Investment Thesis Map
We mined Snap Inc.’s acquisitions, investments, and partnerships to discern the company's strategic priorities.
Camera company Snap Inc. — operator of Snapchat, a social media app that allows users to share photos and apply fun filters — is expanding into new areas.
In line with the broader shift of work, entertainment, and socialization into digital spaces, Snap appears to be moving to transform its app into an immersive and shoppable platform for teens and young adults. The company is positioning Snapchat as the go-to platform for users aged 13-34 to interact with digital content and each other and, therefore, the ideal place for advertisers to engage with consumers.
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The company has been focused on such transformative initiatives for some time now, and while Apple’s latest iOS privacy changes impacted Snap Inc.’s ad business, trends like the shift to digital advertising and the rise of the metaverse still favor its strategy.
It appears that its latest tech investments to reach its goals are paying off. In Q3’21, the company reported that Snapchat’s global daily active users (DAU) had grown 20%+ for the 4th straight quarter. Snapchat was also recently ranked as US teens’ favorite social media platform in Piper Sandler’s semi-annual “Taking Stock with Teens” survey, and it currently reaches over 75% of people aged 13-34 in the US, UK, Australia, the Netherlands, and France.
Using CB Insights data, we uncovered 5 of the most important strategic priorities highlighted by Snap’s recent acquisitions, investments, and partnerships. We then categorized companies by their business relationships with Snap across these priorities.
- Augmented reality
- Content creator tech
- Digital content & advertising