Instagram (Acquired by Facebook for $1 billion):
Original seed funding of $500,000 in March, 2010
Series A funding of $7 million in Feb, 2011 valuing the co at $20 mln
Series B funding of $50 million in Apr, 2012 valued co at $500 mln
Week later Facebook made a whopping $1 billion buyout offer.
At the time of acquisition it had only 11 employees and no revenues at all.
Snapchat has similar story too, recently turned down few offers up to $4 billion. Till last month the founders worked from a beach front house in CA. It still has no revenues.
We believe Hang w/ has all the makings of a mobile success story and we are greatly enthused by the progress.
For those who don’t know, the app allows users to broadcast live video from a mobile phone to thousands of followers simultaneously.
We describe the technology like a live video version of Twitter - and the app is showing strong signs of viral, organic growth.
In only 7 months, the app has generated approximately 700,000 downloads, nearly 2,000,000 live broadcasts and more than 300,000,000 “Hang w/ me” notifications. More than 80 celebrities have signed up for the service. Several, such as 50 Cent and Timbaland have actually invested in the technology.
We believe Hang w/ has the ability to change the world by bringing people together to show us all how we are the same - and how we are different. It is a game changer - and dozens of journalists, bloggers and app reviewers agree.
In one week, we will release the 2.0 version of the platform and we think it's going to blow people's minds.
Yes, our revenues have been modest at only $3.5M for 2012. But we are in a space where companies like Twitter, Waze, Tumblr, Snapchat and Instagram have received massive valuations with out posting massive revenues - and in most cases, no revenues.
Our Custom Development business when evaluated as a stand alone business unit is now running efficiently and is well positioned for growth or potential acquisition. And we believe our Hang w/ application has the potential to become a billion dollar social media platform.
We are a small company with a relatively small base of investors - so sadly we are subject to fluctuations in our valuations that are well outside of our control.
But I assure the author and his readers that we are here doing the right thing, day in and day out - with the goal of creating real value for ourselves, our employees and our investors.
Once again, I have never sold a single share of stock. And I have no plans to do so. MEDL is definitely not a pump nor a dump.