LEVEL UP ⬆️

How did they do it?

In case you missed our #17 edition from about two weeks ago (summer vacay, right?), we covered 10 low-key tactics to win your first customers.

As startup founders say, to keep the momentum going, we’ve done our homework this time to present you with insights from well-known names in the tech and startup world, showcasing how they reached their first customers and inspiring you to do the same.

Shall we begin?

1. OpenAI

OpenAI started in 2015 as a nonprofit research organization with a mission to advance digital intelligence for the benefit of humanity. Founded by notable figures like Sam Altman, Elon Musk, Greg Brockman, and Ilya Sutskever, the team initially focused on publishing high-quality AI research to build credibility and raise awareness among AI researchers, developers, and tech enthusiasts.

In its early days, OpenAI also released open-source tools and code. However, the release of GPT-2 marked a shift, as access was granted gradually, creating significant buzz in the AI community. The real turning point came with the limited release of the GPT-3 API, available only to those on a waitlist, including developers, startups, and enterprises. This exclusivity led to widespread excitement, with users sharing their AI-powered creations on social media.

These strategic moves, combined with an extraordinary AI product and strong leadership, have propelled OpenAI to a current valuation of around $80 billion, with 180.5 million users worldwide.

2. Perplexity

After a pivot, Perplexity began developing their product in early 2023. They offered early access to a select group of users, creating a sense of exclusivity. These early users primarily came from marketing and research backgrounds, as Perplexity believed their AI search engine would be most beneficial to these groups. As these users shared their experiences within their networks, organic word of mouth helped attract new users.

Today, Perplexity is valued between $2.5 and $3 billion and has more than 10 million active monthly users.

3. Airbnb

Airbnb’s founders, Brian Chesky and Joe Gebbia, initially created a simple website to promote renting out air mattresses in their apartment during a design conference in San Francisco. They launched the platform alongside the 2008 Democratic National Convention in Denver, which brought an influx of visitors to the city. To attract hosts, they personally took pictures of accommodations and listed them online. They also used Craigslist to offer a better transaction experience for sellers.

Today, Airbnb is valued at approximately $74.63 billion and has over 150 million users globally.

4. Stripe

Stripe was founded in 2009 by brothers Patrick and John Collison, who created a simple solution for accepting online payments with just 7 lines of code. As part of Y Combinator, they asked fellow founders if they needed payment infrastructure. When they received a positive response, the brothers used their laptops to integrate the system themselves. Outside the accelerator, word about their hassle-free solution began to spread steadily. They also sent company swag to new users, generated word of mouth, and attended hackathons where they helped developers by writing code without directly promoting the product, just wearing branded T-shirts.

Today, Stripe is valued at $65 billion and is integrated into over 1.06 million live websites.

5. Spotify

After launching the initial version of Spotify, co-founders Daniel Ek and Martin Lorentzon from Sweden reached out to influential music bloggers in 2008, inviting them to try the new app and helping to generate buzz. Three years later, the team partnered with major American brands like Coca-Cola, Chevrolet, Motorola, and Reebok to introduce the product in the U.S. These brands ran display ads and offered exclusive Spotify invitations to their audiences. The limited availability created a buzz, and users sharing their playlists and music preferences on social media further drove engagement and attracted new users.

Today, Spotify is valued at $67.66 billion, with 626 million monthly active users and 246 million premium subscribers as of mid-2024.

So many clever tactics and impressive ideas for gaining those first users reaffirm the thesis that startup founders can't just build in isolation and expect people to come.

Doing things that don’t scale can lay the groundwork for long-term growth, and it's crucial to get out of the building while you're building.

How did you land your first customers? Reply to this email to share your story and be featured in the next edition 🔥

STARTUP NEWS RADAR 📡

_{What’s happening these days?}

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• TechStars hosts a three-part virtual event for early-stage startups designed to give you the knowledge and tools you need to successfully pitch your startup to investors. [source]

• JOB ALERT 💼 ChiaDia is looking for a Business Development Manager. Check out the details, apply, or share with someone who might be a good fit for the role. [source]

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THE STARTUP VAULT 🗃️

_{Founders take note:}

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• Tune in to the latest HalkBank podcast w/Aleksandar Stankov from RelaxifyApp. 🎧

• Ben Horowitz explains the ideal founding team for every startup.

• Grab the newest Communication Guide for Civil Society Organizations by Zhar Ptica.

*Working on something that fits this category? Reply to this email to be featured.

Hey ChatGPT 🤖

I need a YouTube video idea that will compare my [product/service] to similar options on the market and persuade my [ideal customer persona] to choose us with clear and compelling evidence.[PROMPT].[TARGETLANGUAGE].

Term of the week 🕵

Acqui-hire is acquiring a company primarily for its talent rather than its products or services.

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