Sequoia invested in youtube and it turned out very well for them. Color is more likely the next youtube instead of next facebook.

I haven't tried Color yet, but from what I have read it makes it dead easy to share photos and form social groups. Remember the real breakthrough of youtube was you click on a link and the video starts playing, it was and still is the most hassle free way of watch videos, there were no codecs to download, no heavy flash pages to load just fast and easy. People like easy and Color is making it easy to share photos and form social groups.

About $41 million, yes that is high but now the company can go to work instead of worrying about the next round of financing.