When consumer apps should (or shouldn't) raise VC

On the podcast, I talk with Greg about knowing when to pivot, why most consumer apps shouldn't raise VC, and why making free trials optional outperformed making them the default.

Top Takeaways:

📉 Know When to Pivot
 Wrangle struggled because it wasn’t solving a real problem. Burner succeeded because it met a clear need. Don’t be afraid to pivot when the product isn’t working.

💭Most Consumer Apps Don’t Need VC

Venture capital can be a blessing but also a curse. If you attract investment that doesn’t line up with your product vision or culture, the cash injection can turn out to be a costly mistake. Building a business that pays for itself is a better fit for most founders.  

🔑 Focus on Retention
 Success is about keeping users, not just acquiring them. Burner’s ability to retain users, even short-term ones, proved its value. If users keep coming back, you’ve found something meaningful.

🛠 Trials, Errors, Wins
Testing was crucial to Burner’s growth. Every experiment was a learning opportunity. Don’t guess—test continuously, especially pricing, to find what drives retention and revenue.

🎯 Small Changes, Big Results
 Minor tweaks, like switching to a free trial, led to significant growth. Optimize for retention with quick, simple changes. Even minor adjustments can have a substantial impact on results.

About Greg Cohn: 

🛫 Founder and CEO of Ad Hoc Labs

📱 Greg Cohn is the founder of Burner, the leading mobile app for managing personal privacy through disposable phone numbers. With a passion for solving real-world problems, Greg transitioned from an early startup failure to building a successful business that prioritizes user privacy, simplicity, and seamless functionality.

👋 LinkedIn
💬 Text Greg’s Burner: (323) 579-1830
🧑‍💻 Open Roles at Ad Hoc Labs (Mention “Sub Club” to get a closer look at your resume.)

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• David Barnard - @drbarnard
• Jacob Eiting - @jeiting
• RevenueCat - @RevenueCat
• SubClub - @SubClubHQ

Episode Highlights:

[0:00] The concept behind Wrangle, Greg’s first app

[1:39] Twilio’s role in developing Wrangle and early challenges

[3:24] Burner’s breakthrough with the “burner” feature for privacy

[9:42] Wrangle’s pivot and what went wrong

[13:36] Moving from paid downloads to a subscription model for Burner

[24:47] Importance of user feedback in shaping the Burner product

[33:24] The credit system and why it transitioned to subscriptions

[38:55] Why retention and cohort analysis are key to Burner’s success

[44:29] How Burner integrates new features like VPN for growth

[54:33] Premium tier features: phone number lookup becomes popular

[1:02:18] Bundling products: the decision to expand Burner’s offerings

[1:09:53] Greg’s thoughts on acquiring apps vs building new features

[1:23:38] Win of the year: faster paywall testing speed for Burner