Yik Yak: a deadly combination | Startup Forensics
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Yik Yak: a deadly combination | Startup Forensics


Anonymous messages and local context were
the perfect mix to make the popular social network, YikYak, come to life in 2013. They
were also the poison to kill it gave us their epitaph: died too
young and too soon. The social network devised by two young roommates
at Furman University in South Carolina – yes, Facebook-style – went from popular to irrelevant. Brooks Buffington and Tyler Droll managed
to sneak YikYak into the top 10 social media apps in the App Store, shortly after
its debut. The idea of ​​expressing their thoughts,
without showing their name and allowing other users to read it around 1 mile away, conquered
young people from hundreds of university campuses in the United States. The magic not only dazzled the students, but
also the investors who, in three rounds, granted $73.5 million in venture capital to Buffington
and Droll. Not bad at all. But it was a matter of time. Anonymity, which
affects everything it touches, turned the social network into a catalog of cyberbullying
and sexist, racist and hateful comments. Did the formula for disaster grow as the app
did? How is it that a startup valued at $ 400 million could not stop its fall? The attempt
was made, but too late. This is Startup Forensics: Yik Yak. Yik Yak wasn’t the first app developed by
Brooks Buffington and Tyler Droll. Their previous attempts include a game, named
Fry Cook, which never took off and an app for asking quick, simple questions named Dicho,
short for “dichotomy”. In the beginning, frat brothers Doug Warstler
and Tyler Droll developed the game Fry Cook for iPhone. It was more than a school assignment,
but less than a first attempt. Buffington joined to form a trio when they
developed Dicho. After that, they established Locus Engineering LLC in June 2012. Brooks Buffington and Tyler Droll finished
their university career and returned home, while Warstler returned to finish college. It was in 2013 when YikYak emerged. Locus
Engineering LLC was dissolved and Warstler was out of the equation. Later he sued the
founders, claiming his place in the raising unicorn. The idea of ​​the YikYak founders was
quite simple: short messages, called Yaks, to share with anyone who was close, very close,
without having to reveal an identity. Now, what was shared? Opinions
Class notes requests Complaints about the cafeteria food
Or it was simply used to express your thoughts without the risk of being judged The app spread quickly on the campus of Furman
University, where its founders studied, then came to Georgia Tech and the rest is history.
It went viral in American universities and even reached other countries such as Spain,
Germany, Brazil, Australia. While alive, YikYak captured the attention
and financing of 10 investors and it relied on Atlanta, even though it seemed almost an
inescapable requirement to dive into the Silicon Valley environment to get financing. YikYak was a social network that would reach
a coveted market sector: university students. At the peak of its fame, in 2014, Yik Yak
was better ranked than giants like Facebook, Twitter, and Pinterest in the AppStore, counting
1.8 million downloads that year. But success was not only achieved behind a
keyboard. It was about generating local context in the application, but it was also about
diving on the university campuses, making special events and knowing their potential
users. This was an important and well-performed strategy:
they even got former President George H. W. Bush to wear YikYak socks. During Yik Yak’s prime, other apps like
Secret and Formspring used anonymity to grow a community of users around them. These apps
ran with the same fate of disappearing, but they died even earlier, in 2015. They couldn’t beat Yik Yak in terms of venture
capital either. Secret, a confessions app, barely managed
to raise $35 million for financing, and the founders earned three million each. After
their initial boost, they failed to appear among the 100 most popular apps in the App
Store, but they still reached 15 million users. In April 2015, David Byttow, CEO of Secret
confirmed the closure of the application and said they’d return part of the money invested
to their partners. On the other hand, Formspring, an application
to ask anonymous questions, lost ground to movements of companies like Tumblr and only
obtained $14 million in venture capital. Founded in 2009, it reached 30 million registered
users and 4,000 million publications. It finally closed its doors in March 2013. At the end of 2014, Yik Yak announced a round
of financing from Sequoia Capital, although, after that, downloads and traffic rates began
to fall. Although the initial enthusiasm of freely
asking “who wants to go for a beer later?” could keep Yik Yak’s flame alive, anonymity
also gave place to disturbing situations: like receiving negative comments about your
image or being close in the same room as your stalker and not knowing who it was. Furthermore, you are not in college forever
(well, some people are), but most students graduated, moved to other cities and interest
in the application decreased. However, the app played an important role
when in the middle of a shooting in the library of Florida State University in 2015, the
students used Yik Yak to let authorities know where they were hiding. Gradually, the app began to receive the attention
of the press, but not because of its rapid growth or its ability to raise capital, but
because of its difficulty in stopping insults and cyberbullying. The founders resorted to some measures to
try to limit the comments that undermined the image of the application, such as the
Yakarma. Yakarma allowed the Yaker community to
regulate the comments, giving positive or negative votes to the messages that were posted.
So, the messages that received five negative votes came went completely out of the feed. It wasn’t enough. Cases like that of young Elizabeth Long echoed
in the press. Elizabeth tried to commit suicide and while she was recovering, she saw some
messages in Yik Yak, which invited her to do it again. Another well-known case was that of feminist
Grace Rebecca Mann, who appeared dead and Feminist United denounced that she had received
numerous threats through the anonymous platform. Yik Yak began to become popular in high schools,
though it was banned in many of them. This forced Yik Yak to find solutions: offering
geofences. The schools were just required to fill out
a form in which they indicated its coordinates to request the service to stop working there.
No matter the number of downloads or users in the area. More than 100.000 schools were
“fenced”. Chicago was a particularly problematic site
for the application. In an interview, one of the founders said
that it was curious that people did not stop talking about Yik Yak in that state, but when
they came to download it, they simply could not use it. Ross Ellis, the founder, and chief executive
of Stomp Out Bullying said in an interview with The New York Times that she had parents
reaching out to say kids as young as 9 years old had been threatened and harassed on the app. The proximity that initially caught users’
attention, eventually made them fear for their safety, especially those who were harassed
through the platform. Yik Yak also tried to motivate its followers
to create a username. Later, this was made mandatory and when the interest in the application
fell, the founders had to take back that measure. But at that point, the application had already
become a ghost town. Neither the private chats nor the list of
the best Yaks was enough to revive the dying unicorn. Droll said they stopped listening to their users, distanced themselves from them and,
according to him, that’s when the fall began. Finally, in 2017 they had to say goodbye to
the application and the company that was once valued at $400MM, chose to sell part
of their intellectual property and its team of engineers for $1MM to the mobile payment
company Square. Yik Yak went from heaven to hell. Power & responsibility: generating expectations
in users and investors is a great power that comes with great responsibility. Anonymity and proximity: The thing that made
your company grow can also destroy it if you don’t evolve. Change the rules of the game: Listen to what
your customers want and give it to them, but don’t pivot so much that they don’t recognize
you or identify themselves with your product. Bad press: if they are talking about your
company, it’s fine, but if they associate it with negative situations all the time,
well, it isn’t. When the press talks about your product, act as soon as possible. Grow with your audience: It’s fine that you
focus on your customers, but think about how you can continue to be relevant to them. Especially
if they are college students, who will soon graduate and go home. Plain and simple: If you lose relevance your end is inevitable.

29 thoughts on “Yik Yak: a deadly combination | Startup Forensics

  1. Hey Caya, is there a way I can connect with you to ask for advices? I am a building a startup and I would want to learn from you.

  2. Hello, Caya…thanks.
    The last-minute is pure gold as it appropriately framed in yellow….u r becoming a good habit my friend.
    Thank you 🙇

  3. Companies need to accept the good with the bad. Yikyak blocking area and forcing you to sign up was a horrible decision.

  4. The young demography is had to target as they're the most likely to move on to the latest trend. Moreover they're very hard to monetarize

  5. Your platform, Slidebean, is amazing. YOU are amazing! You're one of the very few CEOs I know who's willing to make time to create educational, entertaining content. Godspeed to you 👌

  6. When building a tech company, in my opinion, I believe that the SOCIAL MEDIA MARKET is a risky market to enter. Reason being is that you see the same pattern in almost EVERY social media company, They get a HUGE rocket launch then they gradually fall. And as big as facebook is, they are a dying company losing hundreds of millions of users every year. I think if you want your startup to become a successful long term company you should focus on two important things:

    1. Come up with an idea or solution to problem that will make people's lives easier.

    2. And put a HEAVY focus on making your customers happy.

  7. Caya. You the guy. If God allows. I'd like to get you and you're team. Patrick Bet-David and Vuzi from South Africa. Check your highest common factor. You break business to me in Leemans. Thanks. Like i said before this channel deserve more. I always like to get your algorithm your way. This may channel.

  8. Awesome content as always. For the love of god though, fix your lighting! Your skin tones are way off and it looks like you aren't using enough diffusion.

  9. What’s your opinion on profitability? A friend of mine who’s on his 4th company says investors don’t care about profitability. They care about their ROI which will either come by getting your company acquired or going public. So focus on growth and not sustainability because if you’re profitable it means you’re not growing and you’re not going to get the investors their ROI. What’s your opinion on this? Is your goal to get your company acquired or going public?

  10. Hello again this is me yasir.

    Status update in my business: I was trying in the previous weeks to convince a co-founder with me to handle the app development side yet, sadly with no luck. So I decided to go soloprenuer in my business.

    I have a good amount of self-fund and looking for the best option of tech house to design and develop the app.

    In the same time I'm analysing the pitch desks videos that you provided and to be honest Airbnb one was the best value for me because, my business is working in Real estate as well.

    Yasir Amir

    CEO of DAR (Digital Agency for Real Estate)

  11. In Germany we have literally the same app for students called jodl ;D they handle those problems way better though 😀

  12. Ok same shit different asshole.

    1) Have a decent idea

    2) Get VCs to put other people's money in & VCs sell their shit to the next rounds at higher evaluation to other VCs – aka raising more money while cashing in on fees.

    3) Use 90% of your funds for marketing and buy Tons of google and Facebook ads.

    4) Make up fancy metrics hope to go public to sell to dumb retailers.

  13. Incredible idea for show as a part of content strategy. I don't know yet who's running this in your company, but it's as creative and valuable as smart it is. Great job.

  14. Hi, my name is Rex. Sorry for the awkwardness of this message, but you were the first person that I thought of when I heard a news story on Good Morning America. The day before yesterday, in California, there was a shooting at a high school in Santa Clarita resulting in two deaths and three injuries. A young girl stumbled into the choir room and was given emergency wound suppression to keep pressure on the wound . This classroom was equipped, through a nonprofit, with a Trauma Kit called “Keep The Pressure”! Can you please help me to form some type legitimate go-fund-me type of site to try and place one of these Trauma Kits in every classroom in America?

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