New York-based company Breakfast is behind the project, currently in Kickstarter phase, and prototypes of its Instaprint device have already appeared at various events, including The Grammys and Lady GaGa concerts.
Designed as a "photo booth", the WiFi-enabled printer creates Polaroid-style photos of any Instagram photos tagged with a specific Twitter-style hashtag, or geotagged with GPS co-ordinates. Any submitted images also appear on the Instaprint website's gallery.
Breakfast now hopes to attract enough funding to create a consumer version of the product, which would mostly be used at parties, hanging on the wall and printing out any images tagged by people to create a gallery of the evening.
Alongside the booth, the associated website allows owners to see what has been uploaded from their booth to create a constantly changing online gallery.
Many companies already offer services involving Instagram images being printed out in a variety of styles, but Instaprint would be aimed at those wanting a system of their own.
"Going from prototype to consumer product is a massive step, and is something Breakfast has been working on for almost a year," said the company in a message on the Kickstarter site.
"It's a huge endeavour that will require us to bring on more staff and dedicate many months to make it all happen. Some things are sure to change as we get into the thick of it, but that means things will only get better.
"We're really psyched to try and make this happen, and we hope you'll help us reach our goal. We can't thank all of you enough for any support you can give!"
Breakfast needs to raise $500,000 (£318,000) to turn its prototypes into a faster, slicker and more commercial product. Anyone pledging $399 gets a full booth kit and 25 sheets of special printing paper.