Silicon Valley venture capital firm Andreessen Horowitz had poured a cool quarter million dollars into Instagram back when it was just a small startup called Burbn.
Though it never took off, its photo-sharing component was doing quite well, giving birth to the widely popular Instagram photo-sharing service.
Even though Horowitz never invested in Instagram again, they're poised to walk away with a cool $78 million once the $1 billion deal with Facebook closes.
That's a nice 312 times premium on a $250,000 investment, but they could have made potentially hundreds of millions of dollars if they chose to back Burbn in series-B funding.
Instead, the investors gave cofounding CEO Kevin Systrom back information rights and pro rata rights to the series B, never investing in Instagram again...