from failed startup to $175k MRR without funding tutorial

Substack from failed startup to $175k MRR without funding tutorial

Tally hit $175k MRR without ads or VC money. here's the real playbook behind their growth - including the tactics most case studies miss. guide

Hey founders,

Marie and Filip’s first startup was a disaster.

They burned through investor money for 18 months building a travel app nobody wanted — solving problems they’d never experienced, in a bubble.

When it died in 2020, they could have gone back to their corporate jobs. Instead, they tried again — but with a completely different playbook:

• No VC money
• No ads
• A problem they actually understood
• A plan to stay lean

Four years later: $175K monthly recurring revenue. Eight people on the team. Fully profitable. Bootstrapped from day one.

Here’s how they did it — and what you can adapt for your own journey.

Solving a Pain They Actually Felt

This time, Marie had skin in the game. She kept running into response limits on every form tool while doing user research.

You know the drill — start on the free plan, hit 100 responses, get the upgrade popup.

Instead of researching the “form builder market” for months, they built something she’d actually want to use. A few weeks later, MVP shipped.

The takeaway isn’t just “build what you need” — it’s “build what’s frustrating you right now.”

Freemium Done Differently

Most SaaS freemium models: give you a taste, then wall off the good stuff.

They flipped it:

• Unlimited forms and responses
• All features unlocked (except badge removal)
• No upsell walls

About 3% upgraded to remove the “Made with Tally” badge. But every free form was seen by ~47 people, turning free users into unpaid billboards.

It’s like an affiliate program without commissions — the product markets itself.

Building in Public That Matters

They didn’t just post motivational quotes. They shared things people could learn from:

• Weekly updates with screenshots of new features
• Monthly revenue (even when it was $200/month)
• Direct polls asking what to build next

A private Slack group grew slowly — only inviting users who gave detailed feedback. By 2025, those 500 members became their best early testers and advocates.

SEO That Converts

Instead of generic blog posts, they targeted search intent that signaled buying readiness:

• “X vs Y” competitor pages
• Migration guides (“How to move from X in 5 minutes”)

These pages now drive ~40% of their organic traffic and convert better than regular blog content.

If someone is Googling “YourCompetitor vs Alternative,” they’re basically ready to switch.

The Real Growth Curve

• Mar 2021: Product Hunt launch → 1,000 signups
• Oct 2021: 11,000 users via word of mouth
• 2022: First $10K MRR month
• 2023: $50K MRR, team of 6
• 2024: $150K MRR by Nov
• Feb 2025: $175K MRR

No hockey stick. No viral spikes. Just steady, profitable growth.

Why Big Players Can’t Copy This

Large competitors have big teams and investor targets. They can’t afford to offer unlimited free plans.

A team of 8 can — because costs are low, decisions are fast, and the founders still talk to customers directly.

What You Can Steal

1. Make the free plan genuinely useful
2. Target competitor-comparison search terms
3. Stay small enough to offer what big players can’t
4. Build viral mechanics into the product
5. Grow communities slowly and intentionally
6. Ship fast from real feedback, not just market research

The real lesson: You don’t need to blitzscale to win. Sometimes boring, sustainable growth outlasts explosive but fragile wins.

What’s been working in your own bootstrap journey? I’d love to hear.

—SG