Cool, I just wrote a blog post trying to give Credulity too, but from a different angle. I think the app could be something huge, especially with the people and amazing tech they have, as you say.
That is an interesting use case, but I don't know if it's enough to make the case for the company. Given that you can pretty effectively address that problem via Facebook or Flickr today, I don't know that someone would put $41M into a company that came to them speaking primarily to solve that problem.
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