NewCo
NewCo was an education platform that provided video tutorials on how to build software products using no-code tools. While it reached $6,000 in total sales and had a dedicated small user base, the founder shut it down because he lost focus by trying to build a complex custom platform and adding too many features at once, causing him to lose sight of who he was selling to.
The Autopsy
| Section | Details |
|---|---|
| Startup Profile | Founders: Ben Tossell Funding: Bootstrapped (Self-funded through sales) |
| Cause of Death | Market Fit: Yes |
| The Critical Mistake | Chasing the "Startup Mirage": The founder was initially stuck in the mindset that every business must grow 10% weekly and seek VC funding. This led him to build for "scale" rather than focusing on the "company of one" model that actually suited his lifestyle and strengths. |
| Key Lessons |
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Deep Dive
In his interview with Failory, Ben Tossell shared the "unscalable" way he started, which ironically was more effective than his later attempts at "scaling." The very first version of NewCo was just a Webflow site protected by a simple password ("positivebananas") sent manually to users who paid via a Carrd site. This "manual" approach was enough to prove that 15 people were willing to pay for his knowledge before he spent a single dollar on development. Although he made $8,000 in total sales, the Monthly Recurring Revenue (MRR) was only around $700 because he was primarily selling lifetime access rather than recurring memberships. This made it difficult to justify the high effort required to produce weekly videos. NewCo is a classic example of "Strategic Over-Engineering." It serves as a reminder for your website that the simplest solution is often the best for validation. After shutting down NewCo and traveling to clear his head, Ben Tossell realized that the content was the value, not the platform. He relaunched the same videos under a new brand, Makerpad, which became the leading no-code community and was eventually acquired by Zapier.
Key Lessons
Revenue ≠ Product-Market Fit: Having 90 paying customers is great, but if you don't know why they are paying or how to keep them engaged without burnout, the business isn't sustainable.
Lean Means Simple: Don't build custom software if a combination of Typeform, Webflow, and Zapier can solve the problem. Only automate what is already working manually.
Listen to the Enjoyment: Build a business that allows you to do what you love daily. If you enjoy building new things, don't trap yourself in a model that requires 1,000 hours of repetitive customer support or maintenance.