In 2012, there was an announcement from Facebook – they were buying Instagram for the price of $1 billion. A company started just a few years ago by two young entrepreneurs, has brought them to the world of super riches. A company that had no revenue, only 13 employees, and completely no profits by the time of the deal… Who would be so insane to pay a billion for such a business?!? Well, actually Instagram had one thing that was far more valuable – potential. And this is what the managers of the biggest social network spotted there. Here is how all this happened…
Everything began when Kevin Systrom and Michel Krieger, who was working on a project bringing mobile location check-in game-play to mobile browsers called Burbn., decided to focus on mobile photography. They started searching for some funding to further develop the idea. On the 5th of September, 2010, Kevin managed to arrange $500 000 from two venture capital companies – Andreessen Horowitz and Baseline Ventures, which actually put the start of Instagram.
In October 2010, the first version of the Instagram mobile application was released on the App Store. Initially, it had only 80 registered users. Since then, the young company hasn’t stopped growing. Just two months later, in December of the same year, the number of registered users reached 1 million. Two months later, the number of users doubled and they were sharing around 300 000 pictures daily. By February 2011 there were plenty of investors, who wanted to put their cash into this exploding business. Instagram got a second round of funding, raising $7 million from various investors like Jack Dorsey (one of the founders of Twitter), Benchmark Capital, Adam D’Angelo, and others. The fresh money gave another boost to the growth of the business. By July 2011, the number of registered users tripled and reached 6 million.
By August 2011, Facebook had already spotted Instagram and they tried to buy the booming startup, but unsuccessfully. The social kings then announced that they were developing a system of photo filters, hoping to grasp a piece of the booming market of Instagram, unsuccessfully, too…
In January 2012, Instagram already had 15 million users from all around the world. Three months later, in April 2012, the company released its Android application and published it for free download on Google Play. In that same month, the popular venture company – Sequoia Capital bought a share of the business for $50 million. That share should have been 105 because it valued the company at $500 million.
Facebook realized that they were missing the train. They wanted that business and they decided to buy it. They offered the astonishing 1 billion dollars for the company, doubling its price, at which Sequoia Capital invested days ago. This was how the two founders – Kevin Systrom and Michel Krieger found themselves multimillionaires.
Instagram Today
Instagram has grown to be one of the most popular social networks of today. With over 600 million active users, it’s a major platform for businesses to gain exposure and reach new customers. It offers features such as Stories, which allows users to post snippets of their day, adding an interactive element to their page. It also provides businesses with analytics and insights into who is viewing their content, making it easy to measure success.
The popularity of Instagram comes in no small part due to its easy-to-use interface and visuals-based nature. The platform makes it simple to share photos, videos, and stories along with hashtags and captions that make content easily discoverable by others. Recent updates like Day Stories have added even more engagement possibilities for users, allowing them to quickly inspire others.
For businesses, the visual nature of Instagram makes it an attractive choice for marketing. Short videos and pictures can be used to capture attention quickly, while innovative campaigns can involve giveaways or competitions with user engagement being tracked from the account’s insights section. Brands can also use Instagram Live or IGTV to increase engagement levels, or take it a step further by leveraging influencer collaborations.
Instagram today provides a range of tools for businesses to connect with users in creative and meaningful ways. From video stories and ads to sponsored content and influencers, there are many different activities businesses can leverage on the platform in order maximize exposure and reach new customers while fostering meaningful relationships with existing ones. This has made the platform an invaluable tool for modern day marketers – one that’s increasingly becoming one of the most important pieces in their digital marketing toolkit.
 Get Instagram
Want to try the app? Download Instagram here:
Instagram for PC:
https://instagram-for-chrome.en.softonic.com/ – This is an extension for Google Chrome
Use Instagrille to sign up/log in on Instagram from your PC – https://www.pokki.com/app/Instagrille
Instagram online – https://instagram.com/accounts/login/ – here you can Log In from any browser.
Get it for iPhone, iPad, and iPod on The App Store: https://instagram.com/download/ios/
Get it for Android on Google Play: https://play.google.com/store/apps/details?id=com.instagram.android
Check some other cool startup articles:
The Story Of Instagram In Pictures – How Instagram Was Started
10 Young Entrepreneurs Who Became Online Millionaires By Starting A Site As Online Business
How Daniel Kovach Started An Online Business With No Money
What price should you sell your business at? 23 Years Old Evan Spiegel Refuses $3 Billion From Facebook
Wikipedia’s Startup Story – How Jimmy Wales Started The Biggest Online Encyclopedia
Ship Your Enemies Glitter – Mathew Carpenter’s Weird Business Idea
Current Money Exchange Rates With This Online Currency Converter
Raj Singh – A Guy With The Innovative Business Idea Of Drone Advertising – DroneCast’s Start-Up Story
