The 'value' can be as simple as a payout. If I could go back, I'd love to invest in Snapchat. I don't think Snapchat will ever have a strong revenue stream but that doesn't matter to me - what matters to me is the buyout.

Hell, I invest in options often. There's no real value to me... only a potential investment payout.

I think it's the same with most investors of technology.

The value comes from the people buying the company then.

Maybe snapchat is going to be a crucial marketing channel for them, which makes it worth it to purchase them. They transfer some of this value, to the original investors of the company who got it off the ground.

There is value, or perceived value at some point in the chain.

The question is if that value is at the right valuation.