How did Instagram's co-founders fund the initial development of the app?

Instagram's co-founders, Kevin Systrom and Mike Krieger, funded the initial development of the app through a combination of personal resources, early investments, and support from investors. Here's a detailed look at how they financed the early stages of Instagram:

### **1. **Personal Savings and Bootstrapping:**
   - **Self-Funding**: In the initial stages, Systrom and Krieger used their own savings and resources to fund the development of the app. They worked on the project part-time while balancing other responsibilities and sources of income.
   - **Lean Approach**: The early development was conducted on a lean budget, focusing on building a minimum viable product (MVP) that could be tested and refined based on user feedback.

### **2. **Initial Angel Investment:**
   - **Investment from Friends and Family**: The founders secured early angel investments from friends and family, which provided crucial funding to support the development and launch of Instagram. This early support helped them cover operational costs and continue working on the app.
   - **Notable Early Investors**: One of the notable early investors was Josh Riedel, who was a former employee of Facebook and had connections in the tech industry. His involvement provided both financial support and valuable advice.

### **3. **Seed Funding:**
   - **Benchmark Capital**: In early 2011, Instagram received a significant seed funding round from Benchmark Capital, led by Matt Cohler. This investment was crucial in scaling the development and expanding the team.
   - **Funding Amount**: Instagram's seed round raised approximately $500,000, which allowed the founders to focus full-time on the app and accelerate its growth and development.

### **4. **Rapid Growth and Acquisition:**
   - **Early Success**: Instagram's rapid user growth and popularity attracted attention from investors and industry leaders. The app's early success and positive user feedback played a role in attracting further investment.
   - **Acquisition by Facebook**: In April 2012, Facebook acquired Instagram for approximately $1 billion in cash and stock. This acquisition provided a significant financial return for the founders and investors and marked a major milestone in Instagram's journey.

The combination of personal investment, early angel funding, and venture capital support enabled Instagram's co-founders to develop, launch, and grow the app successfully. Their ability to attract investment and manage resources effectively played a key role in Instagram's early success and subsequent acquisition by Facebook.