Peter Wu

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One Burbn, One Scotch, One Beer

parislemon:

A few years ago, I got a frantic email one evening. It was from a young entrepreneur named Kevin Systrom. “Hey MG, I saw you signed up for Burbn…” is how it started. He was freaked out. Someone had told me about the service and the sign up wasn’t locked down. But Kevin did not want me to write about his fledgling idea just yet. We hopped on the phone. Of course I agreed to hold the story. I’d write when he was ready.

We broke a lot of news at TechCrunch over the years. But I was always happy about the way we treated entrepreneurs with their delicate plans. Big companies are different — they can take hits. Outing young companies before they’re ready: not cool. When in doubt, defer to the entrepreneur. Michael taught us well. 

Anyway, while I sat on the story of a hot new HTML5-based location app, I got to know Kevin and eventually his co-founder Mike Krieger. Really great guys. Idealists. Just insane enough to potentially change things. So when I saw the news this morning that Facebook was buying them for a billion dollars, I was beyond happy.

We weren’t investors — sadly, we came into existence too late — but screw that. This is just a great story about a great product, great founders, a great team, and great execution. And I feel sincerely happy for these guys because I was there pretty much the entire time watching from a distance.

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Instagram thrived because Flickr dropped the ball on mobile. Badly. Pictures on the desktop were interesting. Pictures from your mobile device are a thousands times more interesting. Instagram had perfect timing. The iPhone camera got very good. Instagram exploded.

A million users. 5 million users. Bieber. 10 million users. 20. 30. Android is going to push it to 50 million users in no time. 

People are looking at Facebook’s buy today and thinking “what the fuck?” I’m looking at it and thinking that Facebook is ingenious. They’re one of the few large companies that understands how to and when to acquire. You don’t buy at the peak. You buy on the ramp up to the peak. Instagram as it stands right now is awesome. It’s the tip of the iceberg for what they want to do. 

MG Siegler

Instagram Shows There’s No Such Thing as Free

Some of us have been asking for years just how Instagram planned on making money from their 27 million users. We wondered why they didn’t sell extra filters like Path, or charge 99 cents for their app, or any number of things. Kevin Systrom’s answers revealed that they seemingly had no workable strategy to monetize.

Well, now we know. Just like Facebook (and any other free social network), their product is you. And today we know just what you, me and the 27 million other Instagram customers are worth. A billion dollars.

Sarah Perez is reporting on an Insta-backlash after this morning’s acquisition of Instagram by Facebook, in part over privacy concerns. But why are they complaining? Wasn’t this always inevitable? Services that can’t get money from you will make money off you. Today’s Instagram sale just shows that there’s no such thing as free.

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