Color Labs — $41M for an Untested Photo App

Color Labs raised a staggering $41 million pre-launch for an untested social photo-sharing app in 2011, then burned through every dollar within 18 months. The app confused users with its real-time, location-based sharing concept, failing to gain any traction. A concrete sign of its failure: the company sold its patents to Apple for just a few cents on the dollar, recouping only a fraction of its funding. This meltdown outperforms #6 Clinkle in scale of waste, as Color raised 37% more capital before any validation.