Color, the much-hyped startup that raised a whopping $41 million in a first round of funding, is shutting down its flagship video-sharing app just a year after re-launching it, according to VentureBeat.
The company’s shareholders and board reportedly voted to shut down Color last week following the news that Co-founder and CEO Bill Nguyen had stepped away from his day-to-day duties. “Color is going through a number of changes,” the company said in an e-mail sent out to employees and obtained by VentureBeat. “Last week, the Board and major shareholders voted to wind down the company.”
As VentureBeat points out, the app may be biting the dust, but Color Labs — the larger company — will likely continue to work on other projects with the money that it still has in the bank.
Color did not respond to our request for comment.
Color has been plagued by problems almost from the beginning. The startup managed to obtain an impressive amount of funding thanks in part to the notoriety of its two co-founders. Nguyen, a charismatic entrepreneur, had previously founded and then sold the online music service Lala to Apple for $80 million. Peter Pham, Color’s other co-founder, was the former CEO of the money-saving website BillShrink.
It’s also sad to see once popular startups decide to just shut down…
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