I have a photo watermark product and I see photo backup as a natural progression of our product line up. Stories like these are a wake up call. Few things that

I have a photo watermark product and I see photo backup as a natural progression of our product line up. Stories like these are a wake up call. Few things that I would take away are - - They were charging too low IMO. The free tier gave away too much for free. If your product is of value then charge for it. People will pay. It does not matter that Apple and Google are giving it away for free. - They should have spent at least some part of the millions they raised on acquiring users. - It seems they blew almost all money on salaries and consulting. Even if the AWS bill was $35K a month, the money they had raised was enough to last them for two years and they also had paying customers. At the end of the day it looks like a classic case of concentrating entirely on product and neglecting the revenue and user growth. You can afford to ignore revenue if you have the growth rate of Instagram or Twitter. But if you have neither revenue nor growth then it's difficult to keep going on VC money.