First you will ask what is Color and why we are talking about it… Color is a new start up for both Android and iOS. It hasn’t launch past beta and has already received more then $40 million in funding. So what is Color?
A Free application for iPhone and Android devices that allows people in close proximity to capture and have real-time access to photos, videos, and text simultaneously from multiple smartphones. Color is the best way of sharing an experience without the hassle of passing cameras around, emailing or uploading images and videos online.
Thats it… Something like that was able to pull in over $40 million in funding before it even made a dent in anything. So why all the press? No, not because its a great new start-up that everyone can’t wait to go prime time but instead its how high they were able to get funded from, from the likes of Sequoia and others before they even did anything productive. It makes no sense I agree but there’s more. Across the web on any Tech Blog site you visit you’ll see articles about how Color is either playing behind the 8-ball and having start-up founders hoping for it to fail MASSIVELY like TechCrunch or start-up founders them self.
I think one reason for the animosity among startup founders is that the romantic model of the startup is the small group of founders in the grungy garage/apartment- Michael Seibel, the CEO of Justin.tv
More after the break
What Color has done is what and why people hate the Yankees so much… They will use the money(Founding from the likes of Sequoia and others) and either buy out other companies or push them out. Founders of other start-ups take issues with this for multiple reasons as they are not putting the work in to be a start-up they just trying to do it the easy way. They haven’t even left beta(ala start-up) and already getting funding like a well oiled machine. They are and will have a hard time to match the instant funding they received as seen in the Android market with comments and the rating they have so far. The interesting part is start-up founders normally help each other since they know what they are going through but now you are seeing a shift with Color and seeing a lot of founders hoping they fail(sad but true) worse then MySpace is now.
While its nice to see start-ups getting funding like this(Founder of a start-up my self) I can’t in any way agree that this is idea is worth $41 million in today’s economy or even when we are at our wealthiest. While there is a chance that this can catch on no way do I see it ever worth that much. Its trying to push public funding for a niche idea that in 2-3 years we’ll look back and view this almost as bad as we do the Ryan Leaf or Payton Manning #1 pick question everyone had. There is no one saying this wont be a hit with the 15-24 year olds but is something like this going to change the world like other start-ups do with maybe 100th of the same funding? Rovio’s founding for there lone popular game Angry Birds looks like pennies compared to this and even then people where saying how crazy that was(really IMO is for a one hit wonder)
In my closing remarks, while I do hope Color does something I just hope they don’t cause a ripple effect and that is cause VC’s and Angels to stop funding start-ups. Something like this shouldn’t be in the news for an app that does nothing but is only because of the founding they got. They where not in the news because TechCrunch, Gizmodo, think this is the new hot start-up, but because they pretty much pulled a Bernard Madoff and scammed VC’s out of there money for hopes and a prayer. In the military we call it pray and spread and thats just what they did… because there’s no chance it’ll ever be worth what it pulled in.
About the writer. Brent F is our west coast event reporter. In addition he used to own his own website. Brent F is the founder of a new app development company.