

Ask HN: What can Color possibly accomplish with $41 million? - Undergrads

After seeing what Color is all about and reading about their $41 million funding, I do not understand why such an exorbitant amount is even necessary for their application. It seems simple enough. Where will this money go? Realistically, could they not accomplish the same with $1 million, even $100,000? Color is clearly no Facebook or Twitter. Any insight would be greatly appreciated!
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atgm
My first thought when I read about the funding was that they would need a
pretty robust back-end. Not only are they storing pictures to relay to other
people in an area, but Color also has to catalog them several ways:
geographically, by privacy settings, by groups, by time, etc.

Being able to do all of that with a minimum of fuss and delay all over the
world will probably take a lot of stuff behind the scenes that I can't
imagine. On top of that, staff to support it.

But yeah, 41 million seems a bit excessive.

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haploid
Let's say you're a founder. You know that it only takes $X to develop and
market a given app. So you go out shopping, asking for $(1.3X)MM( the estimate
plus a small buffer )at a Y% dilution.

You pitch your idea to Trust Fund Baby Ventures, LLC, and they shit their
pants and offer you $(5X)MM, but at the exact same dilution, Y%.

You've just been offered far more money than you think your business is worth.
What do you say? No?

