Welcome to Half Baked, the newsletter serving up startup ideas as surprising as Labubu making 1B this year 🧌
If you want to read any previous editions of Half Baked, you can check them out on our website.
Let’s goooo 🚀
In today’s edition:
💡 Helping kids to keep a part of their heritage
📈 Why meta prompting is the newest meta
🛠️ How to structure prompts for building mobile apps
🤑 Bootstrapping to a $200M exit
🍻 Making long distance relationships easier to navigate
Bear-lingual
Available domain: Polygtots.com
The Problem: As we covered in a recent edition of Half Baked, AI kids toys are becoming more and more mainstream. But while it’s cool to make stuffed animals speak, why not use this combination of AI and cuddliness to help kids to learn a language? According to the U.S. Census Bureau, 22% of families speak a language other than English at home. Yet many parents struggle as their kids slowly lose touch with their heritage language. The result? A generation disconnected from their cultural roots. That’s where this idea comes in…
The Solution:
In a line: A lovable interactive plush that gently introduces children (ages 2–6) to a second language through playful audio prompts, engaging storytelling, and responsive language games.
Product:
🧸 Parents buy the toy and sign up or download a companion app and select the plush’s language mode (e.g., Spanish, Mandarin, French).
🎤 The plush responds to voice prompts and plays short phrases, songs, and stories in both the native and target language, using cute animations on the app for reinforcement.
⭐ The plush tracks simple progress (e.g., favorite words, daily “listen time”) and rewards the child with soft praise
🔄 Content refresh auto-updates weekly with new words, mini-games, and interactive flash-games themed around the plush’s character (seasonal, topical, cultural).
Business Model: Upfront purchase of the plush plus subscription-based access to continual content updates and language packs.
End Goal: Position for acquisition by a major toy company (e.g., Hasbro, Mattel) or ed-tech/early-learning platform (e.g., LeapFrog), targeting an exit at 5–8× revenues.
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Algolia is search built for teams moving too fast to babysit infrastructure. Typo tolerance, filters, personalization, analytics, AI recommendations, even business-aware genAI - all with a simple API.
Search is your most powerful conversion machine, and forward-thinking startups and nonprofits reach for Algolia’s million-record free plan and $10k in startup credits. We even got vector search on our own newsletter archive in 7 minutes. Half Baked readers get the play-by-play:
The Trend: There’s a new trend in prompt engineering every few weeks. Recently? It’s “meta prompting”, a prompt engineering method that uses large language models themselves to create and refine prompts. Unlike traditional prompt engineering, where you write a prompt from scratch and hope for the best, meta prompting guides the LLM to adapt and adjust your prompt dynamically, based on your feedback. So instead of saying “write me a blog post,” you say “pretend you’re a world-class copywriter, structure the piece like BuzzFeed, and make the tone snarky but smart.” You’re not just asking the AI what to do, you’re telling it how to think.
Opportunities:
Prompt Standardizer for Enterprises: A platform that keeps all AI usage across a company consistent with tone, compliance, and formatting.
Meta Prompt Marketplace: A platform where creators sell their best frameworks (like Notion templates but for prompts).
The Tool: AI building tools like Lovable, Bolt.new and Replit are incredibly powerful. But they’re only as good as one’s ability to prompt them. Here’s a template you can use for prompting these tools to build a mobile app.
Step-by-step:
Go to your AI builder of choice (Lovable, Bolt.new and Replit)
Copy in this template and fill it in with details about what you want it to build
Refine the result through extra prompting
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Trusted by 12,000+ companies, Vanta automates up to 90% of the compliance process, offers real-time monitoring, and streamlines audits so you can get certified in weeks, not months.
And we've teamed up with Vanta to offer a collection of resources for startups, including step-by-step compliance checklists and case studies from fast-growing startups. It's an incredible resource.
The Idea: Patrick Campbell grew up as farm boy in Wisconsin. But after getting tired of working in bureaucratic environments in his early career, he cashed out his 401k to start a business. Having worked in pricing for most of his career he noticed that most SaaS companies were terrible at pricing. Most guessed their pricing strategy, leaving millions on the table. So he decided to build a tool to help SaaS companies to better understand their pricing and business. This was the beginning of ProfitWell.
The Execution:
2012: Patrick quit his job, bootstrapped with his own savings, and built the MVP (originally called Price Intelligently). It focused on pricing audits and consulting revenue, which funded the software side of the business.
2014: Pivoted to ProfitWell, a free financial metrics dashboard for SaaS companies. It was a Trojan horse, once customers plugged in their data, Patrick could upsell them on premium retention and monetization products.
2018: The product expanded beyond analytics with Retain (to reduce churn), Recognized (to automate revenue recognition), and other tools. All built on top of the free dashboard.
2021: ProfitWell was working with over 30,000 companies globally. Still bootstrapped, still profitable.
May 2022: ProfitWell was acquired by Paddle for $200M in cash and stock, giving Paddle a massive upsell engine and strengthening its position as the "revenue growth platform" for SaaS.
ProfitWell shows the power of the “give it away, then get paid” model. By making its core analytics free, it hacked distribution and trust, then monetized with high-value add-ons. Great strategy.
Check out Patrick’s AMA from just after he sold the business!
🛠️ AI Tool: With Gemini storybook, you can create personalized, illustrated stories about anything with read-aloud narration.
🚨 Raise Alert: AI crawler Firecrawl has raised a $14.5M Series A.
📚 Must-Read: Elad Gil’s list of biotech companies he wishes existed is well worth a read.
✖️ Trending Tweet: Naval dropping some wisdom on the problem with “average” content and media as a winner takes all market.
💬 Founder Quote: “You can’t be normal and expect abnormal returns.” Naval Ravikant (AngelList)
🛠️ buildrunkit: Brent Whistler has organized all the resources that a founder or small business person needs to start and run a successful business.
🔗 exit1.dev: Morten Pradsgaard is building a product which offers free, unlimited uptime monitoring with zero upsells, zero noise, and zero surprises
📃 BlogSEO: Vincent Josse is building a platform which automates SEO friendly content creation and publishing for website owners
🪑Seat Planning: Ovidiu Grosu is building a visual seating chart builder to drag and drop seats to tables.
👍 twothumbs: M. Laine is building the world’s most straightforward user feedback system
P.S: If you want your startup or project featured, click here!
Long-distance relationship getting you down? Ever wish FaceTime came with a little more tongue action?
Introducing Kissenger™, the phone attachment that lets you kiss your partner through the internet. That’s right, finally a way to feel connected even if you’re thousands of miles away.
Kissenger™ - where paying lip service gets literal (also it’s in no way affiliated with Henry Kissinger before you ask…)
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