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How Instagram got to 1 Billion Dollars
Instagram is a mobile photo app which integrates image filtering and social networking capabilities. The inspiration for Instagram came from the old vintage Polaroid “instant” cameras and wired telegrams.
Some key statistics about Instagram are:
• There are over 300 million users registered with the app worldwide.
• Every second 575 photos are liked through the app.
• 81 comments are left every second.
• Over a billion photos have been uploaded.
How Does It Work
Using Instagram couldn’t be any easier. It takes just three simple steps.
1. Snap a photo using the app.
2. Use the in built filter effects to change the look & feel of your photo
3. Instantly share photo on Instagram, Facebook, Twitter and Tumblr.
• Oct 2010 – Mike Krieger and Kevin Systrom launched Instagram.
• Mar 2010 – $500,000 was raised in seed funding.
• Oct 2011 – Instagram hits 12 million registered users
• Nov 2011 – Is valued at $20 million
• Mar 2012 – 27 million users snapping away on Instagram
• 3rd of Apr 2012 – App is brought to Android phones
• 9th of Apr 2012 – Acquired by Facebook for a whopping 1 billion dollars
The $1 billion acquisition coincidentally means that $1 was paid per uploaded photo. Also Instagram is $50 million more valuable than the New York Times, which is worth “only” $950 million. A staggering $400 million was netted by the Instagram CEO Kevin Systrom as a result of the acquisition.
Such massive buyouts only happen once in a while. Now whether Facebook paid too much for Instagram or if it got a bargain remains to be seen. But the acquisition is a clear sign of the importance of photo sharing within the social media world and the massive impact it has on both businesses and individuals. The future is bright for Instagram. It has a potential user base of over 300 million for both iOS and Android platforms.