Startup pitch competition: Jason invests $25K | E1714 | Summary and Q&A

TL;DR

Three startups from Founder University showcase their ideas, including Sticker, Outmost, and Pay Squad, and compete for a $25,000 investment from Jason Calacanis.

Key Insights

• 🤗 Consumer marketplaces focusing on second-hand items, like Outmost, have gained significant traction and demand.
• 🪛 Sustainability and consumer demand for more sustainable options are driving the success of platforms like Poshmark.
• 🙈 Real-world events and promotions can help create a movement around a product or service, as seen with Uber and Lyft.
• 😀 Prioritizing design and aesthetics is crucial for consumer-facing startups to attract and retain users.
• 🥶 Leveraging the strengths of multiple co-founders and builders can increase the likelihood of success for early-stage startups.
• 🥺 Identifying a beachhead market and focusing on it can lead to faster growth and market penetration.
• 🏛️ Social proof and customer satisfaction can help startups gain funding and build credibility in the industry.
• 👤 Balancing simplicity and functionality in design can enhance the user experience and drive adoption.
• ❓ The Founder University program provides valuable knowledge and network opportunities for early-stage founders.

Transcript

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Questions & Answers

Q: How does Sticker ensure competition and motivation among its users?

Sticker allows users to create challenges with specific goals and metrics, inviting friends to participate and compete. The competitive aspect encourages motivation and accountability to reach those goals.

Q: How does Outmost plan to address issues related to product quality and returns?

Outmost aims to build a community of users who are passionate about outdoor gear and ensure quality by connecting buyers with sellers who have knowledge about the products. For returns and disputes, they handle them on a case-by-case basis, striving for customer satisfaction.

Q: What is the revenue model for Pay Squad?

Pay Squad charges a commission fee to merchants for every successful sale, similar to a buy now pay later model. By actively including merchants, they increase cart sizes and reduce customer acquisition costs.

Summary

In this episode of This Week in Startups, three founders from Founder University pitched their ideas for the chance to secure a $25,000 investment from Jason. The ideas presented included Sticker, a social accountability app, Outpost, an online marketplace for outdoor gear, and Pay Squad, a group payments option at checkout.

Questions & Answers

Q: What is the purpose of Founder University?

Founder University is a 12-week program that selects the companies that have built an MVP and demonstrated an understanding of customer needs. The program aims to provide support and investment to early-stage startups.

Q: What are the criteria for acceptance to Founder University?

Founder University looks for multiple founder teams, preferably with skills in product development and design. They also prioritize developers as founders, as they have a greater chance of successfully bringing a product to market.

Q: How does Sticker, the social accountability app, work?

Sticker allows users to create challenges with their friends to help them stay motivated and accountable. Users can set goals, measure progress, and compete with their friends to achieve these goals.

Q: What makes Sticker unique compared to other goal-tracking apps?

Sticker stands out because it combines social accountability with competition, which has been proven to be motivating. Unlike other apps that are not engaging or specific enough, Sticker provides a dedicated space for goal tracking and encourages users to challenge themselves.

Q: What is the motivation behind starting Sticker?

The founders of Sticker were motivated to create the app because they wanted to hold each other accountable in achieving their goals. They realized that accountability and competition were effective ways to stay motivated and wanted to create a platform to help others do the same.

Q: How does Outpost, the online marketplace for outdoor gear, work?

Outpost allows users to securely buy and sell high-quality used outdoor gear. It connects buyers and sellers who are passionate about outdoor sports and provides a platform for transactions. Sellers can list their gear for free and are paid when their items are sold.

Q: Why is there a demand for platforms like Outpost?

There is a growing demand for sustainable and affordable outdoor gear. Consumers are increasingly conscious of the environmental impact of buying new products and are turning to platforms like Outpost to find high-quality used items. The platform benefits both buyers and sellers and helps extend the lifecycle of outdoor gear.

Q: What is the revenue model for Outpost?

Outpost charges a commission fee to merchants for every successful sale. This revenue model is similar to the buy-now-pay-later model and allows Outpost to achieve better net transaction margins without the need for lending or credit.

Q: How does Pay Squad, the group payments option at checkout, work?

Pay Squad allows users to split the cost of a purchase with others. Users can create a group payment, share a simple link with others, and collectively contribute towards the purchase. Once the total cost is reached, Pay Squad pays the merchant and the item is shipped.

Q: What is the business model for Pay Squad?

Pay Squad charges a commission fee to merchants for every successful sale. This model is similar to buy-now-pay-later services, but Pay Squad does not require lending or credit, resulting in better net transaction margins.

Q: What is the focus of Pay Squad in the near future?

Pay Squad's initial focus is on retail checkouts, aiming to capture 2% of transactions and onboard 100 retail merchants in the next 12 months. They plan to expand into other verticals like group ticketing and travel before transitioning to a fully hosted marketplace with card issuing.

Takeaways

These three startups showcased their innovative ideas and demonstrated their potential for success. Sticker offers a unique approach to social accountability, Outpost taps into the demand for sustainable outdoor gear, and Pay Squad provides a group payments solution. The founders have shown their ability to iterate quickly and adapt to customer feedback, positioning them for future growth. The program of Founder University has proven to be effective in guiding and supporting these early-stage startups. Overall, the episode highlights the importance of product velocity and building a strong team in the startup journey.

Summary & Key Takeaways

• Sticker: An app that creates challenges for users to hold each other accountable for their goals, with a focus on social accountability and competition.

• Outmost: An online marketplace for buying and selling high-quality used outdoor gear, aiming to connect outdoor enthusiasts with sustainability in mind.

• Pay Squad: A group payments option at checkout, allowing users to easily split the cost of their purchases with others, increasing cart size and extending reach for merchants.