What Works for Startups Like Yours?

Sport Draftr was a Daily Fantasy Sports platform in the UK offering leagues in the English Premier League and UEFA Champions League. The product achieved strong product-market fit with engaged users and grew to 1,000 users with 50% playing weekly, but failed due to unfavorable gambling legislation changes that scared off investors and made scaling impossible without significant capital.

First customers: Email database built before launch, plus friends and networks

Lead Crunch AI is an intelligent B2B demand generation platform founded by serial entrepreneur Olan Hyde that pivoted from a healthcare AI project to help mid-market companies find high-quality leads. Launched in September 2016, the company reached 90 lifetime customers with 55 active within 10 months, growing at 37% compound monthly rate with $200k in monthly bookings and $2M in trailing twelve-month revenue. The company operates on a hybrid subscription/on-demand model with 186% revenue expansion on customer rebookings.

First customers: Referral from venture capitalist met in Uber ride in San Francisco

YouStake is a marketplace where fans can buy equity stakes in professional poker players competing in live tournaments. Launched in June 2015, the platform has processed $2.8 million in stakes from 335 poker players and attracted 1.4 million in pledges from 2,700 users, generating approximately $70,000 in revenue through an 8% commission (5% to YouStake, 3% to payment processors). The team is targeting 50,000+ users and 20% month-over-month growth to hit a Series A by end of 2016.

ClaimCompass helps travelers automatically process flight disruption claims and receive compensation up to $700 per flight, taking a commission from successful cases. Founded in 2015 by Alexander Sumin and others, the company raised $200K from 500 Startups in October 2016 and grew 10x within months through aggressive paid advertising and a successful Product Hunt launch that generated 1,500 free leads.

First customers: Organic outreach through Facebook groups and message boards

Top Hatter is a mobile marketplace for live auction discovery shopping launched in 2012. Operating with a 25% take rate on transactions, the company processes about $1 million in daily transaction volume (roughly 100,000 items) with an average item price of $10-20, projecting $300-400 million in gross transaction volume this year with $80-100 million in revenue. The company has raised $35 million total capital, operates at break-even while reinvesting heavily in marketing with a 30-60 day payback period, maintains 80% gross margins, and has doubled year-over-year since launch.

Sulamon Ali founded Tiny Co in 2009 to create mobile games for the newly launched iPhone App Store. Their first game, Tap Resort, generated $500-600K in revenue in its first month through a partnership with mobile ad network Tapjoy. After raising $18M from Andreessen Horowitz (with Mark Andreessen joining the board), they scaled to $20M revenue in year one and $40M in year two, but hit a wall when Japanese mobile gaming competitors drove customer acquisition costs from $1 to $9, destroying their unit economics and leading to significant monthly losses.

First customers: Marketing partnership with Tapjoy (mobile ad network) that promoted their first game 'Tap Resort' into the top 5 free apps on iPhone App Store