Snapchat's focus on making money from an early stage will make it attractive for investors if the social media app goes public, one of its first investors told CNBC.
Jonathan Teo, founding partner at venture capital (VC) firm Binary Capital, invested in Snapchat in 2013 when it had just 120,000 users while he was at General Catalyst. The ephemeral messaging app now has a reported 150 million daily active users and is valued at around $20 billion, according to media reports.
Snapchat recently rebranded to Snap Inc, and is reportedly eyeing an initial public offering next year. While Teo did not confirm whether the company was going public, he said that if it did, he was "optimistic" investors looking to buy shares would find it an attractive company.
"Snapchat has obviously been experimenting a lot with monetization and they've got a lot of really innovative products and they continue to have innovative products in that regard," Teo told CNBC during an interview at the Web Summit technology conference in Lisbon on Monday.
"Because of the company's real focus on monetization, I think you are going to see some of those efforts really play out in terms of the business model that the company has, as compared to some of the companies that were focused on getting to growth and scale first," the investor added, referring to social media firms such as Facebook or Twitter.