spiegel. In fact, it would give Kleiner just a 0.2% holding. But more than just the money, Kleiner is giving close friends over at Benchmark Capital the golden stamp of approval.