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What Really Happened When Facebook Bought Instagram

vanityfair.com

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Re: What Really Happened When Facebook Bought Instagram

#81

Post by jacquesm »

logicallee wrote: post #68
jacquesm wrote: post #28

Earlier quoted context omitted.

There seems to be this terrible misunderstanding that 'VC' is a uniform unit the multiple of which is VCs. In fact, every VC is different, every VC has their own ideas of what companies are good to fund and which they'd rather pass on. So, right now there are VCs that will not fund companies that do not have a clear idea of how they're going to become profitable.

The only terrible thing about the misunderstanding that VC's are uniform herd animals who all act the same way, have the saem ideas of what's good and what they'd rather pass on, is that it's true! Terrible but true. You will literally see vc look at the other VC and do exactly what they're doing. You can literally create your own VC market by making VC A think that VC B is interested, which is true, because VC B is…

Some questions for you:

Do you run your own company?

Do you have employees?

Co-founders?

Have you ever received funding from a VC?

Have you ever solicited funding?

Were you accepted?

Rejected?

Re: What Really Happened When Facebook Bought Instagram

#82

Post by pshin45 »

I much preferred Josh Williams' (former Gowalla CEO) recent blog post [1] on the Foursquare vs. Gowalla "Check-in Wars" and how it was Instagram who ironically emerged as the "victor". Much more informative and insightful than this Vanity Fair piece.

[1] https://medium.com/work-education/6152adc41de9

Re: What Really Happened When Facebook Bought Instagram

#84

Post by Goladus »

logicallee wrote: post #67
SandB0x wrote: post #31

You may as well be reading about a rock band here. This story does not and will not apply to you. This is the one in a thousand/million fairy-tale of the frivolous app dreamed up in coffee shops, fuelled by rapid investment and sold for vast sums to a tech giant without so much as a whiff of a business model.

I see. Let's say I see a big incumbent who's UNIQUE selling point is 'we have everyone's private photos. people have to come to us if they want to see their friend's photos.' I start threatening them. They pay and buy us. I get rich. The incumbent gets to keep everyone's photos. At what point in the above do we not have a business model? Oh, you mean it can't possibly WORK! Except that it just did. Well, I'm sorry, b…

Selling company stock is not a business model, howeverr great an exit strategy it might be for founders. It does mean that someone substantially values the company, but doesn't say anything about its role in the economy outside that one transaction.

Re: What Really Happened When Facebook Bought Instagram

#85

Post by NoahTheDuke »

gramsey wrote: post #71
pathy wrote: post #63

Earlier quoted context omitted.

You appear to be very jealous of their success. This is Hacker News, we should celebrate the entrepreneurial spirit and look at the lessons that can be learned from success stories like this. If I could build Instagram and sell it for $1b I sure as hell would. Might not be saving the world but people appear enjoy using it so who cares. They did manage to sell a company for $1b, a feat which practically all of us neve…

Oh please. Spare us the jealousy insinuations, and stop perpetuating the myth that if entrepreneurs are actually worth anything and work hard, it is guaranteed that they will swiftly become inundated with success. Sometimes there are no "lessons that can be learned from success stories like this". Believe it or not, for every Instagram, there's a hundred startups with founders that are just as smart and try just as h…

> But let's not pretend you, or the founders of Instagram, are destined for success

That's not what the other poster said at all. They were making a remark about their potential attitude towards "cashing out", not about their perceived likelihood of being offered $1bn.

Re: What Really Happened When Facebook Bought Instagram

#87

Post by pathy »

gramsey wrote: post #71
pathy wrote: post #63

Earlier quoted context omitted.

You appear to be very jealous of their success. This is Hacker News, we should celebrate the entrepreneurial spirit and look at the lessons that can be learned from success stories like this. If I could build Instagram and sell it for $1b I sure as hell would. Might not be saving the world but people appear enjoy using it so who cares. They did manage to sell a company for $1b, a feat which practically all of us neve…

Oh please. Spare us the jealousy insinuations, and stop perpetuating the myth that if entrepreneurs are actually worth anything and work hard, it is guaranteed that they will swiftly become inundated with success. Sometimes there are no "lessons that can be learned from success stories like this". Believe it or not, for every Instagram, there's a hundred startups with founders that are just as smart and try just as h…

If the OP I replied to don't scream of jealousy I don't know what does.

That said, you are very right: Most startups fail, or barely break even. But without the inspirational properties of the likes of Instagram, would SV be the same? Would so many flock to Silicon Valley to try their luck? Probably not.

There are many many hard working entrepreneurs who never make it, that is fact. I do not, at least not yet, count myself among the hard working entrepreneurs. I am under no illusion that I will succeed in my future ventures nor that I am special and will automatically succeed where others have failed.

Of course there is always hindsight bias and the iOS market is more unreliable than the bitcoin price. My comment regarding building Instagram is meant as: If I had the right circumstances to take advantage of my 'unfair' advantage as a white, privileged male I would. The Instagram founders did and got lucky.

Lastly, I hope that your own startup venture is successful in the future. You seem to have done more good for the world, via volunteer work, than I ever have. I hope that you are not too disillusioned by the future to stop being an entrepreneur. Sometimes we just get that bit of extra luck that we need and hopefully that will turn out true for you as well as for me. (My apologies for kinda stalking you, I could not resist checking out your profile)

Re: What Really Happened When Facebook Bought Instagram

#88

Post by pathy »

NoahTheDuke wrote: post #85
gramsey wrote: post #71

Earlier quoted context omitted.

Oh please. Spare us the jealousy insinuations, and stop perpetuating the myth that if entrepreneurs are actually worth anything and work hard, it is guaranteed that they will swiftly become inundated with success. Sometimes there are no "lessons that can be learned from success stories like this". Believe it or not, for every Instagram, there's a hundred startups with founders that are just as smart and try just as h…

> But let's not pretend you, or the founders of Instagram, are destined for success That's not what the other poster said at all. They were making a remark about their potential attitude towards "cashing out", not about their perceived likelihood of being offered $1bn.

Yes, that was my intention. Turns out I need to work a bit on my English, I can be a bit unclear at times I fear. English isn't my native tongue so at least I can blame my shortcomings on something :)

Re: What Really Happened When Facebook Bought Instagram

#89

Post by omegant »

brazzy wrote: post #43
omegant wrote: post #37

Earlier quoted context omitted.

I agree with that, but that´s true anywhere in the world. In Spain if your company fails you may be personally liable of the debt. Recently a bank removed 3000€ from my grandmother account because of a debt dated from 1993 of my deceased grandfather´s company. My grandmother is 97 years old, and the funniest part is that debt was settled long ago. Also if you fail nobody is going to trust in you any more, you are don…

My point was not so much about SV but about the "can do attitude" - when taken too far it will have you go deeper into debt and chasing pipe dreams rather than cut your losses. It can kill good companies too, if it leads you to ignore risks.

Yes I agree that jumping to start a project without some planning can be devastating. I can´t find the PG essay where he talks about minimize expenses and try to have infinite runway, but after one year and a half of entrepreneurship that is the way I going to try next (first I have to fail this one ;) )
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