In 2017, Eric Simons co-founded StackBlitz with Albert Pai. By late 2023, the startup faced potential shutdown due to lackluster growth and minimal revenue. At a critical board meeting, an ultimatum was issued: demonstrate significant progress or face closure. Determined, Simons and Pai devised a plan to boost sales and develop new products, acknowledging the possibility of acquisition. By early 2024, StackBlitz pivoted towards AI coding tools, leveraging Anthropic’s Sonnet 3.5 model. This led to the creation of Bolt.new, a service enabling non-technical users to build applications via plain English inputs. Within weeks, Bolt generated $4 million in annual recurring revenue (ARR), transforming StackBlitz’s fortunes. The company introduced tiered pricing based on token usage, attracting substantial customer interest. Despite challenges, including Anthropic’s decision not to sign a licensing deal, StackBlitz continued its upward trajectory. By March 2025, Bolt’s ARR reached $40 million, marking a remarkable turnaround for the once-struggling startup.
— new from Business Insider
