Strava · B2C · social running app
Buy a beginner running app so new runners later move up to your app
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What they did
Strava retained hardcore runners but intimidated beginners (too social, comparison-heavy). It bought Runna, whose brand is couch to 5K, as a funnel extension: users start with Runna, reach their first 5K, then graduate to Strava. Guest guesses the metric that sold the deal: how many non-runners Runna onboards and how many graduate to running a 5K and posting runs publicly.
“Strava noticed that they were really good at retaining hardcore runners, but they were really bad at attracting beginner rubbers runners, because people looked at Strava and they were kind of intimidated.”
“So a user starts with with Runna, they get to their first 5K, and then they graduate now into Strava, and it becomes one long, beautiful funnel.”
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More from Strava
All 3 Strava tacticsMore from this episode
- Flo: Pitch the app as #1 in women's health instead of competing in all of healthBecame the first women's health unicorn: $200M+ raised at a $1B+ valuation
- Runna: Aim the app at first-time runners doing couch to 5K, not all sportsEarned a strong valuation; Strava bought it to reach beginner runners
- Waking Up: Charge $20 a month or $150 a year for a meditation app~25K downloads a month bring in over $1M a month (Sensor Tower estimate)
- Waking Up: Build the app around a trusted podcaster, and put his voice in the first sessionTiny download numbers earn $200K-$1M+ a month; creator-dependence makes the app harder to sell
- Flo: Run over 100 experiments a monthGuest cites it as part of what made it a top health app; no direct numbers
- MyFitnessPal: Buy a viral food-scanning app for its knack for pulling in new users
- MyFitnessPal: Sell the app again after its growth has already slowedResold for over $100M less than the $475M paid five years earlier
- BlueThrone: Buy apps that already found fans, then add a full team to grow themWorked really well, per the guest; no portfolio numbers given
- BlueThrone: Buy apps that get lots of downloads but lose users, then fix the productA couple of such deals brought outsized returns for founder and buyer, per the guest
- If you charge under $10 a month, test $20 on 10-20% of users
- Use weekly plans for apps people need for a short time, like datingWorks well in dating and follower-tracking apps; fine for cash flow, weaker for an exit
- Pick a buyer type, study its last 5 deals, and start talking a year earlyGuest's favorite deals came from founders he'd messaged with for ~12 months
- Once a TikTok works, spin up 20 to 100 more videos on the same ideaBuyers value a repeatable viral machine over one-off hits; no numbers given