Question
How did Michael Wystrach build Freshly from nothing to a $1.5 billion exit?
Response
Michael Weistrach started the business at 35 with only $15 in his bank account, after an earlier company had gone bankrupt and he was carrying about a million dollars in debt that he had three years to pay off. He had already found some product-market fit, so he went ahead with the new business. The company shipped prepared meals directly to customers' homes and grew to $550 million in sales in a little over five years. He says it was built almost entirely on Meta ads, because his team was the best at Meta marketing. On sales, he emphasized asking questions and really listening to what customers need. He started with 100% ownership, took on a lot of investors, and when the business sold for $1.5 billion he owned about 10% of it. He noted that they spent close to $40 million building their own e-commerce platform and said that if he were starting today he would use Shopify.
Sources & references
- 01Asking NY Billionaires If They Believe in God!7:19(opens on YouTube in a new tab)
I had $15 in my bank account when I started the business. I was 35 when I started it.
- 02Asking NY Billionaires If They Believe in God!7:25(opens on YouTube in a new tab)
I'd lost I'd started a company before that. It went bankrupt.
- 03Asking NY Billionaires If They Believe in God!7:32(opens on YouTube in a new tab)
I had a million dollars in debt that I had to pay off.
- 04Asking NY Billionaires If They Believe in God!6:31(opens on YouTube in a new tab)
We shipped fresh meals directly to your house.
- 05Asking NY Billionaires If They Believe in God!8:29(opens on YouTube in a new tab)
We built a $550 million company in 5 years, almost 99% on meta because we were the absolute best.
- 06Asking NY Billionaires If They Believe in God!9:01(opens on YouTube in a new tab)
It's about asking, really listening to what people need
- 07Asking NY Billionaires If They Believe in God!9:09(opens on YouTube in a new tab)
Sold the business for 1.5 billion, owned 10% of it.
- 08Asking NY Billionaires If They Believe in God!10:24(opens on YouTube in a new tab)
If we didn't have to build it, we spent close to 40 million building our own platform.