Stay In The Lines: Color Making A Social Media Bubble More Vibrant?
If you follow Mashable or various other tech/Social Media sites, you might have heard about a new startup called Color. What Color does is quite awesome actually: It's an app available for iPhone or Android that allows you to take pictures.
That's not all though...it can detect other users around your same vicinity (say a friend or group of friends) using the app as well, and will put all those photos into a group folder.
All in all, a very cool concept that has lots of potential, especially conferences or meetups. What's just as interesting is the fact that Color, before it even launched, got $41 Million in funding. Twitter didn't even get that, nor did Google for that matter.
One of my rants a while back was on the topic of Huffington Post being acquired for $315 Million. Essentially, it all comes down to the fact that these sites/companies/apps have to make money at some point. No money, no business. You see, venture capital and investing is a great thing. It allows sites/companies/apps with potential, to create even bigger opportunities for themselves and share their vision/service with the World at a larger and growing rate.
What's a bit scary is how, in my opinion, investors are getting a bit careless over the amount of money they're throwing at startups. Let's be clear though: If it wasn't for investors, the greatest sites/companies/apps would never have made it if it wasn't for them. However, there should still be some caution exercised.
Color didn't need $41 Million to launch and to keep things going and innovating in the very early stages. That's like giving a 14 year old with some web design knowledge, 250 grand to start building his business. You see, this money being thrown at companies and startups in the droves is what led to the dot com bust. Huge potential was recognized or believed, and soon enough, it was realized that these large sites couldn't make money or enough money.
We're potentially in the beginning stages of that same thing happening. Granted, it would be far off as ways of making money are continually developing within sites/apps/networks. I'll give Color a chance and we all should give new ideas and innovation a chance, especially if we connect with it on some level.
The main point is this: Startups should be given a chance if a vision and plan is clear enough, but not an insane sum of money in the very beginning stages. Give things time for God sakes. See how it goes, then funnel more money into it if necessary.
And as always, continually work out ways of how money is actually going to be made. Tweak, refine and make things clear and well known. The goal of any business is to make money and startups know that and that is investors' ideal goal. There's always a risk, but there's just as much a risk of throwing in tons of money before something even launches.
You call it "huge potential", I call it "not accessing the whole situation in it's entirety".
Good luck to Color and good luck to all the startups out there. Whether any of them take this post the wrong way, I still love many of you.
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