Much Ado About $41 Million Dollars

There is this show in Canada called Dragon's Den. I think it's called Shark Tank in the US. If you don't know what I'm talking about, basically you pitch you business idea to about half a dozen rich business people. If they like what they hear, they invest their own money into your business.

One of the most frequently cited reasons for not investing (even when the business seems quite promising) is that they either have no sales, or the company value being presented was too high.

I can't help think of this when I see $41M invested into a startup that has no users, no sales, and has not been proven yet in the market place. The Dragons would tear it apart.

What am I missing here? Does Color has SO much potential that it offsets the massive risk? Or is it that when we talk about the "internet", we are operating under a different set of rules?

But didn't they say that before?