In a tech ecosystem often overshadowed by Silicon Valley’s glitz, Vancouver has quietly cultivated a growing roster of startups that achieve big results.
Among them is Later, a social media management tool that grew from a hackathon idea into a $40 million ARR (annual recurring revenue) business before its acquisition in 2022 for over $100 million.
Ian MacKinnon, co-founder of Later, shared his journey from idea to exit on The Product Market Fit Show podcast, offering insights into building a successful SaaS company in Vancouver.
A Humble Beginning
Later’s story began with a note on MacKinnon’s iPhone labeled “Ian’s Dumb Ideas.” One of these ideas addressed a pain point he noticed in 2013: marketers’ struggle to post content on Instagram without an API to facilitate scheduling. “The idea sat in my notebook until a hackathon,” MacKinnon recalled. “My co-founder Matt said, ‘No, this is the one.’” That weekend, the founding team built a prototype that would later become the foundation for Later.com.
MacKinnon emphasized the importance of starting small and focusing on solving a specific problem. “Don’t try to make a lot of people happy a little bit,” he advised. “Try to make a small number of people utter fanatics about your product.”
Leveraging Vancouver’s Talent Pool
While Vancouver may not have the same global recognition as other tech hubs, MacKinnon found it to be fertile ground for building a startup. The founding team benefited from access to hackathons, a supportive community, and local accelerators like GrowLab (now Highline Beta).
“I was in GrowLab, and one of the advisors, Dan Martell, gave me the best piece of advice: ‘You get the real feedback after you ask for five bucks,’” MacKinnon shared. This wisdom prompted the team to introduce pricing early, validating their product and generating $20,000 in MRR (monthly recurring revenue) in their first month.
Later’s connection to Vancouver’s tech ecosystem extended to indirect competition with local giant Hootsuite. Despite sharing a city, Later carved out its niche by focusing on small and medium-sized businesses (SMBs) rather than enterprises. “Pretty quickly, we realized that larger competitors were going for the enterprise market,” MacKinnon explained. “We intentionally never had enterprise offerings, focusing instead on better tooling for SMBs.”
Scaling Through Simplicity
One of Later’s standout qualities was its technical simplicity. The team resisted the urge to over-engineer their product in its early stages. “I’ve never regretted keeping things simple,” MacKinnon said. “There should be one button that takes your software and puts it into production every single time.” This approach allowed Later to iterate quickly and respond to user feedback, even as it scaled.
Content marketing became a key driver of Later’s growth. By targeting SEO terms like “schedule Instagram posts,” the company secured 20,000 signups before its official launch. “Google is a great front door,” MacKinnon noted. Later’s blog also became an invaluable resource for marketers, helping to establish the company as a thought leader in social media management. “People would tell me, ‘I love your blog,’” MacKinnon said. “And I’d be like, ‘Cool, but we also have an app.’”
Navigating Competitive Waters
Later’s journey wasn’t without challenges. As Instagram’s API evolved, established players like Hootsuite and Buffer introduced similar features, creating competitive pressure. “We were never worried too much about Instagram doing it,” MacKinnon said. “But competition does make you think about how to grow and differentiate your product.”
Later’s focus on image-first design and removing friction in workflows allowed it to retain a loyal user base. “People really liked our UX,” MacKinnon explained. “We bet on media as the first-class citizen, and that’s where the future went.”
The Acquisition Journey
By 2022, Later had reached $40 million ARR and attracted the attention of private equity firm Mavrck, which was interested in expanding its influencer marketing capabilities. MacKinnon described the acquisition process as grueling. “If you imagine all the worst parts of dating and home buying combined, that’s what selling a company is like,” he said.
The acquisition allowed Later to scale further under Mavrck’s umbrella, rebranding to include influencer marketing and other tools. While the financial details of the deal remain private, MacKinnon admitted it provided “F-you money.” Reflecting on the experience, he said, “Having professional investors who’ve seen exits before is invaluable. They’ve been through it and can guide you.”
Lessons for Vancouver Startups
Later’s success underscores the opportunities available in Vancouver’s tech ecosystem for startups willing to focus on solving real problems and leveraging local resources. MacKinnon’s parting advice for aspiring founders is to keep things simple and focus on user needs. “No billion-dollar idea looks like a billion-dollar idea at zero,” he said. “Find a problem people care about deeply and solve it well.”
As Vancouver continues to grow as a tech hub, Later’s journey serves as a reminder that global impact doesn’t always require Silicon Valley roots. With the right team, focus, and strategy, success is attainable—even from a city known more for its stunning landscapes than its unicorn startups.
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