Piling on stupid-sounding ideas, crazy valuations, and VCs in general is a popular spectator sport in tech circles, but—call me naïve—when I heard Color got $41 million in funding for that app, I just assumed there was a good reason, like that Color's underlying technology has potential way beyond just sharing photos with people in the same room.

That's not to say Color will necessarily be a success, but c'mon—VCs aren't that stupid.