Is SnapChat Worth $3 Billion?

Snapchat Logo

Snapchat Logo

SnapChat recently rejected a $3 billion offer from Facebook. With rumours of offers from both Tencent and Google. The trendy app is certainly popular among teenagers (where Facebook starts to lag behind). But they have no revenue and no discernible plans on how to generate said revenue. Their clientèle isn’t exactly the most wealthy and they could very well leave the app in case it starts charging money.

Yesterday an user on Hacker News asked: Ask HN: How much do you think SnapChat is really worth?

So far the replies have ranged from $0 to $3b+.  No one really knows today how much it is worth but most seen hesitant regarding SnapChat’s valuation. It simply has no revenue, to quote the current top poster:


I hadn’t heard of SnapChat until this acquisition story broke. I guess I’m out of touch or something?

Anyway, no revenue and no real hope of revenue = $0. VC can blow smoke up your ass until they collapse, blue in the face, but it’s not a winning proposition.

Ignoring the distaste for VCs that the poster has, it is a fair point. SnapChat will have a hard time to actually generate the revenue to merit a $3 billion valuation.  My comment on the matter leads more towards another issue (in my mind): Lawsuits. Teens are the demographic that heavily use SnapChat, sending photos to each other. Often times they  send nude photos…. I can just smell the lawsuits coming. Maybe not now but sometime there will be a lawsuit, a very expensive lawsuit.

That should worry every corporate lawyer. There are immense risks in my opinion. What is it worth? Who knows, to the right buyer it may be worth $3+ billion. I doubt they will generate much revenue though. The younger audience is notoriously price sensitive, if they start charging money for the service they are going to end up in deep trouble. They don’t store much private information (I hope…. Aren’t those photos supposed to disappear!) about their users, which makes selling relevant ads harder.  Below is my comment on the matter in that HN thread:

The problem I see with Snapchat is that:

a) currently no revenue, I imagine it is harder to monetize Snapchat than Facebook et al. But it is not my area of expertise so I can give them the benefit of the doubt that they can monetize it.

b) They are one lawsuit away from blowing up. I can see a future where they get hit with a child porn lawsuit or something similar. I assume they have good lawyers but it is still a rather significant risk.

I think it was a mistake not to take one of those billion dollar deals but I have been wrong before. If they can monetize their service and avoid lawsuits it could become huge.


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Reddit & Hacker News: The New, Social, Recruitment Tools?

Can Reddit, Hacker News and the likes become the new social recruitment tools for modern companies?

Recruiting staff is hard

Recruiting staff is never easy, especially for new startups. Hiring the wrong person can turn out to be a very expensive affair, especially if your budget is limited to start with. Another problem that companies face is that there is a lack of suitable employees. In Silicon Valley the salary for a relatively green CS graduate can exceed $100,000 per year. I get that it is expensive to live in that area but such high wages shows that the companies have trouble finding the right people to hire.

Skilled software engineers can often times pick and choose what companies they want to work at and the companies have to brand themselves as attractive employers. Easier said than done. However, over the past few years I’ve seen an increase in ‘alternative’ recruitment avenues.


Reddit has a multitude of niche subreddits, communities with a special theme – everything from cat pictures to country specific communities and information security. The latter is the interest in this case.

/r/netsec is a “A community for technical news and discussion of information security and closely related topics.”. It is a rather specialized niche with a very specific set of competencies. Information Security is hard. Very hard. Think of all the leaked databases with usernames and passwords you’ve seen. Finding employees is therefore bound to be troublesome.

Every quarter /r/netsec moderators create an Information Security Hiring Thread. It can look something like this:

/r/netsec Recruitment Thread

/r/netsec Recruitment Thread, Q4 (Click on the image for large size)

The ability to list positions for these, often times smaller companies, can be invaluable. It is a niche industry so the traditional recruitment sites (Monster and so forth) may not provide many leads. It is also more personalized as users who are interested can reply to the post and ask questions. The following is a post from iSEC partners in the hiring thread:

iSEC Partners in /r/netsec

iSEC Partners in /r/netsec (Click on the image for large size)

Another example of recruitment via Reddit comes from /r/consulting. Yesterday I noticed a thread there: I want to hook up Redditors with entry level consulting jobs.

 My Project Management Consulting company is hiring for entry level associates. You need not have experience, and you’d get promoted up starting after the first year.

I remember being a job hunter in this subreddit and wanting to find places that would take my application. I didn’t want to forget where I came from and hope someone here finds this helpful.

If this is of interest to you, message me. We’ll talk and then I’ll hand walk your resume into HR.
*some prerequisites apply

This is an example of helping the community out, a lot of people are looking to enter consulting and it is never fun or easy to go to all those interviews (with hilariously fun cases…). Consulting is also a special case in that the large consultancies (McKinsey, BGC, et al.) tend to vacuum up a lot of the talent. Definitely troublesome for smaller firms. By generating good will the company can be sure to get some potential employees who otherwise wouldn’t have applied.

Hacker News

Hacker News is the community around the startup incubator Y Combinator (wiki). Hacker News works in roughly the same was as a subreddit. Each month there is a ‘Who is hiring’ thread. The one posted for November currently has 400 comments, with most being companies advertising positions.

Hacker News: Who Is Hiring

Hacker News: Who Is Hiring (Click on the image for large size)

The companies advertising are everything from big multinationals to small startups. The companies are mostly located on the west coast of USA. It is a bit unfortunate that the European startups have not taken advantage of communities like Hacker News to the same extent as their American counterparts.

Below is a post from an employee at Bloomberg, it is currently the most upvoted comment in that thread. He describes in-depth what they do and in a very personal way attempts to woo potential employees. He’s asked several questions the thread and does his best to answer them. Very good attitude to recruitment and really helps branding Bloomberg as an exciting place to work.

Who Is Hiring: Bloomberg

Who Is Hiring: Bloomberg (Click on the image for larger size)

So what lessons can be learned from this? Look beyond the conventional job boards and try to recruit from other sources. It is not guaranteed to work but if nothing else, you get a chance to build up some good will with the community.

I think this type of recruitment activities will become increasingly important for companies. Dealing with faceless HR departments without any personal connections may become a thing of the past. The unrealistic job requirements listed by HR should become a thing of the past. Let’s not kid ourselves, most companies don’t need rockstars for most of their positions.

Honorary mention: Twitter

These communities are rather niched and therefore you might not find the type of employees you need so, in some cases, Twitter is a better choice. You can do like MTGx (See previous mentions: 1 2) and simply spread the word of your CMO position via Twitter. Any self-respecting (digital) marketeer will have a Twitter account these days.

That previous sentence is validated by first line of the need to have section in their job listing:

You are an active member of the online world – not just a spectator or a fan. If you don’t have a Twitter account and don’t spend an excessive amount of your personal time online, you are not for this job

Are these the recruitment tools for the future? I don’t know, maybe. They are a nice complement to other things and adds human aspect to the whole job seeking/employee hunting process.

[ShamelessSelfPromotion] Got any tips for jobs in the Stockholm Region, throw me an email at Patrik[at] or on LinkedIn.  [/ShamelessSelfPromotion]


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LinkedIn is Terrible at Job Recommendations

LinkedIn Logo


Most people I know have a LinkedIn account these days, especially if they have a university degree or work in a knowledge worker environment. However, I have recently found a glaring problem with LinkedIn, at least in Sweden. The job recommendations suck. Plain and simple. I don’t expect their recommendation engine to be perfect but the current algorithm is quite embarrassing.

Let me begin by talking about myself, so you can get an idea how insane some of the recommendations are. I am just finishing my MSc in Business Administration (Information & Knowledge Management specialization) at Vrije Universiteit Amsterdam. I have already returned to Stockholm, Sweden but I am not quite finished with my master thesis yet.  I am writing about Enterprise System (ES / ERP) implementations. Prior to my Master in Amsterdam I got a Bachelor degree in Business & Economics from Uppsala University. And I worked in an accounting department during the last couple of summers, except this summer as I was busy with my thesis.

I cannot code to save my life and while I considering myself knowledgeable about business and enterprise systems, knowledge management and such I do not fancy myself anything but a recent graduate with junior-ish qualifications. Anything else would be quite absurd – with some exceptions.

[Selfpromotion]See my LinkedIn profile for a more complete overview [/Selfpromotion]

The kinds of jobs LinkedIn says it recommends for me are quite beyond my qualifications. Senior IT consultant, CTO and some hilarious, probably a scam, ‘Business Coach’ job. Let’s begin with the Senior IT consultant.

Linkedin Sr Consultant Qliktech

LinkedIn Sr Consultant Qliktech

While I am very interested in this kind of work, I am not by any stretch of the imagination a candidate for a technical position. I do not know how to code, or at least not enough to be of use for any corporate work. Nor am I suited for a senior position. The years in job listings are always over the top but I am still at the very least 3-5 years off calling myself anything close to a senior consultant, or senior anything else. For that matter.

Next up: CTO

LinkedIn CTO Sonoport

LinkedIn CTO Sonoport

This posting is not even located in Stockholm. But once again, entirely off compared to my background. I am not in a position to take up a CTO role. I am just not well versed enough in any technical aspects.  I can administer a Linux server well enough for my own needs but not well enough to call myself a professional sysadmin. I am just a happy amateur.

And the last one, Emyth business coach.

Linkedin EMyth Business Coach 1

Linkedin EMyth Business Coach 2

LinkedIn EMyth Business Coach

This one is amusing. It feels like a scam to me, pay to join our bullshit courses and make a stack load of money. Yea right.  Not really anything in my profile suggesting that this would be a good fit either. I can’t say I am terribly impressed with this one either, shouldn’t even be allowed on LinkedIn in my opinion. Leave the pyramid schemes to the gullible people who want believe everything they read. Speaking of which, I got an email from a Nigerian prince saying I inherited $2 million. That is legit right?

Let’s be clear, LinkedIn is supposed to be great at matching potential employees with employment opportunities, it is not especially good in my experience. There are probably many reasons for this, one could be that their algorithm is not good enough. Or that there simply aren’t enough job listings in the Stockholm area right now.

I hope, for LinkedIn’s sake, that it is the latter. For my sake, well I hope that I will find a job but in the mean time I have to finish my thesis. Transcribing interviews is probably among the least fun tasks you undertake.

[ShamelessSelfPromotion] Got any tips for jobs in the Stockholm Region, throw me an email at Patrik[at] or on LinkedIn.  [/ShamelessSelfPromotion]


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