From Freelance Designer to Creating a Profitable Creative Software Tool

veed.io veed.io3 years ago in #Business Love514

In just 4 months and 14 days since we have started charging for our product and about 13 months since our online video editor went live, we have hit an important milestone, we have hit ramen profitability. As of mid October 2019 we are at $5000 in monthly recurring revenue, VEED now pays for two full-time founders (myself and Tim) and two part time developers (Mate and Veljko… Love you guys) Ramen Profitable  “Ramen profitable means a startup makes just enough to pay the founders’ living expenses” – Bad Man PG We have hustled pretty f****** hard to get here and learnt a LOT along the way. There were a couple of moments where we thought it was all over, like the time we ran out of money and had to get contract work, or the time when we were kicked out of our office. Oh and time our first two developers quit working for us immediately on the same day. But through all these drastic highs and lows, we have continued to move forward and grow. Ramen profitability is a huge milestone, but also marks the start of the next big phase of our startup journey as we are moving towards finding product market fit and starting to scale our product to thousands of monthly paid users. In this post I am going to go through and describe our journey as to how we got to where we are right now and document the main milestones and lessons we have learnt along the way. As bliss as our progress might have seemed from the outside, it has been a real grind with many ups, downs, failures and fuckups. So here goes… The Backstory – $0 MRR To start, I think its important to set the scene. In 2014 online video was hailed as the new BIG thing, everyone was banging on about it. We both could see a cultural shift accelerating. We were watching more YouTube than TV, we were flicking through Instagram more than magazines and we were not alone, all our friends were doing that too. Quality user generated content was winning in a big way. The fact that you can shoot high quality videos with a smartphone and distribute content globally free of charge was changing how we were consuming media and in its wake creating a new generation of celebrities, influencers and publishers. In turn inspiring even more to create. Brands started to take note and the old model of creating two blockbuster TV commercials a year to connect with your audience started to become less relevant. At this point, I realised that most video editing software was designed for making films and TV shows, not short snappy social media content. After searching, I found no editor that was powerful, yet simple enough, that would allow you to construct a narrative or tell a story. We thought there is definitely a gap in the market, but we were not sure what it was just yet. The type of videos I was making at the time We thought we were a great team to solve this problem. I was a recent grad from Central Saint Martins, I had directed music videos for Sony music, had experience working in advertising and branding agencies and a bunch of startups too. Tim worked on a research project at King’s College London and built an automated video editing platform that used AI and Natural Language Processing to summarise news articles and turn them into short, bite-sized informational videos (the project was called VEED) Tim and I did some research and…

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