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There are always 3 things: idea, team and execution.

Color had a genuinely interesting idea: make a social network via implicit information rather than deciding whether or not the a person is a "friend".

I can see this being of particular interest to Google as they built themselves on a similar premise: ranking web searches via implicit data (links, etc.) rather than a hand built index.

So, with an interesting idea and a strong team they secured both acquisition interest and a huge funding round. The idea being that they would release a series of applications and products that would deliver on the promise of implicit social network creation.

Then their PR got ahead of them (no doubt purchased with a chunk of the $41 mil) and expectations got built to a level that could never be delivered on with the first iteration of their first product - an iPhone photo app.

So, now there is a big backlash as people feel "duped" by the gap between the hype and the product and it is crushing the company.



When they didn't show up to SXSW which would have been perfect to demonstrate their app, they already failed.

Google wasn't paying for execution, so $200M might have been worth the talent (and perhaps the idea).




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