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The goal behind this acquisition is to help drive long-term augmented reality [AR] research efforts within Snap Lab, SNAP said. The startup builds devices that could advance Snaps AR platform.
While the social media company didnt disclose valuation, Pitchbooks data shows that NextMind raised about $4.5 million in funding to date and was last valued at around $13 million.
Bank of America (NYSE:BAC) analyst Justin Post reflected positively on this news.
Snap has invested in building AR products and technology over the few years and is now a leading platform for brands for AR advertising. Users engaging daily with Augmented Reality (AR) on Snapchat grew more than 40% y/y in 1Q21, and now likely represent more than 250mn DAUs. Advertisers have shown an interest in Snaps AR technology as a unique way to connect with the platforms Gen Z audience, Post said in a client note.
Snap stock price closed at $35.88 yesterday.
By Senad Karaahmetovic
