Photo: LeWeb 11 via Flickr
Instagram, the popular photo sharing app for iPhone, is about to raise $40 million at a jaw-dropping valuation — perhaps as much as $500 million.That’s for a company that at last count had only 9 employees and hasn’t really started trying to make money yet.
Instagram has seen spectacular growth, getting more than 15 million users in less than two years, and was adding them at a pace of a million every couple of weeks toward the end of last year.
Founder Kevin Systrom told us that he hasn’t decided exactly how Instagram will make money, but he’s confident that there’s an opportunity.
“The question is, is there an opportunity beyond group buying, search advertising, to make a whole lot of revenue on the iPhone, on Android. I believe the answer is yes, that’s what we’re going after,” he told us in November.