Failure of a Startup with Big Venture Capital Funding - Case
Color raised huge venture capital of $41 million earlier. However things did not remain as rosy as they generally look for brand new startups getting huge venture capital funding. The service which creates proximity based social networks based on who’s around you, an idea which looked extremely promising, failed on execution.
- Based on ratings in the iTunes store, 3-times more people have rated Color as "hate it", than have rated it "it's ok", "like it" or "it's great" combined,
- Complaints about the app doing nothing but crashing along
- In late April Color was critisized for making misstep after misstep
- Questions were asked about the many do-overs the startup gets before users give up on it for good
- According to multiple sources, Peter Pham, the president and a cofounder of mobile social startup Color, is no longer with the company
- Discouraging user comments:
- "There aren't any labels, I don't know what the buttons do. Maybe a tutorial would help? $41million should help you guys out to improve that user interface a lot more"
- "This is nothing more than Chatroulette - only a matter of time before the porn shows up. Fact is, I don't give a crap what people are doing 150 feet from me. Might be useful near a strip club"
- "Half the 'fun' is guessing how to use it"
- "You're joking right? I'm giving an extra star [rating] because you got $41 million for this"
- "This is even worse than the app Stephen Wolfram made me download"
- "$41 million for this? I have a few ideas to sell those guys, where do I sign up"
- Color: Breathlessly Overhyped Piece of Crap. ....I installed it and couldn’t make heads or tails out of it, and even if I could figure out the app, I can’t see why I’d ever want to use such a service. Yet it was somehow the biggest story in tech news circles today. E.g.: “Color Looks to Reinvent Social Interaction”? Really? This thing looks like a turd to me. Now, maybe I’m the idiot and the joke’s on me and Color is going to be a huge hit. But my figurative money says that the investors who funded these guys just flushed $41 million in literal money down the toilet. Nice domain name, though.Sure, it's barely been 24 hours since Color went live, but life and death on the internet is fast and the users have spoken: Color is a fail