CAPE TOWN - Snapchat's startup accelerator, Yellow, is going to offer approximately R2.2 million in funding to a number of start-ups, including a South African one.
According to a report by TechCrunch, Yellow will provide funding and creativity-centric business education in the exchange for equity from these start-ups.
The start-ups will be invited to stay at one of Snapchat’s buildings in California for 3 months. This, of course, will be part of Snaps programme.
It should be noted that the "accelerator class" range from augmented reality and journalism studios, to lifestyle brands such as fashion and marketplace ideas.
One of these ideas includes that ConBody applications, where you are paired up with a fit ex-convict for workouts.
Yellow will be partnering with a Durban Based company called Hashtag Our Stories. The start-up said that they are "a social-first, video publisher, focused on stories about local solutions to global problems."
The company believes that "traditional news media lacks diversity, has a bias for negativity and is missing the big trends".
"We saw a different way of telling stories", the company said.
In order to do this, the start-up hopes to create an international mobile journalistic network through videos and social media.
“Since September 2017, we’ve empowered 200 citizen storytellers in over 40 countries to produce videos with their phones,” the company said.
“We focus on constructive, solutions-based stories and provide more diverse news coverage. Because more cameras and more perspectives mean more truth."
You can check out their site here.
Last month Snap released its financial results for the quarter ended June 30, 2018, showing that its redesigned app is not a big hit with its users.
According to the result report, the company's revenue climbed 44 percent year on year at $262 million.
However, the latest financial results revealed that it saw daily active users decline to the tune of three million users.
Cash used in operating activities was $199 million in the second quarter of 2018, compared to cash used in operating activities of $210 million in the second quarter of 2017.
Revenue increased 44% to $262 million in the second quarter of 2018, compared to revenue of $182 million in the second quarter of 2017.
Net loss decreased 20% to $353 million in the second quarter of 2018, compared to a net loss of $443 million in the second quarter of 2017.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) loss decreased 13% to $169 million in the second quarter of 2018, compared to an Adjusted EBITDA loss of $194 million in the second quarter of 2017.
-BUSINESS REPORT ONLINE