June 20, 2011

Color's photo-sharing app, a bubble in start-up investing

ColoriPhoneApp.jpg In March, Color unveiled its photo-sharing cellphone app — and revealed that it had raised $41 million from investors before the app had a single user. Despite the company’s riches, the app landed with a thud, attracting few users and many complaints from those who did try it. The New York Times reports.

quotemarksright.jpgColor spent $350,000 to buy the Web address color.com, and an additional $75,000 to buy colour.com. It rents a cavernous office in downtown Palo Alto, where 38 employees work in a space with room for 160, amid beanbag chairs, tents for napping and a hand-built half-pipe skateboard ramp.

Since then, Color has become a warning sign for investors, entrepreneurs and analysts who fear there is a bubble in start-up investing. quotesmarksleft.jpg

Read full article.

Related:

-- Color app for iPhone lets others peek at your photos, video

emily | 7:39 AM | | Add this this entry to your del.icio.us bookmarks. Digg This Technorati search results for this Entry
The Permanent Link to this page is: http://textually.org/textually/archives/2011/06/028804.htm
Google+ FaceBook Follow Me on Pinterest
Home | About | ArchivesCopyright © 2014