Instagram is close to receiving new funding which would set its valuation at $500 million, according to AllThingsD. Citing sources "close to the situation," the site says that Instagram will receive a $50 million round of funding reportedly be led by Sequoia Capital, which has previously invested in the likes of PayPal and YouTube. While $500 million may pale in comparison to the likes of Facebook's $100 billion valuation at the time of its initial public offering, it does seem like a pretty hefty sum for the free photo sharing app. Instagram has been experiencing some solid growth, though — the company recently released its long-awaited Android app, which was downloaded one million times in its first day of availability.