😰 For the second time, Y Combinator (the most popular start-up accelerator in the world) made a video about tarpit ideas... aka "startup ideas that seem to attract many founders but have been tried by many founders before with little to no success"
👀 Ironically, an example they LOVE to use is social investing:
"During the pandemic, a lot of start-up ideas were someone saw Wall Street Bets and was like hey I'm going to make a start-up out of this somehow"
🪦 And to some extent, they're not wrong. There is a GRAVEYARD of 'investing social networks' that raised 5-10x more capital than Blossom Social and shut down in 2022/23 once we hit the bear market (including many that YC funded)
🚀 In contrast, Blossom has rocketed to over 150,000 users, has retention rates in the top 10% of all finance apps across North America, is on track for over $1M in revenue this year, and just hosted in-person events with over 1,200 folks coming out, some driving 2+ hours to join us!
🔥 If that isn't proof that this isn't a 'tarpit idea,' I don't know what is!
🤔 So what's the difference?
🔑 I believe the key is in our mission: "to empower the world to make better financial decisions together."
📊 While our competitors catered to risky short-term investing, we were obsessed with building a community that helped encourage and promote real financial literacy and long-term investing. This meant:
- Working with the right content creators like Brandon Beavis, Adrian Bar, and many more to help build the right foundation for our community
- Saying no to copy-trading and reminding folks to do their own research and not just blindly follow what other people are doing
- Focusing feature development on dividend tracking, education, and other tools to empower long-term investors
🐻 And as a result, when the bear market hit, the short-term investors ran away (with the founder of one competitor that shut down telling me they saw an over 90% drop off in engagement) but Blossom Social continued to thrive and grow!
🤝 We've also been fortunate to work with incredible ETF partners who share our mission, like BMO Global Asset Management, Harvest ETFs, Global X Canada, Purpose Investments, and many more, and are well on track to be profitable in 2025! (something that never would have been possible if we faltered from our mission)
🥰 So for one, I am SO happy that I didn't listen the first time in 2022 when I saw Y Combinator essentially calling Blossom Social a tarpit idea (although I'll admit it kept me up that night 😅...)
👋 And for two, Dalton and Michael - it might be time for a new example! 😉