×

Here's who will get rich from the Snap IPO

For a company that got its start popularizing disappearing text messages, Snap is about to create some permanent riches.

The social media company created by two Stanford graduates who've yet to turn 30 filed its papers to go public on Thursday.

Co-founders Evan Spiegel and Bobby Murphy each own 20 percent of Snap, according to the prospectus. Based on a valuation that could reportedly reach $25 billion at the time of the offering, each of them would own shares worth about $5 billion.

Spiegel and Murphy each control 44 percent of the company's voting power before the offering. Post-IPO voting control wasn't listed.

Venture capital firm Benchmark is the biggest outside investor, with a 12 percent stake worth an estimated $3 billion. Benchmark, also a big backer of Twitter and Uber, led a $13.5 million round in 2013 at a $70 million valuation.

Lightspeed Venture Partners owns 7.7 percent worth about $1.9 billion.

Snap equity financing rounds

Date Series Amount Pre-$ valuation Lead investor
Feb-13 A $13.5 mln $70 mln Benchmark
Jun-13 B $60 mln $800 mln IVP
Feb-14 C $54.5 mln $2 bln Coatue
Dec-14 D $485.6 mln $9.5 bln *
Mar-15 E $200 mln $14.8 bln Alibaba
May-16 F $1.8 bln $16 bln *
*No lead disclosed
Source: PitchBook

These numbers are based on the total of Class, A, B and C shares that will be outstanding after the offering plus options and restricted stock units that haven't yet converted to common stock.

For now, this wealth is all on paper.

Insiders are restricted from selling stock during the lock-up period that extends for five months after the IPO, according to the prospectus. That can be a volatile time for tech companies. Facebook traded sharply lower in its first half year on the market before bouncing back. Way back.

But unless the stock completely collapses, the offering will be a welcome sight for venture investors, following the slowest year for IPOs since the financial crisis.