Color clearly has a much bigger vision than what we're seeing. Sequoia knows what they're building, and has the experience to know how much money it might take

Color clearly has a much bigger vision than what we're seeing. Sequoia knows what they're building, and has the experience to know how much money it might take to build it. Even if they have a 90%+ chance of flopping, the investment in them could be justified. If a VC sees the potential for them a market size like Google or Facebook and a small chance that they could capture it, tossing in $43 million makes sense. So I think Color will most likely not be a success, but that doesn't mean the investment was a mistake. I believe there is certainly a level of innovation in social connections that will make Facebook look like Lycos and Altavista. Color probably doesn't have it, but they managed to convince Sequoia that the might, and you have to take those gambles.