Andreesen Horowitz stands to make about $78 million off an initial investment of $250,000 in Instagram, a partner in the investment firm revealed today in a blog responding to criticism that the investment firm "fumbled" its involvement in the photo-sharing app.
The New York Times ignited controversy earlier this week when it published a story that profiled how the VC firm "fumbled" its investment in Instagram, which was just purchased by Facebook for $1 billion, by investing in rival photo-sharing app PicPlz. The investment in PicPlz "was a calculated bet against Instagram and it left [Instagram CEO Kevin Systrom livid," the Times reported.
"Ordinarily, when someone criticizes me for only making 312 times my money, I let the logic of their statement speak for itself," general partner Ben Horowitz wrote in the blog. "However, in this case, the narrative that some critics put forth has the nasty side effect of casting two outstanding entrepreneurs--Kevin and Dalton Caldwell--in an unfair light and glosses over an important ethical issue that we faced."
(courtesy:www.cnet.com)
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