Topics / 🧭 Pivoting

The pivot that paid off: How fal found explosive growth in generative media

Gorkem Yurtseven, co-founder and CTO of fal, explains how fal moved from data infrastructure for data teams to hosting image, video and audio models as APIs. He says the move came after ready-made models like Stable Diffusion appeared. fal grew from $2M to over $100M ARR with a 45-person team.

Listen to the original on review.firstround.com ↗

We link to the original and never republish it. All credit to Gorkem Yurtseven.

Key takeaways

  1. Yurtseven and his co-founder ran the old data product and the new inference product side by side for two to three months, saw inference revenue growing faster, then dropped the old customers. He says running both made selling hard because the website showed something else.
  2. Founders can talk themselves into believing a pivot is 'not that drastic.' Yurtseven says they lost time doing exactly that.
  3. When investors doubted revenue durability, fal built a sales team early and pushed customers toward yearly commitments. Contracts often came from self-serve users who passed a daily spend threshold, which flagged them for a sales call.
  4. Owning a category name helped. Yurtseven says calling fal a 'generative media platform' meant talking about the industry was indirectly talking about fal.
  5. Revenue is the main metric he tracks. Request counts stopped meaning much once video models arrived, since one video request is worth far more than one image request.

Who it's for

Technical founders weighing a pivot, or building a developer-facing product and learning enterprise sales for the first time.

Why it's worth your time

It is a candid account of walking away from paying customers for a new market, plus practical detail on sales, hiring and developer marketing at a small team.

More on pivoting

All 39 →

The best founder writing, in your inbox

Hand-picked essays, talks and decks from the founders who built the companies. Free, and you can unsubscribe any time.