usage-based Startups

Bitcloud is an invite-only, blockchain-based social network that lets users buy and sell 'creator coins' tied to people's reputation and popularity. Pre-loaded accounts for the top 15,000 Twitter influencers with founder rewards (ranging up to $50k+) have driven viral adoption among early adopters, who report 5-10x returns in days. However, the platform currently has no withdrawal mechanism, causing skepticism about whether it's a long-term protocol or speculative bubble.

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.

Campertunity is a peer-to-peer camping marketplace that launched in Canada in 2018, introducing camping to the shared economy. Founded by Nora Lozano, an engineer with a passion for nature, the platform allows landowners to list private land for camping and campers to book sites. After generating significant pre-launch media attention, the company grew through organic PR and Facebook community engagement, reaching 400+ users and 50 listings within its first year.

Benja Commerce Network was a gamified mobile shopping app and shoppable media ad network that helped define the interactive advertising space. After initial traction from a Product Hunt launch, Andrew pivoted to an ad network model with promising unit economics, but cash flow challenges and fundraising rejection led him to make material financial misrepresentations to investors, ultimately resulting in SEC/FBI investigation, shutdown, and his conviction for securities fraud in 2020.

David Friedberg founded Canna (formerly The Production Board), a molecular beverage printer that allows consumers to create any beverage at home by combining water with flavor cartridges containing chemically-extracted compounds. The device launched pre-orders at $499 for the first 10,000 units, charging per drink consumed (25-50% cheaper than retail) with auto-shipped cartridges. The three-year R&D effort involved analyzing thousands of beverages via GCMS to prove that all drinks are 99% water and only 1% flavor compounds, enabling a long-tail beverage marketplace similar to YouTube or TikTok.

Cherry is a browser extension that helps accommodation businesses get direct bookings by showing customers better deals when they search on travel sites like Expedia and Booking.com. In four months, they onboarded nearly 1,000 partner properties across Australia, New Zealand, and Canada, with plans to launch in the US with 20,000 properties by November. They charge hotels a performance fee of $10/month plus $0.79 per click, significantly cheaper than the 30% commissions charged by major OTAs.

Orangewood Robotics is a hardware startup that trains general-purpose robotic arms to perform high-value industrial tasks like powder coating, painting, welding, and pick-and-pack operations. The company leverages affordable, programmable robotic arms (similar to how the iPhone became a platform) and writes specialized software to teach them different manufacturing processes. They rent their services to industrial clients for around $500/day, offering reliability and consistency that beats manual labor.

Billy McFarland, infamous for the failed Fyre Festival, is attempting a comeback with Pyrate, a platform that hosts small groups (6-15 people) on private island adventures while livestreaming experiences to virtual audiences who can interact and influence real-world events in real-time. The venture aims to generate revenue through micro-transactions (e.g., $0.20 per action) from millions of virtual viewers, with aspirations to exceed the Bahamas' annual tourism numbers through virtual attendance.

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.

Doug DeMuro, a popular YouTube car reviewer with 4 million subscribers, launched Cars and Bids in June 2020 as a modern alternative to Bring a Trailer. The platform focuses on 1980s-onward cars and generated 75 million in gross sales in 2021. In 2022, Doug sold a majority stake to Churn Group (a PE firm specializing in creator-led businesses) for approximately 40 million dollars, allowing him to scale operations while maintaining creative control.

Vungal was a mobile app advertising network founded by Jack Smith that pioneered cost-per-install (CPI) pricing instead of traditional CPM models. The company launched 12-18 months after the iPhone App Store opened, capturing perfect timing in a high-growth market. It sold for hundreds of millions in revenue with 60% margins for the company, making it one of the most profitable ad tech businesses.

Vongol was a mobile video ad network founded by Jack Smith that revolutionized app monetization by charging based on app installs rather than video impressions. Starting with mockup-driven cold outreach that generated ~$1M in developer commitments, the company scaled to ~$1M in daily revenue within seven years and sold for approximately $800M. The company's competitive advantage included proprietary iPhone screen recording capabilities and direct relationships with app developers.

Gojek is a Southeast Asian super app that started as a motorcycle ride-hailing service in Indonesia and evolved into a comprehensive platform offering 30+ services including ride-hailing, food delivery, grocery delivery, payments, and financial services. By the time of their IPO (Indonesia's largest ever at ~$27-28B valuation), Gojek had 2.7 million drivers, completed 3 billion orders annually, and dominated the region through early investment in brand, operational excellence, and solving uniquely local problems that global competitors overlooked.

Wise is an international money transfer platform that has achieved extraordinary word-of-mouth growth, with 70% of new customers discovering the product through referrals. The company grew from 16 million customers to acquiring 1 million per quarter by focusing relentlessly on three product pillars—price, speed, and ease of use—and measuring customer advocacy through NPS to drive product decisions rather than traditional A/B testing.

This is an interview with Sachin Consul, Chief Product Officer at Uber, discussing his product philosophy centered on extreme dogfooding and a 'ship, ship, ship' mentality. Over his 8+ years at Uber, Sachin has personally completed 700-800 driving and delivery trips while also taking 5-10 Uber rides weekly and ordering 3+ Uber Eats meals weekly, using these experiences to identify product improvements and maintain deep empathy for drivers and couriers. He emphasizes the importance of cutting decision-making cycle time, running daily standups during critical periods, requiring live product demos for launches, and operationalizing dogfooding through quarterly competitions and fix-it OKRs that commit to resolving 300+ user-reported issues per team per half-year.

Intercom, a 14-year-old customer communication SaaS business making hundreds of millions in ARR, faced declining growth and nearly hit zero net new ARR before pivoting to AI-first agents (Fin). Six weeks after GPT-3.5 launched, Owen McCabe led a dramatic organizational transformation—cutting costs, firing 40% of employees, and betting ~$100M on AI—resulting in Fin growing 300%+ annually and reaching eight-figure ARR with a path to $100M+ ARR within three quarters.

Handshake, a 10-year-old career marketplace with 18M students and professionals, launched a data labeling business in January 2024 by leveraging its massive network of experts (500k PhDs, 3M master students) to create high-quality training data for frontier AI labs. In just 4 months, the new business hit $50M in revenue; by 8 months they're on pace to exceed $100M ARR—rivaling their core business in annual revenue.

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.

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.

Scoop is a news discovery network and marketplace connecting journalists with newsmakers/companies. Founded by Bill Hanks, former VP of Corporate Communications at Real Networks and PR director at Microsoft, the platform has 630 registered journalists (6% of business journalism market) after 7 months and recently began generating revenue (~$1,000/month) by charging companies $250 to algorithmically match their news to relevant reporters.