Remember Backplane, the startup backed by Troy Carter which launched with Lady Gaga’s social network, Little Monsters?
That has now officially gone out of business, as it’s assets have been sold to both new and former investors after running out of money. According to Tech Crunch, Backplane burned through an impressive $18.9 million since it launched back in 2011.
This figure includes the $12.1 million raised in Series A from venture capitalist heavyweights such as Sequoia, Google Ventures, Founders Fund, SV Angel, Greylock, Menlo Ventures, Formation 8 and TomorrowVentures, plus an additional $5 million which came along later.
This resulted in a $40 million valuation for the site, despite the fact that the site was a fan site for Lady Gaga with hopes of launching networks for brands. Sadly, it seems Backplane and Little Monsters were victims of that initial success.
After running two swanky offices, the company failed to make any real progress on the product and multiple sources said the site was crashing. Despite various restructuring efforts by the company, their efforts ended in failure.
Backplane even went so far as to remake itself to Place, and did grow enough to be home to 15,000 communities discussing everything from Minecraft to Asking Alexandria.
However, Backplane eventually defaulted on it’s loans from investors and sold it’s assets, patents and office space and apparently these investors are intending to “restart the concept” of Backplane.
CEO Scott Harrison had this to say: “Essentially, a number of the Series A investors have started a [new company] to continue the business. They are investing to get the business started and a couple of new investors have come on board to provide additional seed funding. The goal is to restart with a clean cap structure, great product, strong partnerships, great team and lean business.”