Someone asked this on Quora:
"As a VC, how is a $41 million investment in Color, an unproven social media application, justified?"
Yishan Wong gives a great reply, ending on:
"So the question comes down to this: with terms almost certainly negotiated to protect Sequoia's downside, a team with a proven history of execution, a clearly-expanding market where traction can be easily attained, if Color's UI weren't a problem, would this really look like such a turkey? Because if there's one thing a strong team knows how to do, it's iterate on a product. If next week Color releases a version with a UI that is easy to understand and use, do you think people won't use it?"
I think most people think Color is a dud based on R1, but forget that it's only the first heart-beat of a potentially very successful venture. I did.