Let’s take a look at why Instagram rocketed into orbit so quickly, while other, similar startups are still trying to light their engines.
First, compare Instagram to another photo-sharing startup, Path. There are many similarities.
Both companies were founded in 2010.
Both companies raised a similar first round of investment in early 2011: $8.65 million for Path, led by Kleiner Perkins Caulfield & Byers and Index Ventures, and $7 million for Instagram, led by Benchmark Capital.
Both were rumored to be angling for a major second round in March, 2012. Path was supposed to be going for a $20 million raise (a rumor the company denied), while Instagram may have actually closed a $50 million round led by Sequoia Capital.
Path created an iPhone (and later Android) app that let people take photos, apply creative filters to them, and share them. Instagram created an iPhone app (eventually, much later, an Android app too) that let people take photos, apply filters, and share them.
They’re also both extremely small companies, with just 13 employees at Instagram and 25 at Path. Back in May, 2011, when Instagram already had 4 million users, it only had 4 employees.
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