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Instagram Now Valued at $500 Million

Instagram is reportedly in the process of securing new round of funding that values the 16-month-old company at a staggering $500 million — 20 times what the company was valued at a year ago. Although the $40 million round has drawn a lot of interest from investors, many of the top VC firms have decided to stay away due to the high valuation and the fact that Instagram still needs to prove that it can turn popularity into profit. The 9-man company currently has over 15 million users and is working on bringing its popular app to the Android market.

Financing to Value Instagram at $500 Million [The Wall Street Journal]