
I just sold my startup for $200,000 after 11 months. AMA
Last August, I was looking for a startup idea I could grow and made a MVP in a week then launched it. I received the $200,000 wire from the buyer a couple of days ago
I found tons of useful info online for free, so I hope this can be my way of giving back :)
Here is some background:
Idea
I got the idea when trying to write a tweet using Google Doc's transcription tool, which was terrible. I was pretty sure I wasn't the only one too lazy to type, I made my own solution using AI to transcribe and reformat voice notes into any kind of content. I called it Talknotes, mainly because it was the only domain available lol
Validation:
My rule is to only reinvest what the project generates. After listing on startup directories and posting on Twitter, I generated $700 in 10 days. It wasn't much, but enough to show interest and keep me motivated.
I added user-requested features, but the launch effect wore off, and daily revenues dropped to $0 after a few weeks. I almost gave up, but friends encouraged me to continue.
In October, I launched on ProductHunt and it blew up. It became Product of the Day and reached $1500 MRR thanks to media coverage.
I initially built everything using vanilla JS/CSS/HTML + Node for backend. But it's pretty limited for apps with lots of interactivity so, I rebuilt the app using Nuxt.js to make it easier to ship new features.
Then, I launched ads on Facebook and I implemented a feedback loop:
- Get new users
- Learn about them through onboarding
- Make more ads based on onboarding data
This doubled MRR in about 2 months.
Burnout and Sale: In May, I had a bad burnout after emergency bug fixes. This made it hard to work on the app after. At this point MRR was around $7000 and total revenues around $70,0000
I listed it on Acquire.com for $200,000, a very good price for the buyer considering revenues and growth. I could've gotten $300,000 with buyer financing or earn-outs, but I wanted cash, $200,000 today is better than $300,000 in a year.
Everything was smooth until we tried using Escrow, which almost fucked up the deal (details here). Long story short, had to threaten them to make a sponsored post on Twitter explaining what they did + legal action. They sent the refund the very next day, and we completed the transfer directly.
Now, this isn't an overnight success. It's the result of 7 years of grind. I launched over 40 projects since I started, and most of them failed. I often worked 100 hours per week, and I rarely go out or meet many people. It's not for everyone, but I'm fine with it
With the profit from the app + sale, and other projects, I have close to 1/3 of a million dollar. I could retire in Asia if I wanted
Just mind blowing to think I wrote funny characters in a code editor and sold it for the price of a house lol
Edit 1:
A few people got confused. I said it's 7 years of grind and most of my projects failed, not that I was not making money. I also said I OFTEN worked 100h/week, not every week :)
Since I learned to code 2 years ago I've made close to $400k from my app's profit + exit (this one + another one for $65k last year). And before that I was making money as a marketing freelancer.
Also, I dropped after high-school, so, I had to learn everything from scratch, it takes time!
Edit 2:
Lots of people asked how/where I learned to code in 2 months. I wrote a blog/journal about it back then with links to resources, you can find it here if you're interested
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