Lady Gaga’s social network builder startup has run out of money, gone out of business, and sold its assets to a group of previous and new investors who will try to restart it. That’s according to multiple sources, the legal firms that handled the sale, and its former CEO. Backplane started as a fan site for Lady Gaga with hopes of launching social networks for brands. It eventually raised $5 million more.
Backplane’s legacy will serve as a warning of the dangers of fundraising at too high of valuations with exploitative terms in party rounds where no investor takes responsibility. The company is also emblematic of the trouble caused when lavish lifestyles drive up burn rates and bleed companies dry. 5 years and $18.9 million later, the two issues combined to destroy the startup
They should have capitalised on the rise of stan-dom years ago. Used Backplane to create Directioners.com, Beliebers.com etc, use her position to get the artists to interact/give exclusives as incentive to join and maybe link them together using some sort of pop culture music blog.
Like what would little monsters be talking about now? That bird she was harassing on her property, and the garden a landscaper designed, a gardener started and then she swooped in with a watering bucket one day and claimed it all?
