From $50m VC-backed to $20k MRR notes app - Alex MacCaw, Reflect (prev. Clearbit)

Summary

In this episode of *Indie Bites*, Alex McCaw shares his journey from dropping out of high school to co-founding Clearbit, scaling it to $50M in revenue, and transitioning to build Reflect, a bootstrapped note-taking app with a unique funding model. Alex discusses his philosophy on entrepreneurship, the importance of choosing the right customers, and the value of building products you're passionate about. He also emphasizes the significance of trust and design in B2C products and provides advice on early-stage growth and community funding, all while enjoying the freedom of working remotely from a yacht.

Takeaways

• 😀 Alex McCaw, founder of Reflect, shares his entrepreneurial journey from dropping out of high school to building successful startups.
• 😀 Alex's first startup, Clearbit, grew to $50 million in revenue, but he stepped down as CEO to focus on what truly excites him: building products.
• 😀 Reflect, Alex's current project, started as a personal passion project to create a note-taking app he loved, and is now generating $20K in monthly recurring revenue.
• 😀 Alex emphasizes the importance of creating products that align with your own interests, as passion is key to long-term success in building a business.
• 😀 Alex views entrepreneurship as a more viable career path compared to traditional education, pointing out that practical experience is more valuable than a degree in creative fields or programming.
• 😀 Reflect's growth has been largely driven by bootstrapping and community funding, raising $1 million from customers who are treated as long-term partners in the business.
• 😀 Instead of following traditional funding routes, Alex focused on building a trust-based product and a community of users who align with the company's ethos.
• 😀 Alex discusses the challenges of scaling a company and how being a CEO of a larger organization often means moving away from the things you enjoy, like R&D and product creation.
• 😀 Building a business requires finding the right customers who share your passion, as this creates a sustainable and enjoyable relationship with your user base.
• 😀 Alex shares his belief that the world doesn't need another note-taking app, but Reflect serves as a tool for people who love writing and organizing their thoughts, which resonates with a specific audience.

Q & A

Why did Alex McCaw choose not to go to university?

Alex McCaw dropped out of high school at 17 and chose to join a startup instead of attending university. He believed that for creative fields and programming, real-world experience at a startup is more valuable than formal education. He felt his friends who went to university were behind him in terms of work experience after a few years.

How did Alex McCaw land roles at Twitter and Stripe despite not having a computer science degree?

Alex landed roles at Twitter and Stripe by writing a book on programming, which helped him obtain the necessary visa to move to the United States. His passion for coding and real-world experience with startups helped him secure these positions, even though he did not have a formal computer science background.

What motivated Alex McCaw to leave his CEO position at Clearbit?

Alex McCaw left his CEO role at Clearbit because he realized that running a large company required different skills and motivations, and it no longer provided him the hands-on, creative work he loved. He felt he was more suited for early-stage, product development work rather than managing a large team and overseeing operations at a company of hundreds.

Why did Alex McCaw start Reflect, his note-taking app?

Alex started Reflect because he wanted a tool that combined his love for writing, programming, and design. After leaving Clearbit, he missed coding and wanted to challenge himself to build something again. Reflect was created as a tool for Alex himself, and it turned out that other people shared his interest, helping the app grow.

How did Alex McCaw fund Reflect in its early stages?

Rather than seeking traditional venture funding, Alex raised $1 million directly from Reflect's user community. He offered these customers a promise of dividends once the company became profitable, which allowed him to bootstrap the business without relying on outside investors.

What role does design play in the development of Reflect?

Design plays a crucial role in Reflect. Alex emphasizes that the app must be visually beautiful and user-friendly because Reflect is built around the idea of trust. Much like Stripe, which prioritizes design to instill trust in its users, Reflect's design is integral to its appeal and user experience.

What was Alex's approach to marketing Reflect in its early days?

Alex used a combination of one-off marketing campaigns such as product launches, relaunches, and promotions on platforms like Product Hunt. He also sponsored newsletters and considered SEO and content marketing to attract users. However, Alex acknowledged that these methods were not entirely sustainable and required more creative, long-term strategies to build a loyal customer base.

How does Alex manage running Reflect while sailing around the world?

Alex uses **Starlink**, a satellite internet service, to stay connected while sailing around the world. This allows him to work remotely, managing Reflect from his yacht while enjoying the freedom of travel. Although connectivity can be challenging at times, the lifestyle provides a balance of work and adventure.

What advice did Alex McCaw give to aspiring entrepreneurs regarding customer relationships?

Alex advised aspiring entrepreneurs to choose customers they genuinely enjoy working with, as building a product involves a lot of collaboration and feedback. Finding a customer base that aligns with your interests makes it easier to create a product you're passionate about and helps sustain the long-term commitment required to build a successful business.

What was Alex's perspective on venture capital and the startup narrative in Silicon Valley?

Alex does not subscribe to the typical Silicon Valley narrative that founders must stay in their companies until an IPO or acquisition. Instead, he believes in focusing on personal motivations and what drives you. If you're not suited for running a large company, stepping down from a CEO role and letting others take over is a logical decision. His emphasis is on enjoying the creative process of building products rather than chasing fame, power, or wealth.