A Snapshot of Success: The Story of Instagram

The Story in a Nutshell:

Chapter 1: The Birth of an Idea

In 2010, Kevin Systrom and Mike Krieger, two Stanford University graduates, founded Instagram. It began as a location-based app called Burbn, where users could check in, share photos, and earn points for hanging out with friends. However, they soon realized that the market was already saturated with similar apps, and decided to pivot their focus to the photo-sharing aspect, which was the most popular feature of Burbn.

Chapter 2: Creating the Minimum Viable Product (MVP)

Systrom and Krieger quickly developed a minimum viable product (MVP) for their new app, focusing on simplicity, speed, and a beautiful user interface. They stripped away all other features from Burbn, leaving only the photo-sharing functionality. The app allowed users to take photos, apply filters, and share them with friends on various social networks. They named their new creation “Instagram,” a combination of “instant” and “telegram.”

Chapter 3: Raising the Initial Funding

With their MVP in hand, Systrom and Krieger began seeking funding. They initially raised $500,000 in seed funding from Andreessen Horowitz and Baseline Ventures. This financial backing enabled the duo to hire a small team and further develop their product.

Chapter 4: The Launch and Initial Growth

Instagram launched on the Apple App Store on October 6, 2010. The app gained traction almost immediately, amassing 25,000 users in just 24 hours. By December 2010, Instagram had reached one million users, and its growth continued to accelerate. The app’s seamless integration with other social networks, along with its simple yet powerful photo-editing tools, fueled its rapid adoption. When users posted a photo on Instagram, they had the option to simultaneously share it on other social networks like Facebook, Twitter, and Tumblr. This feature allowed users to expand their reach and showcase their Instagram content to friends and followers on multiple platforms.

Chapter 5: The Road to Expansion

In April 2012, Facebook acquired Instagram for $1 billion, a move that expanded the app’s resources and reach. Shortly after the acquisition, Instagram launched its Android app, further accelerating its growth. The team continued to iterate on the product, introducing new features such as video sharing, direct messaging, and the much-loved “Stories” format, which allowed users to share ephemeral photos and videos with their followers.

Chapter 6: The Recipe for Success

Instagram’s success can be attributed to several factors. The founders focused on simplicity and a user-friendly interface, enabling users to capture and share beautiful images with just a few taps. The app’s integration with other social networks made it easy for users to share their content across platforms, driving organic growth. Additionally, Instagram tapped into the power of influencers and celebrities, who embraced the platform and attracted large followings, further boosting the app’s popularity.

Chapter 7: The Evolution of Instagram

Since its inception, Instagram has gone through numerous iterations and feature additions. Some key changes include the introduction of sponsored posts and advertising, algorithmic timelines, shoppable posts, IGTV, and Reels. These updates have helped Instagram stay relevant and competitive in an ever-evolving social media landscape, catering to the needs of its diverse user base and remaining a vital platform for personal expression and connection.

The Nitty & The Gritty of Success:

We got the overview, but there’s more behind every chapter. Read the details of each and every step below or skip to the ones that you’re most interested about. Each chapter represents a critical milestone for a business & product: Ideation, Pivoting, MVP, Funding, Go-To-Market… We’ll address them all, one chapter at a time.

Instagram’s remarkable story showcases the power of a well-executed product development process, guided by the right people, connections, and context. The platform’s meteoric rise to success can be attributed to several key factors that serve as valuable lessons for aspiring entrepreneurs and product developers.

Let me show you what I mean, you’ll get to appreciate Instagram even more.

Chapter 1: The Birth of an Idea — Pivoting & Competitive Analysis

In 2010, Kevin Systrom and Mike Krieger set out to create a new app that combined their passion for photography and social networking. Systrom had previously developed an app called “Burbn” during his free time while working at a travel recommendation startup called Nextstop. Burbn was initially inspired by Systrom’s love for fine bourbons and the then-popular location-based app, Foursquare.

Two factors generated pivoting! User feedback and behavior: As Burbn’s early users began to engage with the app, Systrom and Krieger noticed that the photo-sharing feature was generating the most interest and activity. This observation indicated an untapped opportunity in the photo-sharing space that could be leveraged for growth.

Market trends and technology advancements: The increasing popularity of smartphones with built-in cameras created a growing demand for photo-sharing apps.

Chapter 2: Creating the MVP — MVP Building & Prioritization

During the process of pivoting from Burbn to Instagram, Systrom and Krieger needed to identify which functionalities were essential to their new photo-sharing focus and which ones could be cut. They prioritized features based on user feedback, market trends, and their product vision for Instagram as a platform.

1. Cutting off non-essential features: Estimates indicate that between to 50–60% of the original features were removed. Several features from Burbn, such as location-based check-ins, earning points, and the gamification aspect, were deemed non-essential for the new photo-sharing platform. These features were removed to ensure the app remained focused and uncluttered.
2. Keeping core features: Core photo-sharing functionality. The ability to take photos, apply filters, and share them with followers was retained as the central feature of Instagram. Systrom and Krieger recognized the importance of fostering a sense of community among users. They retained features such as the ability to follow other users, like photos, and leave comments, which encouraged engagement and interaction within the platform.
3. They Focused on simplicity and user experience: The founders placed a strong emphasis on creating an app that was easy to use and visually appealing. They streamlined the user interface to make it more intuitive and prioritized speed, allowing users to quickly capture, edit, and share their photos.

Chapter 3: Raising the Initial Funding — Rising $57M in less 2 years

You’ve might’ve heard that ‘Your Network is your Net Worth’, but how did that translate for the founders of Instagram? It’s way simpler than you might think and no, this time luck isn’t part of it. Although funding is the step where we most often rely on luck!

During the initial funding stage, Kevin Systrom and Mike Krieger managed to secure a significant amount of seed capital for their venture. 57M in less 2 years isn’t an easy amount to have had access to back in 2010. So how did they do it? What were their advantages?

Both Systrom and Krieger were Stanford University graduates, which provided them with access to an extensive network of alumni and professionals in the tech industry. Systrom had also worked at Google, where he gained valuable connections and insights into the tech world. These personal networks played a crucial role in their ability to connect with potential investors.

Demonstrated ability and experience: Systrom’s background in marketing and engineering, along with Krieger’s expertise in user experience design and software engineering, showcased their ability to execute their vision for Instagram. Their combined skills and experience made them a strong founding team, increasing investor confidence in their potential to build a successful product.

A strong MVP and market opportunity: Instagram’s MVP, with its focus on simplicity, speed, and an appealing user interface, demonstrated the founders’ understanding of the market’s needs and the potential for a photo-sharing app. Investors recognized that Instagram was tapping into an emerging trend, as smartphones with built-in cameras were becoming increasingly popular, and the desire to share visual content was on the rise.

Early traction and user engagement: Instagram’s rapid growth and high user engagement following its launch demonstrated the app’s potential to scale and generate revenue in the future. This early success likely played a part in convincing investors to back the startup.

Reputable investors: The initial $500,000 seed funding came from two well-known venture capital firms, Andreessen Horowitz and Baseline Ventures. These firms had a strong track record of backing successful startups, and their investment in Instagram further validated the app’s potential and attracted additional funding.

Chapter 4: The Launch and Initial Growth — Growth & Perfect Go-To-Market

We all try to leverage technology at the right time, whether we do it right, that’s a different topic. However, Systrom and Krieger showcased incredible inspiration for their GTM. They took into account all their strengths, all their weaknesses, and transformed them into the perfect growth machine. The flywheel growth model was also clearly applied with outstanding results.

Timing and platform choice:

At the time of Instagram’s launch, the iPhone was experiencing significant market penetration and popularity, particularly in the United States. iPhone users were considered an attractive demographic for a photo-sharing app, as they tended to be more engaged with their devices and more likely to adopt new apps.

iPhones were known for their high-quality built-in cameras, making them an ideal platform for a photo-sharing app like Instagram. Additionally, the iOS ecosystem offered a more consistent user experience across different devices, simplifying the development process and allowing the team to focus on optimizing the app for a single platform.

By launching on iOS first, Instagram could establish itself as a premium app in a market with high levels of engagement. This exclusivity helped build an aspirational brand image and created a sense of anticipation among non-iOS users, who eagerly awaited the app’s availability on their platforms. Some people believe Clubhouse were the first to do something like this. I thoroughly thought back then Clubhouse made a bad call back then, so far, I was right. The Clubhouse topic should be a separate article.

The Flywheel Model / Product-Led Growth ahead of time:

Compelling Product: Instagram’s simple, user-friendly interface and unique photo-editing features attracted users who were eager to share their visual content. The app’s focus on speed and ease of use made it an appealing choice for smartphone users looking to share their photos.

User Acquisition: Instagram’s seamless integration with other social networks allowed users to quickly share their content across multiple platforms, attracting more users to join Instagram. This cross-platform sharing created a viral effect, drawing in new users organically.

User Engagement: As more users joined Instagram, the platform fostered a sense of community through features such as following, liking, and commenting. These social interaction elements kept users engaged and encouraged them to continue using the app, creating a loyal and active user base.

Network Effects: With the growing number of users, Instagram’s value as a social platform increased. Users were more likely to invite friends and family to join, further expanding the user base and strengthening the platform’s network effec

In summary, Instagram’s initial growth can be linked to the Product-Led Flywheel Growth Model through its focus on creating a compelling product, acquiring and engaging users, leveraging network effects, and monetizing its user base. Each of these elements reinforced the others, creating a self-sustaining cycle that drove Instagram’s rapid growth and success.

Personal Note: I created my first Instagram account 1 month ago to follow a cooking channel. You don’t have to be a fan or a power user to appreciate the brilliance of a good product.

Chapter 5: The Road to Expansion — Mass Market

Facebook’s acquisition of Instagram was the turning point, nothing was going to stop it at this point. They made the last pending steps of their strategy, solidifying once and for all, their position as a dominant player in the world of Social Media. Lets look at the first things that happened after the acquisition.

The launch of the Android app expanded Instagram’s potential user base, as it was now accessible to millions of Android users worldwide. In just 24 hours after the release, the app saw over one million downloads, significantly contributing to Instagram’s growth and user acquisition.

With the backing of Facebook, Instagram gained access to additional resources, both financial and technical. This support allowed Instagram to scale more rapidly, expand its team, and accelerate its product development efforts. Specifically the monetization capabilities. Leveraging Facebook’s established advertising infrastructure, Instagram was able to introduce more sophisticated and targeted advertising options. This enabled the platform to generate more revenue and better monetize its growing user base.

Final Thoughts:

In less than a decade, Instagram has evolved from a simple photo-sharing app to a dominant social media platform, boasting over a billion users worldwide. Its remarkable journey is a testament to the power of a clear vision, strategic decision-making, and relentless focus on user experience.

While the full story of Instagram encompasses many additional events and milestones beyond Chapter 5, the early chapters of its journey offer valuable lessons for entrepreneurs, product developers, and innovators. These lessons remind us of the importance of being adaptable, focusing on user needs, and leveraging strategic partnerships for success. As we reflect on Instagram’s story, we are reminded that with the right combination of vision, strategy, and execution, even a seemingly simple idea can grow into a global phenomenon that shapes the way people connect and share their experiences with the world.