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Report: Messaging App Yik Yak Raises $62 Million

By Social Media FOXBusiness

Yik Yak, the anonymous messaging app, is raising $62 million at a valuation north of $300 million, reports the Wall Street Journal.

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Sequoia Capital led the round with participation from existing investors. Launched just a year ago, this brings the total financing for the app to about $73.5 million, according to CrunchBase data.

The Atlanta-based startup, which allows people to post anonymous notes that are grouped according to user location, has spread virally on college campuses. The app serves as a forum for local conversation.

But despite Yik Yak’s popularity, the service is not without controversy, as some say that the anonymity leads to bullying. There have also been instances where users have threatened to harm a community.

Sequoia may be looking to repeat some of its success that it has had with messaging. The firm invested in WhatsApp, which sold to Facebook (FB) for about $19 billion earlier this year.

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