David Senra · May 3Bootstrapping a Business to $5 Billion in Free Cash Flow | AppLovin’s Adam Foroughi
Refinanced the convertible note in summer 2018 and cleaned up the cap table, giving AppLovin its first board. It backed the studio-buying data strategy at once.
Tips
- Foroughi bought game studios for five years to get the data to train Axon▶ 49:00The studios had 1,500-plus people versus a core ads team of about 400, and AppLovin held them roughly five years.
- Foroughi's China investment took over a year of CFIUS scrutiny to unwind▶ 30:12KKR later refinanced the note in 2018, and EBITDA passed $100 million in 2017 during the frozen period.
- Foroughi kept the business without a board for six years and learned the cost▶ 19:50The first board in 2018 had three members: Foroughi, Eduardo Vivas and KKR's Herald Chen.
