Color raised 82 times more money than Instagram. Why did it lose so badly?
It was supposed to be a Facebook killer. Mobile, social, and photos? Those are the kind of trends that drive cool billion-dollar valuations. In other words, the kind of trends that get venture capitalists to hand over blank checks. Okay, not exactly blank. But close enough. For the startup Color, it was $41 million, a record-setting pre-launch figure -- and from blue blood firms Sequoia and Bain Capital, no less. It was a perfect storm of hype.
And then they actually released their app.
There's a tension inherent to most startups. You're usually building something that doesn't already exist, and that people don't already know they want -- and then you have to iterate on what they tell you they want. To translate that into business jargon, you have to PIVOT. It's a messy, exciting process -- and a messy, exciting process that's best done in the dark. It's hard enough to make something that some people like. It's even harder to iterate and make something that some more people like. Just look at Instagram.
Before it became the go-to destination for rich kids to post photos of themselves, Instagram was not Instagram -- it was Burbn. What was Burbn? Good question. It was a location-based service kind of like Foursquare and Twitter. But there was a small problem. People didn't want it. But people did want to share photos -- that part of Burbn was taking off. So founder Kevin Systrom PIVOTED and Instagram was born.
Of course, it's not as if Systrom got a billion dollars from Facebook the next day. It just seems that way. Instagram had plenty of competitors, even ones that let you add filters to photos -- remember Hipstamatic? -- that it had to beat out. And it did, by taking what its competitors did and making it a little simpler and a lot more social. It helped that Systrom (and later co-founder Mike Krieger) started in stealth mode, figured out which parts of their intuitions were correct, built and tested their new app in private, and then launched. It was the right product, in the right market, at the right time. Which brings us to Color.
It's hard to do much in private when you raise $41 million before doing anything else. The good news is that kind of raise buys you gobs of attention -- and startups certainly need attention. The bad news is that that kind of raise buys you gobs of attention -- maybe before you're ready for it. Color definitely wasn't ready for it. When they actually did launch, nobody could figure out how to use their app, or even why they'd want to. (It had a two-star rating on iTunes). Rather than connecting you with people you knew or people you thought were interesting -- like Instagram -- Color connected you with people around you. It's an interesting idea -- the kind of interesting idea that might get you venture funding! -- but not the kind of interesting idea that people wanted. At least not now. That wouldn't have been such a problem if its user interface wasn't quite so indecipherable. It was. Users came, they saw, and they didn't come back. Color was stuck in what Y Combinator's Paul Graham calls the Trough of Sorrow -- and it was especially sorrowful because so many people had already written them off.
So Color pivoted. Well, not quite. There's a very fine line between "pivoting" and "flailing". The former is when you take the part of your business that is working, and focus on that. Think Instagram. The latter is when nothing about your business is working, and you frantically grasp for something new. That was Color. Less than three months after its launch, Color decided it might scrap the whole photo-sharing thing. Or it might not. In either case, CEO and founder Bill Nguyen -- who had just fired his co-founder -- told the New York Times he had a bold, new, grandiose plan:
Mr. Nguyen outlined an ambitious plan to compete with Apple, Google and Facebook by tying together group messaging, recommendations and local search, all while making money through advertising. He plans to build applications that will use data from Facebook to create temporary social networks, say at a conference or sporting event, to help users meet people who grew up in the same town or like the same band.
"It's literally going to turn your Facebook network from 500 people to 750 million people," Mr. Nguyen said.
Photos might not even be a part of Color in the future....
The only company Nguyen apparently didn't want to take on was the one that had just crushed him in mobile photo-sharing -- Instagram. I'll give you one guess how well this plan that substituted buzzwords for details turned out. Within six months, Color was pivoting again, this time into mobile video-sharing. In other words, Color went from trying to beat Instagram to trying to become the Instagram of video. It was quite a fall for Nguyen, who a year earlier had compared Instagram to "mice nuts." No, not like peanuts.
Still, obituaries for Color are a bit premature. But only just. They can certainly afford to flail pivot. Sure, they've burned through piles of cash -- Nguyen dropped $425,000 on the domain names color.com and colour.com -- but they still have piles of cash because they started out with such a huge pile of cash. That's how math works. Thanks to this looooong runway, Color has managed to reach a deal with Verizon over its video-sharing. Maybe Color will still end up making it. Or maybe not. This video explaining what Color is (now) and how to use it has a very sad 22 views as of pixel time. According to AppData, around 110,000 people use it every day. That's better than where they were back in March, but it's about two orders of magnitude below the big boys.
It turned out the hype was justified ... for Instagram. It was a Facebook killer, potentially. It took Facebook's killer app -- photo-sharing -- and created a new social graph around it from the post-PC web. In other words, big bucks. Facebook thought it enough of a threat to make a Godfather offer of $1 billion in stock and cash. (Which is admittedly worth quite a bit less now). Instagram was the perfect product in the perfect market at the perfect time. Color was ... not. It had bad execution, worse marketing, and a conceit that was at best ahead of its time. Its massive pre-launch raise didn't create those problems, but it did make them more likely. Color felt like it had to move quickly -- beta testing, what's that? -- and justify its big valuation with big talk. This was a company that Google tried to buy for $200 million before they even had a product! These massive expectations made its launch much higher stakes than if it been in stealth mode.
Although it's not as if the little-startup-that-could in our story was some kind of underdog. Instagram raised half a million in funding themselves, including from top firm Andreessen Horowitz. But staying in stealth mode let them do a lot of the dirty work of figuring out what people want without the inevitable missteps that occur getting dissected under the spotlight. That's not to say that Color would have succeeded with less money, but that having more money can make you think you can skip steps -- and you usually can't.
About 40,000 counter-protesters overwhelmed the smattering of people who came in support of a ‘”free speech” rally a week after tragedy in Charlottesville.
WOBURN, Mass. — Kyle Chapman was sitting in a dimly lit Irish pub about 20 minutes outside of Boston, where Saturday afternoon’s so-called “Free Speech Rally” had just been shut down by tens of thousands of counter-protesters.
“The white man is one of the most discriminated against people in this entire country right now,” he explained.
Chapman—a muscly right-wing organizer who went viral earlier this year after video footage showed him swinging a heavy wooden stick at liberal Berkley demonstrators—had been scheduled to speak at the rally on Boston Common. But organizers ended up pulling the plug early, he said, when the crowd of counter-protesters grew too large. After being escorted to safety by police, he and other attendees retired here to lick their (metaphorical) wounds.
The scientists are all talking like it’s a sure thing.
On August 21, the “moon” will pass between the Earth and the sun, obscuring the light of the latter. The government agency NASA says this will result in “one of nature’s most awe-inspiring sights.” The astronomers there claim to have calculated down to the minute exactly when and where this will happen, and for how long. They have reportedly known about this eclipse for years, just by virtue of some sort of complex math.
This seems extremely unlikely. I can’t even find these eclipse calculations on their website to check them for myself.
Meanwhile the scientists tell us we can’t look at it without special glasses because “looking directly at the sun is unsafe.”
How men and women digest differently, diet changes our skin, and gluten remains mysterious: A forward-thinking gastroenterologist on eating one's way to "gutbliss"
Robynne Chutkan, MD, is an integrative gastroenterologist and founder of the Digestive Center for Women, just outside of Washington, D.C. She trained at Columbia University and is on faculty at Georgetown, but her approach to practicing medicine and understanding disease is more holistic than many specialists with academic backgrounds. She has also appeared on The Dr. Oz Show (of which I’ve been openly skeptical in the past, because of Oz’s tendency to divorce his recommendations from evidence).
Empty pedestals can offer the same lessons about racism and war that the statues do.
Six years before it would become the inspiration for bloody protests, the Robert E. Lee monument in Charlottesville, Virginia, was vandalized. The 2011 incident capped off my 11-year residency in the small city—where I’d taught high-school history and where my understanding of the legacy of the Civil War was nurtured. There was no better place to teach the Civil War than Charlottesville. Some of the most important battlefields in Richmond, Fredericksburg, and the Shenandoah Valley are within an hour’s drive. But it was the region’s monuments that played a central role in my teaching, and I believed they should be left alone.
I argued my position in an essay for The Atlantic: “For better or for worse, monuments to Confederate heroes are part of our story, but each of us can choose how to engage with these places. We can express outrage over their existence. We can alter them with statements of our own. Or we can let them be, appreciate their aesthetic qualities, and reflect carefully on their history.” I fell short on understanding what they still meant to some in the community. I didn’t realize that so many of my neighbors didn’t need further reflection at all.
More comfortable online than out partying, post-Millennials are safer, physically, than adolescents have ever been. But they’re on the brink of a mental-health crisis.
One day last summer, around noon, I called Athena, a 13-year-old who lives in Houston, Texas. She answered her phone—she’s had an iPhone since she was 11—sounding as if she’d just woken up. We chatted about her favorite songs and TV shows, and I asked her what she likes to do with her friends. “We go to the mall,” she said. “Do your parents drop you off?,” I asked, recalling my own middle-school days, in the 1980s, when I’d enjoy a few parent-free hours shopping with my friends. “No—I go with my family,” she replied. “We’ll go with my mom and brothers and walk a little behind them. I just have to tell my mom where we’re going. I have to check in every hour or every 30 minutes.”
Those mall trips are infrequent—about once a month. More often, Athena and her friends spend time together on their phones, unchaperoned. Unlike the teens of my generation, who might have spent an evening tying up the family landline with gossip, they talk on Snapchat, the smartphone app that allows users to send pictures and videos that quickly disappear. They make sure to keep up their Snapstreaks, which show how many days in a row they have Snapchatted with each other. Sometimes they save screenshots of particularly ridiculous pictures of friends. “It’s good blackmail,” Athena said. (Because she’s a minor, I’m not using her real name.) She told me she’d spent most of the summer hanging out alone in her room with her phone. That’s just the way her generation is, she said. “We didn’t have a choice to know any life without iPads or iPhones. I think we like our phones more than we like actual people.”
“Seeing a partial eclipse bears the same relation to seeing a total eclipse as kissing a man does to marrying him.”
Ever since it was first published in 1982, readers—including this one—have thrilled to “Total Eclipse,” Annie Dillard’s masterpiece of literary nonfiction, which describes her personal experience of a solar eclipse in Washington State. It first appeared in Dillard’s landmark collection, Teaching a Stone to Talk, and was recently republished in The Abundance, a new anthology of her work. The Atlantic is pleased to offer the essay in full, here, until the day after the ‘Great American Eclipse’ on August 21.
It had been like dying, that sliding down the mountain pass. It had been like the death of someone, irrational, that sliding down the mountain pass and into the region of dread. It was like slipping into fever, or falling down that hole in sleep from which you wake yourself whimpering. We had crossed the mountains that day, and now we were in a strange place—a hotel in central Washington, in a town near Yakima. The eclipse we had traveled here to see would occur early in the next morning.
The legend of the Confederate leader’s heroism and decency is based in the fiction of a person who never existed.
The strangest part about the continued personality cult of Robert E. Lee is how few of the qualities his admirers profess to see in him he actually possessed.
Memorial Day has the tendency to conjure up old arguments about the Civil War. That’s understandable; it was created to mourn the dead of a war in which the Union was nearly destroyed, when half the country rose up in rebellion in defense of slavery. This year, the removal of Lee’s statue in New Orleans has inspired a new round of commentary about Lee, not to mention protests on his behalf by white supremacists.
The myth of Lee goes something like this: He was a brilliant strategist and devoted Christian man who abhorred slavery and labored tirelessly after the war to bring the country back together.
The Boston Police Department said that 33 people have been arrested in connection with the rally and counter-demonstrations on Saturday.
A crowd of counter-demonstrators estimated in the thousands showed up in Boston on Saturday to protest a controversial “free speech” event, scheduled a week after a white-nationalist rally in support of a Confederate monument in Charlottesville, Virginia, led to fatal violence, including the death of one woman.
The Boston rally concluded earlier than anticipated and was declared officially over by the Boston Police Department by 1:30 p.m. ET. President Trump tweeted at 3:22 p.m. that there appeared to be “many anti-police agitators” in the city, though later he said that he wanted “to applaud the many protesters in Boston who are speaking out against bigotry and hate.”
The city’s Democratic mayor, Marty Walsh, responded to another tweet from the president commending him and local law-enforcement officers by saying: “Today, Boston stood for peace and love, not bigotry and hate. We should work to bring people together, not apart.” Massachusetts Senator Ed Markey, also a Democrat, said on Twitter that he “couldn’t be more proud of” the city. “Peaceful, moral, resistant,” he tweeted. “That is our city and commonwealth.”
Dan McLaughlin got famous for valuing hard practice over talent. Then he didn’t reach his goal.
Dan McLaughlin reckons he’s sat down to compose the farewell post to the Dan Plan a hundred times. “I just don’t know what to write,” he says.
Sitting in his spartan home in Portland, Oregon, McLaughlin is self-effacing and soft-spoken. He recently launched an artisanal soft-drink venture. Discussing the Dan Plan is like reaching back into another life: Seven-plus years ago, aged 30 and unsure even of which hand to grip a golf club in, McLaughlin quit his job as a commercial photographer, took in lodgers to cover the mortgage, husbanded his savings for green fees, and set out to make the PGA Tour, home to the world’s elite golfers.
He created a catchily named blog to document his quest, and in short order the Dan Plan commanded magazines spreads and TV spots. Along the way, it drew an avid community of followers riveted by the spectacle of a regular Joe living out an everyman fantasy. No less captivated: a salon of leading figures from the science of learning and human performance.
Trump has again recirculated a debunked history about terrorism. But what the general was really doing in the Philippines can tell us something more important about America.
Another day, another sputtering orgy of confusion following a cryptic Donald Trump tweet. This one came Thursday, a few hours after a van plowed into a crowd on the Barcelona pedestrian mall of Las Ramblas, an attack claimed by the reeling Islamic State. The president replied, via iPhone:
Study what General Pershing of the United States did to terrorists when caught. There was no more Radical Islamic Terror for 35 years!
It seemed to be a reference to a story Trump told at campaign rallies during the 2016 primaries, which in turn was a garbled version of an Islamophobic meme that has made its way around the internet for years. In the fable, the legendary U.S. General John J. Pershing once ended a wave of Muslim terrorism in the Philippines by executing prisoners with bullets dipped in pigs’ blood. Other superstitious fighters were so terrified by the prospect of being killed while touching part of a forbidden animal, the story goes, that fighting immediately stopped, for some period of time. (For 25 years, Trump said at a North Charleston, South Carolina, rally in February 2016; a few weeks later, in Costa Mesa, California, it had jumped up to 42.)