Peak Design

Quit construction at 25 with $25k to make a camera clip

On a 4-month walkabout through Asia and Oceania at 25, Peter got fed up with a camera banging against his chest, then quit his construction engineering job living on $25k in savings to build a clip that locks a camera onto a backpack strap.

“Going back to 2010, that's when I quit my job. I was a construction engineer and I'm living on my savings with about $25 grand. I did like a 4-month walkabout when I was 25. I went to India and Southeast Asia and Australia, New Zealand. I had a camera with me the whole time. A real pain in the ass to carry with me because it's on a strap and it's banging against your chest. I just came up with this idea. It's this clip that clamps onto a backpack strap and then your camera is immediately accessible, totally hands-free, locked into your camera strap.”

Peak Design: $32M raised, #2 on Kickstarter ever

Peter Dering says Peak Design is the second-highest-earning company in Kickstarter history, having raised a little north of $30 million (roughly $32M) across multiple campaigns.

“We are at present, I think, the company that's earned the second most on Kickstarter in our collective history, somewhere a little north of $30 million on Kickstarter, maybe, maybe $32 or so.”

Don't raise money — just make the thing and sell it for more

Peter rejected the fundraising mindset entirely: instead of raising capital, his whole plan was to build the product and sell it for more than it cost to make.

“That would be the money part. I'm gonna sell it for more than I made it, right? That's all there is to it. It did not even cross my mind, like, ooh, should I raise money for this, right? No, it's ridiculous. I'm gonna make the fucking thing, right?”

Steal thisSkip the fundraising theater on a clear product — build it, sell it for more than it cost, and let revenue be the funding.

Total marketing was a friends-and-family email — sold to a stranger in 90 seconds

Peter pressed go on his Kickstarter from borrowed desk space at a 6-person company that later became Juul; within ~90 seconds a stranger in England backed it, and his entire marketing was emailing friends and family.

“And I think it took like 90 seconds before some dude dude— he couldn't have even watched the whole video— but some dude in England, just a random person, backed the project. I was like, holy shit, that's incredible! I just sold a thing that I haven't even made yet to a guy in England that I've never met, right? This is magic. God, the internet is cool, you know?”

First Kickstarter did $364k — #2 of all time at the time

Peter corrects the host: the first Capture clip Kickstarter raised $364,000, good for second-most-funded project ever at the time, with later campaigns doing $215k, ~$816k, and $868k.

“The first Kickstarter did $364,000, which was good for second place of all time. And then the next Kickstarter we did, it was $215,000, but it was like a 20-day campaign.”

Distributors take ~60 points of margin — why DTC is the jam

Peter breaks down the channel economics: they sell a $100 product to a distributor for $40, the distributor keeps ~$20 and the retailer ~$40, so most of a product's value goes into resale markup — which is why direct-to-consumer is so attractive.

“They would like to have what's called 60 points of margin to work with there and go turn that— and they'll probably sell it, you know, they'll take $20 from that $100 product and the retailer will get $40. There's a lot of money, a lot of the value of a product goes into the price of that resale, which is of course why direct-to-consumer is the jam.”

Product company vs marketing company: be Peak Design, not Away

Peter contrasts product-first companies with marketing-first ones: Away sells a brand and lifestyle over a fairly generic white-label suitcase, while Peak Design leads with the product and lets brand follow on its heels.

“We are not like Away. They are— they're a marketing company first. They are selling a brand and a lifestyle first. We allow our brand and lifestyle to follow behind on the heels of the product. The actual Away suitcases, it's a totally fine suitcase, but it's nothing nothing at all special really.”

Without real innovation, competitors outbid you on digital ads

Peter's case for product-led growth: brand loyalty is real but fickle, and without genuine innovation a competitor with a bigger ad budget eventually eats your lunch — he'd rather ship a clearly superior product and let it market itself.

“but if you don't actually create innovation, I think that competition will eventually eat your lunch because they're going to outbid you on the digital ads. And when it becomes a race of who's willing to throw down the biggest checkbook and get the most play across the digital landscape, I don't think that's territory that we certainly don't want to be in. We'd rather be able to come in with a clearly superior product, not have to spend very much on marketing, and let the product market itself.”

Steal thisCompete on product superiority so the product markets itself, instead of getting into an ad-spend arms race you can't win.

$65-70M revenue on 38 employees: nearly $2M per head

Bootstrapped Peak Design did $65-70 million in revenue with an average of 38 employees last year, approaching $2 million in revenue per employee.

“You know, last year I think we had an average of 38 employees and we did somewhere between $65 and $70 million. We're almost at $2 million in revenue per employee.”

Hire only when bursting at the seams to protect culture

Peak Design stays thin by refusing to hire until they're bursting at the seams, adding just 5-8 people a year so the culture never takes a shock — and the stated point of the company is for employees to enjoy their lives, not to make money.

“What keeps the overhead low and keeps it thin is that we don't— we really don't want to hire new people. We only do it when we're bursting at the seams. And there's all sorts of good reasons for doing that. I think the most important is because we don't want our culture to experience any kind of shocks to the system.”

Steal thisHire only when you're bursting at the seams and cap annual headcount growth so culture absorbs no shocks.

Offset a whole product company's carbon for ~$60k at $3/ton

Peter learned verified carbon offsets averaged about $3 a ton, so offsetting Peak Design's entire ~20,000-ton footprint on $30M of business cost roughly $60,000 — about the same as the $30k report to measure it precisely.

“the average price for an offset was $3 a ton. So you take 16,700, you round up by 20%, 20,000 tons of carbon, and this is on about $30 million worth of business. That's what we did in 2017. So $60 grand.”