I think building an app around a demographic that does not have a credit card or spending money might have been challenging from the start, it looks like a very fun app but at the end of the day, people put down their money because they think you are going to make money off the userbase. This is why I feel valuations centered around future profits is bound for major market correction.
I think the app attracts the same target demographic as games that have a casual drawing component to them so I don't know if I would say the demographic doesn't have spending power.
If Drawquest was focused on in-app purchases and didn't find enough traction, I think they should have considered sponsored contests and sell those sponsorships to agencies representing larger brands. Imagine if Nike had a post "Design our new shoe" and gave out a prize for the most upvoted variation or "How would you change the Honda Civic?" and used it as a market research tool.
These are the types of branded opportunities that get some marketers salivating and knowing how to engage their agencies and participate in the RFP process is critical. I hope they explored these options.
