Startup Acquisition Stories Simple Steps to Get a Bootstrapped AI Startup Acquired
Aug 25, 2025
Umar Khan, co-founder of the viral AI project ChatFAI, shares his unique journey of building a bootstrapped startup that emphasized long-term memory in conversations. He discusses how focusing on user engagement and community-driven growth allowed his platform to soar to 1M users. Umar reveals the importance of timing and preparation in navigating the selling process on Acquire.com, along with crucial lessons on differentiation and the value of streamlined due diligence. His insights are a goldmine for anyone contemplating an exit or seeking sustainable growth.
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Weekend Project That Went Viral
- Umar built ChatFi after wiring OpenAI into a fan Facebook page and expanding it into a platform for many characters.
- Viral user-generated videos and subreddit seeding drove rapid adoption and growth without paid ads.
Vertical Video Fueled Explosive Growth
- User-generated vertical videos (Reels, TikTok) created organic spikes and drove exponential growth to 1M users in a year.
- Umar then added content (blogs) to smooth traffic and reduce volatility from viral spikes.
Memory As A Competitive Moat
- Long-term memory in conversations was ChatFi's core differentiator in a market where chatbots quickly forgot context.
- This memory advantage attracted users from competitors and fueled word-of-mouth growth.