It was a calculated bet against Instagram and it left Mr. Systrom livid, these people said. Instagram’s founders never discussed strategy with the firm again.
Curious: To what extent can you avoid disclosing information to your investors, once it becomes clear that they are competing against you.
But Mr. Systrom’s experience with Andreessen Horowitz taught him to choose his investors warily.
Why? It seems like A16Z did the most ethical thing, which was support the company that the original founded for this idea. When Instagram pivoted into a competing position, why would they expect A16Z to back them and bury picplz?
By the time Facebook acquired Instagram for $1 billion in a cash-stock deal a week ago, Andreessen Horowitz’s stake in the company had fallen to less than 10 percent.
If A16Z had half the seed round, then that means that the seed investors owned 20%, diluted. If Benchmark own 30% at the sale, that means that the seed angels must have took >30% of the company at the $500K seeding. Is this correct?
Curious: To what extent can you avoid disclosing information to your investors, once it becomes clear that they are competing against you.
But Mr. Systrom’s experience with Andreessen Horowitz taught him to choose his investors warily.
Why? It seems like A16Z did the most ethical thing, which was support the company that the original founded for this idea. When Instagram pivoted into a competing position, why would they expect A16Z to back them and bury picplz?
By the time Facebook acquired Instagram for $1 billion in a cash-stock deal a week ago, Andreessen Horowitz’s stake in the company had fallen to less than 10 percent.
If A16Z had half the seed round, then that means that the seed investors owned 20%, diluted. If Benchmark own 30% at the sale, that means that the seed angels must have took >30% of the company at the $500K seeding. Is this correct?