How Udemy Grew From a Small Turkish Village to a $710 Million Business
Udemy, one of the largest online learning platforms in the world, began with a dream in a small village in Turkey. Its journey from zero to a $710 million valuation is a story of resilience, innovation, and persistence.
Here’s how Eren Bali and his co-founders overcame countless obstacles to turn Udemy into the global success it is today.
The Early Days: The Idea is Born (2007)
In 2007, Eren Bali launched the first version of Udemy in Turkey. The concept was simple: create a platform where anyone could teach and learn online. But the initial attempt failed, as the platform struggled to attract users and build momentum.
A Second Chance: Moving to Silicon Valley (2010)
Undeterred, Eren teamed up with Gagan Biyani and Oktay Caglar in 2010 to relaunch Udemy. This time, they decided to relocate to Silicon Valley, believing that the tech hub offered the resources and connections they needed to succeed.
However, the road ahead wasn’t easy:
- In February 2010, the founders pitched their idea to 50 investors, only to receive 50 rejections.
- Realizing they couldn’t rely on external funding, they decided to bootstrap the platform’s development, using their own limited resources to build the product.
Launching Udemy 2.0 (May 2010)
In May 2010, the new version of Udemy went live. But there was a significant problem:
- The platform had no courses, no instructors, and no students.
- An empty marketplace wasn’t appealing to anyone.
For the next six months, the team cold-called instructors, asking them to upload courses to the platform. The results? Zero success. Without existing content or users, instructors were reluctant to join.
The Breakthrough: Solving the Content Problem
Faced with a chicken-and-egg dilemma, the team devised two clever strategies to populate the platform with content:
- Creative Commons Courses
- They uploaded 100 high-quality courses licensed under Creative Commons, claiming they were from prestigious institutions like Stanford, Yale, and MIT.
- These free courses gave Udemy credibility and made the platform look established.
- Creating Their Own Premium Course
- They developed and uploaded a course titled “Raising Capital for Startups.”
- This course not only provided value to aspiring entrepreneurs but also demonstrated the potential of the platform to other instructors.
These moves helped Udemy look like a thriving marketplace, even in its early days.
Gaining Attention and Building Momentum
To generate buzz, the founders pitched the media with the tagline: “Free courses from top colleges.” This caught the attention of major publications like Mashable and TechCrunch, bringing much-needed visibility to the platform.
At the same time, they:
- Hired data miners from the Philippines via Odesk (now Upwork) for just $3 per hour to help grow their initial user base.
- Acquired their first 10,000 users, which gave them the social proof needed to attract more instructors.
- Highlighted the success of their own course, which generated $30,000 in revenue, inspiring early adopters to upload their courses.
By the end of this phase, the platform had:
- Its first 1,000 instructors.
- Over 2,000 courses uploaded.
Attracting Investors: The Turning Point
With a growing user base, revenue from their own courses, and success stories to share, investors finally took notice. Udemy secured its first $1 million in venture capital, giving them the resources to scale their operations.
Scaling Success
Armed with funding, the Udemy team focused on scaling their early success:
- They continued adding high-quality courses and instructors.
- They invested in marketing and partnerships to expand their reach.
- They refined the platform to enhance the user experience for both students and instructors.
Over time, these efforts transformed Udemy into the global learning marketplace it is today, connecting millions of students and instructors worldwide.
Key Takeaways from Udemy’s Journey
- Persistence Pays Off
- Despite early failures and 50 investor rejections, the founders didn’t give up. Their determination was critical to Udemy’s success.
- Solve the Chicken-and-Egg Problem Creatively
- By populating the platform with free Creative Commons courses and their own premium content, they created the illusion of a thriving marketplace, which attracted both instructors and students.
- Leverage Media and Social Proof
- Strategic media outreach and showcasing success stories helped Udemy gain credibility and attract users.
- Bootstrap When Necessary
- The founders made the most of limited resources, from hiring affordable data miners to creating their own courses, to kickstart growth.
- Adapt and Scale
- Once they had proof of concept and initial traction, they secured funding and scaled the platform into a global business.
The Result
Today, Udemy is valued at $710 million and continues to empower people around the world to learn and teach online. Its journey serves as an inspiring example of how creativity, persistence, and strategic problem-solving can turn even the smallest beginnings into incredible success.
Source: thehustle.co