Market Gap Startups

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.

Blab is a live conversation platform launched in January 2016 that allows users to broadcast live discussions where audiences can comment, chat, and call in to join conversations. Founded by Sean Peary after experiences in sushi, biotech, and an idea lab in San Francisco, Blab achieved millions of watch minutes per week with daily active users watching for over an hour per day, competing with Netflix and traditional TV by offering niche content from everyone ranging from basement creators to major brands like ESPN, UFC, Adobe, IBM, and Cisco.

Electric Styles sells light-up clothing including LED shoes, hoodies, ties, and flower headbands primarily targeting the EDM and music festival scene. Starting with light-up bras on Etsy, the company scaled to over 100,000 units sold across 65,000 customers, generating $1.25M in revenue last year and tracking toward $2.5M this year through a mix of marketplace and direct-to-consumer sales.

Borrowell is a Canadian online marketplace lender connecting borrowers with lenders through a proprietary platform. Founded about a year before this interview (circa 2015), the company raised $5.4 million in seed funding and was approaching a significant Series A round. Their growth strategy centers on an innovative product-led approach using a rate-checker widget as their primary customer acquisition tool, exemplifying the "engineering is marketing" principle.

Vroom is an online used car retailer founded by Alon Block in August 2013 that sells cars directly to consumers, buys cars from consumers, and facilitates financing entirely online. By January 2016, just 2.5 years after launch, the combined business (which acquired Texas Direct Auto in late 2015) generated $900 million in revenue with approximately 500 employees, growing from essentially zero through operational excellence, software-driven reconditioning processes, and a focus on high-volume, efficient business model similar to Amazon and Costco.

Bundle is a location-driven mobile app that aggregates local news as users move around their city. Kelvin Lockwood left a £35k account management job in the UK to build the app, which had 50 beta testers in the UK and 20 in the US at the time of this interview. The business model relies on mobile advertising, with projections of £25M annual revenue from 6 million users based on a £5-7 CPM.

Jay Bean founded FreshLine in 2014 after leaving his Chief Strategy Officer role at Deluxe Corporation. FreshLine helps local service-based businesses attribute marketing spend to actual transactions and automatically re-engage past customers. With a couple hundred direct customers paying $150-400/month, FreshLine is projected to hit $250K in the first full year, with plans to scale to $4-5M through partner relationships.

Grom (formerly U-Creat 3D) is a 3D printing company founded in 2012 that delivers customizable 3D printed accessories through major retailers like Walmart, Amazon, and Overstock. Co-founded by Vincent Vandepel with a 50-50 equity split, the company generated $85K in revenue in 2015 and projected $1.2M for 2016, fueled by large retail partnerships and a unique hybrid manufacturing model combining Asian production with US on-demand 3D printing. Having raised $180K on a convertible note, the founders aimed to raise $750K in seed funding at a $6M valuation to reach $2-2.2M revenue within 18 months.

BrainChase is an online learning platform that gamifies education through a semester-long adventure treasure hunt, curating the best third-party curriculum providers. The company grew from 500 participants in summer 2014 to 2,000 in summer 2015 (generating ~$400K in revenue), and is expanding from a seasonal summer model to year-round offerings through after-school and school district partnerships.

Talking Shrimp is a copywriting agency and online course founded by Laura Belgraine, an award-winning copywriter with over 20 years of experience working with major brands including Bravo, NBC, Disney, and HBO. The business operates on a 50-50 revenue split between copywriting services (bringing in $30,000 in August alone) and The Copy Cure, an evergreen online course created with Marie Forleo that teaches people to write persuasively and authentically to drive sales.

Lawn Starter is a two-sided marketplace that simplifies lawn care ordering for homeowners while providing backend infrastructure for local lawn care providers. Founded by 23-24 year old Ryan Farley (who left a $100k Capital One job) and Steve (who dropped out of Virginia Tech), the company reached over 2,000 customers across DC, Austin, and Orlando within ~2 years, generating ~$500k in annual revenue with $7.25M in funding.

Intently is a browser plugin platform that replaces online ads with user-selected inspirational content, addressing the $6.7 billion ad blocker problem. Founded by serial entrepreneur Misha Mikalian (37, 8 prior startups), the company has raised $500k in seed funding via SAFE notes and grew to less than 10,000 beta users organically through word-of-mouth. Launching in September with plans to reach 100,000+ users by year-end and raise a $10M Series A.

Strapping is a seasonal styling service for gay men, founded by Steven Kahn 18 months prior to this interview. The company charges a $39 styling fee per quarterly box and generates approximately $520 in annual revenue per active customer through a combination of the styling fee and merchandise purchases. With 1,000 active customers and 1,400 total signups, Strapping has achieved approximately $520,000 in annual top-line revenue with 20% net margins after all costs.

Lovable is an AI-powered vibe coding platform that launched in November 2024 and hit $200M ARR in under one year with 8M+ users, making it one of the fastest-growing SaaS companies in history. Elena Verna, Head of Growth, attributes the explosive growth to building in a hot emerging category, creating a genuinely lovable product experience, heavy reliance on word-of-mouth and founder/employee social media, and a unique approach to growth that prioritizes shipping new features and building in public over traditional optimization. The company maintains growth through constant product iteration, influencer marketing, and a culture of high-agency hiring that enables rapid experimentation.

Mercor is a labor marketplace connecting AI labs with expert professionals to evaluate and train AI models. Founded by 19-year-old Brendan Foodie in January 2023, the company grew from $0 to $400M in revenue run rate in just 16 months—the fastest ascent in history. The company operates at the intersection of the exploding demand for model evals and reinforcement learning, hiring highly skilled professionals (lawyers, software engineers, doctors, etc.) at $95-$500/hour to create evaluation rubrics and training data that improve model capabilities.

Codeium started as a GPU virtualization infrastructure company in 2020, pivoted in mid-2023 after recognizing that generative AI would make their infrastructure commoditized, and rebuilt as an AI coding assistant. The company launched Windsurf, a custom IDE built on forked VS Code, four months before this interview, reaching over 1 million developers and hundreds of thousands of monthly active users. They've built a significant enterprise sales organization (80+ go-to-market team members) and differentiate through deep codebase understanding, support for multiple IDEs like JetBrains, and secure/compliant deployments for enterprises.

Captions is an AI-powered video creation platform founded by Gorav Misra, a former design engineering lead at Snap. The app enables anyone to generate and edit talking videos with AI, democratizing video creation for non-professionals. With over 10 million users and $100M+ in funding, Captions achieved viral growth by shipping innovative features like AI eye contact correction and maintaining a unique product development methodology where every engineer ships a marketable feature weekly.

Salesforce, founded by Mark Benioff in 2000, pioneered cloud-based CRM software when most believed enterprise software would remain desktop-based. The company used guerrilla marketing tactics (staging protests outside competitor Siebel's conference) to break through the noise and build awareness. Today, at 25 years old with $38 billion in ARR and 135,000 customers, Salesforce is the second-largest B2B SaaS company in the world and is aggressively pivoting toward AI agents as its next major growth vector.

Latitude is a venture platform co-founded by Gina Godhill dedicated to building the next generation of iconic tech startups in Latin America. The company organized a 5,000+ person conference across two days with 70+ speakers including Ben Horowitz, bringing together top entrepreneurs, operators, and investors from across Latin America and the US. Gina emphasizes the importance of recognizing both the 'A-side' (highlights) and 'B-side' (failures and struggles) of entrepreneurial journeys, with the thesis that Latin America represents significant untapped opportunity in tech.

Mixpanel, founded in 2009, started as a product analytics solution for mobile and web teams. After explosive early growth fueled by a proprietary event database (Arbor), the company expanded into adjacent categories like messaging and data infrastructure. By 2018, facing 40% revenue churn and under-investment in core analytics features, leadership made a strategic pivot to focus exclusively on the core analytics product. Through rapid feature development (100+ features shipped in one year) combined with design-led architectural improvements, Mixpanel increased retention from 60% to 90% and NPS from 16 to 50 by 2021-2022.