Summary
Highlights
The Motion team, who recently closed their Series B and C funding rounds at a $550 million valuation, explains that they build work management software for small and medium-sized businesses, particularly in construction, marketing, design, and law. Their platform offers all-in-one project and knowledge management, with a new focus on AI agents that perform tasks for clients. The founders, Omi and Harry, were high school math olympiad friends, and Ethan was a college friend. All three studied computer science.
The founders, all former quantitative traders, left lucrative careers for the startup world. They discuss the sacrifices involved, including forfeiting significant bonuses, and the initial skepticism from their parents. Despite making seven figures in their early 20s, they found trading lacked purpose and a sense of building something lasting. Their motivation stemmed from a desire to build a compounding endeavor.
Motion initially got into Y Combinator with a sports betting idea, but soon pivoted due to regulatory challenges. During YC, they developed a calendaring application that automatically scheduled users' time. This innovation quickly led to significant ARR, reaching 15-20 million. However, they realized this consumer/prosumer product, while successful, was a 'nice-to-have' and wouldn't scale to a billion-dollar business. This led to a difficult decision to pivot to B2B work management for SMBs, aiming to build a 10x better alternative to existing solutions.
The founders' strong desire to win, rooted in their competitive backgrounds and personal experiences as first-generation immigrants, fueled their decision to pivot. They recall the challenging fundraising environment during the COVID-19 pandemic in winter 2020, facing rejection from over 150 investors. They managed to raise only a few hundred thousand dollars initially, highlighting the difficulty and their perseverance.
Motion is now focused on embedding AI agents into their work management tools, allowing clients to assign tasks directly to AI employees. This integration allows for seamless transition between AI and human tasks, leveraging their existing work management platform. This 'agentic product' has already generated over 10 million in ARR within a few months, showing explosive growth. Their advantage lies in having a complete work suite and extensive data from their customers, providing crucial context for effective AI performance.
Motion is looking for driven, passionate individuals who want to unlock their potential and take on greater responsibilities. The founders emphasize their relentless pursuit of success, viewing 'not losing' as a powerful motivator. They express confidence in reaching a billion dollars in ARR and beyond, driven by an unwavering commitment to continuous refinement and growth.