Bill Nguyen raised $41 million for his startup called Color. Color was supposed to be a photography social networking app that was supposed to be huge. Color reportedly turned down $200 million from Google, but today they have about 30,000 paltry total users.
After several months when the app did not really go anywhere, they decided to launch a video status updating service.
BusinessInsider makes a good point when they say that we shouldn’t close the book on Color yet. Rovio made 50 games before coming out with Angry Birds and OMGPOP was almost bankrupt until they came out with Draw Something and sold to Zynga for $200 million.