How Notion Transformed Into the Internet's Second Brain [Pivot Case Study]

No-code tool builder → Productivity superapp

In the world of productivity software, Notion stands out as a testament to the power of perseverance and pivoting. Founded by Simon Last and Ivan Zhao, the company began with a vision to democratize software creation but transformed into something far more impactful.

What started as a noble attempt to empower non-coders to build their own tools evolved into a versatile platform that combines notes, wikis, and task management into a single, intuitive interface. This case study delves into Notion's journey from a struggling startup to a $10 billion unicorn, exploring the pivotal decisions that shaped its success.

From firing their entire team and relocating to Kyoto to rebuild their product from scratch, to fostering a devoted user community, Notion's story is one of resilience and adaptability. We'll examine how the founders' unwavering commitment to their mission of empowering creativity through software guided them through tumultuous times and ultimately led to product-market fit.

1. Original premise?

What problem was the Notion team solving? For who? What was the intended solution?

Co-founders Simon Last and Ivan Zhao were on a mission to reinvent a common person’s relationship with a computer by empowering them to create their own toPagesols and apps without code. They build a programming application easy to use even if someone didn’t know how to code. But the product didn’t get much traction. Last and Zhao realized that few people woke up with a burning desire to build something through code, but everyone woke up wanting to solve problems. They decided to offer a familiar app with the ability to take notes, make wikis, and organize tasks; and then layer tool-making/programming capabilities into it. And the first version of Notion was born.

2. Warning Signs

What made them think they needed to pivot from their original premise?

Last and Zhao had chosen to build their product on a Google framework called Web Component. When they shared it with their friends, they realized that the tech stack was unstable. The product crashed constantly and people were losing data.

3. Time to Pivot

How long after they started the company did they think about pivoting?

The co-founders took around 3-4 years to go from the no-code app building product to the current form of Notion.

4. Initial Funding / Team

Had Notion raised money before their pivot? How much? How big was the team?

Last and Zhao knew they were onto something with the first version of Notion built on the weak tech stack. Running out of their angel investment money, the co-founders decided to fire their young team and move to Kyoto (from SF) to rebuild the product from scratch. The co-founders fondly recall their intense time in Kyoto building a brand-new code base. 

5. New Opportunity

What were the key insights that drove their pivot?

Last and Zhao knew they were onto something with the first version of Notion built on the weak tech stack. Running out of their angel investment money, the co-founders decided to fire their young team and move to Kyoto (from San Francisco) to rebuild the product from scratch. The co-founders fondly recall their intense time in Kyoto building a brand-new code base. 

6. Pivot Validation

How did they validate those insights?

The first version of Notion had its iconic aesthetically pleasing layout, the ability to do word processing, drag-and-drop to-do lists and wikis, and more than 30 document templates for things like product roadmaps. With a little help from early-investor Naval Ravikant, the founders pushed Notion 1.0 to the top of Product Hunt — earning them coveted visibility in the tech world. Notion began getting attention from tech insiders.

7. Length of Pivot

How long did it take to get clear signal the pivot was working?

2 years. In March 2018, the Wall Street Journal penned a glowing review of Notion titled “The Only App You Need for Work-Life Productivity”. The user community that the founders had been carefully fostering grew significantly. They started charging users subscription fees of $4-$10 per month and began turning a profit.

8. Pivot Funding

Did Retool raise money during or after their pivot?

Notion has raised $343.2 million in funding over six rounds.

9. Pivot Outcomes

What happened after the pivot? Did they ever get to product market fit? Where is the company today?

Yes. Notion has over 30 billion users, 4 million paid subscribers, and a $10 billion valuation. The company’s mission of using the product to create a community of people who are empowered to use the computer to unlock creativity and productivity has remained the same. 

10. Lessons Learned

What are 2-3 key takeaways from Notion's experience?

1. Have a strong mission statement. Notion co-founders went through several difficult stages in the early years of the company. One of the things that kept them going was their commitment to empowering people to be more creative through software. It was something they derived joy and meaning from. A strong mission statement can help you weather through the trying times.
2. Build institutional knowledge. Notion learned a lot from their own past. They made careful note of what has been tried in the past, what worked, and what didn’t. Record your journey as you go — it will be an invaluable resource in remembering the lessons learned and avoiding repeating mistakes. 

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