Snapchat raises $175 million from Fidelity in latest funding round

The Wall Street Journal reported Snapchat has raised $175 million in fresh funding from Fidelity Investments and other investors. The investment is an extension of Snapchat's financing round, which the company began raising last year. Snapchat makes a free app for sending messages and videos that disappear in seconds. Fidelity bought shares of the company at $30.72 per share in February, the same price at which it bought Snapchat shares in March 2015, the newspaper reported. The company's valuation did not grow despite this new money, suggesting Snapchat's valuation may have grown too quickly and investors are now readjusting their expectations. Snapchat is currently the sixth mostly highly valued venture-backed company in the world. The app provider has worked to expand its advertising business, its only real form of revenue, and last month formed a partnership with Viacom, which gave Viacom exclusive rights to sell advertising on Snapchat.