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.”
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