Parr: Venture scale is nearly impossible with $100 annual ARPU social apps
Sam Parr · Stanford Students Pitch Us Their Startups | $3500 Prize Money (#449) · Apr 29, 2023 · at 41:01
Sam Parr explains unit economics challenges to Stanford student founders pitching a consumer AI mental health app.
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“When you just do the math, getting to venture size scale companies, which I don't know what that is, 50 or a hundred million in revenue, something like that, or a nine figure exit. It's very, very, very, very, very hard when you're only making a hundred dollars or something like that a year per customer. It's just, you just, it's a very, it's a, it's just a math problem. It's very challenging to do that, particularly when it's like a social-ish app.”
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