This Startup Went from 10,000 Waitlist Signups to a $400M Valuation

Linear started with a waitlist of 10,000 people for its MVP and became the most beloved tool in its category, reaching a $400M valuation in just 5 years. Here is how.

Hi, it’s Andreas, and I’m back with Growth, my newsletter that dives deep into today's top startups' funnels and growth tactics. Today, we’re diving into a startup with an impressive growth journey - one that went head-to-head with industry giant Jira.

So, let’s jump in.

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A few weeks ago, my friend

Mudassir Mustafa

texted me and said, “Man, this startup would be a great case study for your newsletter.” And damn, he was right. The startup he was referring to?

Linear.

If you’re unfamiliar with Linear, let’s start here.

Linear is an issue tracker for developers. You’ve probably heard of Jira - it’s been the go-to for years, with a market share of 84.57% in the issue-tracking SaaS market.

But Linear went head-to-head with it by simplifying the experience, making it much more user-friendly and intuitive - meaning this startup meets an industry giant at eye level.

Since then, they have become the fastest-growing and most beloved issue-tracking tool in the world, reaching a $400M valuation in just five years.

So, how did they do it?

Linear’s Growth Strategy

Personal Branding & Networks

These three gentlemen are the founders of Linear.

And what all three have in common is a large following on Twitter and an impressive Silicon Valley background.

Karri Saarinen and Jori Lallo previously founded a Y Combinator startup that was later acquired by Coinbase.

That startup was called Kippt - a social bookmarking platform.

Tuomas Artman, meanwhile, was an engineer at Groupon and Uber in the Bay Area.

After the acquisition, Saarinen and Lallo both worked at Coinbase, and then Saarinen joined Airbnb, where the story of Linear began.

So, you might ask: What does the founders' background & Twitter following have to do with Linear’s growth strategy?

Their seed round was secured when a Sequoia partner approached Linear’s team, saying that “people she trusts in her Twitter network were hyped about Linear.” This led to a $4.2M seed round.

And not only that, their Twitter following helped them get 10,000 waitlist sign-ups for their beta tests. But more on that later.