My First Million – 3 Niche Business Ideas: AI Psychics, Creator-Owned VPNs & Guns with Soylent co-Founder John Coogan

Intro

In this episode of the “My First Million” podcast, hosts Shaan Puri and Sam Parr are joined by John Coogan, co-founder of Soylent and Lucy Gum. John shares his entrepreneurial journey and experiences as an EIR at Founders Fund. The conversation covers niche business ideas, including AI psychics, creator-owned VPNs, and the gun industry. They also discuss the importance of content creation and the role of venture capital in startup success.

Main Takeaways

Entrepreneurial Journey and Soylent

• John Coogan, co-founder of Soylent and Lucy Gum, shares his entrepreneurial journey and experiences as an EIR at Founders Fund.
• Soylent was a meal replacement drink and Lucy Gum was a nicotine gum, both went through YC and raised over $130 million.
• Soylent was a unique idea in Silicon Valley at the time, as it was a food product that wasn’t software-based but still innovative.
• Soylent was founded by two childhood friends who moved to Silicon Valley and lived in a hacker house where they worked on various ideas, including some that failed.

Niche Business Ideas: AI Psychics and Creator-Owned VPNs

• Using a VPN is useful for crypto users, and John had an idea to sell VPNs before but didn’t get around to it.
• VPNs are a popular advertising category on YouTube, but none of them are majorly venture-backed.
• Beast VPN is a creator-owned VPN that takes advantage of VPNs’ international availability and recurring revenue model.
• Milk Road considered creating a crypto VPN for the crypto economy due to its usefulness for crypto users.

The Gun Industry

• The gun industry is durable, with stocks of munition companies doing fine over the last decades despite restrictions not changing.
• The gun industry is experiencing an increase in demand due to more people hunting, buying guns, and enjoying shooting as a hobby.
• Investing in an ammunition roll-up may be controversial, but there could be potential for alpha due to the cognitive dissonance of some investors.

Content Creation and Venture Capital

• John Coogan is also a content creator and YouTuber, making engaging and informative videos.
• Building a successful business requires more than just a good product and market fit.
• Raising venture capital doesn’t guarantee success and can even lead to a disaster.
• Content is important for launching companies, and having a voice is crucial for entrepreneurs.

Summary

Entrepreneurial Journey and Soylent

John Coogan shares his entrepreneurial journey, highlighting his experiences as an EIR at Founders Fund. He co-founded Soylent, a meal replacement drink, and Lucy Gum, a nicotine gum. Both companies went through Y Combinator and raised over $130 million. Soylent was a unique idea in Silicon Valley as it offered a food product that wasn’t software-based but still innovative. John and his childhood friend, Rob, founded Soylent after living in a hacker house and working on various ideas.

Niche Business Ideas: AI Psychics and Creator-Owned VPNs

John discusses niche business ideas, including AI psychics and creator-owned VPNs. He mentions the usefulness of VPNs for crypto users and the potential for venture-backed VPN companies. Beast VPN, a creator-owned VPN, takes advantage of international availability and a recurring revenue model. The idea of a crypto VPN for the crypto economy is also explored.

The Gun Industry

The gun industry is discussed, with an emphasis on its durability and increasing demand. More people are getting involved in hunting, buying guns, and enjoying shooting as a hobby. The potential for investing in an ammunition roll-up is explored, acknowledging the controversy surrounding it but also highlighting the potential for alpha due to cognitive dissonance among investors.

Content Creation and Venture Capital

John Coogan’s role as a content creator and YouTuber is highlighted, emphasizing the importance of content in launching companies and giving entrepreneurs a voice. The discussion also touches on the fact that building a successful business requires more than just a good product and market fit. Raising venture capital is not a guarantee of success and can sometimes lead to disaster.

Conclusion

This episode of “My First Million” provides insights into niche business ideas, the entrepreneurial journey, and the importance of content creation and venture capital. Listeners gain valuable knowledge from John Coogan’s experiences and the hosts’ engaging discussions. Whether it’s exploring AI psychics, creator-owned VPNs, the gun industry, or the challenges of building a successful business, this episode offers a wealth of information for aspiring entrepreneurs and business enthusiasts.