Streak

How Aleem Mawani Built a $10M ARR CRM Business in Gmail

December 15th, 2024

Founded By

Aleem Mawani

Monthly Revenue

$833K

Founders

Monthly Traffic

400K

Profitable

Yes

Year Started

2012

Customer

B2B & B2C

Revenue Per Visitor

$2.08

Founded By
Aleem Mawani: Monthly Revenue
$833K: Founders
1

Monthly Traffic
400K: Profitable
Yes: Year Started
2012

Customer
B2B & B2C: Revenue Per Visitor
$2.08

Who is Aleem Mawani?

Aleem Mawani, the founder of Streak, studied mechanical engineering at Stanford and previously worked at Google, before launching Streak in 2012 with a focus on integrating CRM tools directly with Gmail.

What problem does Streak solve?

Streak integrates CRM functionalities directly into Gmail, eliminating the hassle of switching between platforms, which saves users time and improves workflow efficiency.

How did Aleem come up with the idea for Streak?

The idea for Streak emerged from the founders' own frustrations while working on another project. They often found themselves switching back and forth between their email and traditional CRM systems, which felt disjointed and inefficient. Observing this problem and recognizing that they weren't alone, they envisioned a CRM that seamlessly integrates with Gmail, where much of their work was already happening.

Initially, they didn't dive deep into market research but instead relied on their own experiences and known pain points. They also validated their concept by recognizing that existing CRM competitors were difficult to use and typically expensive, indicating a gap for a better solution. Incorporating feedback from early users, mainly founders in their network, helped them refine the product to be more adaptable to different use cases, such as hiring and fundraising.

While they faced the usual challenges of new product development, such as ensuring a robust feature set and navigating user adoption, they learned the importance of building something they themselves would use and love. This focus on solving their own problem with an intuitive solution was a key lesson, underscoring the value of personal pain points as sources of inspiration.

How did Aleem Mawani build the initial version of Streak?

Streak was built as a CRM integrated directly into Gmail, which simplified user workflows by eliminating the need to switch between the inbox and external systems. The founders, Aleem Mawani and his team, initially developed the product using a lean approach, focusing on building a version they needed themselves. The development process involved integrating the CRM functionality seamlessly within Gmail, requiring them to deeply understand and utilize Google's API for extensions. The team faced challenges with long product cycles, initially scoping small but later becoming more ambitious, resulting in projects taking over a year to launch. They overcame this by eventually adopting the Basecamp Shape Up methodology to manage shorter shipping cycles and iterating based on user feedback and their needs.

What were the initial startup costs for Streak?

Seed Funding: Streak initially raised a small seed round from notable Silicon Valley investors.

What was the growth strategy for Streak and how did they scale?

Chrome Web Store

Streak utilized the Chrome Web Store as an early and effective acquisition channel. At the time, the Chrome Web Store had limited competition, which allowed Streak to stand out. Their extension was featured prominently, driving significant traffic from the 500 million Chrome users who saw a link to the store on each new tab page. This channel was pivotal in gaining substantial initial user traction.

Why it worked: The Chrome Web Store offered a unique opportunity because it was underutilized by other companies at the time. This allowed Streak to reach a vast audience with minimal competition, providing a steady influx of new users early on.

Word of Mouth

Word of mouth has been a significant driver for Streak's growth. By creating a product that met the needs of their initial users, primarily fellow founders from their network, Streak organically encouraged these users to recommend the service to others. This was coupled with a focus on building a high-quality product, ensuring users had a great experience they were eager to share.

Why it worked: Personal recommendations are incredibly powerful, often carrying more weight than traditional advertising. By focusing on product quality and user satisfaction, Streak ensured a steady stream of referrals from enthusiastic users, contributing significantly to their growth.

Freemium Model

Initially, Streak offered their CRM as a free product, focusing on gaining users without the immediate pressure of monetization. This approach allowed them to build a robust user base and get valuable feedback over time. While they eventually transitioned to paid plans, the initial free access played a crucial role in growth.

Why it worked: Offering the product for free initially removed potential adoption barriers for users, allowing them to experience the value before committing financially. It helped Streak gather a large user base, which later transitioned to paid plans, generating sustainable revenue.

Free Tools for Lead Generation

Streak introduced free tools like email tracking and mail merge, which could be used independently of their CRM. These tools provided value on their own, attracting users who might eventually convert to paid CRM customers. Approximately 10% of their revenue comes from users who started with these free tools and then upgraded to their main product.

Why it worked: By offering valuable standalone tools for free, Streak attracted a broader audience. These tools served as an entry point, allowing users to engage with something useful while providing an upsell pathway to their more comprehensive CRM solution.

What's the pricing strategy for Streak?

Streak employs a freemium pricing model with plans starting at $15 per user per month and offers free email tools for lead generation.

What were the biggest lessons learned from building Streak?

Continuous Hiring is Crucial: Underestimating hiring needs early on slowed Streak's progress. Maintaining an ongoing hiring process, rather than stopping and starting, is vital to keep the talent pipeline full and avoid delays.
Adaptability in Product Development: Streak initially faced long product cycles due to overly ambitious scopes. They overcame this by adopting the Basecamp shape-up methodology, which emphasizes shorter shipping cycles and helps manage project scope effectively.
Understanding Founder/Company Fit: Over time, founders' visions and goals may evolve. Effectively communicating these changes is important to align with the company's direction and ensure long-term success.
Value Over Growth: Rather than aiming for rapid expansion, Streak focused on building value incrementally—first targeting $10M, then $50M, and so on. This approach helps create sustainable growth, avoiding the pressure for an immediate big exit.
User-Centric Product Decisions: Streak relied on feedback from their own use and their early users to guide product decisions, avoiding external advice that didn't align with actual user needs. Building based on real user input ensured a more relevant and effective product.

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