Dawson's $1M app

Hey, it’s Guy & Farzan.

Monday night. Enzo and I watching Manly Beach life pass by from a bar with a $12 margarita. The air had a chill in it. Still have shorts on but feels like summer's closing down. Here's what I've got for founders this week.

Reading time: 9 mins

In the mail today. 3 founder stories, 1 cautionary tale, 1 tweet

 Founder story 1 

How a tiny Welsh factory went from making 35,000 jeans/week to 0... then rebuilt into a premium brand with 3-month waitlists.

How a tiny Welsh town became the jean-making capital of Britain (again)...

Here's how David and Clare Hieatt brought 400 jobs back to their hometown through Hiut Denim:

The backstory:
- Cardigan, Wales had Britain's biggest jeans factory
- Made 35,000 pairs/week for 40 years
- Factory closed in 2002, devastating the town of 4,000
- 400 skilled workers lost their jobs overnight

The mission:
- Bring jean-making back to Cardigan
- Get those 400 skilled workers their jobs back
- Prove you can build a world-class brand from a small town

Starting small:

Launched in 2012 with just 5 people:
- Making 150 pairs/week (vs old factory's 35,000)
- Focused on premium quality over volume
- Every pair made start-to-finish by one person
- Smart growth strategy:

Kept it intentionally small:
- No outside investment
- Used internet as distribution channel
- Minimal marketing spend
- Built purely through word of mouth

Celebrated the craftspeople:
- Called experienced workers "Grand Masters"
- Some had 40+ years experience
- Complete ownership of each pair
- Passed skills to next generation

Learned from past mistakes:
- Previously built & sold Howies clothing
- Got burned by growing too fast
- This time: controlled, sustainable growth
- Focus on quality over speed

The breakthrough:
- Meghan Markle wore their jeans
- Orders exploded overnight
- 3-month waiting list
- Global media attention

But instead of chasing rapid growth:
- Maintained quality standards
- Kept production in Cardigan
- Focused on sustainable scaling
- Moved back into original factory building

The results today:
- 20 person team
- Global waiting list
- Premium brand recognition
- Moving toward 400-person goal

Key insight about manufacturing: The internet changed everything. Small makers can now compete with big brands through:
- Direct customer relationships
- Powerful storytelling
- Premium quality
- Zero middlemen

The bigger lesson:
Sometimes the best opportunities aren't about inventing something new, they're about bringing back something that worked before, just in a smarter way.

Proof that with the right approach, you can:
- Revive traditional crafts
- Create sustainable jobs
- Build global brands from small towns
- Compete with industry giants

As David says:
"Who can tell the best story, wins. Who can make the best product, wins."

Founder story 2

See how Dawson built a $1M app in 5 hours

See how Dawson:
- Started as Uber engineer, quit to travel
- Built NFY in 4-5 hours during a hackathon
- Got 10,000 organic signups in 48 hours
- Scaled to $1M+ ARR with simple "anti-email" strategy

Key insight about solo development:
Success isn't about features. It's about quality over quantity. In crypto, Dawson won by only notifying users of legitimate, high-value claims, building trust in a space full of scams.

Today's results:
- 250,000 free users
- 5,000 paid users
- $1M+ in revenue
- Acquired by Bankless
- Lives in a van skiing

The best part? He found freedom doing what he loves. "Look at me now, it turned out pretty well," Dawson reflects from his van in Colorado.

Founder story 3

This 23-year-old ignored everyone’s advice, bought $30K in washers and dryers, and built a 100-unit rental business working 5-10 hours a week.

A washer and dryer rental business? That's the dumbest idea I've ever heard."

That's what most people said to this 23-year-old entrepreneur before he built a 100+ unit business working just 5-10 hours per week.

Here's why I'm fascinated by this model:
- $60-85 monthly revenue per unit
- $600-800 cost per used set
- Simple subscription payments via Stripe
- Basic maintenance requirements
- Huge market of renters who need washers/dryers

But the fascinating part? As AI reshapes software development, I believe businesses combining physical assets with technology will become increasingly valuable.

Here's why this model works:

1. Market reality:
- Many renters can't afford $800+ upfront
- Laundromats cost $100+ monthly
- Most people hate hauling laundry
- Apartments often lack washers/dryers

2. Operations are straightforward:
- Source used units from wholesalers
- Basic insurance costs (~$600/year)
- Simple installation process
- Minimal tools needed ($75 worth)
- Credit card recurring billing

3. Risk/reward ratio:
- Worst case: Sell units individually
- Best case: Steady monthly income
- Units typically pay for themselves in 12 months
- Low maintenance (1 service call per week per 100 units)

Key insight: While everyone rushes to build the next AI app, there's a massive opportunity in modernising traditional service businesses with technology.

Why this matters:
As AI commoditises pure software businesses, the real opportunities may lie in combining technology with physical assets and services.

The future isn't just about building AI - it's about using AI to transform traditional businesses.

Thanks to Chris Koerner for uncovering and sharing this fascinating business story.

 A cautionary founder tale

The (Ghosted) Snapchat Founder

"A messaging app where photos disappear after viewing."

That's the idea Reggie Brown had in 2011 at Stanford. But this $150B company's origin story involves a painful lesson about protecting your ideas.

Here's the controversial story:

→ Started in Spring 2011 at Stanford University → Built by three friends in a summer → Grew to 30,000 users by January 2012 → Now valued at over $150B

But the fascinating part isn't just the numbers - it's how the founding team fell apart:

2011 (Spring): "What if photos could disappear after sending?" 2011 (Summer): Three friends build the MVP together 2011 (August): Friendship breaks, one founder gets cut out 2012: The battle for recognition begins

The journey had three key players:
- Reggie Brown: Had the original idea
- Evan Spiegel: Became CEO
- Bobby Murphy: Became CTO

Everything started when Reggie Brown ran to his friend Evan with an idea. Evan called it a "million dollar idea" and they brought in Bobby Murphy to code it.

The early days:
- Worked from Evan's dad's house on Toyopa Street
- Created the iconic ghost logo (designed by Reggie)
- Filed a provisional patent
- Built first version called "Picaboo"

Then everything changed. In August 2011, after a phone argument, Reggie was suddenly cut out:
- Passwords changed
- Access removed
- Communication cut off

The critical mistake? Legal documentation. While they had verbal agreements for a three-way split, Reggie was never officially added to the LLC that Evan and Bobby had from a previous venture.

Today's aftermath:
- Snapchat valued at $150B+
- Reggie received $157.5M in settlement
- Evan admitted in deposition that Reggie came up with the idea
- Relationship between friends destroyed

Key lessons for founders:
- Formalize agreements early
- Make yourself indispensable beyond just the idea
- Get proper legal documentation
- Don't rely on verbal agreements

Real quotes from the case:
"Do you think Reggie deserves anything for the contributions he made on the project?" Evan: "Reggie may deserve something for some of his contributions."

Why this matters:
The story highlights how even billion-dollar companies can start with friend dynamics that go wrong. It's a cautionary tale about protecting your intellectual property and formalizing business relationships early.

The biggest lesson? Ideas alone aren't enough - but if you contribute to building something, get it in writing.

 A tweet we loved

Another Monday newsletter all done along with 2 margaritas.

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See you soon.

Guy + Farzan
Founderoo