Color Will Be The Pin That Bursts The Startup Bubble

#1

Post by goldham » Thu, Mar 24, 2011, 7:37 PM UTC

I'm going to be quick.

-Friend showed me app on iPhone

-Noticed similarities between Color and Path, does not provide any usefulness to me

-Realized I can now creep on people nearby without having to ask their name and friending them on facebook

-Excitement grew with media frenzy over Color and a few friends downloading app

-Downloaded app

-Constantly crashed when uploading photo

-App lost its novelty

-App deleted from phone

-Startup that created app has 41MM funding

Re: Color Will Be The Pin That Bursts The Startup Bubble

#2

Post by pcolton » Thu, Mar 24, 2011, 7:44 PM UTC

To be fair, the funding probably came sometime after the app development started.

I tried it as well. I can see the novelty of it -- watch in real-time what people are doing around you. It definitely has a voyeuristic aspect to it.

I think all that money could also be used to consolidate the market a bit -- do we really need 30+ photos apps?

PS - I'm working on a photo app. :-)

Re: Color Will Be The Pin That Bursts The Startup Bubble

#3

Post by calebmpeterson » Thu, Mar 24, 2011, 7:45 PM UTC

i doubt Color will burst the bubble, but it sure seems to be a strong indicator that there is a bubble of some sort...

Re: Color Will Be The Pin That Bursts The Startup Bubble

#4

Post by phlux » Thu, Mar 24, 2011, 7:51 PM UTC

Assuming the premise of your title is correct, that the bubble bursts.. what would this mean?

Funding dries up because all these ideas cant make money. Valuations plummet - nobody hires and we have bust 2.0.

except it is different because this time around we have a glut of seasoned developers that can build a hell of a lot of stuff.

So I cant see this burst being the same -- but I see a lot of stuff being built for no / little funding.

Re: Color Will Be The Pin That Bursts The Startup Bubble

#5

Post by dstein » Thu, Mar 24, 2011, 8:02 PM UTC

No, the burst will come after the Facebook IPO when they can't find a way to make the $5,000 per user per year that their stock valuation will suggest it can earn. When Facebook stock crashes and it's plastered all over the news, that'll be the start of the bust. We're a long way from that.

Re: Color Will Be The Pin That Bursts The Startup Bubble

#6

Post by DanLivesHere » Thu, Mar 24, 2011, 8:46 PM UTC

dstein wrote: post #5

No, the burst will come after the Facebook IPO when they can't find a way to make the $5,000 per user per year that their stock valuation will suggest it can earn. When Facebook stock crashes and it's plastered all over the news, that'll be the start of the bust. We're a long way from that.

Where are you getting $5k/user/year?

Re: Color Will Be The Pin That Bursts The Startup Bubble

#7

Post by noodle » Thu, Mar 24, 2011, 9:00 PM UTC

DanLivesHere wrote: post #6

dstein wrote: post #5

No, the burst will come after the Facebook IPO when they can't find a way to make the $5,000 per user per year that their stock valuation will suggest it can earn. When Facebook stock crashes and it's plastered all over the news, that'll be the start of the bust. We're a long way from that.

Where are you getting $5k/user/year?

i see ~$83b valuation, and ~500m active users, putting it at around $166/user

Re: Color Will Be The Pin That Bursts The Startup Bubble

#8

Post by dstein » Thu, Mar 24, 2011, 9:05 PM UTC

DanLivesHere wrote: post #6

dstein wrote: post #5

No, the burst will come after the Facebook IPO when they can't find a way to make the $5,000 per user per year that their stock valuation will suggest it can earn. When Facebook stock crashes and it's plastered all over the news, that'll be the start of the bust. We're a long way from that.

Where are you getting $5k/user/year?

I just pulled it out of the air for dramatic purposes.

Re: Color Will Be The Pin That Bursts The Startup Bubble

#9

Post by bmelton » Thu, Mar 24, 2011, 9:15 PM UTC

noodle wrote: post #7

DanLivesHere wrote: post #6

Earlier quoted context omitted.

Where are you getting $5k/user/year?

i see ~$83b valuation, and ~500m active users, putting it at around $166/user

Is a valuation actually given with the expectation that they'll make that amount of money each year?

Re: Color Will Be The Pin That Bursts The Startup Bubble

#10

Post by damoncali » Thu, Mar 24, 2011, 9:21 PM UTC

noodle wrote: post #7

DanLivesHere wrote: post #6

Earlier quoted context omitted.

Where are you getting $5k/user/year?

i see ~$83b valuation, and ~500m active users, putting it at around $166/user

you really think there are 500m active users? My BS detector goes off when I hear that number. Unless they have a couple billion total users...

Edit: just to be clear, that's not a rhetorical question. Anyone know how they define "active"?