Color, like Airtime, received plenty of buzz early on in part because it was founded by two well-known entrepreneurs: Bill Nguyen, who co-founded Lala, an online music service acquired by Apple, and Peter Pham, former CEO of the money-saving website BillShrink. Color managed to raise a jaw-dropping $41 million in a first round of funding in early 2011. Then the app came out and things quickly went downhill.
Originally, Color released a photo-sharing app for the iPhone, but it never really caught on with users. Six months later, Color overhauled the app by focusing on sharing short videos and giving users the ability to connect with Facebook. Even then, Color struggled to gain a sizeable audience. In May 2012, the company announced a partnership with Verizon to have Color’s app pre-installed on most of the carrier’s 4G LTE-enabled Android phones. Since then, Color’s user base has increased significantly, from 50,000 monthly active users on Android in May to more than 400,000 monthly active users in September, according to AppData.
Despite this success, there has been some turbulence at Color. Nguyen, the company’s CEO, has reportedly stepped back from his role at the company. However, according to Tamara Steffens, Color’s SVP of business development, this won’t have much of an impact on the direction of the company. “The rest of the leadership is still exactly the same,” Steffens told Mashable. “From a technology perspective, if people are not aware that Bill doesn’t write code, I can state that.”
As of now, Steffens says the plan is for Color to introduce a major update to the app before the end of the year, which will feature improvements to the live video sharing features.