Company
Color Labs
TL;DR
Color Labs represents a cautionary tale of germinating in shade.
Color Labs represents a cautionary tale of germinating in shade. Founded by serial entrepreneur Bill Nguyen, the company raised $41 million in March 2011 before launching a product. The photo-sharing app required physical proximity to create social networks, but Instagram had already occupied the photo-sharing niche six months earlier. Despite massive reserves, Color germinated in darkness with no light gap to grow into, burning $25 million by September 2011 and shutting down in 2012.
Cautionary Notes on Color Labs
- Germinated in shade - no light gap available
- Ignored environmental signals showing Instagram had claimed the niche
- Massive reserves couldn't overcome wrong environment