If you are intrigued by how a 32-person company can be acquired for $19 billion, you must pay attention to the ultra-light startup trend. We’re doing case study after case study on the 1M/1M blog on this trend, so that you can get a diverse but visceral feel for how entrepreneurs are building these businesses.
Sramana Mitra: What were the backgrounds of these other two companies? Were they using a vertical approach? John Wallace: No, they’re horizontal. I think what they have in common is that they have simplified the problem by collecting data off of Excel. They try to get themselves on the website. It makes the day of
If you haven’t already, please study our Bootstrapping Course and Investor Introductions page. OJ Whatley did $6 million in revenue in 2006 from his home, with ‘me, myself, and I.’ Further elaborating on the ultra-light startup trend, we bring you his story of approaching $20 million with 20 employees. Sramana Mitra: Let’s start at the beginning of your story.
If you haven’t already, please study our Bootstrapping Course and Investor Introductions page. We continue our coverage of fat startups, how they get funded, built, and scaled in this series with Adaptive Insights. Lean startups get a lot of attention now, but I have been covering fat startups as well with stories like Adaptive Insights. Sramana: Rob, let’s start by
Sramana Mitra: Can you talk about that? John Wallace: The problem now has a name. It’s not an ideal name but it has a name. It’s called marketing attribution. It’s looking at the effectiveness of marketing spend. The field closest to that would be approaches of this in Statistics in the past 20 years –
Sramana Mitra: You focused on getting to a business model. Part of the problem at the Valley right now is that people just go and build things without figuring out a business model. As a result, they have huge burn rates and no monetization model. That doesn’t create a sustainable company. That whole model is
Sramana: What kind of expertise do you have on your team and how is that split out? Michael Dash: I have two full time people working in customer service. I have a database engineer and a full time catalogue person. I have a marketing analyst. Myself and my partner are the President and CTO. I
YCombinator has just announced that it will replace its $17k for 7% pre-seed equity investment with a $120k for 7% seed investment deal. From the WSJ: Previously Y Combinator’s standard deal was about $17,000 for 7% of the company, plus an $80,000 note from a group of venture investors and firms eventually known as YCVC,