Assertion certainty 4/5 debate potential 2/5

Allebest: Chess.com historically operated without metrics-driven management

Erik Allebest · Erik Allebest: Scaling to $100M Revenue, 150M Members and 700 People, All with No Vc Funding | E1113 · 20VC with Harry Stebbings · Feb 7, 2024 · at 37:30

Erik Allebest is the co-founder and CEO of Chess.com. He discusses how the platform grew without relying on traditional corporate metrics.

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“We are, we have not historically been a metrics-driven business. We are, we've been a heart and mission and chess-driven business.”

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More from Erik Allebest

Disclosure
Allebest: Chess.com instituted a firm rule against paid user acquisition
“We'd totally been burned on, on paid acquisition, and we pretty much made You know, a very firm rule that we weren't going to do paid acquisition. And so instead we said, we're going to take any money that we have and we're going to put it into content because…”
Erik Allebest Feb 7, 2024 ▶ 29:03 Erik Allebest: Scaling to $100M Revenue, 150M Members and 700 People, All with No Vc Funding | E1113 · 20VC with Harry Stebbings
Disclosure
Allebest set early salaries by asking candidates what they needed to live
“I would just say to them, Hey, how much money do you need to do this job? And if we can make that, we'll do it. And if not, I'll let you know, but really, what do you need to do this? Because I'm not going to make you an offer. Cause I don't know your life. I …”
Erik Allebest Feb 7, 2024 ▶ 58:34 Erik Allebest: Scaling to $100M Revenue, 150M Members and 700 People, All with No Vc Funding | E1113 · 20VC with Harry Stebbings
Assertion Not publicly verifiable
Allebest forced exiting investors to pool tens of millions for staff
“When our PokerStars investor, you know, the Sheinberg family, when they exited to GA, I said, I am going to block this transaction as hard as I can, unless We set aside a huge percentage comparatively of the sale. Everybody is going to pay. I think it was seve…”
Erik Allebest Feb 7, 2024 ▶ 1:03:32 Erik Allebest: Scaling to $100M Revenue, 150M Members and 700 People, All with No Vc Funding | E1113 · 20VC with Harry Stebbings
Insight
Allebest: Raising venture capital psychologically feels like earning revenue for founders
“I think raising money feels a lot like earning money. It's a self-validation.”
Erik Allebest Feb 7, 2024 ▶ 0:33 Erik Allebest: Scaling to $100M Revenue, 150M Members and 700 People, All with No Vc Funding | E1113 · 20VC with Harry Stebbings
Insight
Allebest: Exact-match domains were essential for web startups, unlike today
“Ridiculously large role, especially at the beginning and the beginning sets the tone for later. Now, I mean, in today's world, if we hadn't done it, if you, would you have to start on chess.com? Probably not, but given the time that we started and how it worke…”
Erik Allebest Feb 7, 2024 ▶ 12:22 Erik Allebest: Scaling to $100M Revenue, 150M Members and 700 People, All with No Vc Funding | E1113 · 20VC with Harry Stebbings
Assertion Supported
Allebest: COVID and The Queen's Gambit 5xed Chess.com overnight
“When COVID came and the Queen's Gambit hit and our numbers like five X overnight, it grew the game of chess five X.”
Erik Allebest Feb 7, 2024 ▶ 16:58 Erik Allebest: Scaling to $100M Revenue, 150M Members and 700 People, All with No Vc Funding | E1113 · 20VC with Harry Stebbings
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