Last Thursday, initial investors in Snap received a windfall in earnings. After one day of trading, the stock closed at $24.48, which was an increase of 44% over the initial valuation. The co-founders of the company, Evan Spiegel and Bobby Murphy, both increased their net worth by hundreds of millions of dollars overnight. The company is estimated to have a value of $33 billion. Snap is the parent company of the popular social media app Snapchat.
It turns out that wealthy investors and the company’s employees are not the only ones who will end up benefiting from the stock trading. St. Francis High School, a private Catholic school in Mountain View, CA, earned about $24 million from the public offering.
This is thanks largely to Barry Eggers, a former parent at the school. Eggers is the head of the school’s investment fund as well as a venture capitalist. His daughter first showed him Snapchat, and he was intrigued by the unique opportunity to help grow Snap.
In 2012, he recommended to the Board of St. Francis that they invest $15,000 in Snap. Luckily, they agreed. This past week, the school sold 1.4 million shares to generate their millions of dollars of profit. They still own 600,000 shares that are estimated to be worth $17 million. The school is expected to use some of their new funds to pay for professional development, financial aid, curricular and extracurricular programs.
Before other schools try to follow suit, everyone should remember that the Silicon Valley is quite a unique place. Average-sized homes regularly sell for millions of dollars, young entrepreneurs can see their worth grow exponentially in a year, and college graduates can sometimes expect to see six-figure salaries soon after finishing school. This story is just another example of the extreme success that has spread throughout the area.