Today, Instagram sold to Facebook for $1 billion. A week ago, when TIME
asked Instagram founder, Kevin Systrom, if he would sell the company,
he said “It’s not really on the top of our minds right now.”
Kevin is 27 years old and started Instagram 18 months ago with Mike
Krieger, in October 2010. The company has grown with just 4 staff, and
today has just 9 in the team. With the $1 billion deal that was
announced today, was Kevin just plain lucky, or was there some simple
steps that he (and others who have had the same luck) have in common?
If you look the way instagram made it to a staggering billion dollar valuation. Its founders followed 3 simple steps...
1. THING BIG FROM DAY ONE - THEN LEARN FROM OTHERS:
It was while Kevin was studying at Stanford 7 years ago that he had the
idea of a photo-sharing site, from his passion for photography. That
was before iPhones, and before Facebook. Step one was he cultivated his idea by learning from others. He met Mark Zuckerberg in 2004 and talked
about his idea. Mark then offered him a job at Facebook, which had just
launched (in hindsight, a cheaper option that the $1 billion he’s just
paid to work with Kevin). Kevin turned him down but they stayed in
touch. He went to intern at Odeo with Evan Williams, who sold Blogger
and Jack Dorsey, who launched Twitter. This is where Kevin got to
understand the power of social sharing. Kevin later said “Comparing
Instagram to photography is like comparing Twitter to Microsoft Word”.
He then went on to work at Google. All in all, it was a full six years
after having the idea of a photo sharing site that he worked with others
leading the field: Getting paid for his own education before he
launched his own start-up. As Kevin says, “I was given the opportunity
to be in the middle of a ton of innovation, and meet some of the
smartest people doing the coolest stuff in the world. When I finally did
it [myself], it just felt so right."
That just leaves us once question to ponder...
Who could you (and should you) be working with today to lay your own foundation?
2. KEEP 100% FOCUSED ON WHAT PROBLEM YOU’RE SOLVING - AND FAIL FIRST:
When Kevin launched Instagram in October 2010, he explained in his
first blog what problems Instagram intended to solve. He listed the top
three problems users were having:
“My mobile photos look lame.”
“It’s a pain to share to all my friends.”
“Photos take forever to upload.”
How would he know these were the problems? Just by talking to people?
No, by getting it wrong the first time. In early 2010 he launched his
first attempt “Burbn” as a location-based photo app, using Foursquare.
It was a one-man-band, but after a year of hard work it had failed to
catch on. It was, however, a failure that allowed him to learn from his
users what would work, and to attract interest from like-minded people,
including his future co-founder of Instagram, Mike Krieger.
By
focusing on these three problems, Instagram launched in October 2010.
Kevin relates the first moments of launch: “It was 12:15am, October 6th
and we had been working on the app non-stop, day and night for 8 weeks.
With a bit of hesitation, I clicked the button that launched “Instagram”
live to the Apple app store. We figured we’d have at least 6 hours
before anyone discovered the app so we could grab some shut-eye. No
problem, we figured. Within a few minutes, they started pouring in...
The night of sleep we were hoping for turned into a few meager hours
before we rushed into the office to add capacity to the service. Now,
only a couple months later, we’re happy to announce that our community
consists of more than a million registered users.”
Insight!
What problem are you solving, and what are you learning by failing, that is setting you up for your own overnight success?
3. CUT OUT ALL THE NOISE:
Kevin explains the difference between Instagram and Burbn: “We actually
got an entire version of Burbn done as an iPhone app, but it felt
cluttered, and overrun with features. It was really difficult to decide
to start from scratch, but we went out on a limb, and basically cut
everything in the Burbn app except for its photo, comment, and like
capabilities. What remained was Instagram.”
Kevin cut out all
the noise. He then launched Instagram just on the Apple App Store - (One of the first apps I downloaded on my iPad. Its amazing - All I can say.. It just works! Also instagram was launched on google play (Android) last week) and focused on sharing on Twitter and
Facebook (Three platforms that didn’t even exist when he first had the
idea). That’s it: Photo, comment, like. No other platforms. No other
noise.
Simpler means sharper means easier to cut through the
noise. Instagram went from one million users by Dec 2010 to 30 million
users today. In 2011, Apple named Instagram the “App of the Year”. Why
would Facebook buy it now for $1 billion? Because Zuckerberg already knows it
will add more value than that to Facebook when it has its upcoming $100
billion IPO.
If you are already thinking big, connecting smart
and focused at the problems you are solving - How could you solve them
in the fewest number of steps?
A $1bn. STORY
It obviously takes more than three simple, not-so-simple steps to get
the pieces lined up and timed right for the kind of 18 month run that
Kevin has had.
As an end to this
chapter of the Instagram story, here’s how Kevin relates the beginning
of his photo-sharing idea. It is at the heart of his journey (as your
story should be at the heart of yours, if you ever want to be an entrepreneur):
“When I studied abroad
my teacher set what I do now in motion by saying, “Give me that camera
of yours.” He took my camera away and gave me a little, plastic camera. I
was studying in Florence at the time and he told me that I wasn’t
allowed to use my camera for the rest of the class. I had to use this
plastic camera with a terrible lens. He said I was too focused on
sharpness and “I feel like you’re more artsy than that.””
“He
said, “I want you to use this Holga,” this plastic camera with a plastic
lens that had this cult following in the ’80s and ’90. I was blown away
by what it could do to photos. My photography teacher was totally
right. I was too focused on being meticulous with these really
beautiful, complex architectural shots. It helps to see the world
through a different lens and that’s what we wanted to do with Instagram.
We wanted to give everyone the same feeling of discovering the world
around you through a different lens.”
It’s ironic that as
Instagram hits a $1 billion value, mimicking the feel of these
disposable cameras, the biggest producer of them, Kodak, has filed for
bankruptcy.
Each wave that crashes is followed by another. The
only question is who is already positioning themselves to surf it.
You may also like the talk on stanford university's ecorner site - From Stanford to Startup (Its a very good site, I'd recommend - bookmark it!)










