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My last startup we went mobile first and it sucked. We were bootstrapping so also contracting. The pressure of having to maintain two codebases (in this case iOS and Rails) as well as keep clients happy left a particularly bitter taste. That's before you do any marketing too!!

For my new one I've purposefully chosen something which can be built completely in rails and still be useful. So much easier when dev resource (i.e. me) is constrained.

Mobile first means design your website for mobile devices first, not build a native app first.
Thank you for posting the correct answer.
Yes. Good examples are the Bootstrap and Foundation frameworks that are now very much mobile first.
Instagram is an example of "mobile first" in the sense of the article. It's a thing.
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