Path launched in 2010, co-founded by former Facebook executive Dave Morin and Napster creator Shawn Fanning. The insight: Facebook had become too big; people wanted a more intimate space. The app limited users to 50 friends initially (later 150, based on Dunbar's number). The design was beautiful—warm, tactile, with thoughtful animations.
Company Data
- Founded: 2010 — Dave Morin, Shawn Fanning
- Total Funding: $66 million
- Peak Valuation: $500 million
- Peak Users: ~20 million
- Acquired by: Kakao (2015), shut down 2018
Path's intimate vision couldn't compete with network effects. Most people's close friends were already on Facebook/Instagram/WhatsApp. The 150-friend limit, while philosophically elegant, was commercially self-defeating. An FTC privacy investigation over unauthorized address book uploads further damaged trust. Kakao acquired Path in 2015 but couldn't revive it.
Key Lesson
A beautiful philosophy about intimacy doesn't overcome network effects. Social networks live and die by where your friends already are.