Just how wealthy are Instagram‘s nine employees after Facebook acquired the two-year-old startup for $1 billion?
Ridiculously wealthy, according to one report. A source “close to the company” — likely an investor — shared some of Instagram’s 2011 financial data with Wired. According to the data, Instagram cofounder and CEO Kevin Systrom owns 40% of the company, meaning he stands to take home $400 million from the sale pre-tax. Instagram’s other cofounder, Mike Krieger, will net around $100 million from the sale with his roughly 10% take.
Instagram’s investors also, of course, made out well. Benchmark Capital, which led Instagram’s $7 million Series A round in 2011, has earned around $180 million with its 18% stake. Two other venture capital firms, Andreessen Horowitz and Baseline Ventures, stand to net around $100 million with their 10% stakes.
According to the source, the remaining 10%, or $100 million, will be divided among Instagram’s nine employees. (For the record, no one outside the company is exactly sure how many employees Instagram has. We know the company hired its ninth employee in March, but some reports claim that the startup has between 12 and 13 employees.)
The amount each individual will receive will be based on the amount of time he or she has spent with the company.
A billion dollars is an impressive sum for a company that never developed a clear revenue model. Where Instagram did shine was in user adoption and engagement: the iPhone edition of the app has been downloaded and activated more than 30 million times since its October 2010 release. More than 1 million people downloaded the Android version of the app in the 12 hours following its launch last week.
Instagram’s new millionaires will now join Facebook full time. They’ll be in good company, as many early Facebook employees just became millionaires themselves.
The home view shows a stream of photos your Instagram friends have taken.
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