Bootstrapping to Billions: SurveyMonkey's Story

Hey there,

Most founders on Day 1 & ZERO revenue think of VC funding.

This duo bootstrapped for 11 years & got to $28 million in ARR before raising a single dollar.

Welcome, SurveyMonkey - read & get inspired 💪🏼

It all started with two brothers, Ryan and Chris Finley, working in a music production company in Wisconsin. But instead of making music, they were dreaming up a better way to conduct online surveys.

Being bootstrapped, their strategy centered on organic growth. And, since they lacked venture capital, they put every earned dollar back into the business.

They built a business on seemingly a simple product using freemium pricing, good branding, razor focus, and prioritizing retention.

After bootstrapping successfully for a decade, they realized that securing external funding could further fuel the growth of SurveyMonkey.

In 2009, they received investment from Spectrum Equity and Bain Capital. Within a few years, their valuation exceeded 1 billion dollars, and today it stands at over 3 billion dollars.

A couple of lessons to learn:

1. Bootstrapping a tech company is possible: SurveyMonkey started as a profitable venture and did not need external investment for over a decade.

2. Focus on substance, not hype: Despite being low-key and staying off the tech media radar, SurveyMonkey thrived. The quality of service outshone any flashy ads, cash burn, etc.

Let their journey remind us - it’s not about HOW you fund your race; it’s about HOW well you run it! :)

✍️ Jargon of the day

Survey:

A survey is a way to ask a group of people questions about a topic. It's like a quiz, but the answers help us understand what many people think or feel about something. You can see surveys in forms, online, or in person.

People answer questions, and then all the answers are looked at together to find out what's common or different among them. Surveys help learn about people's opinions, habits, or needs.

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Cheers,
Karthik