Viddy
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
Viddy was a Los Angeles-based mobile social-video app founded in 2011 by Brett O'Brien and JJ Aguhob, frequently described as an 'Instagram for video.' Users recorded 15-second clips, enhanced them with visual filters and music, and shared them through Viddy's network or Facebook, Twitter and YouTube. It drew partnerships with Snoop Dogg, Linkin Park, Disney and celebrity users including Justin Bieber, Shakira and Will Smith. After integrating with Facebook's social platform in 2012 it reported tens of millions of registered users and raised $30 million at a valuation of about $370 million.
02 / Viddy FAILURE REASONS
Failure reasons
Viddy's growth was built on Facebook distribution, and it collapsed when Facebook changed its influential algorithm, sharply cutting Viddy's traffic. Competition arrived from both sides: Twitter launched Vine in early 2013, followed by Instagram's own video feature. With traffic falling, the company laid off one-third of its team and recapitalized, returning $18 million of its big funding round to investors. After rebranding as Supernova in 2013 it sold to Fullscreen in January 2014 for a reported $20 million — a fraction of its peak valuation — and was shut down that December.
03 / EVENT HISTORY
Events in the structured record
- Founded
Viddy was founded in Los Angeles in 2011 by Brett O'Brien and JJ Aguhob as a mobile app for recording, editing and sharing short videos.
- Rapid growth and funding
After integrating with Facebook, Viddy reported tens of millions of registered users — claimed 50 million at its peak, adding 500,000 registrations per day — and raised $30 million in May 2012 at a valuation of about $370 million.
- Collapse and recapitalization
A change to Facebook's algorithm sharply cut Viddy's traffic; Twitter launched Vine and Instagram added video. The company laid off one-third of its team and returned $18 million to investors in a recapitalization.
- Acquisition and shutdown
Viddy rebranded as Supernova in 2013, was acquired by Fullscreen in January 2014 for a reported $20 million, and the Viddy app was removed from app stores on November 4, 2014 and shut down on December 15, 2014.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
In January 2014 Fullscreen acquired Viddy (rebranded as Supernova) for a reported $20 million, a fraction of its peak valuation.
- 02
The company also launched slow-motion video app Epic and ephemeral group messaging app Clique under the Supernova brand.
- 03
On November 4, 2014 the Viddy app was removed from the App Store and Google Play.
- 04
Users had until December 15, 2014 to use the service and export their videos via Viddy.com.
- 05
On December 15, 2014 the service officially shut down; the Epic and Clique apps were closed too as Fullscreen refocused on its own audience experience.