How Did A California High School Make Millions Off The Snapchat IPO?
The latest financial development of the moment, the IPO of Snap, Inc., the company behind popular social media app Snapchat, is no different. Certainly, the founders, investors, and key executives at the company are celebrating the success of the IPO, but CelebrityNetWorth also shares that there is a winner here that no one would expect: Saint Francis High School in Mountain View, California.
In fairness, if ever a high school was to get in on this type of action, one in the heart of Silicon Valley would likely be a good candidate, like Saint Francis. However, it was through one of the parents at the school that it was able to get in on one of the seed-funding rounds of Snapchat. Barry Eggers is a partner at Lightspeed Ventures and served one of Snapchat’s first venture capital investors. The connection between Saint Francis and Snapchat took place back in 2012 when the school board agreed to invest while it was still getting off the ground. Interestingly enough, while Eggers was a major force here, the school also has his daughter Natalie to thank.
Eggers recalls that in early 2012, he came home from work to find his then 10th-grade daughter and a group of her friends sitting around the kitchen table laughing while staring at their phones. Curious, he asked what they were doing, and Natalie told him that they were playing with the Snapchat app. She added that it was one of the most popular apps at school along with Instagram and Angry Birds. Intrigued, Eggers called up his partner at Lightspeed Ventures, Jeremy Liew.
Liew and Eggers would soon meet with Evan Spiegel and Bobby Murphy, and Lightspeed made a seed investment in the fledgling company. Seeing as his daughter was the inspiration for this, Eggers decided to convince the school board to make an investment as well, and they invested $15,000. At its IPO, Snap shares sold for $17 each and skyrocketed 44% higher at the beginning of trading on Thursday. St. Francis High School sold two-thirds of their shares at $17 and raised $24 million to help the school and its students both now and for the future.