BUSINESS IDEA #1 | VENTURE STARTUP

404 error: Sorry, this idea isn’t available

All internet users have experienced the frustration of the 404 error page. I have no idea what a 404 error is, just know that it means something broke. That said, some of them are brilliant. Like Justin here using mint’s 404 page to find himself a date.

But when we think about the millions and millions of 404 pages out there being served up everyday this is prime real estate across every website on the internet that’s not being used. Google’s ad network for example doesn’t allow businesses to place ads on their 404 pages.

So let’s create an ad network which does allow this.

Here’s the idea, create an ad network which allows businesses to place ads on their 404 error pages to earn extra revenue.

Here’s how it works. The business signs up to the ad platform and adds some JavaScript snippets that request ads from the platform’s servers and display them on the business’ website. The business can then manually select ads they want to appear on their site or select autopilot mode, where the platform decides what ads to serve on their site.

The platform engages with advertisers who are looking to advertise on sites and they decide how much they’re willing to pay for impressions or clicks. Over time, with more websites and more advertisers on the platform, more targeted ads can be placed on websites to increase clicks and conversion rates.

For some businesses this could provide extra income for no extra work. Others could actually use this tool as a performance metric where they want to minimize the amount they earn through the platform, since the less they earn the less errors they’ve served up to users. Either way the platform makes money.

Go-to-market: start by working with small websites in a particular niche looking to earn extra money and advertisers looking to advertise to their audience, then build from there

Monetisation: Take a % fee on each ad served on the platform

Startup Costs: Building the technology here will be pricey so you’ll need some skilled engineers to build this as well as working with a some salespeople to get advertisers on board. Doing a small raise here may be a good idea.

You could exit here to another ad network, such as Criteo or VideoAmp. In Q4 2022, the median EV/EBITDA multiple for AdTech companies was 11.6x, so if you grow topline revenue and stay profitable and you could get a tasty exit here.

IDEA #2 | VENTURE STARTUP

It only happens live once

With the Superbowl just around the corner sports fans all around the world are gearing up for one of the biggest sporting events of the year, while also preparing to point out Travis Kelce to their girlfriends every time he appears on screen.

Big sporting events like the Superbowl prove that, despite mass migration away from tv to the internet, live sports are alive and well. The live sports market will grow from $171 billion in 2023 to $182 billion in 2024.

But here’s the thing about live sports, for many it can be a lonely experience.

Sure some people love that, but for others they prefer to watch the game with friends or listen along to a live stream of their favourite creator as the match goes on.

So let’s take some inspiration from Clubhouse (pre their recent pivot) and build a platform to cater to that audience.

Here’s the idea…create a platform where users can create social audio rooms to enjoy sports games together.

Here’s how it works - users sign up to the app and they can create their own invite only audio only rooms which they can use to talk to their friends in real time during the game.

Similarly users with large audiences in the sports niche can create public rooms where they can commentate over a match and also interact with fans live by answering questions during breaks or before and after the game. Similar to other live streaming platforms the audience could leave comments, tip creators and so on.

The possibilities here are endless and a product like this could be a big hit among sport fans.

Go-to-market: Focus on a single sport first and make the platform invite only. Work with influencers in this sport to pilot the platform and get some interest, then expand

Monetisation: Brand partnerships/ticketed content ****and taking a % of tips which can be given to creators on the platform

Startup Costs: Live streaming could incur some hefty hosting fees, so you’ll likely need some capital to get this off the ground

Big media companies in the sports space would love to own a platform of this nature, so this could turn into a great exit to one of those companies.

BUSINESS IDEA #3 | STARTUP

An app idea that’s sofacking good

Available Domain: Furnifindr

You can learn a lot about someone from the decor in their home.

In fact sometimes you can learn a lot about multiple people through a single piece of furniture in a home.

But what happens when you’re at someone’s house or you’re out and about and you spot a piece of furniture that would go great in your house, but have no idea where it came from?

Well it’s time to solve this problem.

Here’s the idea. Create an app which allows users to identify and purchase pieces of furniture by taking a photo of it.

Here’s how it works. When the user takes a photo of a piece of furniture the app uses AI to make a best guess on what the item of furniture is. It also gives alternatives which are similar in style but may be more affordable or available locally. Users can then click through and buy the item.

This would just be the beginning. Over time the app could be enhanced to include a 3D render of different rooms in your house with different items of furniture in it. Then, when you take a picture of a new piece, you can insert it into the 3D render of your room to see how it would look.

Go-to-market: Start by selling to interior designers who would be power users of the app, then go mass market

Monetisation: Affiliate revenue from furniture sellers

Startup Costs: The build here would be quite complex, so you’ll need a technical cofounder or some engineers to get this done

The underlying technology here could be licensed to large furniture manufacturers, such as Ikea, or the entire business could be sold to a large eCommerce platform.

BUSINESS IDEA #4 | VENTURE STARTUP

Take the plunge

Available Domain: Plungefy.com

The Problem/Opportunity: Cold plunge is THE THING right now. Cold plunge aficionados swear by them and their benefits. While the health benefits of cold plunge are still debated one thing is for sure…if someone cold plunges, they’re gonna tell you about it.

But there’s a problem. Cold plunges are super expensive. A good one can easily set you back $5k. Some people resort to making their own cold plunges out of freezers, but not everyone has the space to. But almost everyone has a bathtub. So why not enable everyone to convert their bathtubs into cold plunges?

Market Size: Global Cold Plunge Tub Market size was valued at $336bn in 2022

The Idea: A device used to convert a bathtub into a cold plunge

How it Works:

Go-to-market: Reddit is crawling with posts about people who have tried to build their own cold plunges. Work with them to test out and refine the product

Business Model: Charge $500 - $800 per device (estimation)

Startup Costs: You’d need to do a raise here to get this off the ground and to do manufacturing at any meaningful scale

Competitors: HomePlunge are building something similar, however they haven’t launched yet and their price point is too high

Exit Strategy: This is a bit of a fad product, so the goal here should be to get in and out quickly. Sell to Plunge or another big player in the market

Exit Multiple: Tech hardware businesses tend to sell for c.2x revenue or 10x EBITDA, so get to profitability asap!

BUSINESS IDEA #5 | VENTURE STARTUP

Microplastics = macro opportunity

Available Domain: Micropfree.com

The Problem/Opportunity: In yesterday’s edition of Half Baked we discussed the landmark study showing how dangerous microplastics are for human health and how widespread they are in our water supply, clothing, even our food.

Given the recent shift in public perception around microplastics consumers will undoubtedly start to look for microplastic-free products. So let’s create a platform for exactly this.

Market Size: This is a pretty nascent market, but a good proxy for it would be the sustainable goods market, which was valued at $294 billion in 2023. TAM won’t be an issue here.

The Idea: An eCommerce platform for browsing and purchasing microplastic-free products.

How it Works:

Go-to-market: partner with brands who offer microplastic-free products, list them on a website and dropship their products to customers. Then build from there.

Monetisation: Charge a transaction fee on products bought through the platform.

Startup Costs: Assuming you start by partnering with brands for a dropshipping model in the beginning startup costs would be next to nothing.

Hold: This could be a huge business in its own right which you may want to build forever

Exit Strategy: If you want to go the exit route you could sell to a large eComm marketplace like eBay or Etsy. Who knows, maybe even Jeff Bezos himself could get his checkbook out

Exit Multiple: Most marketplace businesses’ EV/Gross Profit multiples range between 10x to 20x.