Matthias and Dima
Matthias Neumayer and Dima Rubanov's journey began during the Covid-19 pandemic. With more time on their hands, they revisited their teenage passion for coding. Neumayer, who had studied law and filmmaking before spending eight years in advertising and media production, and Rubanov, who had worked in consulting for seven years after studying economics and finance, arrived at a decisive moment in their careers.
Their initial attempt at building a product didn't make it to launch, but it ignited something more valuable – the realization that to succeed, they needed to commit fully. This led to an important decision: both friends quit their stable jobs to pursue indie hacking full-time. It was a risk, but one they felt was necessary to turn their ideas into reality.
Oscar Stories: The first product
In March 2023, Neumayer and Rubanov launched Oscar stories, an app that generates bedtime stories for children. Developed in just two months, the app's initial release on Product Hunt garnered 500 signups on its first day. This early traction provided valuable feedback and set the foundation for future improvements.
The app's core technology stack remained consistent from launch, utilizing React Native for the front end and an Express server for the back end. The founders' decision to build most components in-house proved beneficial for scaling as the app grew more complex over time.
As of 2024, Oscar Stories boasts an impressive 60,000 users. To stay ahead of the competition, the team is fine-tuning their AI model to ensure the language used is both accessible and appropriate for children. This commitment to quality and user experience has led to their success.
Addressing AI bias
Recognizing the potential for bias in AI-generated content, Neumayer and Rubanov are taking proactive steps to create more inclusive and diverse stories. They're launching a second storytelling app called LORA, supported by a government grant, which aims to reduce gender bias in children's stories.
To ensure the accuracy and appropriateness of their content, the team consults with educational experts in Austria and collaborates with a machine learning engineer. This approach demonstrates their commitment to responsible AI development and their dedication to creating valuable, educational content for children.
Developing business models
Oscar Stories' business model has undergone several iterations since its launch. Initially offered for free, the app experimented with a points system where users could purchase points to exchange for stories. Later, they tried a subscription-only model, which proved challenging due to widespread subscription fatigue among users.
In response, the team implemented a hybrid model, offering both a one-time purchase coin system and a subscription option for unlimited stories. This flexible approach caters to different user preferences and has helped boost revenue.
The introduction of parity pricing had a great impact on sales, particularly in Brazil. The app's Portuguese language option, which more closely resembled Brazilian Portuguese, coupled with lower-cost subscriptions, quickly made Brazil their top market.
Marketing strategies
Marketing children's products presents unique challenges, particularly due to limitations on user tracking and data collection. However, Neumayer and Rubanov have found success through various channels:
1. Media coverage: Leveraging press releases and existing PR contacts, they secured features in several publications, including a notable mention in Wired magazine.
2. Startup fairs and events: Participation in physical events like Game city in Austria provided opportunities to interact directly with potential customers, gathering valuable feedback and insights.
3. User testing: When in-person events aren't possible, the team uses services like Rapid User Tests to observe how people interact with their apps, helping identify areas for improvement.
These diverse marketing efforts have helped the team reach a wider audience and continually refine their products based on real user experiences.
Expanding the portfolio
Building on the success of Oscar Stories, Neumayer and Rubanov launched Branding5 nine months later. This tool helps businesses develop their brand positioning – a skill Neumayer had honed in his advertising career. Branding5 simplifies the process of defining how a brand wants to be perceived emotionally by its customers.
Five months after Branding5's launch, they introduced FragDasPDF, a PDF chatbot targeting the German-speaking market. Recognizing the competitive nature of the PDF tool space, they quickly realized that a basic chatbot wouldn't be enough. They're now expanding FragDasPDF's capabilities to include word processing and AI-powered formatting features.
The goal for FragDasPDF is ambitious: they want to create a comprehensive solution where students and researchers can interact with their PDFs, write entire theses, and format their work, all within one application. This evolution demonstrates their commitment to creating best-in-class tools in each niche they enter.
The technology behind their startup
The startup studio primarily uses Next.js for their products, with Fire base serving as their database and Supabase for vector storage. They also leverage services like Gemini Flash for fast and cost-effective AI processing. Participation in programs like Microsoft for startups and Google for startups provides them with valuable AI credits.
While the team's core expertise lies in TypeScript and JavaScript, they incorporate Python for backend AI fine-tuning tasks.
Building a team and community
As their revenue grew, Neumayer and Rubanov began reinvesting in their business by hiring additional developers. This expansion allows them to maintain agility and implement new ideas quickly. The founders typically develop new products themselves before outsourcing tasks like bug fixing to their growing team.
Neumayer and Rubanov also emphasize the importance of community involvement. They actively participate in startup and indie hacking communities, which have provided valuable support and connections throughout their journey.
Lessons learned and future goals
The founders share several key insights from their experience:
1. Prioritize personal runway: Having sufficient savings allowed them to focus on building their business without immediate financial pressure.2. Start with a side hustle: Building products alongside full-time jobs can provide a smoother transition to full-time entrepreneurship.
2. Engage with users early: Gathering user feedback as soon as possible helps avoid building products based on incorrect assumptions.
3. Remain flexible: Be prepared to adapt your product and target audience based on real-world usage and feedback.Set ambitious goals: Don't limit yourself to modest targets; aim for standout products with the potential for significant growth.
4. Looking ahead, Neumayer and Rubanov plan to expand Branding5 with a competitor analysis tool, responding to client requests. They continue to refine and expand their existing products while remaining open to new opportunities in the startup space.
Conclusion
Matthias Neumayer and Dima Rubanov successfully turned their side project into a profitable startup studio. They now run multiple apps, including Oscar Stories, Branding5, and FragDasPDF, earning $6,000 per month. Their success stems from fully committing to their business and continuously improving their products based on user feedback. They've shown flexibility by adapting their business models to meet market demands and employing diverse marketing strategies.
The duo has expanded their product portfolio strategically while building a skilled team and engaging with the startup community. Their journey demonstrates how combining technical skills, market awareness, and willingness to adapt can lead to success in the competitive market. As they continue to grow their existing products, Neumayer and Rubanov remain open to new opportunities in the startup space, positioning themselves for further growth and innovation.
