Just two weeks ago we had no money left in the bank and were thinking of shutting shop. One email changed everything! We got an offer from 500Startups for their accelerator program that expedited our investment round, converted naysayers into believers and made us celebrities among our friends. While we are enjoying the limelight and new boost to our young business, I am pondering over our journey to be an overnight success.
It all started 18 months ago with a simple idea. My co-founder and I worked nights to launch our first product and decided to quit our jobs when we crossed 200 (yes just 200!) subscribers of our app. In the next six months we raised angel investment, launched our service and got featured in online media. While we were getting popular in our friend circle we hit the wall on subscribers. We pivoted twice, tried new tactics and spent money on advertising but nothing worked. The suspicion crept in quickly with little money left in the bank and no brilliant sparks to recover. Suddenly the idea of going back to a regular paycheck and ending our pain seemed lucrative. That was the first real test of our resolve to be entrepreneurs.
To our surprise, a few days of frustration, depression and deep introspection reinvigorated our startup bug! We decided to give it one more shot for a simple logic – we are out of jobs anyway, have some money in the bank, and probably this is the last chance [we both are 35+] to try something this crazy. Two months and hurricane Sandy [we live in NJ] later we launched Sverve. This time, however, we had no fanfare but super results. Things change quickly in startup world – now we had traction but no money in the bank. Our investors [prudently] asked us to find new money and we had put in all our savings in the business already so there was no run way left. That was the second big test of our resolve.
Once again we decided to plough through and gave ourselves three more months on borrowed money. With more traction and early revenue, we could excite some new investors and found ourselves in the final round of the selection process of reputed accelerator programs. However, with time and money running out on us and with no firm decision from investors, we were at the brink of giving up. Then the life-changing email arrived! We got into 500Startups, got early money, and are now closing a seed round.
I am writing this on a flight to Silicon Valley as we gear up to start the program in Mountain View next week. My co-founder and I just killed last three hours discussing our hiring plan, product enhancements, and future funding rounds. It is an exciting time and we are thrilled to be back in business with 500Startups.
This was the story of our overnight success. Overnight, yeah right!