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.
They weren’t the first victims of a mass shooting the Florida radiologist had seen—but their wounds were radically different.
As I opened the CT scan last week to read the next case, I was baffled. The history simply read “gunshot wound.” I have been a radiologist in one of the busiest trauma centers in the nation for 13 years, and have diagnosed thousands of handgun injuries to the brain, lung, liver, spleen, bowel, and other vital organs. I thought that I knew all that I needed to know about gunshot wounds, but the specific pattern of injury on my computer screen was one that I had seen only once before.
In a typical handgun injury that I diagnose almost daily, a bullet leaves a laceration through an organ like the liver. To a radiologist, it appears as a linear, thin, grey bullet track through the organ. There may be bleeding and some bullet fragments.
Today, readers on the culture, psychology, and politics of regulating guns.
Really, pay attention to Australia—white-male privilege and all. Several previous messages have referred to Australia’s modern experience with guns. In short: After the mass-casualty “Port Arthur massacre” of 1996, a conservative government (technically, the Liberal party) changed gun policy, and since then Australia has had its share of gun violence but no remotely comparable massacres. By contrast, the five deadliest mass shootings in U.S. history, and 7 of the 10 worst, have all happened since 1996.
Decades before he ran the Trump campaign, Paul Manafort’s pursuit of foreign cash and shady deals laid the groundwork for the corruption of Washington.
The clinic permitted Paul Manafort one 10-minute call each day. And each day, he would use it to ring his wife from Arizona, his voice often soaked in tears. “Apparently he sobs daily,” his daughter Andrea, then 29, texted a friend. During the spring of 2015, Manafort’s life had tipped into a deep trough. A few months earlier, he had intimated to his other daughter, Jessica, that suicide was a possibility. He would “be gone forever,” she texted Andrea.
His work, the source of the status he cherished, had taken a devastating turn. For nearly a decade, he had counted primarily on a single client, albeit an exceedingly lucrative one. He’d been the chief political strategist to the man who became the president of Ukraine, Viktor Yanukovych, with whom he’d developed a highly personal relationship.
For the past decade, Rick Gates was fiercely loyal to his risk-taking boss. Not anymore.
There should be no denying Paul Manafort’s fate. Special Counsel Robert Mueller’s list of charges keeps on swelling—a repeatedly amended compendium of malfeasance that is now so long and so pointillistic that it could be only defused by a world-historic prosecutorial gaffe. Despite this seeming comprehensiveness, each fresh filing in court contains a moment where the special prosecutor winks at his target, as if letting him know that he has only begun to bring the pain: a small display of how comprehensively he has surveilled Manafort and his minions; a further sampling of the evidence that could be sitting in his reserve stash.
Everyone understands Manafort’s fate, except apparently the man himself. Rather than cutting a deal—as his longtime deputy Rick Gates did yesterday—Manafort continues to cut a figure of defiance. He has, in essence, dismissed Gates as a weakling. And even as the bedraggled Gates turned against him, Manafort boasted in a statement that he would not be knocked from his stance: “This does not alter my commitment to defend myself against the untrue piled up charges contained in the indictments against me."
Many seniors are stuck with lives of never-ending work—a fate that could befall millions in the coming decades.
CORONA, Calif.—Roberta Gordon never thought she’d still be alive at age 76. She definitely didn’t think she’d still be working. But every Saturday, she goes down to the local grocery store and hands out samples, earning $50 a day, because she needs the money.
“I’m a working woman again,” she told me, in the common room of the senior apartment complex where she now lives, here in California’s Inland Empire. Gordon has worked dozens of odd jobs throughout her life—as a house cleaner, a home health aide, a telemarketer, a librarian, a fundraiser—but at many times in her life, she didn’t have a steady job that paid into Social Security. She didn’t receive a pension. And she definitely wasn’t making enough to put aside money for retirement.
The revolutionary ideals of Black Panther’s profound and complex villain have been twisted into a desire for hegemony.
The following article contains major spoilers.
Black Panther is a love letter to people of African descent all over the world. Its actors, its costume design, its music, and countless other facets of the film are drawn from all over the continent and its diaspora, in a science-fiction celebration of the imaginary country of Wakanda, a high-tech utopia that is a fictive manifestation of African potential unfettered by slavery and colonialism.
But it is first and foremost an African American love letter, and as such it is consumed with The Void, the psychic and cultural wound caused by the Trans-Atlantic slave trade, the loss of life, culture, language, and history that could never be restored. It is the attempt to penetrate The Void that brought us Alex Haley’s Roots, that draws thousands of African Americans across the ocean to visit West Africa every year, that left me crumpled on the rocks outside the Door of No Return at Gorée Island’s slave house as I stared out over a horizon that my ancestors might have traversed once and forever. Because all they have was lost to The Void, I can never know who they were, and neither can anyone else.
In the 19th century, fire escapes saved tenement-dwellers from peril. Today they are more likely to cause harm than to prevent it.
Tony wooed Maria from one in West Side Story. Rosario Dawson belted from one in Rent. They became just another piece in a gritty urban jungle gym for the kids in The Get Down. Police procedurals regularly feature guys fleeing (or entering) by means of them.
Fire escapes, the clunky metal accessories to buildings constructed in response to industrial building-code reform, have become an iconic part of the urban landscape. They serve purposes as numerous as their pop-cultural cameos. Part emergency exit, part makeshift patio, the fire escape has played an integral role in shaping the development of the cities whose buildings bear them. It continues to impact the urban landscape today, in ways that few could have imagined when they were first thought up. And despite having been invented expressly for public safety, the fire escape always created as much danger as it replaced.
The Mueller investigation is showing the extent of Russian operations. But its real import extends far beyond that.
These days, it’s never good news for Paul Manafort. On Friday, special counsel Robert Mueller released his latest indictment against President Donald Trump’s one-time campaign chairman. It charged that Manafort “secretly retained” a small group of former European leaders to “act informally and without any visible relationship with the Government of Ukraine.” Dubbed the “Hapsburg Group,” this coterie of paid lobbyists allegedly worked to advance the interests of the corrupt regime of Viktor Yanukovych, the former president of Ukraine, in both Europe and the United States.
The group as a whole reportedly received at least $2 million for its services. It was led by “a former European chancellor,” a person the indictment doesn’t name but who has since been identified in numerous press reports as Alfred Gusenbauer. Gusenbauer, the former chancellor of Austria, has confirmed that he lobbied not on behalf of Yanukovych, but only for the cause of bringing Ukraine closer to the rest of Europe. He has not denied that he was paid for his services by a U.S. company. Reports have also alleged that another of Manafort’s secretly paid lobbyists was Romano Prodi, the former prime minister of Italy and EU Commission president. In a statement, Prodi acknowledged working to bring the European Union closer to Ukraine, an effort that involved “numerous meetings and public speeches (some of them regularly paid), which took place in a variety of European capitals.” In his statement, he denied “both to have played a role in any lobbying effort and to be part of a secret lobby,” and added that he “did not receive any money for these activities.”
The Republican Party is full of honorable, competent people—yet it now aims no higher than the embodiment of its most buffoonish stereotypes.
On Thursday at a conference sponsored by the American Conservative Union, Ben Domenech, the publisher of The Federalist, had an illuminating exchange with Senator Ted Cruz, the Texas Republican who once called Donald Trump “a pathological liar,” but has since lined up behind the billionaire who spread lies about his father, insulted the appearance of his wife, and nicknamed him “Lyin’ Ted.”
Domenech and Cruz attempted to understand U.S. politics through The Simpsons, the long-running cartoon comedy that anticipated a Donald Trump presidency in 2000.
Their focus was an episode of the show about the gun debate:
Ben Domenech: You’re a big fan of The Simpsons. I know you believe that they can tell us a lot about America. And I actually believe that you can learn a lot about deep policy by using The Simpsons as a starting point. For instance, when Homer and Lisa were having a conversation about gun rights in America—look it up, it’s in “The Cartridge Family” episode—Homer points out that guns are for things like protecting your family, hunting delicious animals, and making sure that the King of England never shows up to push you around.
Ted Cruz: All good things.
Domenech: Lisa’s response to this is to say, well, Dad, it’s actually a relic, a remnant of the Revolutionary War era that doesn’t really mean anything anymore. What do you say to that?
Ted Cruz: I think the Democrats are the party of Lisa Simpson. And Republicans are happily the party of Homer, and Bart, and Maggie, and Marge.
By “camouflaging” their condition, many women on the spectrum learn to fit in—and risk psychological harm.
Except for her family and closest friends, no one in Jennifer’s various circles knows that she is on the spectrum. Jennifer was not diagnosed with autism until she was 45 years old—and then only because she wanted confirmation of what she had figured out for herself over the previous decade. Most of her life, she says, she evaded a diagnosis by forcing herself to stop doing things her parents and others found strange or unacceptable. (Because of the stigma associated with autism, Jennifer asked to be identified only by her first name.)
Over several weeks of emailing back and forth, Jennifer confides in me some of the tricks she uses to mask her autism—for example, staring at the spot between someone’s eyes instead of into their eyes, which makes her uncomfortable. But when we speak for the first time over video chat one Friday afternoon in January, I cannot pick up on any of these ploys.