Instagram Close to Raising New Funds
Instagram is poised to raise a new round of financing that will value the popular photo-sharing application at as much as $500 million, people familiar with the matter said, despite some skepticism that the fast-growing company will find a way to make money.
The potential new valuation — roughly 20 times what the fast-growing company was worth around a year ago — highlights the promise and pitfalls of technology start-ups that have built their business around users of mobile devices, such as Apple Inc.’s iPhone.
