⚡ How the World’s Best Note Taking App Went From Laying off all of Their Staff and Almost Closing Down, to Growing to a $1bn+ Valuation

Morning Innovators ⚡ This week (in less than 5 minutes!) we’ll explore…

 📝 How the world’s best note taking app went from laying off all of their staff and almost closing down, to growing to a $1bn+ valuation
📰 All the biggest news stories in the start-up world
👀 Our 3 favourite start-ups to keep an eye on this week
📱How you can 10x your exposure with nothing but a QR Code and an iPhone
🥳 All the best job opportunities and events in the start-up world
📝 A tool that helps with SEO

👆 The most clicked link in the last week’s newsletter was this article about OpenAI launching a store for their GPTs.

Happy hustling,
Rich & Gary

🐘 How Evernote went from the brink of collapse to a billion-dollar valuation and back…It was 3 a.m. and Phil Libin, CEO of Evernote, was facing the brutal reality of adulthood. The year was 2008, and the financial crisis had just dealt its lethal blow to the global economy. With the Lehman Brothers' collapse sending shockwaves through the global economy, Evernote’s crucial investor backed out at the eleventh hour, leaving the company with a mere three weeks of operating cash. Libin, who had put his heart and soul into building Evernote, faced the grim reality of shutting it down and letting go of his team – a team that had become like family.

In a desperate scramble, Libin reached out to every contact he had, hoping for a lifeline, a miracle. The sense of panic was palpable; it was a race against time and dwindling funds. Evernote’s office, once buzzing with the energy of innovation and collaboration, had become a scene of looming despair. But in a dramatic turn of events, a saviour appeared from an unexpected corner of the world.

A call from halfway across the globe, from a Swedish user whose life had been transformed by Evernote's product, offered a glimmer of hope. This wasn't just any user – this was a fan who believed so deeply in Evernote’s potential that he was willing to invest his own money to save it. Within a week, a sum of half a million dollars was wired to Evernote, breathing new life into the company. This act of faith from a user turned investor was the catalyst that propelled Evernote from the brink of collapse to the tech world's hall of fame.

After the life-saving investment, Evernote’s trajectory took a sharp upward turn. The company's innovative approach to digital note-taking, which blended convenience with technology, resonated with a wide audience. They targeted a universal need – the need to organise thoughts, ideas, and information in an increasingly digital world. Evernote’s appeal lay in its simplicity and utility; it was more than an app, it was an extension of the user’s brain. This intuitive understanding of user needs helped Evernote to attract millions of users rapidly.

The company’s growth strategy was multifaceted. They focused on a freemium model, which attracted casual users while converting a significant portion into paying customers. Evernote also expanded its platform compatibility, ensuring that it was one of the first third-party apps available for the iPhone. This move, in particular, significantly boosted its user base, as smartphone usage surged globally. By offering seamless syncing across devices, Evernote became an indispensable tool for many. Strategic partnerships and integrations with other applications and services further solidified its position in the market.

By 2013, Evernote had become a unicorn, valued at more than $1 billion. It wasn’t just the number of users that was impressive; it was the diversity in its user base. From students to professionals, Evernote had managed to cut across demographic barriers, becoming a household name in productivity apps.

However, this success was not to last. As the tech landscape evolved, Evernote began to struggle with maintaining its relevance. The first sign of trouble was the company’s inability to continue innovating at the pace of its competitors. Tech giants like Google and Microsoft significantly improved their note-taking applications, offering them for free, which directly competed with Evernote’s freemium model.

New entrants like Notion and Slack introduced collaboration-focused features, which Evernote lacked. These platforms provided real-time, collaborative note-taking and project management tools, which were quickly adopted by businesses and teams, eating into Evernote’s market share.

Moreover, Evernote faced internal challenges. There were missteps in product development, and the company failed to adapt to the changing expectations of its user base. Key features that users expected, such as enhanced collaboration tools or integration with other productivity suites, were slow to materialise. The company also faced backlash over privacy concerns and pricing changes, which further alienated its users.

As competitors continued to innovate rapidly, offering sleeker interfaces and more robust functionality, Evernote began to feel outdated. The once go-to app for productivity enthusiasts was now being overshadowed by more agile and user-friendly alternatives.

By the time Evernote was acquired by Bending Spoons in 2022, it was clear that the company had not only lost its unicorn status but also its relevance in the market it once dominated. The subsequent layoffs and relocation of operations signalled a company struggling to find its place in a market it had helped create but had failed to keep pace with.

Evernote’s story is one of a meteoric rise, a failure to adapt, and a gradual fall into obscurity. It serves as a powerful lesson to start-ups: success is not just about creating a great product; it's about continually evolving it to stay ahead in the ever-changing tech landscape.

As a start-up founder, how will you ensure your company doesn't just reach the peak but stays there, continually adapting and evolving in a rapidly changing tech landscape?

Conquer January Like a Boss: Your Ultimate Starting Point

Ready to Kickstart 2024? Hire Your Secret Weapon - The Executive Assistants Extraordinaire from Scale Up Outsourcing! 🚀

Ah, January – the month where resolutions are made, gym memberships are renewed, and businesses are gearing up for an epic year of success. But hold on tight because, at Scale Up Outsourcing, we’ve got the game-changing secret weapon your business needs to soar to new heights – our fantastic Executive Assistants (EAs)!

Picture this: Your year is a well-choreographed dance, and our EAs are the nimble dancers who make sure every move is flawless. They’re not just your typical assistants; they’re the wizards behind the scenes, making magic happen.

Ready to elevate your business game? 🚀 Contact us today, and let our Executive Assistants pave the way for your most successful year yet! Because at Scale Up Outsourcing, the global workforce is at your fingertips!

Visit us at www.scale-up-outsourcing.co.uk, Facebook, LinkedIn

🐻‍❄️ Polar bears rejoice. UK-based Real Ice is working on technology to refreeze parts of the Arctic! Sifted

🧑‍💻 Googlers beware! After laying off 1,000+ staff last week, Sundar Pichai warned more layoffs are expected this year. TechCrunch

💸 Popular international payments app Wise has seen big growth, with customers growing 30% YoY to 7.5m. UKTN

☀️ If you’re doing something exciting in climate-tech, move to London. The city ranked 2nd globally for climate-tech funding. UKTN

This week we’re spotlighting a few start-ups creating awesome products and doing good whilst they’re at it…

🧦 Fresh off of Dragons Den fame, Stand Out is a British sock company co-founded by two brothers, one being Ross, the ‘SockFather’ who has Downs Syndrome. These fun, vibrant socks help create Down Syndrome awareness whilst looking awesome on your feet! Our personal favourite are the Dapper Gentleman socks.

⌚ Edward Christopher is a new British watch brand, doing good whilst looking good. These vibrant watches are inspired by two men who each saved a child’s life. As a result of this, 10% of profits go to helping children around the world via the Kidscape and Princes Trust charities.

😎 Finally to complete the look, a B Corp eyewear brand - Bird. Using sustainable materials (such as wood and cork) and giving back via SolarAid, these sunglasses leave you looking good and feeling good! With a wide collection of styles, and both glasses and sunglasses available, Bird have focused on creating a range of optical wear with a purpose that’s both beautifully designed and made.

This week’s marketing hack is one from close to home as it’s something that I (Richard) actually did myself to get a bunch of users for my last company.

This hack only works on iPhones, apologies to all of you Android users out there.

The first step is to create a QR code that sends people to your website when scanned - this can be done on Canva. Create a nice little graphic for your QR Code like the one you see above. Once you’re happy with your graphic, save it to the images on your phone. The final step, get yourself out into the most crowded area you can find, turn your Bluetooth on and Airdrop it to every possible available iPhone. Watch hundreds of people open your Airdropped image with slight confusion, but watch a large amount of them scan the QR Code to see what it is!

💼 Job opportunities

🧑‍⚖️ Founders Associate, Lawhive
👕 Full Stack Engineer, Birl
🧬 Product Designer, Sano Genetics

🎤 Events/Opportunities

There’s a few really useful SeedLegals events coming up:

👷‍♂️ On 31st Jan, how to build your first start-up data room with Notion.
🤑 Then on the 9th Feb, how to value your start-up.
💷 And finally, on the 8th March, how to find a lead investor.

💸 Also, RareFounders are currently accepting applications for their Pitch Event which could be a great opportunity to get your start-up in front of some investors. Apply to participate here.

❄️ If you’re building an innovative application or product powered by Snowflake’s Data Cloud, then check out their start-up challenge. Applications close on the 1st March, and winners will receive up to $1m investment.

Each week we’ll be highlighting our favourite tools - either something we’ve been using in our businesses, or tools that our innovator community have recommended.

SEO Stuff offers a cost-effective and flexible alternative to expensive, subscription-based SEO tools. Designed for users who don't need daily SEO services, it replaces monthly fees with a credit-based system, allowing users to buy credits as needed for generating reports and finding keywords. Its features include a comprehensive keyword research tool, providing essential metrics like search intent, CPC, search volume, and keyword difficulty. Credits don't expire, making SEO Stuff ideal for sporadic use without the commitment of regular subscriptions.

Next week we’ll be looking at how a company doing $100m in revenue, with 100m users didn’t raise a dollar in VC money for over 16 years. We’ll also highlight how marketing stunts can secure great partnerships with big corporates.

P.S. Connect with us on LinkedIn…