Instagram Sells For $1 Billion, Despite No Revenue. The technology world is abuzz over Facebook's $1 billion deal to acquire the photo-sharing app Instagram.
Two years ago Instagram didn't exist. Some reasons behind the company's meteoric rise: apps are everywhere and Instragram took advantage of the moment with a playful, easy-to-use service. Now Instagram's fans wonder whether its identity will be retained. Copyright © 2012 NPR. For personal, noncommercial use only. Picture this: Instagram could be worth $35 billion.
Pinterest valuation: Worth billions, no revenue. Photo by Steve Jennings/Getty Images for The Crunchies Matthew Yglesias is on vacation.
Pinterest Raises More Money, Fetching a Valuation of $5 Billion. Photo The business of online scrapbooking is getting more valuable — at least in the eyes of investors.
Pinterest said on Thursday that it has raised $200 million in a new round of fund-raising, at a valuation of $5 billion. At that level, the social network has joined the upper echelons of the start-up hierarchy. The money will come from existing investors: SV Angel, Bessemer Venture Partners, Fidelity, Andreessen Horowitz, FirstMark Capital and Valiant Capital Partners.
Despite some tremors in the market for newly public start-ups, the darlings of the venture capital world have little trouble drawing investor interest. Such companies have been eager to draw in as much money as possible, while investors are still in a giving mood. Snapchat Doesn’t Make Any Money, So Why Is It Worth So Much? Nov 14, 2013 1:22pm The founders of Snapchat, a mobile app that lets mostly teenagers send mostly naked pictures of themselves, were recently offered $3 billion for the company, only to turn it down.
So are its young founders crazy or is the company is worth much more? Snapchat doesn’t make any money. Founded just three years ago, it doesn’t have a long record of success. Nor is the management team exactly seasoned; the last jobs Evan Spiegel, 23, and Bobby Murphy, 25, had were as fraternity brothers at Stanford. So why would Facebook CEO Mark Zuckerburg reportedly offer a pair of 20-somethings so much money? In short, people–some people at least–think Snapchat is a good idea that has a lot of potential. Spritz. Where does the value come from? An exercise. Network structure: one-sided or two-sided markets? Competing in these markets is tough! MySpace Still Reaches 50 Million People Each Month. Justin Timberlake. Strategies for MySpace? Recap - Network effects, network markets and the fight for our data.