Instagram investment turns $250,000 into $78M for Andreessen Horowitz

Co-founder reveals return on initial Instagram investment.

By - April 23, 2012
Facebook Instagram Horowitz

Andreessen Horowitz has revealed that the firm has made 78 million off an initial 250,000 seed investment in Instagram, after Facebook acquired the photo-sharing platform for one billion dollars.

Ben Horowitz, co-founder of Andreesen Horowitz, revealed the value of their investment in his blog, as well as responded to a New York Times criticism of the deal, which said the firm “fumbled” their investment.

“Ordinarily, when someone criticizes me for only making 312 times my money, I let the logic of their statement speak for itself” said Horowitz.

“However, in this case, the narrative that some critics put forth has the nasty side effect of casting two outstanding entrepreneurs—Kevin and Dalton Caldwell—in an unfair light and glosses over an important ethical issue that we faced.”

The criticism came as a result that Andreessen Horowitz neglected a previous investment running with another photo-sharing app, Picplz,

Horowitz also emphasized that Facebook buying out Instagram for $1 billion is exceedingly rare.

He added, “News to world: it generally takes longer than two years to create a billion dollars in value. What Kevin and team did was special and unique.”

Source: Cnet
Forum discussion

Shutterstock is the image partner of MyBroadband – more technology images

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Are you a DStv Premium subscriber?

View Results

Loading ... Loading ...

More News

What your money bought at Nkandla

Nkandla

A media tour of Nkandla gave South Africans the first ever opportunity to put pictures to some of the state-funded infrastructure built inside President Jacob Zuma’s private rural compound.

Best 404 pages on the Internet

404 Lego

Many websites have very creative 404 pages – here are some of the best ones from around the Internet.

How to select the right generator in South Africa

Generator

Eskom has published guidelines on which generators people must buy in South Africa, and how to connect these generators to their homes.

Will Windows 10 be the best operating system yet from Microsoft?

Windows 10

With Windows 10, Microsoft is trying to turn the tide against the proliferation of operating systems across desktops, servers, tablets, and smartphones by creating a single operating system that will run on them all.

X

Newsletter Subscription


Name
Email *
Enter the following to confirm your subscription *
Captcha image


Free MyBroadband Newsletter
Subscribe
X