Sequoia Set to Lead $500M Valuation Round for Instagram
The fact is, if you make a consumer Internet app that people actually use, you’re probably raising venture capital right now. So we try not to write about every funding round that’s in the works.
But some deserve the attention: It looks like Instagram is close to wrapping up a Series B round led by Sequoia Capital, according to several sources close to the situation.
The maker of the fast-growing photo-sharing app, which just made its way to Android, is set to receive $50 million at a $500 million valuation, the sources said. Others joining the round could include DST Global.
The Wall Street Journal had reported that some were skeptical that Instagram deserved a half-billion-dollar valuation without revenue to speak of, but there does not seem to be a lack of people wanting to get into the deal.
Instagram received Series A funding of $7 million led by Benchmark Capital just over a year ago. At the time, it had 1.75 million registered users.
Instagram, which just got its own office on San Francisco’s South Park, had 13 employees at last count. CEO Kevin Systrom declined to comment on fundraising.
(Image courtesy of JD Lasica on Flickr)