Earlier quoted context omitted.
I wonder how much they paid for the @color Twitter account.
Twitter doesn't allow selling twitter accounts.
Do you really think whoever owned @color just gave it to them though? ;)
41,000,006 reasons why I think we're in a bubble
31–40 of 269 posts
Re: 41,000,006 reasons why I think we're in a bubble
#32Hmph. If nothing else, posts like this are terribly offensive to the entrepreneurs that dedicate their lives to products like Color. Did anyone consider that maybe Sequoia, who have invested in companies that make up over 10% of the NASDAQ know what they are doing? Companies like Color, AdKeeper and Flipboard have "crazy" valuations based on the founders having ridiculous resumes. They have all created billions of do…
- If it is going to take them a few years to get to their eventual, profitable, goal, why invest $41M now? Why not invest $20M now and another $21M when they're on the track that will be truly profitable, once they've demonstrated where they are going? - Is calling the investment "crazy" really offensive to the entrepreneurs? It is more a compliment to them than anything else. The investment may be crazy, but the ent…
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Re: 41,000,006 reasons why I think we're in a bubble
#33Well, I am not in a bubble. If anything my software is vastly undervalued. I wouldn't know what to do with 40M. I could use 100k though..
The very fact you wouldn't know what to do with $40M is why you couldn't raise $40M, and they could.
Yes but knowing what you'd do with it and that being a good thing to do with it are different things.
I don't see what they need $40m for that's going to deliver real value.
Re: 41,000,006 reasons why I think we're in a bubble
#34Re: 41,000,006 reasons why I think we're in a bubble
#35Earlier quoted context omitted.
The very fact you wouldn't know what to do with $40M is why you couldn't raise $40M, and they could.
Yes but knowing what you'd do with it and that being a good thing to do with it are different things. I don't see what they need $40m for that's going to deliver real value.
Why would you see what they need $40m from when you are on the outside looking in on a single product? Seriously.
Re: 41,000,006 reasons why I think we're in a bubble
#36Earlier quoted context omitted.
41 million for growth for an app before it launches?
Color has launched on both iOS and Android. In addition, they didn't spend 41 million, they received funding in the amount of 41 million.
I understand that. My comment was why invest in scaling when the need to scale hasn't been established?
Re: 41,000,006 reasons why I think we're in a bubble
#37Hmph. If nothing else, posts like this are terribly offensive to the entrepreneurs that dedicate their lives to products like Color. Did anyone consider that maybe Sequoia, who have invested in companies that make up over 10% of the NASDAQ know what they are doing? Companies like Color, AdKeeper and Flipboard have "crazy" valuations based on the founders having ridiculous resumes. They have all created billions of do…
"Did anyone consider that maybe Sequoia, who have invested in companies that make up over 10% of the NASDAQ know what they are doing?"
Neither Merril Lynch nor Lehman Brother knew what they were doing.
"Investors are less interested in where you are today, compared to where you are going"
Yes the future is important, but there's the risk-reward trade-off. If a company looks badly risky today, a rational investor will steer away from it.
"If nothing else, posts like this are terribly offensive to the entrepreneurs that dedicate their lives to products like Color."
And for your first point, a well functioning entrepreneurs ecosystem require both dedicated entrepreneurs AND rational investors. This is not to demean the entrepreneur.
Re: 41,000,006 reasons why I think we're in a bubble
#38We're still just starting a watershed moment for ways of finding productivity gains, forms of entertainment, ways to connect and share. We haven't scratched the surface yet. There are huge leaps being worked on in the foundation technology.
Give us a bubble! Spread it out, so that such 41mm deals go instead to a thousand teams. And we will give you the future.
Re: 41,000,006 reasons why I think we're in a bubble
#39Earlier quoted context omitted.
don't focus on the features of the product - focus on the team. it might end up being something completely different (there is a word for that) from the perspective of 'can these guys spin a $40M investment into something that is worth more?', the answer is probably yes (probably enough to worth investing in) it isn't a bubble because this is still VC money, not crazy mom and pop shooting at the NASDAQ money. during…
From everything I read, Color has a fantastic team and the Techcrunch article is actually pretty positive on the idea. I'm sure that the company will succeed. But saying a company will likely succeed and deserves an investment does not mean VCs shouldn't be making rational valuations based on real business metrics. And as the OP remarked, this is probably funding at a $80m+ valuation for a company with no product (wh…
Right, this puts their valuation above those of already very successful companies.
Re: 41,000,006 reasons why I think we're in a bubble
#40"A $41M investment at this stage in the life cycle of a business is normally associated with either something that is technologically complex and thus capital intensive or that requires new processes to be designed from scratch." This is what struck me when I heard about the deal. Color is cobbling together existing technologies and not creating anything new. This deal pushed me into the "There is a Bubble" group. Th…
don't focus on the features of the product - focus on the team. it might end up being something completely different (there is a word for that) from the perspective of 'can these guys spin a $40M investment into something that is worth more?', the answer is probably yes (probably enough to worth investing in) it isn't a bubble because this is still VC money, not crazy mom and pop shooting at the NASDAQ money. during…
Cuil had Googlers behind it. The people behind it can make a difference if the other fundamentals (market viability especially) are in place.
Is there a $40m+ market for a group photo album app? This app is free, so they'll need a great monetization model even if the market is there.