Backplane, the ambitious startup backed by Gaga’s manager Troy Carter, was to create and operate a social media network made specifically for her fans. With Gaga’s partnering, its valuation was determined at 40 million at its peak.
So what went wrong?
Read below to find out.
According to TechCrunch, the company burned through 18.9 million dollars since its 2011 launch, when Gaga was at the height of her popularity in the ‘Born This Way’ era. The tech site also cited its founders living “lavish lifestyles” as one of the reasons the company went belly up.
“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. Five years and $18.9 million later, the two issues combined to destroy the startup.”
A request for comment from Lady Gaga’s team has not been returned at this time.