It isn't that they raised $41 million, that was the issue. It was the fact that they raised that amount without any real metrics to back the team or the product.

Someone gave me this analogy that I thought was quite well put. Michael Jordan kicked ass at basketball, but it would have been a foolish manager who gave him a $41 million contract when he decided to try baseball.

Hindsight-20:20 here - Color might have been an incredible story on paper, and it might even have warranted a stratospheric valuation. But nothing besides cold, hard numbers warrants cash of $41MM for a web/app startup.