21 Jun Built to Sell Radio: The Humble Yogi Sells His Business
Along with three friends, Sebastian Johnston co-founded TheAmazeApp in 2014. The idea was based on a simple idea. Social media influencers could upload a picture of what they were wearing and tag the clothing on TheAmazeApp’s database of e-commerce retailers. Then, when one of their followers purchased the item, TheAmazeApp would receive a commission they shared with the influencer.
The founding team raised $800,000 through the San Francisco-based accelerator 500 Startups. By leveraging their influencers to drive traffic, TheAmazeApp quickly grew to 4 million active users per month. Eight months later, TheAmazeApp was acquired by Zalando, one of Europe’s largest fashion wholesalers.
There’s a ton to enjoy in this episode, including:
- How the “traffic arbitrage” business model works.
- How to get developers to accept shares instead of cash for their work.
- How an acqui-hire works.
- Why you should never reveal the names of the other bidders for your company.
- How Johnston kept a poker face throughout the negotiation despite running short of cash while the acquirer dealt with an internal issue.
- The surprising role humility, yoga, and meditation played in getting a deal done.