Squatty Potty

Paying 8% in ads to raise money beats Wall Street's 8-12% fee

The Chosen's director was upset that about $800K of the $11M raise went to advertising. Harmon's view is that this is a normal cost of capital: Wall Street would charge 8-12% to raise the money, and the ad spend also built awareness for the show.

“And I was like, well, how do you think we built Poo-Pourri and Squatty Potty? We spent money. And if you had gone to Wall Street and asked them to raise you money, they would charge you 12%, right? They'd charge you 8 to 12%. So we're actually right in that world, but we're just having to buy ads, which is getting you awareness on your project.”

Steal thisJudge the ad spend on a crowdfund as cost of capital and compare it with what a bank or underwriter would charge.

Angel Studios: $450M ARR from values-based streaming

Shaan says Angel Studios, a public studio and streamer of 'values-based' content with no cursing, drugs or sex, does about $450 million in ARR. Its founder came from the viral marketing team behind Poo-Pourri and Squatty Potty.

“$450 million in ARR. It's a public company. You can see their, their, their data. And the way they did it was they basically said they had a worldview. In fact, the guy who started it, he's this epic marketer. who did the marketing behind like Poo-Pourri and Squatty Potty.”