Instagram is a mobile photo-sharing app focused on enabling users to share photos via mobile devices. In a blog post, CEO Kevin Systrom said he would continue to run the company "independently" after the acquisition. Facebook said it would work closely with Instagram to offer better experiences for sharing mobile photos based on users' interests. Right before its acquisition by Facebook, Instagram closed a $50 million Series B at a $500 million valuation led by Sequoia, with participation from Josh Kushner’s Thrive Capital, Greylock, and Benchmark. Earlier financings included a roughly $7 million round from angels Adam D'Angelo, Jack Dorsey, Chris Sacca, Baseline Ventures and Benchmark, and a $500k seed from Baseline and Andreessen Horowitz. The timing of the Series B and acquisition surprised many investors and resulted in those investors "literally" doubling their money. Instagram is a photo-sharing app created by Kevin Systrom after he abandoned his initial location-app idea, Burbn. Systrom had previously built a college photo app called Photo Box. The app experienced rapid early traction—within a week it reached 100,000 users and then 1 million—and its servers collapsed on the first day as downloads surged. Systrom describes the stressful launch day and the sleeplessness that followed. He also recounts the role of Silicon Valley serendipity in connecting him with key angel investors, including meetings that originated at a party hosted by Chris Dixon. The company announced a $7 million raise from Benchmark and other investors, and Part II of the interview discusses competition and where Instagram is headed.

Total raised

$58M

Funding rounds

3

Latest round

Series B

Latest activity

Apr 2012