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August 29, 2024

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This article was co-written by Edwin Ong from the AHN Ventures team and Lennie Zhu, who is the Founder of 01 Labs, a product studio that builds products with early-stage software companies serving creators (media, entertainment, social), small businesses and independents. She has worked with startups such as HIFI (acquired by Block), F*** You Pay Me, and more. One of AHN Ventures’ portfolio founders, Amartya Jha, was the lead interviewer. Amartya is the Co-founder & CEO of CodeAnt AI, a DevTool that helps companies find and auto-fix code issues and security vulnerabilities used by small teams all the way to large unicorns.

In this edition, we had the honor of hosting an exclusive advisory session between Kun Gao, co-founder and former CEO of Crunchyroll, and Amartya Jha of Codeant AI. For those who don’t know, Crunchyroll is the leading anime streaming service with over 13 million subscribers as of 2024, and was last valued at $1.5 billion when it was sold to Sony in 2020. Nowadays, Kun works on two new companies that he co-founded: GGWP, an AI-powered game moderation platform; and Forge, which rewards gamers within and out-of-game prizes for the data they generate through gaming.

We are excited to share 7 hidden lessons for founders from our conversation with Kun.

1. The consumer products that succeed are the ones that go viral – and that can be hard to predict

One of Kun’s early insights was that consumer apps with baked-in virality tend to be the ones that work out. Examples of built-in viral features are share buttons, “invite a friend/collaborator features,” or content that can be easily reposted. 

However, consumer behavior can be notoriously difficult to predict. Unless you have superior product sense like Steve Jobs, your best bet is to take your best guess, then ship quickly and avoid getting caught up in minute details. If your product truly has value, people will use it even if it isn’t polished. Need proof? Check out the screenshot below of what Crunchyroll looked like in 2006. 

Kun: “One of the lessons I learned from that experience is that you really don’t know what the consumer mindset is. You can have a guess, but with pure consumer experiences, it’s better to just try something, throw it against the wall, and see if it sticks. Then, you can collect the data, iterate, and see what works and what doesn’t.

We developed the first version of Crunchyroll in about a month. We put it out there and shared it with our friends. They started using it, and pretty soon we had hundreds, then thousands of users. At the end of the day, it’s about making something really engaging that can capture an audience and get them to virally spread it. Those kinds of consumer products just inherently grow. So my advice would be to think about how to build products that inherently have virality built in.”

2. Build something that solves your own problems

The advantage of building something for yourself is that you will have at least one user out of the gate, and likely a few others since you likely have some friends with similar issues. Furthermore, you’ll be able to understand the customers’ needs because *you* are the customer. For Crunchyroll, this allowed them to cut out hiring product people and only hire engineers at the start

Kun: “With Crunchyroll, we were trying to solve a problem that we personally had. Every Thursday, Naruto would come out on TV in Japan, and it would be only accessible in the US on unreliable torrent websites. We just wanted a place where we could watch Naruto at 6 p.m. every Thursday after work. 

We knew we could get at least a starting set of users because we had that problem, and we were our own consumers…. We also knew we could get all of our friends to use it because we knew they were experiencing the same problem. And so we built Crunchyroll.”

3. Experiment relentlessly until you perfect your conversion funnel

What is often talked about when monetization is on the agenda is “What monetization model makes sense for my company?” Subscriptions, one-time purchases, ad revenue, freemium…the list goes on. But what gets less airtime yet is arguably even more important is how to optimize your conversion funnel. While there is no glory in experimenting with things like button placement, CTA copy, and 1 vs. 3-step payment flows, those kinds of nitty-gritty decisions are exactly what separate “businesses with potential” from the real moneymakers. 

Kun: “Before [we started offering paid subscriptions], we already had a decent amount of users, around a few million. When we flipped the switch to premium content, around 10,000 people converted to paid, which is really low. We thought we would get 50,000, but we only got 10,000 people to convert to paid. The rest stayed on as free users. So then we had to figure out why more people weren’t converting.

We ran some tests on alternative business models. We tested charging per episode, and even some rental models. Those tests didn’t perform that well, so we decided to double down and optimize our subscription model. 

To tackle [conversion], we basically annotated everything on the site and figured out what users were clicking, what they were looking at, and which buttons converted better. Should we start with a free trial? If it’s a free trial, should it be seven days or four? The size of the icons—we basically tested everything, especially in the first year… Over time, we were able to convert the majority of the audience to become paid subscribers.”

4. Ride societal waves in culture and technology

It’s important for every company to have an answer to the question “Why now?” What was not true before, that is now true and enables the product to succeed? This could be something technological or societal. In the case of Crunchyroll, Twitch, and YouTube, the explosion of video streaming was a major driver for those platforms to reach the dizzying levels of success they have today. 

Kun: “Part of what separated us was that we were in the right place at the right time. If you look at all the successful video platforms today—YouTube, Twitch, Crunchyroll—they all started at basically the same time, around the 2004 to 2006 period. You kind of needed to start during that time to be successful. 

Within that time frame, there were also a lot of competitors we were competing with. Platforms like Stage Six, Veoh, and Joost were trying to go after the same space and opportunity. Speed was really important because there was a land grab for distribution at that time. When I say distribution, I mean the proliferation of consumer devices besides the PC from 2006 to 2007, all the way until the early 2010s. Because of our speed, we were able to build these platforms before everyone else and ride that wave of device growth. We were one of the first launch partners on PlayStation alongside Netflix. Being able to build on new platforms with a product engineering focus first allowed us to outgrow and out-distribute others in the space.”

5. The best companies expand their markets or create new ones

Today, Crunchyroll has over 13 million subscribers. There were a lot of external factors that drove the massive growth in the popularity of anime, including the pandemic, but Crunchyroll itself played a major part in making anime more mainstream because it made it accessible to Western audiences. 

Kun: “The thing that surprised me most was that our TAM (Total Addressable Market) ended up being much bigger than we expected. I would project that we would maybe hit 200,000 subscribers. That’s it. Then when we actually reached 200,000 subscribers, we thought maybe we’d get to a million. And then when we got to a million, we thought maybe we’d get to 3 million. The growth itself has really surprised even us. Today, it’s the largest pure vertical play among all the content verticals out there. Initially, because we didn’t expect our TAM to be so big, our approach was to super-serve our audience and do way more than just streaming, which we eventually did, but it just continued to grow even beyond our expectations.”

6. Get creative about how to finance your startup

Many founders’ minds jump immediately to venture funding when they consider how to support their companies. But raising venture money can be a long and difficult path, and it’s not always the right choice for every startup. Timing is everything, and bringing in outside capital before establishing product-market fit can be a mistake, driving founders to pivot into oblivion. Kun gave us a look behind the curtain at how Crunchyroll funded itself before venture money, which included user donations, partner investments, and- yes, credit cards. While taking on significant credit card debt may not be recommended, staying open-minded about where your financing could come from is.

Kun: [Before we were profitable, we financed Crunchyroll with] venture money, and maxed out our credit cards before that. For a period of time, we also accepted donations. Before we raised VC funding, we had pretty hefty bandwidth bills because video streaming was very expensive. At some point, we realized that we couldn’t sustain the site. At the same time, we couldn’t directly charge users because we didn’t own the content. That was the motivation behind accepting donations. To give the users some incentive to donate, we built a very sticky social product where users could create an account, participate in forums, and chat with other anime fans. Anyone who donated would get a star next to their name so people would know that the person donated. It was an appeal to social status and social proof. That was enough to offset some of the bandwidth bills in the early days before we had venture funding.

I [also went to one of] our biggest content partners, the folks who license the content to us, and asked if they wanted to own a piece of the business. It made a lot of sense because if they invested, they would also have a vested interest in the platform and could capture more of the value that their shows were generating. It was a win-win. We took in about a million dollars, which was enough to bridge us to the break-even point.

7. As an Asian founder, take advantage of your inherent cultural strengths

Asian founders starting businesses in Western countries should not underestimate their ability to globalize their businesses by capitalizing on Asian markets, which they may be much better positioned to do than their non-Asian counterparts. Fundamental cultural context that you may not even acknowledge your grasp can help you succeed overseas.

Kun: “With Crunchyroll, we obviously worked a lot with Japan. I think that because I’m Asian, they trusted me more. At the end of the day, it was also about understanding and appreciating their value system, which is very different from the US. In the US, it’s really about the value proposition. In Asia, it’s much more about relationships and trust, so we really leaned into that. Maybe part of that was influenced by our upbringing. You can’t just show up and expect deals immediately. You need to be around, be persistent, and show them that you’re committed. But that might be a bit of a unique situation for us.”

Conclusion

Thank you to Kun Gao for the interview! If you are a gaming company looking for moderation tools, please consider checking out GGWP, and if you are a gamer wondering why you aren’t being rewarded for the mountains of data you are generating, please check out Forge!

Written by Edwin Ong and Lennie Zhu

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That belief now guides both his art and his creative studio, Inspire to Create Media. Through murals, design work, and storytelling projects, Trysen uses his business as a platform to protect culture while helping others share their stories with intention.

1. Reviving Local Stories Through Murals

 

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At the core of Trysen’s work is listening. On Kauaʻi, he spends time learning from residents about their histories, struggles, and sources of pride before creating any artwork. This approach reflects the values he also brings into Inspire to Create Media, where storytelling always begins with people.

The murals that follow are rooted in real voices. They transform blank walls into visual records that help locals feel represented and allow visitors to understand the island through the community’s lived experience.

 

2. Designing With Aloha in Mind

 

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Aloha influences how Trysen collaborates, how carefully he considers each element, and how much intention goes into every decision. Design, for him, is about respect as much as aesthetics. That same mindset shapes the design work produced through Inspire to Create Media. 

Whether creating branding, apparel, or custom visuals, his goal is to make work that feels warm and grounded. Each piece is designed to reflect care, balance, and a sense of home rather than fleeting trends.

 

3. Empowering Youth and Community Spaces

 

Photo courtesy of Trysen Kaneshige (fourth from left), Founder of Inspire to Create Media

Beyond client work, Trysen uses both his art and his studio to invest in the next generation. Through partnerships with schools and wellness programs, Inspire to Create Media supports projects that turn shared spaces into places for expression and growth.

By involving young people in the creative process, he helps build confidence and identity. These initiatives focus less on the final product and more on giving youth a voice and a stronger connection to their roots.

 

4. Building a Global Bridge From Island Roots

 

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While his work is deeply rooted in Hawaiʻi, its reach continues to grow beyond the islands. Through collaborations with global brands like Volcom and OluKai, Trysen shares an authentic island perspective with a wider audience.

These partnerships amplify his message without compromising its foundation. By staying grounded in culture, he shows that it is possible to connect with the world while remaining true to where you come from.

 

Photo courtesy of Trysen Kaneshige, Founder of Inspire to Create Media

 

Carrying Aloha Forward

At its core, Trysen’s work—through his art and his studio, Inspire to Create Media—is an ongoing act of care. Through each project, he honors his home, uplifts his community, and uses creativity as a way to carry Aloha forward with intention, respect, and lasting impact.

More than anything, his work reflects a belief that culture is something you actively protect and pass on. By choosing collaboration over ego and meaning over trends, Trysen ensures that Aloha is not only preserved, but lived, felt, and shared with future generations.

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From Jackie Chan’s Assistant to Building Paire: How Nathan Yun’s Vision for Better Essentials Became a $15M a Year Brand

Nathan Yun did not start his career thinking he would one day build a consumer brand. His early years were spent on film sets and in editing rooms, learning how stories are shaped and how audiences respond to them. Working as an assistant to Jackie Chan gave him a front-row view of storytelling at its highest level. He watched how a single film could reach millions of people and create a shared emotional moment across cultures.

Yet over time, he noticed something that stayed with him. The inspiration was real, but it faded quickly. Once the credits rolled, people returned to their usual routines. That contrast made him question what lasting influence really looked like. Was it found in big, unforgettable moments, or in the small things people interacted with every day?

Paire grew out of that question, built not around trends or marketing tactics, but around everyday essentials, starting with socks. If stories could move people for a moment, Nathan believed products could shape how they lived every day.

From Film Sets to Daily Habits

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Instead of chasing trends, the brand focused on fit, fabric, and longevity. The goal was simple: to make essentials people would reach for again without thinking.

Nathan Yun (right), Founder of Paire

Learning How to Build Before Building His Own

Before launching Paire, Nathan spent five years at furniture startup Brosa, where he learned what it takes to grow a business beyond an idea. As the company expanded from a ten-person team to more than one hundred employees, his role evolved from content creation to leading brand and marketing.

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Nathan Yun (far right), Founder of Paire

The Trip That Made the Mission Personal

The purpose behind Paire became clear during a trip to India. Away from polished storefronts and online campaigns, Nathan saw the fashion industry in a very different light. He witnessed environmental damage near production sites and spoke with workers whose livelihoods depended on high-volume manufacturing.

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Earning Trust Through the Product Itself

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The creator economy is no longer a niche corner of the internet. It is a $250 billion industry, powering modern marketing, culture, and commerce. Yet for the creators at its core, the experience often remains unstable and fragmented. Inconsistent rates, shifting platform demands, and “gifting” budgets paired with outsized expectations have left many navigating an ecosystem that hasn’t caught up to their value.

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1. Stronger Structure for a Growing Industry

 

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2. Education That Powers Careers, Not Just Content

 

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The Next Era: Purpose Over Pressure

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