What evidence do you have to support your claim? As far as I can tell Instagram was a cool idea/product that got lots of users. I am unable to see a moneymaking opportunity from any angle from the current iteration of the product.

In addition, if they wanted to build a large independent business why would the sell out so early?

@ktizo: I'm not name dropping, I'm presenting evidence that they were not "built to flip".

What evidence do you have to the contrary?

You presented no evidence. You just mentioned that you have a business relationship with someone who put money in, without saying anything else. That, in and of itself, is evidence of nothing.

Also, I never alleged that Instagram specifically was built to flip (although I can see little to suggest that it wasn't, although that is not the same thing), I merely pointed out that phenomena such as Instagram encourages a lot of people to enter the market with that as their motive, often enough to drown out other businesses. And that kind of behaviour was a major factor in the death of the last web boom.

Namedropping is no evidence whatsoever.

Furthermore, the namedropping of someone you share a corporate interest with is generally an admission of probable bias and using it as an argument in favour of your position isn't particularly convincing.