How come everyone misses the fact that the app doesn't make the company. I think color actually redefines "social". If these guys are successful in executing their vision, their current valuation will seem a no-brainer. I seriously don't understand all the negativity and backlash around their launch.
This is coming from a guy that couldn't get their app to work. Every time I try to take my picture, the app crashes. But I don't think that really matters.
Isn't this the same community that proclaims, if you are not embarrassed with your initial product release, then you haven't released it early enough. ?
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. :-)
Facebook valuation is only $20/user each year (profit).
Simple Valuation Breakdown: Take $80 billion and divide it by an EBITDA multiple of 10 = $8 billion. Divide that by 400m users, for $20 profit/user each year.
EDIT: EBITDA: Earning before income tax depreciation and amortization.
i doubt Color will burst the bubble, but it sure seems to be a strong indicator that there is a bubble of some sort...
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.
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.