Written by Lidia Vijga, Co-founder at DeckLinks
I’ve always been fascinated by the stories of bootstrapped startups that manage to carve out their own path to success. Today, I’m excited to share with you the remarkable journey of LavaReach, a bootstrapped AI sales startup that not only achieved impressive growth but also recently completed a successful exit in just 4 days.
LavaReach: How It Started
In July 2023, Daniel and YiMing crossed paths at a VC event in Toronto. At the time, both were working on their own startups. Daniel was busy building Sellwisely, a tool that helps automate LinkedIn tasks, with two other co-founders. Meanwhile, YiMing was working hard on a developer tool with his team of two co-founders in Australia. They had no idea that their chance meeting would lead to them working together.
As a founder, you know that timing is everything in the startup world. About a month after they met, Daniel hit a roadblock. His technical co-founder couldn’t work full-time on their startup anymore – a common problem that many new businesses face. This put Daniel’s project in a tough spot, and he needed to make some important decisions about what to do next.
Coincidentally, YiMing was also going through changes in his own startup. He was finding it hard to work with his team in Australia due to the big time difference. There were also some disagreements within the team that weren’t getting better. These problems led YiMing to decide it was time to leave his project. It’s a scenario many of you can relate to – sometimes, despite your best efforts, the team dynamics just don’t click.
This serendipitous timing led to the creation of LavaReach in mid-August 2023. The team came together perfectly: Daniel brought his skills in running business operations, YiMing had strong technical knowledge, and they were joined by Max, who was excellent at sales. It was a trio that seemed almost too perfect on paper. Each co-founder had different strengths that worked well together – Daniel handled the day-to-day operations, Max took care of sales, and YiMing managed all the technical work.
The Early Days
Now, let’s talk about the early days of product development – a phase that every founder knows all too well. It’s an intense mix of excitement, sleepless nights, and countless iterations.
For the LavaReach team, these early days were packed. By the end of August, barely two weeks after joining forces, they had already developed a scrappy hiring trigger. This tool could automatically fetch decision-makers and generate personalized emails. For those of you who’ve been through early product development, you know how exciting it is to see your idea take shape, even in its most rudimentary form.
Over the next month and a half, the team expanded their product capabilities at breakneck speed. They built out multiple triggers, implemented contact fetching based on Ideal Customer Profile (ICP), and refined their personalized email generation. Was it perfect? Far from it. But as you well know, perfection is the enemy of progress in the startup world.
This early prototype, with all its flaws and limitations, laid the foundation for what would become LavaReach’s core offering. It was a functional solution to a real-world problem – a crucial milestone for any startup. For those of you just starting your own companies, remember this: your first product doesn’t need to be perfect; it just needs to work well enough to solve your customers’ problems.
The Pivot: When Plan A Becomes Plan B
As you’ve likely experienced in your own entrepreneurial journey, the path from idea to successful product is rarely a straight line. LavaReach’s story is no exception. By the end of 2023, despite having a substantial sales pipeline, the team found themselves facing a familiar startup challenge – difficulty in converting potential customers.
This struggle stemmed from a realization that many of you have probably faced: our product’s quality wasn’t quite up to par, and we were attempting to solve a vague pain point – research and personalization – without a concrete plan to tackle it effectively. It’s a common pitfall in the startup world, trying to be all things to all people instead of focusing on a specific ICP with an acute problem.
But here’s where the LavaReach team demonstrated their resilience. Instead of stubbornly sticking to their original plan, they made a bold decision to pivot. They introduced a “managed-product” or “full-service” option. This new offering promised customers meetings and a proven approach using LavaReach’s software, which included list building through triggers and signals, research through AI and data sources, and support with email automations using the customer’s existing tools.
For those of you who’ve ever had to make a significant pivot in your business model, you know it’s not an easy decision. It requires admitting that your initial approach isn’t working, and having the courage to change course. But as the LavaReach team discovered, being willing to change direction turned out to be exactly what they needed.
By shifting their focus to performance guarantees and promising meetings, LavaReach began to convert customers on $2,000 MRR deals. This new approach catalyzed rapid growth, with the company adding an impressive $80,000 in ARR month-over-month for several months.
When Growth Leads to Change
If you’ve ever experienced a period of hypergrowth in your startup, you know it’s both exciting and terrifying. When the new business model started working well, LavaReach grew faster than they ever expected. But with quick growth came new problems they needed to solve.
By mid-June 2024, the team realized they needed to reassess their strategies and focus on sustainable growth. It’s a common inflection point for startups – that moment when you realize that the practices that got you to this point might not be the ones that will take you to the next level.
In August 2024, the team underwent a significant change when they parted ways with their sales co-founder. For those of you who’ve gone through co-founder separations, you know it’s never an easy process. It’s emotionally taxing and can create uncertainty about the future.
This transition period prompted Daniel and YiMing to go back to the drawing board. They began talking to users, focusing on the individual contributors they initially set out to help, rather than just the sales leaders attracted by the promise of higher sales targets through AI and automated outreach. It’s a reminder of an essential startup lesson – never lose sight of your core users and their needs, even when your company is growing quickly.
The Human Cost of Rapid Growth: Burnout
Now, let’s talk about something that doesn’t get discussed enough in startup circles – burnout. As founders, you’re often so focused on your company’s growth that you neglect your own well-being. YiMing’s experience with burnout is a stark reminder of the toll that the entrepreneurial journey can take.
Around October 2024, just a month after their sales co-founder left, YiMing hit a wall. In his own words: “I had a massive panic attack, I felt like I was dying, my chest was tight, and I could have a heart attack at any moment. I could barely work for weeks. Every time I opened my laptop, I would have this haunting chest pain, I would be out of breath.”
For those of you who’ve experienced burnout, YiMing’s description probably resonates deeply. For those who haven’t, it’s a powerful warning. The pressure of running a startup, especially one that’s growing rapidly, can have serious physical and mental health consequences.
YiMing’s burnout was a wake-up call for the team. It highlighted the importance of work-life balance (which rarely exists among startup founders) and the need for sustainable growth strategies. A trip to Japan helped YiMing disconnect and recover, but the experience left a lasting impact on his approach to entrepreneurship.
If you’re reading this and recognizing similar signs in yourself or your co-founders, take it as a sign. Your health – both mental and physical – is your most valuable asset. No amount of startup success is worth sacrificing it.
4-Day Bootstrapped Startup Acquisition
As LavaReach continued to evolve and grow, Daniel and YiMing found themselves at another crossroads. In January 2025, they began reaching out to similar companies for potential collaborations or outcomes. What happened next was unexpected and moved at a pace that would surprise even the most experienced serial entrepreneurs with multiple exits.
The exit process, from start to finish, took a mere four days – a testament to the agility and decisiveness often required in the startup world. It began with an initial call between Daniel and Daniel Saks, CEO at Landbase on a Friday. What was supposed to be a 30-minute quick call to exchange ideas turned into a series of texts, calls, and even a dinner with the company’s chief of staff, who happened to be in Toronto that same night.
For those of you who’ve never been through an acquisition process, let me tell you – this is not the norm. Usually, these processes can take months of negotiations, due diligence, and paperwork. But sometimes, when there’s a perfect fit, things can move at lightning speed.
The momentum continued into the following week. On Monday, Daniel and YiMing met with the entire executive team of Landbase. By Tuesday, just four working days after the initial contact, the deal was finalized.
Want to learn more about Landbase? Check out their recent video series that breaks down common sales and marketing challenges, and shows how their solutions are helping companies transform their go-to-market strategy.
Lessons for Founders
Now, let’s talk about what you, as a founder or aspiring entrepreneur, can learn from LavaReach’s journey. Their story offers several valuable lessons that you can apply to your own venture.
1. Embrace Serendipity
The chance meeting between Daniel and YiMing at a VC event led to the formation of LavaReach. This underscores the importance of networking and being open to unexpected opportunities. As a founder, you never know when a casual conversation might lead to your next big break. So, get out there, attend events, and engage with your peers. Your next co-founder or game-changing idea might be just a handshake away.
2. Be Willing to Pivot
When their initial product wasn’t gaining traction, the LavaReach team didn’t hesitate to pivot to a “managed-product” model. This flexibility was key to their subsequent growth. In your own startup journey, don’t be afraid to change course if something isn’t working. Your ability to adapt quickly could be the difference between success and failure.
3. Listen to Your Users
After parting ways with their sales co-founder, Daniel and YiMing went back to talking to their users, focusing on the individual contributors they initially set out to help. This user-centric approach is crucial for product development and market fit. Remember, your users are your best source of feedback and inspiration. Make it a habit to engage with them regularly and really listen to their needs and pain points.
4. Recognize and Address Burnout
YiMing’s experience with burnout highlights the importance of mental health and work-life balance in the startup world. As a founder, it’s easy to get caught up in the hustle and forget to take care of yourself. But remember, you are your company’s most valuable asset. Taking time to disconnect and recharge isn’t just good for you – it’s crucial for the long-term success of your venture.
5. Be Prepared for Rapid Changes
The speed at which LavaReach’s acquisition unfolded demonstrates how quickly things can change in the startup world. While not every opportunity will move this fast, being prepared for and open to such rapid changes can lead to unexpected opportunities. Stay agile, keep your documentation in order, and always be ready to seize an opportunity when it presents itself.
6. Value the Human Element
Throughout their journey, the LavaReach team emphasized the importance of the human element in their work. This aligns with my own belief in the power of personal qualities such as kindness, empathy, and the willingness to understand others. In your own startup, remember that behind every user, every team member, and every investor is a human being. Cultivating strong relationships and showing empathy can set you apart in the often impersonal world of tech.
Looking to the Future
While the LavaReach chapter has come to a close for Daniel and YiMing, their entrepreneurial journey is far from over. As YiMing said:
“I’m certainly not done with startups. Hopefully I’ll see you coming back in a few years, for some even wilder stories.”
This sentiment encapsulates the spirit of true entrepreneurs – always looking forward, always ready for the next challenge. It’s this spirit that drives innovation, creates jobs, and pushes our society forward.
As for the acquiring company, while details of their plans for LavaReach’s technology and team are not public, it’s clear that they saw significant value in what Daniel and YiMing had built. This acquisition not only validates the work of the LavaReach team but also opens up new possibilities for the technology they developed to reach a wider audience and make a bigger impact.
For those of you working on your own startups, let the LavaReach story serve as both inspiration and a reality check. Success in the startup world can come in many forms and often when you least expect it. Stay focused on creating value, be open to opportunities, and don’t be afraid to pivot when necessary.
