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WhatsApp valued at $1.5 billion in last financing round before buyout

By Alan Friedman

Published: Feb 21, 2014, 10:50 PM

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WhatsApp valued at $1.5 billion in last financing round before buyout

As you probably know by now, WhatsApp was purchased by Facebook for $19 billion in cash and stock. What you might not realize is that as recently as last July, the messaging app received $52 million at a valuation of $1.5 billion. That means that the company's value rose over 12 times in 7 months. Previous financing rounds took place in 2011 ($8 million at a valuation of $80 million) and 2009 (an initial seed round of $250,000).

All of the money was placed by Venture Capital firm Sequoia, which resulted in the company owning 20% of WhatsApp. As a result, the investment firm now owns $3.2 billion in cash and stock related to the buyout, which results in a 50 fold profit for Sequoia. You can check out the contract for the $52 million Series B investment made by the venture capital firm, below.

The $19 billion deal is the largest in history for any venture backed company. The question is whether this is a peak, or the beginning of a new era.

source: VCExperts via TechCrunch
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Alan, an ardent smartphone enthusiast and a veteran writer at PhoneArena since 2009, has witnessed and chronicled the transformative years of mobile technology. Owning iconic phones from the original iPhone to the iPhone 15 Pro Max, he has seen smartphones evolve into a global phenomenon. Beyond smartphones, Alan has covered the emergence of tablets, smartwatches, and smart speakers.

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