usage-based Startups

Bellhops is a tech-enabled marketplace connecting DIY movers with local, vetted college athletes who provide affordable moving and lifting help at $40/hour. Operating in 128 US cities with nearly 5,000 active service providers and processing 3,000-5,000 bookings weekly, the company has raised $8M+ in funding (including a $600K seed from Lampus Group and a $6M Series A led by Binary Capital).

I'm Scalable is a digital marketing agency founded by Justin Brooke in August 2011 that manages online advertising campaigns for high-level clients including Trump University, Russell Brunson, and Stansbury Research. Operating as a lean team (primarily himself with contractors as needed), Justin manages approximately $1.5 million in monthly ad spend across clients and earns 5-15% commission on those budgets, generating over $90,000 in monthly revenue. The agency recently transitioned from struggling to reach $100K/month to rapidly scaling to $1.5M in managed spend, with plans to expand into media and content networks to capture higher margins.

Onboy is an on-demand food delivery app exclusively focused on the college market, founded by 20-year-old Anthony Zhang. The company has processed nearly 10,000 orders and generates just over $10k in monthly revenue with 45% month-over-month growth, powered by a 100% student delivery workforce and exclusive restaurant partnerships that allow deliveries in under 30 minutes. Anthony pitched Mark Cuban and got funded $100,000 on the spot, and is part of the 500 Startups batch in Mountain View.

Chad Whitman is a serial entrepreneur who first built Edranck Checker, a Facebook analytics tool that grew to $60K MRR before selling to Social Bakers for approximately $2.8M in 2014. He then co-founded Dolly, an on-demand moving marketplace that leverages pickup truck owners as a unique asset class, raising $1.7M seed and $8M Series A (valuation ~$50M range) by taking a 20% cut of jobs on the platform.

Sellbreaker is a legal-tech SaaS platform founded by John Colgan that helps consumers cancel cell phone contracts without paying early termination fees by identifying carrier breaches in contracts. The company charges 35% of the savings (ETF amounts) and achieved a $13 million annual run rate by August 2015 with 13,000 users, maintaining a 100% success rate. Colgan raised just under $300,000 in convertible notes (partly from 500 Startups) and planned to expand to other consumer contracts under a new vertical-agnostic brand called Vito.

Liz Piccarazzi left a six-figure job at American Express to launch Checklist Home Services in 2011, a professionally-run handyman service in Brooklyn and Queens that prioritizes customer experience. Completing 65 jobs in October at an average price of $400 per job with net profit of $60-$75 per job, the business operates with W2 employees rather than 1099 contractors and has expanded into a second venture, Citibin.

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.

Funded Today is a crowdfunding agency co-founded by Zach Smith that has raised over $40 million for 300+ campaigns on Kickstarter and Indiegogo. The company started when Zach's consulting client proposed paying via revenue share instead of upfront fees, which evolved into a three-tiered service offering paid media, press landing, and cross-collaborations. With 31 remote employees and $8M in 2015 revenue, Funded Today takes a 30-35% percentage of funds raised and operates with a unique due diligence testing phase to predict campaign success.

DealFlicks is a Priceline-style marketplace for discounted movie tickets, partnering with over 600 US theaters (including 13 of the top 50 chains) to sell empty seats at up to 60% off. Founded by Sean Wycliffe in late 2010, the company generates a ~$2.4M annual revenue run rate with 2x year-over-year growth, selling roughly 100,000 tickets and concession packages monthly at an average price of $15. Growth is driven primarily through SEO (people searching for movie deals), AdWords, and affiliate partnerships, with DealFlicks keeping 15-20% of transaction value while theaters capture the remainder.

SoundBetter is a two-person marketplace connecting self-producing musicians with freelance audio professionals (including Grammy winners) to help them complete professional-quality songs. As of June 2015, the company achieved an $800k annual run rate through a two-sided commission model: freelancers pay $4 per proposal and 5% of completed job value. Their primary growth driver is organic search traffic, bringing in approximately 30,000 unique monthly visitors searching for audio production services.

Spring Leap is a marketplace of 180,000 advertising agency experts offering faster market research and creative testing compared to traditional firms. Founded by serial entrepreneur Iran Ayel, the company launched an MVP in January 2015, generating $20,000 in the first month and scaling to highs of $100,000 per month by the time of this interview. The business charges $50-$150 per expert per hour with markups, and has attracted enterprise clients like Unilever and Sony while preparing to raise a $2.5M seed round at an $8M pre-money valuation.

GNAP is an app promotion marketplace from Barcelona that connects app developers and advertisers with bloggers and content creators who promote mobile apps on a cost-per-install (CPI) basis. Founded by Gina Tost, the company processed $750,000 in advertiser spending in 2015 and generated approximately $320,000 in revenue by taking a 30% commission. The company grew entirely through word-of-mouth with no paid marketing spend, and was raising $500,000 at a $5M post-money valuation to scale their operations.

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.

June is a recruiting marketplace founded by serial entrepreneur Lane Campbell that connects recruiters with candidates willing to take calls for payment. The platform addresses the high cost of hiring (which Lane found had ballooned to $26,000 per hire) by letting recruiters search for candidates by skill and location, then pay them directly for phone interviews. Though the initial launch between August-November 2015 didn't resonate with the technical community as hoped, Lane is relaunching with new partnerships and positioning the platform as a solution to the broken recruiting economy.

AdSend Media, founded in 2009 by then-20-year-old Fizan Ali, operates a performance-based advertising platform that rewards users for engaging with ads, shifting focus from advertiser/publisher profit to user experience. The company pivoted from desktop to mobile and now manages approximately $700,000 in monthly media spend ($8.4M annually), taking a 30% cut while distributing 70% to publishers, with 20 employees based in Austin, Texas.

Lenda is an online marketplace lender founded by Jason Vandenbrand in October 2013 that streamlines mortgage refinancing for consumers in California, Washington, and Oregon. By January 2016, the company had originated over $70 million in loans with zero defaults, generating $1.5 million in revenue in 2015 by earning 1-1.5% margin per loan. The company uses automated underwriting technology to predict required documentation upfront, dramatically reducing the typical 60-day mortgage process and cutting consumer costs by eliminating traditional loan officer commissions and lender fees.

Italist is a luxury e-commerce marketplace founded in 2014 that connects Italian boutiques with global customers, operating in 85+ countries. By January 2016, the company had achieved $10M in annual transaction volume with $250K in monthly gross margin on approximately 2,000 monthly customers spending $500-600 per order, with 30% of traffic driven by affiliates. The company raised over $1M in seed funding including investment from 500 Startups and was approaching Series A at a $40M pre-money valuation.

DO is a bills and payments platform founded by John Rampton in 2015 that helps businesses get paid faster through invoicing, time tracking, and payroll features. Nine months after launch (as of the February 2016 interview), the platform had processed $4 million in transaction volume in February 2016 alone, generating approximately $40,000 in monthly revenue through credit card transaction fees. John leveraged his expertise in SEO and online marketing to drive tens of thousands of customer signups, with about 60,000 total users and 20,000-30,000 active users.

Glintz is a career discovery and talent marketplace founded in late 2013 by Chin-Un Luy that connects employers with young graduates and fresh talent in Singapore. The company grew from $7,000 in first-year revenue (2013-2014) to nearly $500,000 in 2015, achieving 15% month-over-month talent database growth while spending less than $1,000 per month on marketing, primarily through word-of-mouth and direct university partnerships.

Pixie is an image optimization SaaS platform launched in 2014 by Holly Cardew that helps e-commerce merchants automatically edit and optimize product photos for multiple platforms within 24 hours. The company is self-funded with $150k in angel investment, operates with a distributed team of 16 (plus 100+ freelance designers), and is processing hundreds of thousands of images with over 7,000 customers. Holly grew the company to breakeven by 2015 and found the most explosive growth through an affiliate program that generated 1,000 signups and 70 paying customers in just three weeks.