By now you have heard that the CEO of Color, the failed photo app, Bill Nguyen is reportedly out of the company. The entire story behind the company that we knew of to date has been interesting to say the least. From the flaunting of its $41 million raised in venture capital from big name venture firms such as Sequoia, the promise to deliver one of the most innovative applications that we had seen in years, to the supposed all-star talent — none of it mattered.
The only thing impressive about the company (to date) was its theatrical launch which focused more on the vast amount of money it raised in venture capital, and less about the application itself because it was so difficult to figure out how to use that it was just bound to fail. As far as I was concerned though, even after the rocky launch, the all-star founding team could still make the company work and get a better version out of the door. That never happened. The other two co-founders left, the product fell apart, and Bill spent his time vacationing, rather than being in the office figuring out how to reinvent the company. How could it be any worse? It turns out it could be, and was worse, way worse.
Like many people I couldn’t help but watch the CNBC interview with the Winklevoss twins where I was surprised to learn that they were becoming venture capitalists. I always figured they would simply take the Facebook settlement money and run — probably to never be seen or heard from again. But no, that is not going to be the case at all. In fact, they are looking to use that settlement money to invest in early stage technology companies.
By now I have read (and I’m sure you have too) quite a few articles poking fun at this reality. While I was surprised by the twins VC plans, I was even more surprised that so many tech-focused blogs are being so quick to dismiss the Winklevii.
After doing a little research I discovered that Color.com was acquired by Color Labs in December 2010 for $350,000. After hearing about the new photo sharing social network which raised $41 million dollars (pre-launch) from several venture capital firms (which is more than Google raised), I wondered how much of it they used to acquire the domain name Color.com. Well, it appears, not that much of the $41 million was spent on the domain.
If you look at the site DN Sale Price, you can see for yourself that the domain sold for 350k according to DN Journal (the source it lists). I’ve included a screenshot below.