Anonymous Chat App ‘Secret’ Shuts Down, Returns Money to Investors

Secret, a social media app that allows users to remain anonymous, has shut down.

secret
Source: ©iStock.com/lzf

With the shutdown of Secret, the startup is returning money to investors. This is strange as most startups try to pivot to become something new. David Byttow, the founder of Secret, said that he would rather return the money than risk trying to change its focus, reports CNNMoney.

It’s unknown how much money the Secret startup still has available to it. Fundraising campaigns for the startup brought in $35 million last year. The startup had 15 million users in January, but had become a place where bullies could harass users without consequences due to its anonymous nature, CNNMoney notes.

“They raised a lot of money and had a good reaction initially,” Brian Blau, a Gartner analyst, told The New York Times. “But how do you build viral growth when the community is anonymous?”

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Article printed from InvestorPlace Media, https://investorplace.com/2015/04/secret/.

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