2017 has been a rocky road for Snap, Inc. With the rise of Instagram users and Facebook introducing their own Stories that's connected to Instagram, the user-base for Snapchat has declined. Advertisers also backed out after the slow growth and adaptation of new features.
However, during the last quarter of 2017, Snap, Inc. introduced a new program called Accelerate Startup aimed at "providing venture capital-backed startups, incubators and accelerator programs with access to benefits and services," according to Adage.
A spokesperson from Snapchat noted the program is open to all startups of all stages and it's "best-suited" for those who are focused on mobile and digital markets.
"Examples include mobile applications that are still in the process of acquiring users, mobile commerce startups and mobile game developers."
This could be a way to incorporate new ideas and new teams to work within their platform.
Snapchat continues to burn cash as their 2017 Q3 reporting resulted in a $443 million loss, according to their official records.
The company noted that the decline of ad money was because of the new bidding system in advertising, but that is probably just one of the reasons.
Investors like Gary Vaynerchuk noted last year that with Facebook's fast deployment of the Stories format, Snapchat should react faster. Facebook's native Instagram integration also helped users who are not used in using Snapchat.
Snapchat's users are mostly Generation Z and millennials while Instagram's audiences is much wider.
The Accelerate Program could work because of the different target market, but if they're banking on this alone to make a rebound this 2018, it's not looking bright for Snap, Inc.
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