They did fail. For what it's worth, we did as well. I think our eventual product idea was much better than our first one, though, and I think our fatal mistake was not about lack of user demand, but on building too much on the theory that we could use Facebook for viral growth. As we were about to go for our A round Facebook changed a lot of things to de-emphasize apps and posting to people's feeds, so our growth numbers fell off a cliff. Turns out investors only like hockey sticks when they go up.