David Byttow is one of the founders of Secret, the anonymous social networking app for sharing gossip that raised $US35 million and just announced it was shutting down for good.
In its heyday, Secret was the buzz of Silicon Valley, and after raising a final, $US25 million round of funding in July, Byttow was allowed to pocket $US3 million by exchanging some of his stock in the company, which he then used to purchase a Ferrari — a car he has since had to sell.
“Mr. Byttow’s once-prized red Ferrari is also gone,” a new report from The New York Times said, citing “a person with knowledge of the matter.”
While Byttow has promised to return Secret’s remaining money to investors, it’s been unclear if either he or Secret co-founder Chrys Bader, who also took $US3 million off the table, would return that money as well.
Byttow has been a longtime fan of Ferraris, posting pictures of the car on Pinterest and mentioning that he was happy with his purchase, saying the car had “served me well.”
With Secret shutting down, it looks like Byttow can no longer afford to hold onto a sports car that costs over $US200,000, though some would argue the first mistake was taking so much money off the table early on.
“Although Mr. Byttow and Mr. Bader reassured workers at the meeting that they were dedicated to the company, it was a turning point,” The New York Times writes. “It shook the confidence of some workers, they said: If the founders had taken money off the table, it could mean they were protecting themselves against Secret’s failing.”
You can read the full report on Secret’s shutdown over at The New York Times.