Home Leadership Turn Archives Me RampUp Solutions Option Sanity
 


  • Categories

  • Archives
 

If the Shoe Fits: Poor Baby vs. AppLovin

by Miki Saxon

A Friday series exploring Startups and the people who make them go. Read all If the Shoe Fits posts here

5726760809_bf0bf0f558_mA founder I know is complaining that almost it’s impossible to achieve unicorn status with investment dollars so tight.

Really?

I guess nobody told the founders of AppLovin, who just sold a majority stake in the 115 person company for $1.4 billion.

The mobile ad network was founded in 2011 by Adam Foroughi, Andrew Karam and John Krystynak and has  never taken traditional venture capital funding.
“I couldn’t find anyone to give us an investment at what I thought was a reasonable starting point valuation (maybe $4 million or $5 million) and, by the end of our first year of operations, we were profitable and doing over $1 million a month in revenue,” he explains. “So I put together a round with angels not really because we needed the cash, but because I thought these were influential people who could help us grow.” Adam Foroughi to Forbes’ Dan Primack

Easy money made for high valuations sans revenue.

These days you need actual revenue as opposed to users, promises, and sunny predictions.

My reaction can easily be summed up in one word.

Tough.

Image credit: Hiking Artist

Leave a Reply

RSS2 Subscribe to
MAPping Company Success

Enter your Email
Powered by FeedBlitz

About Miki View Miki Saxon's profile on LinkedIn

About Ryan ryanrpew

About Marc marc-dorneles-cpcu-b8b43425

About KG View KG Charles-Harris' profile on LinkedIn

About Ajo View Ajo Fod's profile on LinkedIn

Clarify your exec summary, website, marketing collateral, etc.

Have a question or just want to chat @ no cost? Feel free to write or call me at 360.335.8054

Download useful assistance now.

Entrepreneurs face difficulties that are hard for most people to imagine, let alone understand. You can find anonymous help and connections that do understand at 7 cups of tea.

Give your mind a rest. Here are 2 quick ways to get rid of kinks, break a logjam or juice your creativity!

Crises never end.
$10 really does make a difference and you'll never miss it,
while $10 a month has exponential power.
Always donate what you can whenever you can.

The following accept cash and in-kind donations:

Web site development: NTR Lab
Creative Commons License
This work is licensed under a Creative Commons Attribution-NoDerivs 2.5 License.