Lady Gaga owned part of failed startup Backplane

Failed startup Backplane has gone down in flames.

Backed most notably by singer Lady Gaga, it has been described as a place on the Web to create niche-based communities connected by shared interests. As such, it might have been a natural fit not only for singers like Gaga but for any brand having or seeking a strong niche community.

So what went wrong?

Recent reports say the company started out strong but fell victim to poor internal management, overzealous spending and a lack of direction. It’s a good lesson to all startups that big name backing and plenty of investment are no guarantee of success.

Back in 2011, Backplane caught the eye of a number of big investors, including Gaga and her manager Troy Carter. Other backers included Google Ventures, Sequoia, SV Angel, Greylock, Founders Fund, Menlo Ventures, Formation 8 and TomorrowVentures.

As a result of all this support, the startup was eventually able to raise a combined $18.9 million in backing — every founders dream. Plus

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Source: Small Business Trends