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]

  • Ghill Tochon

    i’m an user, i do it for free, and is free to use.. where is that huge value coming from?

  • Richard

    I’m a user too Ghill.

    No doubt its over valued but  the value is coming from the number of users, the small number of employees, and the time it’s taken them to gather all the users. I was using Path too for a while but I think Path has lost its way, Instagram remains an image centered app, not a Facebook clone.

  • Yon

    love instagram, it’s addicting

  • Yanik Chauvin

    The best thing about Instagram is that other photo apps with much better edtting options, like the free King Camera, have direct upload to Instagram. :) They did a good thing letting devs use their API. 

  • Buggle

    Instagram > Nikon

  • gabe sturdevant

    Worth so much, yet creates so many worthless pictures. 

  • Takeshi Garcia

    True. I remember back then when instagram started out there were some good photos…  now, its filled with photos that looks like crap in flickr so they upload it in instagram instead. 

  • stanimir stoyanov

    I think we’re in for another dot-com balloon. However, this time it’s about social media “apps” (like Zynga’s billion-dollar games, the $500-mln Instagram, 50+-billion facebook, etc.)