Inside Snapchat's Valuation Mark-up to $10 Billion: StockTwits

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.

If you liked this article you might like

Rent the Runway Co-Founder Jenny Fleiss: It's so exciting to build a startup again

UPS, McKesson, Chegg and More: 'Mad Money' Lightning Round

Investors Should Ignore Washington: Cramer's 'Mad Money' Recap (Tuesday 7/18/17)

Cheer Up Broke Kids, If Nicki Minaj Doesn't Pay Off Your $100,000 Student Loan These 12 Places Might

STMicroelectronics, Chipotle, Simpson Manufacturing: 'Mad Money' Lightning Round