Color Labs
| Company type | Private |
|---|---|
| Industry | Social networking, Photography software |
| Founded | 2010 |
| Founder | Bill Nguyen, Peter Pham |
| Defunct | 2012 |
| Fate | Closed down; app discontinued |
| Headquarters | Palo Alto , United States |
Area served | Worldwide |
Key people | Bill Nguyen (Co-founder), Peter Pham (Co-founder) |
| Products | Color (mobile photo-sharing application) |
| Website | color |
Color Labs, Inc. was a startup headquartered in Palo Alto, recognized for its namesake mobile application designed to facilitate photo sharing via social networking. The platform enabled users to capture images and browse photos taken nearby, organizing content according to social relationships to increase relevance.
Following a capital raise totaling $41 million from investors such as Sequoia Capital and Bain Capital, Color Labs released its app on March 24, 2011. Shortly after launch, the application received updates aimed at enhancing user engagement through event-centric photo streams and shared group histories. Despite early enthusiasm and reports of a $200 million acquisition proposal from Google—which the company declined—the venture encountered skepticism within Silicon Valley circles and discontinued app sales by late 2012.
Launch
Co-founders Bill Nguyen and Peter Pham secured $41 million in financing, with Sequoia Capital making an investment mere days before the app’s debut. The brand name "Color" was inspired by Apple’s original branding, reflecting Nguyen’s appreciation for the Apple II computer. The Color.com domain was purchased for $350,000 in late 2010.
Between 2010 and 2011, Color Labs amassed $25 million from Sequoia Capital, $9 million from Bain Capital, and an additional $7 million in venture debt provided by Silicon Valley Bank. The iOS App Store saw the app’s launch in March 2011, featuring capabilities that allowed users to discover photos by geographic location and social networks. Despite substantial financial support and a strategic position within the social networking arena, Color Labs eventually discontinued the app due to difficulties in maintaining consistent user engagement.
Controversy and demise
At its introduction, the app reached approximately one million downloads but experienced a decline to under 100,000 active users by September 2011. Within three months of launch, in June 2011, co-founder Peter Pham departed from Color, followed shortly thereafter by Chief Product Officer DJ Patil.
The startup attracted controversy over its $41 million funding round and garnered mixed feedback regarding its product. Users often described the interface as confusing, resulting in a 2 out of 5 star rating on the App Store. In an April 2011 interview, Pham and Nguyen conceded that Color’s launch represented a missed opportunity, acknowledging that the product overwhelmed users with a complicated network structure.
By October 2012, reports surfaced indicating that Color’s board had resolved to close down the company. While some sources mentioned prospects of acquisition or significant restructuring, rumors circulated that Apple might acquire Color’s personnel for between $2 million and $7 million. In November of that year, Color Labs confirmed plans to discontinue the application by the end of 2012.
External links
- Archived snapshot of the official website (https://web.archive.org/web/20121221195737/http://www.color.com/)