Anonymous messaging Secret app 'worth $100m' shut down

SecretIn closing Secret just 16 months after its launch, Mr Byttow
said: "This has been the hardest decision of my life and one
that saddens me deeply."
"Unfortunately Secret does not represent the vision I had when
starting the company."app is shut down by its co-founder who admits it is
not what he envisaged
Anonymous messaging service Secret, at one stage thought
to be valued at more than $100m (£66.5m), is shutting
down.
Founder David Byttow said: "Secret does not represent the
vision I had when starting the company" and that he believed
in "failing fast".
The app was created, in part, to promote free speech but was
criticised for promoting cyber-bullying.
User numbers have dwindled in recent months. Secret said it
would return some of its $35m funding to investors.
Flash in the pan
It is a big turnaround for the company that was the talk of
Silicon Valley, both among investors and users of the app, just
a year ago.
High profile investors of Secret included actor Ashton
Kutcher
Founded in 2013 by two former Google employees, the
company was backed by some big names including actor
Ashton Kutcher, Alexis Ohanian - a founder of Reddit, and
Google Ventures.
The anonymous nature of messaging on the app led to its
early adoption by technology sector workers, who used it to
post rumours of forthcoming products or company mergers.
Secret's anonymous messaging service was criticised for
promoting cyber-bullying
It was also used for political discussion in Russia and in
Israel.
But the service was criticised for allowing people to defame
others while remaining anonymous. It was banned in Brazil for
promoting cyber-bullying.
A redesign of the app last year prompted users to "think
before they post" and made it easier for users to flag up
abusive content.
But user numbers have been falling in recent months, with
some of those remaining complaining of an increase in the
number of posts of a sexual nature and that public chat had
become dominated by users from Indonesia.
In his blog post on Medium, Mr Byttow said: "I believe in
honest, open communication and creative expression, and
anonymity is a great device to achieve it.
"But it's also the ultimate double-edged sword, which must
be wielded with great respect and care.
"I look forward to seeing what others in this space do over
time."
Secret is not the first app to attract millions of dollars in
funding only to flop shortly afterwards.
In 2012, photo and video-sharing app Color closed just 12
months after its launch having raised $41m from investors.
In June that year, Napster founders, Shawn Fanning and
Shaun Parker launched their video-chat site Airtime, attracting
$33m in funding.
It had very limited success, with Fortune magazine reporting
that it had had to be quietly relaunched two years later.
Analysis: Rory Cellan-Jones, BBC Technology Correspondent
"The truth is that there is fierce competition right now to get
in early on any start-up that looks buzzy - who wants to be
the guy that turned down WhatsApp in 2009 or Snapchat in
2012?
And if that means throwing a few million dollars at companies
which appear to have no moral or business compass, then so
be it."