Thread by Aleksandr Volodarsky
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- Mar 27, 2023
- #Business #Fundraising
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VCs will tell you: "Don't do it"
These founders didn't listen and outsourced their engineering. Now they are worth billions.
10 stories that will surprise you:
These founders didn't listen and outsourced their engineering. Now they are worth billions.
10 stories that will surprise you:
1/ Calendly is a well-known but my favorite story.
In 2013, @TopeAwotona outsourced the MVP to Ukrainian developers.
He stayed with the team (throughout the revolution and the start of the war in 2014), and they shipped.
Today:
• 10M users
• $100M/yr rev
• $3B valuation
In 2013, @TopeAwotona outsourced the MVP to Ukrainian developers.
He stayed with the team (throughout the revolution and the start of the war in 2014), and they shipped.
Today:
• 10M users
• $100M/yr rev
• $3B valuation
2/ Skype
The founders hired Estonian engineers to build the video and voice tool.
At its peak, it had 300M+ users.
In 2011, Microsoft acquired it for $8.5B
The founders hired Estonian engineers to build the video and voice tool.
At its peak, it had 300M+ users.
In 2011, Microsoft acquired it for $8.5B
3/ Alibaba
Jack Ma, the co-founder, outsourced the site development to US engineers because he couldn’t find skilled developers in China.
Today, it:
• has ~47% of the eCommerce market share in China
• makes $120B+/yr in revenue
• has a market cap of $220B+
Jack Ma, the co-founder, outsourced the site development to US engineers because he couldn’t find skilled developers in China.
Today, it:
• has ~47% of the eCommerce market share in China
• makes $120B+/yr in revenue
• has a market cap of $220B+
4/ WhatsApp
The founders hired a development team in Eastern Europe to build the first version of the messaging app.
The reason was to minimize the app development costs.
In 2014, Facebook bought it for $19.3B
Today, it has 2B+ users in 180+ countries.
The founders hired a development team in Eastern Europe to build the first version of the messaging app.
The reason was to minimize the app development costs.
In 2014, Facebook bought it for $19.3B
Today, it has 2B+ users in 180+ countries.
5/ Uber
Uber started its operations as an Excel sheet.
When @travisk decided to build the 1st version of the app, he hired a dev shop instead of an in-house eng team.
Today, it's worth $60B+ and makes $31B+/yr in revenue.
Uber started its operations as an Excel sheet.
When @travisk decided to build the 1st version of the app, he hired a dev shop instead of an in-house eng team.
Today, it's worth $60B+ and makes $31B+/yr in revenue.
6/ Upwork
ODesk and Elance merged to form Upwork.
To build the initial version of Upwork, the founders hired freelancers from their own marketplace. Today, it makes $600M+yr in rev
We also hire freelancers from our own marketplace ;) Should start making $600m/year in no time
ODesk and Elance merged to form Upwork.
To build the initial version of Upwork, the founders hired freelancers from their own marketplace. Today, it makes $600M+yr in rev
We also hire freelancers from our own marketplace ;) Should start making $600m/year in no time
7/ Basecamp
Initially, the founders outsourced the app's development to remote engineers.
Today, 75K+ businesses use the project management tool.
Revenue: $150M/yr
Initially, the founders outsourced the app's development to remote engineers.
Today, 75K+ businesses use the project management tool.
Revenue: $150M/yr
8/ Remember Klout?
The founder Joe Fernandez hired a Singaporean dev team to build the MVP.
It allowed him to bootstrap for a long time.
The founder Joe Fernandez hired a Singaporean dev team to build the MVP.
It allowed him to bootstrap for a long time.
9/ MySQL
Initially, the management team outsourced the development of open-source software.
Today, it's run on millions of servers and used by Amazon, NASA, PayPal, and other billion-dollar companies.
Initially, the management team outsourced the development of open-source software.
Today, it's run on millions of servers and used by Amazon, NASA, PayPal, and other billion-dollar companies.
10/ Expensify
Founders partnered with a software team to build the back-end infrastructure.
It allowed the team to focus on the front-end tech and grow the business.
Revenue: $169M+/yr
Founders partnered with a software team to build the back-end infrastructure.
It allowed the team to focus on the front-end tech and grow the business.
Revenue: $169M+/yr
That's the wrap
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