211–220 of 394 posts
Some of you might find this useful: https://instagram.com/accounts/remove/request/
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Quite a jump from the $500 million valuation they were shooting for last week[1]. [1] http://techcrunch.com/2012/03/08/no-filter-required-instagra...
I think the mere fact that they just raised $50M @ $500M valuation is the reason that this price is so high. Those investors in that round had to at least double their money...if the price was indeed $1B, that's all they did. Just 2X. Although, the argument can be made that a 2X return in 1 - 2 months isn't bad...but then again, VC funds don't have a 2 month life, so over the long-term value (i.e. 10 years most-times…
Can someone explain how this isn't insider trading? Day before deal: - Instagram closed a $50 million Series B round from Sequoia, Josh Kushner’s Thrive Capital, Greylock and Benchmark at a $500 million valuation. Day of deal: - Company gets purchased for 1 billion. - All investors instantly double investment.
"It's common to use an impending investment valuation to drive a higher acquisition valuation. Strategic/acquisition values are typically much higher than investment values. eg, as of today, Instagram is worth more to Facebook than it is to Sequoia, because Facebook gets strategic value in addition to market value. Also note that an investor with a signed term sheet would be fully aware that acquisition discussions were taking place, as well as what valuation range they were in. I would be surprised if Sequoia did not go into this with eyes wide open. They win either way - an instant 2X multiple on investment (and a crazy high IRR), or a highly desirable company that they believe has growth potential. Call me jealous."
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I think the mere fact that they just raised $50M @ $500M valuation is the reason that this price is so high. Those investors in that round had to at least double their money...if the price was indeed $1B, that's all they did. Just 2X. Although, the argument can be made that a 2X return in 1 - 2 months isn't bad...but then again, VC funds don't have a 2 month life, so over the long-term value (i.e. 10 years most-times…
Wait a sec - if the investors put in $50M and the sale price was $1B, isn't that a 20x return in 2 months? Or am I doing the math wrong?
Can someone explain how this isn't insider trading? Day before deal: - Instagram closed a $50 million Series B round from Sequoia, Josh Kushner’s Thrive Capital, Greylock and Benchmark at a $500 million valuation. Day of deal: - Company gets purchased for 1 billion. - All investors instantly double investment.
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I was replying directly to the undercurrent of your message which is rather hard to miss. "This seems ominous for Google...a shaky claim in mobile....what's left for them...sink tens of billions into mobile and still wind up on the bottom of the value chain...utterly outmarketed" That's the TLDR version of you pulling Google into a relatively small acquisition of a largely irrelevant tool that a subset of one relativ…
I don't see anyone reacting "Instawho?", let alone doing so "quite rightly". Instagram is extremely popular. Stories about how Instagram's backend works have been at the top of the front page on HN for weeks. I think you think this is some kind of Jets/Eagles thing here, and I'm wearing the green jersey. No. I don't have a side, and I don't think the competitive battle happening here is rational ; I just acknowledge…
How many photo-related startups has Facebook acquired now? And what do they gain from Instagram? A user base? Most of them are probably already on Facebook? Technology for handling photos? Doesn't Facebook already do this as well as anyone else? Design and UI talent for mobile apps? Don't they already have Mike Matas?
there's a lot of people that wouldn't fit the bill for facebook friending but are perfect in a looser setting. In this perspective, even if userbase has overlap, I'd guess that the social graph on Instagram is radically different than the one on facebook for a lot of users.
Now depending on how much Instagram gets integrated into fb, that might become less and less the case and give an opening to another photo sharing service...
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You are just seeing the good cases here. A 10X return on any one investment pays for all the bad investments. If I remember correctly, the return that Sequoia got on their YouTube investment paid for the entire portfolio many times over. But more importantly than that, I think it was one of a very few that were good in that fund. I believe that particular fund was particularly bad because it contained remnants of the…
You need some serious perspective, they just got 2x return in a few months. They can, I don't know, re-invest the money perhaps? And you're cherry picking out one of many Sequoia funds (and still a successful one at that) to point at to call VC life hard? A dot-com period fund as well? How many other hit funds have they had? Sequoia estimates that 19% of the NASDAQ’s value is made up of firms they have funded.
Can someone explain how this isn't insider trading? Day before deal: - Instagram closed a $50 million Series B round from Sequoia, Josh Kushner’s Thrive Capital, Greylock and Benchmark at a $500 million valuation. Day of deal: - Company gets purchased for 1 billion. - All investors instantly double investment.
How about : "Let me invest right now, so that I won't vote against the FB offer you've got on the table".
Or "If you let me invest now, I can make a recommendation to the FB board that they acquire you".