San Francisco – Instagram, a developer of mobile photo
alteration applications, is raising a first round of funding seeking a
valuation of about $20 million, CNET News.com reported, citing sources.
One source told CNET Sequoia Capital is positioned to be the lead investor in the
Previous Instagram backer Andreessen Horowitz this week also invested $5
million in Instagram rival Mixed Media Labs, developers of the PicPlz mobile
The move prompted speculation that the potential conflict of
interest signaled that Instagram would be sold.