Anyone who thinks they can’t make money during the global economic slowdown only needs to look at Instagram to see that they’re wrong.
Instagram is a photo-sharing application. At it’s simplest, it can be used to take a photo with a smartphone, then apply a filter to transform the image, such as a black and white look. Then, other users can comment and like the photos. Some describe it as a visual version of Twitter.
The makers of Instagram, have joined a recent phenomenon, which I’m going to call the billionaire app club; new money thanks to the rise of the smartphone.
The application was developed in 2010 by two university students thanks to an initial seed investment of US$500,000 from two venture capital firms.
It initially created the app for the iPhone and only recently released a Google Android version and has seen amazing growth, with the number of users catapulting from 15 million in December, to 30 million today.
Facebook, saw this growth, and overnight offered US$1billion for the company. US$1billlion!!!
It’s Facebook’s biggest acquisition to date, as it seeks to cement its reputation as the world’s premier social networking site.
What it plans to do with it, will be interesting to see.
If follows Zynga’s acquisition of the popular Draw Something game for US$200million just a few weeks ago.
I must admit, I’m not an Instagram user, because I really can’t be bothered pressing another button on my iPhone to take a photo (I prefer the slide up button on the start up screen, the laziness of Generation X/Y, that’s another story) but I really should start thinking about developing an app for the likes of Facebook and Apple to buy.
Mobile Memo perhaps?