The Underdog: From His Parent’s Basement to $25M
Introduction
This is the inspiring story of David Park, an entrepreneur who went from working day and night in his parents’ bedroom, with no money and countless failures behind him, to building an AI-powered SaaS product valued at $25 million in just two years.
David’s journey is a testament to persistence, grit, and the willingness to learn from rejection and keep pushing forward against all odds.
Early Years: A Dream Begins
David grew up in a family of entrepreneurs. Though they never had much money, David had a dream to become a founder from a young age.
“When I was in seventh grade, I thought, ‘It’d be so cool if I’m a founder and could build stuff.’”
At 16, he started his first company, a clothing brand, but it failed spectacularly.
His parents sacrificed everything to send him to college, hoping he would have a better life-a lawyer, a doctor, something stable.
“My parents gave me $20,000 and said, ‘Go to college. You’re going to have a better life than us.’”
However, David felt like he didn’t fit in anywhere at college-not in his fraternity, not in his major. Despite being surrounded by people, he experienced loneliness and a nagging sense of dissatisfaction.
Dropping Out and Chasing the Startup Dream
Feeling out of place and driven by entrepreneurial passion, David made a bold decision: he dropped out to pursue his startup dream.
Along the way, he met Henry, a fellow passionate outlier and AI enthusiast, who became his co-founder and business partner.
Their early startup attempts numbered around 10 failures together before they discovered something special.
Discovering GPT-2 and the Birth of Jenny AI
One day, experimenting with GPT-2, a language AI model, they asked it to tell a story.
The model responded with the line:
“Nothing is darker than a butthole.”
Amused by the absurdity and profound nature of this line, the two co-founders decided to create an AI writing assistant, humorously named Jenny.
Roles in the Company
- Henry: Developer coding the product
- David: Focused on sales and business development
Their goal was to help agencies write better content using AI.
Struggle and Rejection: The Early Days Working at Home
David began cold calling agencies for 8 hours a day, enduring rejection about 99% of the time.
“Nobody wants to talk with you. They hang up on you. You have to get used to rejection.”
He worked tirelessly from his parents’ house, often in the bedroom, pitching and selling.
“My mom would wake up hearing me pitching and go to sleep hearing me pitch again.”
The pressure was immense. His mother’s friends compared their kids’ successes, while David felt like the odd one out.
“My mom would say, ‘My son is working on a startup,’ and it felt humiliating.”
He even had to ask his mom for her credit card to buy food.
Despite the struggles, the love and support of his family, co-founder, and friends kept him going.
Breakthrough with GPT-3 and Early Traction
In 2020, GPT-3 launched, and David’s product began gaining traction as AI-generated content became highly sought after.
They got their first user wave but quickly hit a plateau: maxing out at around $2,000 in monthly revenue.
Learning from Users: The Key to Growth
David realized that many founders talk to users incorrectly. Instead of asking:
- “Why do you like my product?”
They should ask:
- “Why do you dislike my product?”
- “What do you love about other products?”
By focusing on understanding customers’ workflows and pains, such as:
- How Jenny fit into their writing process
- Watching users write articles together on-screen
They uncovered important insights to improve the product.
The team refined Jenny into an AI-assisted friendly writing journey, which ignited growth.
The Low Point: Exhausted and Nearly Broke
Despite these improvements, David’s bank account was nearly empty, and he was drained after years of relentless work.
In a last-ditch effort, he agreed to appear on a little-known podcast to talk about Jenny.
By sheer luck, Jason Calacanis, a well-known investor, heard the episode and sent a $100,000 check.
This unexpected infusion of capital was life-changing.
Strategic Moves Post-Investment: Cutting Costs and Extending Runway
With the funding secured, David and Henry booked a flight to Malaysia to reduce burn rate by 25% and stretch their runway.
Though relieved, David knew the real work was just beginning.
“I had $100,000, but I was completely alone. It was time to make it or break it.”
The following months focused on heavy iteration, customer conversations, documenting progress, and trying every possible tactic to improve growth.
Viral Growth and Expanding Audiences
One night, their app experienced explosive growth due to a viral Twitter thread posted by Zay Khan.
User numbers jumped from 2,000 to 10,000 in a single month.
Recognizing virality’s power, David brought in a college friend to handle TikTok and Instagram Reels, producing a second wave of viral growth.
By then, monthly revenue reached $50,000 to $80,000, heading toward nearly $1 million annually.
Facing a Personal Crisis: Cancer Diagnosis
At the height of the company’s growth, David was diagnosed with thyroid cancer.
He described the surreal experience of his dreams and nightmares colliding.
Hospital complications delayed surgery, making his ordeal more painful.
A poignant moment came when he noticed a Bible verse on the ceiling before surgery:
“Leave everything to God.”
His mother had wanted to tell him a encouraging message before surgery but was in the bathroom when the surgery was rushed forward.
The coincidence of the Bible verse provided unexpected strength.
Reflections During Recovery
Post-surgery, David realized how much he was dedicating to his startup, even during his limited time left with family.
He began exploring selling Jenny to exit and focus on his health and relationships.
However, after seeing no growth while he was away and recognizing the product lacked product-market fit, he faced a difficult decision:
- Cash out quickly and start fresh
- Or double down to find product-market fit and scale further
He trusted his gut and chose to persevere.
Scaling and Doubling Down
David focused on hiring marketing and growth talent and shifting to scaling mode.
From $1 million to $3 million in annual recurring revenue (ARR), they heavily invested in successful tactics.
For example, their approach to social media growth involved:
- Starting TikTok accounts with varied creative content
- Doubling down on formats that perform well
- Hiring creators on monthly salaries with incentives based on views and conversions
- Replicating successful content to multiple accounts for scalability
David emphasized:
“You should think about how you can scale content.”
A Decade of Failing Before Success
David reflects on nearly a decade of failures before real success emerged in the last 18 months.
“It’s gut punches, people not taking you seriously. You need discipline if you care about your dream.”
He stresses the importance of long-term commitment:
“You can’t give it a one-shot or even a one-year shot. You must sacrifice everything for many years to have a chance.”
He acknowledges the risk of failure but views the act of trying as validation of caring deeply about building something meaningful.
Looking Back: The Cost of Almost Quitting
Had he sold Jenny earlier in the year, 6 or 7 months ago, it would have been a huge mistake.
Since then, the business doubled from $1.5 million to over $3 million ARR, with a valuation now estimated between $10 million to $30 million.
Persistence paid off.
Final Thoughts from David Park
David encourages aspiring founders to keep pushing even when success seems distant.
His message is clear: if you truly care about your product, users, and future, persistence and dedication are crucial.
About Starter Story and Resources
Pat Walls from Starter Story produced this video to inspire entrepreneurs by sharing David’s journey.
If you're looking for startup ideas or want to build your own SaaS product, Starter Story offers:
- A deep dive SaaS report with 52 micro SaaS ideas (available for free)
- A community and resources to help you start and grow your business
Check the link in the description of the video for access and more information.
(Video music and credits)
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