Product Hunt, just after graduating from Y Combinator, announced that they had raised $1 million. On top of the funding news, Product Hunt also released an iOS app this week. Quite a week, and we’re not even all the way through it.
The value of Product Hunt is pretty evident. If you are not familiar, Product Hunt is – to switch from the overused Reddit descriptor – the Hacker News for Products.1 Essentially, it works very much the same. Users submit products to the site, and they are voted upon in similar fashion.
Now to the value proposition. The products submitted to the site are, more often than not, startups. Very much like Reddit and Hacker News, the platform offers a hierarchy of posts – products in this case. Therefore, potential investors – who are represented in the userbase – can get a quick snapshot of the potential impact of a company and/or product. In a TechCrunch article, Ryan Hoover – the founder of Product Hunt – noted that raising money was incredibly easy:
“Product Hunt has some advantages when it comes to fundraising,” Hoover said. “Because investors use it, we don’t have as much of a hard time getting in front of investors.”
When influential members of the tech community first signed up for Product Hunt, Hoover said he sent out personal emails welcoming them to the website. The rest took care of itself.2
Product Hunt is one of the rare companies that is valuable without any sort of revenue, or any sort of advertising. The service alone is valuable.
- Although there are certainly similarities between Product Hunt and Reddit, it lacks one key component: the down vote. Product Hunt, very much like Hacker News, incorporates only an upvote button. ▲
- Cat Zakrzewski, TechCrunch, “Product Hunt Raises $1 Million, Launches iOS App For Hunting On The Go,” 21 August 2014 ▲