A Product Market Fit Show | Startup Podcast for Founders He took a 97% downround—then grew to $400M ARR & a $575M valuation in 2 years. | Dan Park, CEO of Clutch
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Apr 7, 2025 Dan Park, CEO of Clutch and a dynamo in the online used car market, shares his rollercoaster journey from near-bankruptcy to a staggering $400M in sales and a $575M valuation. He reveals the shocking move of cutting 75% of staff, why he turned off test drives, and how rapid iteration became his lifeline. Listen to his candid insights on surviving financial turmoil, restructuring strategies, and the emotional rollercoaster of leading a startup through crises—all while reforming the vehicle sales landscape.
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Clutch's Humble Beginnings
- Dan Park joined Clutch pre-seed when it was selling 20-30 cars/month in Halifax.
- Ontario regulations initially prevented expansion, so Halifax became the testing ground.
Importance of Owning Inventory
- Clutch focused on owning car inventory from the start, ensuring control over the customer experience and quality.
- This was crucial for building trust, unlike consignment models.
Pandemic Impact
- After securing seed funding and launching in Toronto, the pandemic hit, bringing car sales to a halt.
- Clutch furloughed employees and cut costs, adapting to the sudden market shift.