Growing Veed.io from $0 to $5 million ARR in 2 years with Sabba Keynejad

Introduction

Two years ago, I wasn’t standing on stages discussing my company; I was struggling financially, and my initial ventures weren’t succeeding. Fast forward to today, presenting at this event with $ 5 million ARR in just two years is surreal and somewhat overwhelming. I want to start with a warning: I’ve been incredibly fortunate to reach this point, and I don't view myself as smarter than anyone else in this room. I’m not a great developer or designer, and I doubt I could replicate this level of success again.

It’s important to note that this wasn’t an overnight success; it’s taken me ten years of various attempts and learning to get to this stage. Let’s rewind to when I graduated from university and landed my first job at a design studio in London. I was thrilled initially, given the competitive nature of the industry, but soon, I found myself feeling drained by the daily grind of a 9 to 5 desk job. My creative energy seemed to vanish, and I realized that being confined to a structure where I had to work on someone else’s vision was not what I wanted.

Looking around at the creative directors in the agency, I realized the typical salaries they earned after many years of hard work didn’t translate to the lifestyle I envisioned. So, my motivation to start something new was not primarily financial; it revolved around a yearning for creative freedom and the energy I missed when I was employed.

Early Endeavors and Lessons Learned

I had some early entrepreneurial successes that laid the groundwork for what would come next. At 16, I started a small business selling red cups for a birthday party after realizing they were unavailable in the UK. That evolved into selling on eBay and making a decent income for a teen. As I progressed through university, I launched a Halloween costume business centered on the popular TV show "Breaking Bad" and created mobile games, some of which earned me a modest income.

After university, I began working in various startups, but my focus was all over the place. From experimenting with VR projects to creating music, I was busy but not productive. It wasn’t until a pivotal moment on a train journey home for Christmas in 2016 that I decided to refocus. I wrote down my thoughts on how to blend creativity with entrepreneurship and committed to narrowing my focus.

A turning point came when I was working contract jobs where I edited videos all day long, which was dull. Observing inefficiencies in the video editing market led me to the idea of building a tool that simplified video editing for users. The early designs were basic, but with my co-founder Tim, we pooled our savings and set to work building something I believed in.

Building and Scaling Veed

We encountered challenges early on, including running out of funds and being rejected by investors. However, through sheer determination and hard work, my co-founder even contributed half of his salary either to sustain the project while we built an MVP. Once we launched it on Product Hunt, we saw a minor uptick in traffic, but we were both exhausted.

Eventually, we got our first paid users. The product evolved, and while I handled the growth and marketing, Tim focused on building functionality. This method proved effective; while we only had basic editing features, we started accumulating users who were vocal about what they wanted.

I combined various marketing strategies with SEO to grow Veed's customer base. Through relentless hustle and experimentation, we reached impressive milestones. The first million took a year, but the second hit in just four months. At that point, we had a team of around 10, and everything started to snowball. Suddenly, we were two million in ARR, and three months later, we were at three million. By the end of this phase, we peaked at $ 6 million ARR.

Lessons Learned

Reflecting on this journey, here are six actionable insights I want to share:

1. Start Niche in a Large Market: Focus on a specific niche but ensure that it scales within a larger market.

2. Identify Your Acquisition Channel Early: Understanding how potential customers find your product is essential for effective marketing.

3. Make Something People Search For: Create a product that aligns with what users are actively searching for online.

4. Don’t Over-Engineer: Focus on growth rather than getting caught up in building additional features.

5. Be Patient: Scaling takes longer than expected; plan for at least two years to see significant returns.

6. Possess Passion for Your Product: Work on something you care about and find the right co-founder who complements your strengths.

In conclusion, using these lessons, Veed has grown into a company that not only provides a robust video editing tool but also serves a diverse user base passionate about the content they create. Thank you for your attention!

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Keywords

• Veed.io
• $ 5 million ARR
• Creative Freedom
• Video Editing Tool
• Growth Strategy
• Startups
• Acquisition Channel
• Niche Market
• Entrepreneurial Journey

FAQ

1. What inspired Sabba Keynejad to start Veed.io?

• Sabba wanted to find creative freedom and build a product that simplified video editing after feeling drained by traditional employment structures.

2. How long did it take for Veed.io to reach $ 5 million ARR?

• Veed reached $ 5 million ARR in just two years.

3. What were some early challenges faced while building Veed.io?

• Key challenges included financial struggles, securing investment, and finding product-market fit.

4. What marketing strategies did Sabba use to grow Veed.io?

• Sabba focused heavily on SEO, tackling user needs, and consistency in outreach methods like Quora posts and YouTube videos.

5. What are Sabba's key takeaways for aspiring entrepreneurs?

• Start with a specific niche in a large market, understand your users' search behavior, and focus on growth while remaining passionate about your product.