zlacker

>>waxpan+(OP)
I'm not sure why this post focuses so much on the angel investment. There are probably 10 reasons why Ello failed, starting with the fact that bootstrapping social network userbases is hard, and ending with users won't pay for social networks. None of these are directly related to the fact they built the site with investor money and not volunteer hours.

>>reso+fh1
I think it’s fair critique for the post to focus on the VC (not angel) investment — the expectations of VCs and pressure to deliver a profit could easily have been a significant factor in the decision made by the CEO to focus on substantial revenue growth.

>>urband+7j1
But did they ever even cover their costs? If a business is stable for its current size, and then VCs push you to grow and that kills the company, then yes, that company was killed by VC pressures. However, AFAIK, ello never made much money at all, which is the most proximate reason they failed.