Why Triangulate failed Part 2

By now the metrics for the site were mixed. The user base was growing at over 40% month on month but user engagement was low, with only 27% of new users in California, the site’s target market, returning in the second week after they signed up. Also, there were no signs of the viral growth Sunil had predicted. He had anticipated that each new user would bring another 0.8 users with them. In reality, it was only 0.03 new users.

The team developed plans to increase engagement, virality, and revenue. Excited by their plans they hired a Chief Technology Officer and Chief Marketing Officer. Sunil planned to raise funds from a Series A round. But his board had other ideas. An investor/advisor who had launched an online gaming company told Sunil “When virality hits, it happens within a few months and you have had a few months”