// startup autopsy
Lolapps
Built on Facebook's back — and fell when the algorithm changed
platform dependencyAcqui-hire
Fatal mistake: Lolapps built its entire user acquisition and distribution model on Facebook's viral channels, leaving it completely exposed when Facebook tightened its platform policies.
Key Events Timeline
FOUNDING
Lolapps founded in San Francisco to build social games on Facebook's platform.
FUNDING
Lolapps raises $4M to fuel development of Facebook social games.
PRODUCT LAUNCH
Lolapps reaches peak user numbers, benefiting from Facebook's viral social graph distribution.
PRODUCT LAUNCH
Facebook tightens platform policies and reduces viral distribution, causing user acquisition costs to spike across all social game developers.
SHUTDOWN
Lolapps is acqui-hired as its games business becomes unsustainable without cheap viral distribution.