Alphabet (GOOGL) has invested in two of Silicon Valley's hottest start-ups -- Snap Inc., the parent company of social media app Snapchat, and home-sharing app Airbnb.
Alphabet's recently-rebranded early stage investment arm, CapitalG, which was formerly known as Google Capital, added logos for Snap and Airbnb to its investment page on Friday. The page contains links to a description of Airbnb's business and prospects, as well as a photo of the founding team, but so far, there's no additional detail there on Snap.
Snapchat and Alphabet already have some history. In 2013, Snapchat reportedly turned down a $4 billion buyout bid from Google after rejecting a similar $3 billion offer from Facebook (FB) , according to the Verge. Snapchat is also still one of the biggest users of Google's cloud offerings, Business Insider notes.
Snapchat is also moving into wearables, an area that Google famously failed in with its pricey Google Glass product. Earlier this year, Snapchat announced its new "Spectacles" video-recording glasses that will cost $130. Meanwhile, Google is planning to release its own wearable VR headset, Daydream View, later this week, at $79 per pair.
Needham's Kerry Rice said in an email that investing Snap could add to Alphabet's value, "but [it] depends on equity ownership and value of Snap."
The value of Snapchat's parent company could become evident soon. Snap is reportedly planning an initial public offering for the first quarter of 2017, sources told Bloomberg. The company hopes to raise $4 billion in the initial offering, and the IPO could value the company from $25 billion to as much as $40 billion, the sources said.
Snap raised $1.81 billion in a Series F round of funding earlier this year, according to an SEC filing, which valued the company at around $20 billion. Meanwhile, Airbnb's latest round of financing valued it at about $30 billion.
CapitalG has not disclosed how much it has invested in the two companies, however.