Snap Inc., the parent company of Snapchat, acquired StreetCred, a location data startup based in New York City, on January 11, 2021. The acquisition was made to enhance Snap's existing map and location-related products, but details regarding the financial value of the deal were not disclosed.
StreetCred had previously raised $1 million in seed funding from Bowery Capital and Notation Capital, with a focus on decentralizing and opening up access to location data through blockchain technology. The deal resulted in four StreetCred team members joining Snap, including co-founders Randy Meech and Diana Shkolnikov, who bring extensive mapping experience from their previous roles at companies like Samsung's Mapzen and AOL.
Deal structure and financing
The specific financial details of the acquisition remain undisclosed, with no equity or debt components publicly reported. Given StreetCred’s relatively early stage as a seed-funded startup, it is likely that Snap acquired the company for a combination of cash and stock without significant external financing requirements. The existing StreetCred platform will be shut down post-acquisition.
Strategic context
Snap's acquisition of StreetCred aligns with its broader strategy to enhance user engagement through location-based features. With 200 million monthly users on Snap Map, the deal aims to leverage StreetCred’s expertise in location data and mapping technology to improve these offerings. For StreetCred, this represents an opportunity for co-founders Meech and Shkolnikov to apply their experience at a larger scale while securing long-term career opportunities within Snap.
Regulatory path
As of the acquisition date, there were no reported regulatory filings or reviews associated with the deal due to its undisclosed value. Given that both companies are headquartered in the United States and the acquisition size is likely below the thresholds triggering mandatory Hart-Scott-Rodino (HSR) Act notifications in the US, Snap did not need to file for pre-closing antitrust clearance. Therefore, no significant regulatory scrutiny or remedies were required.
The deal underscores Snap's ongoing efforts to integrate advanced location data into its platform and enhance user experience through specialized mapping features.