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.
Hillary Clinton once tweeted that “every survivor of sexual assault deserves to be heard, believed, and supported.” What about Juanita Broaddrick?
If the ground beneath your feet feels cold, it’s because hell froze over the other day. It happened at 8:02 p.m. on Monday, when The New York Times published an op-ed called “I Believe Juanita.”
Written by Michelle Goldberg, it was a piece that, 20 years ago, likely would have inflamed the readership of the paper and scandalized its editors. Reviewing the credibility of Broaddrick’s claim, Goldberg wrote that “five witnesses said she confided in them about the assault right after it happened,” an important standard in reviewing the veracity of claims of past sex crimes.
But Goldberg’s was not a single snowflake of truth; rather it was part of an avalanche of honesty in the elite press, following a seemingly innocuous tweet by the MSNBC host Chris Hayes. “As gross and cynical and hypocritical as the right’s ‘what about Bill Clinton’ stuff is,” he wrote, “it’s also true that Democrats and the center left are overdue for a real reckoning with the allegations against him.”
The nation wants to eradicate all invasive mammal predators by 2050. Gene-editing technology could help—or it could trigger an ecological disaster of global proportions.
The first thing that hit me about Zealandia was the noise.
I was a 15-minute drive from the center of Wellington, New Zealand’s capital city, but instead of the honks of horns or the bustle of passersby, all I could hear was birdsong. It came in every flavor—resonant coos, high-pitched cheeps, and alien notes that seemed to come from otherworldly instruments.
Much of New Zealand, including national parks that supposedly epitomize the concept of wilderness, has been so denuded of birds that their melodies feel like a rare gift—a fleeting thing to make note of before it disappears. But Zealandia is a unique 225-hectare urban sanctuary into which many of the nation’s most critically endangered species have been relocated. There, they are thriving—and singing. There, their tunes are not a scarce treasure, but part of the world’s background hum. There, I realized how the nation must have sounded before it was invaded by mammals.
For years, Republican politicians have attacked the mainstream press. With Roy Moore’s Senate bid, they’re facing the consequences.
All news is “fake news”—at least if you’re a diehard Roy Moore supporter.
With sexual misconduct allegations continuing to mount against the Republican Senate candidate in Alabama, Moore has defied calls to drop out of the race by advancing an audacious conspiracy theory—that partisan fabulists in the mainstream media are working with his enemies in the political establishment to wage a nefarious smear campaign against him. Not long ago, such claims likely would have backfired. But in the Trump era, anti-press sentiment has reached a fever pitch on the right—something candidates like Moore are eagerly exploiting.
Moore has not directly denied many of the specific allegations. Instead, he has sought to cast himself as the victim of a witch hunt and sow just enough doubt in the stories to muddy the waters in voters’ minds.
From Eve to Aristotle to Sarah Huckabee Sanders, a brief history of looking at half the population and assuming the worst
The picture was striking. The military airplane. The sleeping woman. The outstretched hands. The mischievous smile. The look what I’m getting away with impishness directed at the camera.
On Thursday, Leeann Tweeden, a radio host and former model, came forward with the accusation that Senator Al Franken, of Minnesota, had kissed her against her will during a 2006 USO trip to Kuwait, Iraq, and Afghanistan. In a story posted to the website of Los Angeles’s KABC station, Tweeden shared her experience with Franken. She also shared that photo. “I couldn’t believe it,” she wrote. “He groped me, without my consent, while I was asleep.”
I felt violated all over again. Embarrassed. Belittled. Humiliated.
How dare anyone grab my breasts like this and think it’s funny?
I told my husband everything that happened and showed him the picture.
I wanted to shout my story to the world with a megaphone to anyone who would listen, but even as angry as I was, I was worried about the potential backlash and damage going public might have on my career as a broadcaster.
But that was then, this is now. I’m no longer afraid.
The president’s jab at the Democratic senator for sexual harassment calls attention to his silence about Roy Moore—and his own past behavior.
President Trump jabbed at Senator Al Franken in a pair of late-night tweets Thursday, poking at a Democrat whose career is in danger over past sexual harassment, but calling attention to his silence about Alabama U.S. Senate candidate Roy Moore—and, moreover, to his own history, including his boasts about sexual assault.
On Thursday, radio host Leeann Tweeden wrote about two incidents during a 2006 USO tour to Iraq, Kuwait, and Afghanistan. In one case, she said Franken—a Saturday Night Live alumnus and comedian who was not yet a senator—forcibly kissed Tweeden against her will during a rehearsal for a skit. And after returning home from the trip, Tweeden received a CD of photos that included Franken either groping or pretending to grope her over a flak jacket as she slept.
How did Andrew Anglin go from being an antiracist vegan to the alt-right’s most vicious troll and propagandist—and how might he be stopped?
On December 16, 2016, Tanya Gersh answered her phone and heard gunshots. Startled, she hung up. Gersh, a real-estate agent who lives in Whitefish, Montana, assumed it was a prank call. But the phone rang again. More gunshots. Again, she hung up. Another call. This time, she heard a man’s voice: “This is how we can keep the Holocaust alive,” he said. “We can bury you without touching you.”
When Gersh put down the phone, her hands were shaking. She was one of only about 100 Jews in Whitefish and the surrounding Flathead Valley, and she knew there were white nationalists and “sovereign citizens” in the area. But Gersh had lived in Whitefish for more than 20 years, since just after college, and had always considered the scenic ski town an idyllic place. She didn’t even have a key to her house—she’d never felt the need to lock her door. Now that sense of security was about to be shattered.
While the leadership of both parties views sexual misconduct as a political problem to minimize, the Republican and Democratic bases could not be farther apart.
Earlier this week, New York magazine’s Jonathan Chait asked his fellow liberals to imagine that Roy Moore were a Democrat. “It’s easy to feel superior about this when opposition to grotesque treatment of teenage girls lines up neatly with your own party’s well-being,” he wrote. “If you’re a liberal, ask yourself what you would do if the circumstances were reversed.”
Thanks to Al Franken, we can now answer that question better. The details of each man’s offense differ: Moore is accused of pursuing teenager girls while he was in his 30s, and two women have accused him of sexually assaulting them when they were teenagers. Leeann Tweeden, a broadcaster for KABC in Los Angeles, said Franken kissed and groped her without her consent. Still, each party’s reaction is telling. Each is split, but in opposite ways.
Feminists saved the 42nd president of the United States in the 1990s. They were on the wrong side of history; is it finally time to make things right?
The most remarkable thing about the current tide of sexual assault and harassment accusations is not their number. If every woman in America started talking about the things that happen during the course of an ordinary female life, it would never end. Nor is it the power of the men involved: History instructs us that for countless men, the ability to possess women sexually is not a spoil of power; it’s the point of power. What’s remarkable is that these women are being believed.
Most of them don’t have police reports or witnesses or physical evidence. Many of them are recounting events that transpired years—sometimes decades—ago. In some cases, their accusations are validated by a vague, carefully couched quasi-admission of guilt; in others they are met with outright denial. It doesn’t matter. We believe them. Moreover, we have finally come to some kind of national consensus about the workplace; it naturally fosters a level of romance and flirtation, but the line between those impulses and the sexual predation of a boss is clear.
Recent allegations against the aspiring Alabama senator fit a long and complicated history of religious debates about sex.
Before this month, Roy Moore was best known nationally for refusing to remove a Ten Commandments monument from the Alabama state supreme-court building. Now, the aspiring senator is accused of hitting on teens at an Alabama mall and inappropriately touching a 14-year-old girl.
These allegations may be the end of Moore. Congressional Republicans have started disowning him, and he’s tentatively dropping in state polls. But it’s possible that the reputation of evangelical Christians willalso suffer. Despite condemnations from a number of nationallyprominent Christian leaders and a few in Alabama, many of the state’s faithful continue to back the controversial candidate.
To outsiders, the support might seem like a stark contradiction in values. Even to insiders, it can seem that way. “I’m … bothered,” wrote William S. Brewbaker III, a law professor at the University of Alabama, in The New York Times, “by what Mr. Moore’s popularity says about the sorry state of evangelical Christianity.”
A new lawsuit focuses on a district whose governing board is dominated by ultra-Orthodox Jews who send their kids to private schools.
As is the case in districts across the country, the racial composition of a school board in the New York City suburb of Ramapo doesn’t look anything like that of the predominantly nonwhite student population it serves. The news Thursday of a lawsuit challenging the district’s school-board election proceedings in attempt to change that might just seem like another effort to challenge the status quo.
But this case is a little different. It’s not just an equity-minded attempt to reform a seemingly flawed policy—it’s also an explosive development of a chaotic tale of cultural collisions and political dissonance that has been simmering for at least a decade.
The lawsuit, which was filed by the New York Civil Liberties Union and Latham & Watkins LLP in federal court, targets the election methods for board members in the East Ramapo Central School District. The lawsuit argues that the current system for electing school-board members denies the district’s black and Latino citizens the opportunity to fairly elect members.