Snapchat fetches $10B valuation

Kleiner Perkins Caufield & Byers has agreed to invest in the fast-growing ephemeral message service Snapchat Inc. at a valuation of close to $10 billion, people with knowledge of the matter told the Wall Street Journal.

Snapchat's valuation, at about $2 billion just one year ago, has soared even though the startup lacks a clear business model and has produced virtually no revenue, according to the report.

Investors see potential to make money from the millions of teenagers and college students on the three-year-old app, a group that is coveted by advertisers and increasingly difficult to reach through traditional media like television and magazines.

Read more from the Wall Street Journal.