Instagram reportedly set to raise $ 40 million

by bold-lichterman

According to information from the Wall Street Journal, the start-up Instagram, led by Kevin Systrom, is about to complete a second round of funding of $ 40M for a valuation of $ 500M, or more than 20 times the amount of its valuation estimated a year ago.

Instagram reportedly set to raise 40 million

According to the daily, some investors would not have liked to participate in this second fundraising, pointing to a disproportionate valuation compared to an activity of which the business model is still relatively vague.

Launched in October 2010, mobile application which allows you to create effects on your photos and share them on social networks, claimed, last December, nearly 14M users, 60 photos shared per second, for only a dozen employees.

Based in San Francisco, the company raised $ 7.5M in 2011, notably from the Benchmark Capital fund and Twitter co-founder Jack Dorsey, for a valuation of over $ 20M.