Feeds

VC Horowitz: 'Why we only made $78m on $1bn Instagram sale'

Duo banked return that was 312 times their $250k stake

3 Big data security analytics techniques

Netscape co-founder Marc Andreessen's high-tech venture fund Andreessen Horowitz has made out handsomely on Facebook's $1bn purchase of Instagram.

Andreessen's partner Ben Horowitz reckons the duo have made 312 times their original investment in the zero-revenue smartphone photo sharing site after committing $250,000 two years ago. That'll be worth $78,000,000 (£54m) when the acquisition closes, Horowitz wrote here.

Andreessen himself is a board member of Facebook - the board that we've been told was all but excluded from Mark Zuckerberg's decision to buy.

Horowitz was responding to criticism that he and Andreessen had "fumbled" the Instagram deal and could have made even more. Also, there was apparently some suggestions of "ethical issues" Horowitz was at pains to set straight.

"Ordinarily, when someone criticizes me for only making 312 times my money, I let the logic of their statement speak for itself," Horowitz wrote.

When Andreessen cashed in on Microsoft's purchase of Skype a year ago, he became the toast of the Silcon Valley tech'n'money set. The Netscape kid convinced the world's largest software company to part with $8.5bn and take loss-making web telco Skype off eBay's hands. Andreessen is reported to have personally more than tripled his $50m stake in Skype.

Andreessen Horowitz is the VC fund that's often reported to be at the centre of a tech-bubble thanks to its valuations and willingness of tech companies to cough up. The company, meanwhile, has just raised a fund worth $1.5bn that will swing into action immediately - and that comes on top of the $2.7bn pot amassed since it was founded in 2009. ®

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.