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Cesar Kuriyama (Founder/CEO, 1 Second Everyday) - Building an Accidental Business

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Building an Accidental Business
Cesar will share the story of how he accidentally turned his idea for a tool that would encourage him to be more adventurous into an app, 1SecondEveryday. This became, with the help of a co-founder, a thriving, bootstrapped, remote only, business that became the number one paid app in Apple’s App Store in 2018. With a profitable business and an ever-growing number of paid users, it was tempting to keep on doing the same things. Cesar will share the decision-making process that ultimately led to a change in business model, a rewrite of the platform and to taking outside capital.

You will learn how 1SecondEveryday makes remote working work, why the business had to change as it grew up and what one founder discovered about the ever-growing number of alternative sources of funding available to software entrepreneurs.

Published in: Software
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Cesar Kuriyama (Founder/CEO, 1 Second Everyday) - Building an Accidental Business

  1. 1. JAN 2013 LAUNCH DAY!
  2. 2. ANDROID
  3. 3. NEW YEARS 2014
  4. 4. SALES $0 $25,000 $50,000 $75,000 $100,000 2013 2014
  5. 5. YOU CAN’T “FINISH" TECHNOLOGY
  6. 6. $3 > $1
  7. 7. ENTER CO-FOUNDER! COO SCHONECK SHOAF
  8. 8. “I DON’T WANT TO LIVE IN NEW YORK ANYMORE”
  9. 9. $5 > $3
  10. 10. ENTER CTO! SAMI SAMHURI
  11. 11. NEW YEARS 2016
  12. 12. SALES $0 $125,000 $250,000 $375,000 $500,000 2013 2014 2015 2016
  13. 13. NEW YEARS 2017
  14. 14. SALES $0 $250,000 $500,000 $750,000 $1,000,000 2013 2014 2015 2016 2017
  15. 15. NEW YEARS 2018
  16. 16. SALES $0 $500,000 $1,000,000 $1,500,000 $2,000,000 2013 2014 2015 2016 2017 2018
  17. 17. FEBRUARY 1ST 2018 Something we did not expect... we hit #1 again... why?
  18. 18. “THERE IS NO SHORTAGE OF WAYS TO DOCUMENT OUR LIVES ONLINE, BUT FEW INSPIRE PERSONAL REFLECTION” SO VISCERALLY.”
  19. 19. PARENTS
  20. 20. FINALLY TIME FOR VC FUNDING?
  21. 21. “BUT YOU’RE PROFITABLE!” “YOU’RE LIVING THE DREAM!” “DON’T TAKE VC MONEY!”
  22. 22. “95 percent of VCs aren’t profitable,”
  23. 23. “A VC fund needs a 3x return to achieve a “venture rate of return” and be considered a good investment”
  24. 24. “Ninety-five percent of VCs aren’t profitable,” he said. It took me a while to understand what this really means. I’ll clarify: Ninety-five percent of VCs aren’t actually returning enough money to justify the risk, fees and illiquidity their investors (LPs) are taking on by investing in their funds.
  25. 25. THE VC BUSINESS MODEL…
  26. 26. BUT LIKE… WHAT IF WE DON’T WANT TO SELL OUR COMPANY? WHAT IF WE DON’T WANT TO IPO? But like… we also like totally reserve the right to change our minds… * * *
  27. 27. SOME COMPANIES NEED TIME, NOT MONEY >
  28. 28. IF WE HAD BUILT A SHOE COMPANY…
  29. 29. A DESIRE TO BUILD SOMETHING LONG-LASTING AND MEANINGFUL.
  30. 30. OUR 2018 GOALS - Rebuild the app vertical - Build Pro features - Make the app Free
  31. 31. MARC ANDREESSEN: “ORIGINAL SIN OF THE INTERNET IS HAVING ADVERTISING AS THE CORE BUSINESS MODELAugust 31st, 2019 - A16Z Podcast
  32. 32. “The subscription model is a booming field. In recent years, this market has grown by more than 100% a year, increasing from $57 million in sales in 2011 to $2.6 billion in 2016, according to one expert.”
  33. 33. ALIGNED INCENTIVES What’s best for our customers, not advertisers.
  34. 34. Charge $4.99 on the App Store. One of the top paid photo/video apps. OLD N O W Free app w/ optional Pro subscription tier at $29.99 a year. SWITCHING TO A SUBSCRIPTION MODEL
  35. 35. SO HOW DID IT GO?
  36. 36. 57,000+ SUBSCRIBERS SO FAR
  37. 37. PROJECTED 2019 SALES $0 $550,000 $1,100,000 $1,650,000 $2,200,000 2013 2014 2015 2016 2017 2018 2019
  38. 38. BUT NOW IT’S RECURRING REVENUE!!!!
  39. 39. DOWNLOADS PA I D V S F R E E
  40. 40. NEW YEARS 2019
  41. 41. NEW YEARS 2019
  42. 42. NEW YEARS 2019
  43. 43. ONE TIME REVENUE 👉 RECURRING REVENUE
  44. 44. NOOOWWWW DO WE RAISE VC!?
  45. 45. OKAY TIME TO RAISE For real this time.
  46. 46. BUT… DOES IT HAVE TO BE VENTURE CAPITAL?
  47. 47. AVERAGE RETURN FOR AN ANGEL INVESTOR
  48. 48. ENTER INDIE.VC
  49. 49. INDIE.VCIn a nutshell: a convertible note with a few key variables to be negotiated between the investor and the founder Investment amount Equity Option Repurchase Start Date % of Gross revenue shared to repurchase shares “a team can repurchase up to 90% of the original equity option back at any point prior to a qualified financing through monthly revenue share payments, a lump or some combination of both until they reach a 3x cap.”
  50. 50. If we start scaling quickly, and we decide to raise another round… the investors convert to equity just like any other convertible note.
  51. 51. BEYOND INDIE.VC
  52. 52. VC ALTERNATIVES Lighter Capital Podfund RevUp Riverside Acceleration Capital Scaleworks United Capital Source Time Capital Assembled Brands Purpose Ventures Village Capital Sheeo XXcelerate Fund and more I'm sure! Indie.vc Earnest Capital Tinyseed Ustwo Adventure ClearBanc Alternative Capital Bigfoot Capital Corl Decathlon Capital Feenix Venture Partners Founders First Capital Partners Novel Growth Partners GSD Capital
  53. 53. Indie.vc Earnest Capital UsTwo SureSwift FUNDS A N G E L S WE RAISED 1.25 MILLION! Joel Gascoigne (Buffer) Hunter Walk (Homebrew) Aaron Rasmussen (Masterclass) and many more…
  54. 54. RETREATS!
  55. 55. TEXT
  56. 56. TEXT
  57. 57. TEXT
  58. 58. TEXT
  59. 59. TEXT
  60. 60. COUPLE OF THINGS WE WISHED WE KNEW WHEN WE STARTED A REMOTE COMPANY
  61. 61. useFYI.com
  62. 62. useFYI.com
  63. 63. useFYI.com
  64. 64. useFYI.com
  65. 65. ORDINARY MOMENTS TIME VALUE IMAGE COURTESY OF SHUTTERSTOCK
  66. 66. Isn't it funny how day by day nothing changes, but when you look back everything is different. - C.S. Lewis

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