Secret launched in January 2014 by former Google engineers. The app let users share anonymous posts visible to phone contacts, creating viral cascades. Within weeks, it was #1 in the App Store in multiple countries. The company raised $35M from Google Ventures, Kleiner Perkins, and Ashton Kutcher at a $100M valuation.
Company Data
- Founded: 2013 — David Byttow, Chrys Bader
- Total Funding: $35 million
- Lifetime: 16 months
- Failed: April 2015
Like Yik Yak, anonymity was both the growth engine and the poison. The app became a breeding ground for vicious gossip and false rumors—particularly in tech circles where people could be identified by their network graph. A redesign to be more positive alienated existing users. In April 2015, just 16 months after launch, the founders shut down and returned remaining capital to investors.
Key Lesson
When your growth engine is also your toxicity engine, cosmetic redesigns won't fix the problem. Sometimes the most responsible decision is to shut down.