Hey — It's Nico.

This newsletter contains:

• 5 resources for founders.
• 5 startup news.
• 1 failed startup.
• 1 hot startup.

​

What to read this week?

🔥 A practical guide on how to choose the right channel for your acquisition strategy.

✍️ GoJek’s founder discusses his journey to starting one of Asia’s biggest startups.

📚 Kurtis Hanni shares Toys R Us' debt & cash lessons for businesses.

🤖 Here’s how Ethan Mollick created a marketing campaign in just 30 minutes using ChatGPT.

📝Brett Adcock shares his notes from 10 years of raising capital.

​

What happened this week?

🚀 OpenAI launches new ChatGPT plug-ins for web browsing.

🔐 Luna’s CEO, Do Kwon, arrested in Montenegro.

👀 Mozilla launches a new startup focused on ‘trustworthy’ AI.

💰 First Citizens is acquiring $72B in deposits and loans from Silicon Valley Bank.

📈 Playfair Capital launches a new $70M fund for early pre-seed startups.

​

Failed startup story: Hey Tiger

Hey Tiger, an Australian-based ethical chocolate brand, ceased operations in July 2021. The founder, Cyan Ta'eed, also co-founded the Australian design startup Envato, valued at $74 million.

The company was born out of Cyan's passion for cooking, which she pursued after a serious eye injury left her unable to work at Envato for some time.

In between the lines:

The company aimed to create a sustainable social enterprise that produced high-quality chocolate and positively impacted the communities it sourced its ingredients from.

However, even after developing a loyal following, Hey Tiger had difficulty scaling its operations and achieving profitability in a way that was consistent with its social mission.

Lessons learned:

An important lesson is that experience doesn’t always guarantee success. Each startup is unique and faces its own set of challenges, regardless of the founder's previous experience.

Hey Tiger's inability to balance its social mission with profitability was a major factor in its demise. As a social enterprise, it can be challenging to achieve both goals, as charitable donations reduce profits.

Consider charging premium prices or diversifying your revenue streams to create a sustainable business model that aligns your mission with profitability. By carefully considering and planning, it's possible to achieve a model that meets both objectives.

​

Hot startup of the week: GoJoe

​GoJoe, a London-based social fitness app startup, recently raised £1.2M in a seed funding round led by Superbet Ventures, with other investors, including Hellen's Rock and Animoca Brands.

GoJoe is a platform that connects workplaces and brands through a hybrid consumer and B2B app. It offers a unique combination of wearables, expert content, and team-based challenges to keep users engaged and motivated.

In between the lines:

The startup has a unique approach based on gamification, AI, and collaboration with experts in psychology and data.

The co-founders of GoJoe, CEO Will Turner and COO Phil Steele, identified a market gap for a social product to help motivate people and make exercise enjoyable. They collaborated with technical co-founders Costi Predescu and Mihai Bucse to create the GoJoe app.

​In an announcement about the recent funding round, GoJoe's lead investors praised the startup's unique and highly scalable business model, which they described as being at the intersection of well-being, sports, and social apps.

Lessons learned:

One key lesson from GoJoe's success is building a scalable business model. By targeting both the consumer and B2B markets and fostering a strong sense of community and engagement, GoJoe has expanded its customer base rapidly and achieved significant growth.

Founders in different industries can explore a hybrid approach similar to GoJoe's, which allows them to cater to the needs of various clients while prioritizing customer experience and results.

Additionally, the two initial founders of GoJoe brought their vision to life with the help of two technical co-founders.

This highlights the importance of having a team with diverse skill sets when launching a startup. Lack of technical expertise can be a common obstacle for founders. However, finding a co-founder with the necessary skills can help overcome this challenge and get the startup off the ground.

By the way, we have an article exploring how and where to find a co-founder. Check it out here.​

​

What do you think of today's newsletter?

• ​🔥 Great​
• ​😒 Meh​
• ​👎 Not interesting​

Cheers,

Nico