The app Yo, which allows users only to send messages containing "Yo" to one another, has been valued at up to $10 million.
Destiny Beta Suffers Launch Issues, Experience Now Smooth
The New York Times reports that the latest round of investments have seen the value of the company climb since it first gained notice for an initial $1 million last month. An investment round last week grew to $1.5m, and the Times cites someone familiar with the deal who says the convertible notes suggest a value of $6 million to 10 million.
Two of the investors involved in the deal are technology incubator Betaworks and Pete Cashmore, the founder of Mashable. As amusing an idea--or stupid, depending on who you ask--as Yo is, the app and its creators will seek to prove it's worth that much. It's been downloaded two million times since April, meaning a user base certainly exists.
Rumored Microsoft Layoffs Confirmed, 18,000 Employees Will Be Let Go
Some have also found a way to use the simple app in meaningful ways--Yo has potentially saved lives. Israeli citizens began using the app to warn of impending missile strikes in conjunction with missile warning service Red Alert. By following 'RedAlertIsrael', users get a "Yo" message when a missile attack is imminent, giving time to take cover or brace yourself.
Chief Executive Or Arbel says the app has a lot of potential, stating that it won't stay as it is now, and that the investors are knowingly paying for that potential. Other uses similar to the missile strike launches may emerge, validating the usefulness of Yo, and perhaps one day its huge valuation.
