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Snap founders discovered the power of one of its most popular features at a rave

Atmosphere of the Kinetic Field stage during the 20th annual Electric Daisy Carnival at Las Vegas Motor Speedway on June 17, 2016 in Las Vegas, Nevada.
Michael Tullberg | Getty Images
Atmosphere of the Kinetic Field stage during the 20th annual Electric Daisy Carnival at Las Vegas Motor Speedway on June 17, 2016 in Las Vegas, Nevada.

Snap co-founders say they realized the power of Snapchat's Live Stories feature while at EDC Las Vegas, one of the largest rave festivals.

"I remember Evan and myself were actually out in EDC Las Vegas when we launched this product, and so we were half expecting to see nothing," Snap co-founder and Chief Technology Officer Bobby Murphy said in the company's roadshow video. "Instead we saw the most amazing content covering an event that we've ever seen."

Snap released its roadshow presentation on Friday, ahead of its IPO. The company is valued at $19.5 billion to $22.2 billion, based on its projected $14 to $16 per share price.

Snapchat launched Live Stories at the electronic dance music festival in 2014. Murphy said the company realized that if they could create a digital geographic demarcation or "geofence" around a certain area, they could get users to contribute videos and photos from that location. When a user snaps a picture or a video from the zone, they get an option to include their content in a community-sourced public channel.

"It was just utterly unbelievable how much really cool and creative and fresh content was being submitted to this live story," Murphy said.