[logicallee]

The portion you refer to is pocket change.

Read http://www.dailymail.co.uk/news/article-2127882/Meet-OTHER-n.... and it becomes clear that the 18 employees were recruited mostly with equity. Hiring the quality of talent that we're talking about, in will1000's market, just doesn't happen with the kind of equity (e.g. 10% pool) that instagram was using - outside of silicon valley that is.

[kybernetyk]

It would be interesting to know how they pitched the jobs to their future employees? If someone came to me saying "Hey dude, work for free and you get 5% stake in a photo sharing app for the iPhone. It's cool app. We have filters!" I'd show him the door.

So there must have been some "we know people at $comp and they will buy us out"-talk to convince people to work for free.

[logicallee]

I'd be interested in knowing where you're located. Not quite for "free" but including a very low salary what you've just derided seems like a fairly standard startup pitch...

[dasil003]

There is no mention of salaries in that article. It seems like you are a little bit jealous and rampantly speculating about this whole scenario.

Obviously with the trajectory Instagram was on it was much easier to hire with equity. I don't know what you mean about the "level of talent" though. There are hundreds of small teams with the talent level of Instagram both in and out of the valley, but talent does not guarantee traction. What makes Instagram extraordinary is a confluence of factors, not just an amazing team.

[logicallee]

I'm not jealous at all. Talent is one thing, but do you honestly think you can have a professional team working on the payroll that (I assume) Instagram had?

I just don't see it happening. one thing is you are right, I don't have detailed payroll figures. I was going on the prevailing wind and the fact that the employees were 20-somethigns.

[dasil003]

You're just piling one assumption on top of another.

[logicallee]

yep, these are my assumptions and experience.