Snapchat IPO plans revealed by CEO and founder during the Recode Code Event; Future Plans involves $15 Billion worth of Mobile Apps

Snapchat CEO Evan Spiegel stated the company's need for an IPO during the Recode Code event in California. The young entrepreneur discussed future plans for the growth of its $15 billion worth mobile app.

The 24-year old created the startup in 2011 which now has an estimated 200 million active users according to study reported in January. Snapchat users are largely composed of young individuals - 71% of its users are between 18 and 34. It is a mobile app that self-destructs photos and videos taken by users after a specified time. The startup gained an increased market value after attracting a $20 million investment from Kleiner Perkins Caufield & Byers, a venture capital investment firm. The result of this investment has led to Snapchat's currently estimated value of $15 billion.

2 years ago, Spiegel turned down a buyout offer of $3 billion from Facebook. His infamous decision was negatively branded by the media which had barely any effect on the startup mobile app's continued growth. It is now partnered with media networks through its newest development, Discover. It's a portion in Snapchat where users see newsfeed from media partners such as Vice and CNN. Spiegel explains Discover aims to entertain users during times when they are not sending or receiving messages. However, experts view this as a marketing move to attract users beyond its current age demographic.

The company is continuously developing sources of revenue through Snapchat as its CEO explains that great businesses can generate revenue in several forms. Various investors have vested in the company raising over $800 million so far. However, Evan Spiegel explained that there might be riskier investments being made in the company and he believes that a correction is needed. He added that specific timelines for such corrections are yet to be determined but it's one of the things they consider in planning the growth of the company.

Snapchat CEO and founder Evan Spiegel's desire "to be a great leader" and a hands-on entrepreneur could be attributed to Snapchat's fast growth within just 4 years from its introduction. However, the company's future will largely depend on strategies to boost and maintain the number of its users.