Founders Flash: Shhhhhh! ‘Secret’ Social-Networking Service Goes from Anonymous to Defunct

A mere 10 months after raising $25 million from marquee investors – at a valuation of $100 million – the anonymous social-networking app ‘Secret’ shut down this week. You can bet the Flash took note of that precipitous shut-down. As always, we’re closely following crowdfunding news, but this cycle we’re seeing some backlash against the popular fundraising platform. The NY Times Magazine looks at jilted investors in the failed ZPM Espresso crowdfunding/KickStarter campaign (who are sharpening their knives), while Gizmodo is soliciting examples of fraudulent crowdfunding campaigns for a future compilation.

Check out these stories and more in this week’s Founders Flash!

  • How long does it take for a startup to go from $100 million to $0? If you are Secret, the anonymous social networking app, the answer is: 10 months. (Forbes)
  • What happens when a crowdfunding campaign fails to launch? If investors in the failed ZPM Espresso launch are any indication, they can get testy. (NY Times Magazine)
  • Crowdfunding is powerful and growing – but examples of fraud abound across the increasingly popular platform. Share any stories of fraudulent crowdfunding campaigns here. (Gizmodo)
  • Momofuku owner David Chang just launched Maple, a food-delivery startup looking to disrupt the food takeout industry. Will he do for food delivery what he did for ramen noodles? (Entrepreneur)
  • Gett looks to outpace Uber by offering services beyond transportation – including food, beauty and home maintenance. (TechCrunch)
  • VC firms looking for the next Facebook are recruiting ever-younger founders – beginning in college with mentoring and funding for startups with potential. (Wall Street Journal)

 
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