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From Bootstrapping to AI Powerhouse: How Persistence Propelled Picsart to Empower Creators

With more than 150 million active users, Picsart is the world’s largest digital creation platform. This didn’t happen overnight: The Armenian-American unicorn has been around since 2012. Its journey also skyrocketed in recent years as it embraced AI to give creators even more powerful tools to design visual content that meets all their needs.

Picsart co-founder Mikayel Vardanyan, too, saw his role evolve over the years, from CTO to CPO to COO. What hasn’t changed is Picsart’s core team, which has been working together since 2005. Talking to us for the Selected podcast, he and his mates learned along the way.

The value of bootstrapping

Picsart raised more than $195 million to date (approximately €189 million), including the Series C round of funding led by Softbank in 2021 that officialized its unicorn valuation. But it hasn’t always been venture-backed: “For the first four years, we were completely bootstrapped,” Mikayel said.

This taught the company an important lesson: Revenue matters. At the time of its Series C, it already had over $100 million in annual revenue run rate (ARR). This matters even more now that the market has turned. Having also bootstrapped their previous ventures is particularly helpful, Mikayel said. “We know how to do it and how useful it is.”

A persistent team

Mikayel met Picsart’s CEO Hovhannes Avoyan and current CTO Artavazd Mehrabyan while doing his master’s at the American University in Armenia, and they have been working together since then. This makes the fact that they have been working together on Picsart for so long even more impressive: In total, they have been collaborating for twenty years.

Mikayel’s advice to younger teams is not to get discouraged during the first two or three years, when it is unclear whether or not they can succeed. “Everything starts after five, six, seven years. So if you go through it, if you are persistent and consistent, you will make it usually,” he said.

Iterate fast

“We are big believers that it’s all about experimenting and [making] bets. And whoever is fast and whoever can learn from those bets,” Mikayel said, while insisting this should be done consistently. “Because at the end of the day, that’s what everyone needs, and if you just do it slow, there are always new and existing large companies that can do it much better than you.”

Not slowing down is even more important now that Picsart has grown into a scaleup with more than 600 team members around the world; besides its HQ in Miami, it also has teams in Berlin, Bucharest, London, New York, San Francisco, Toronto, Yerevan, and more.

Exciting times

“Every day is exciting in our industry, especially in these last two years. You wake up and you see something new, right? Before it was also growing, it was changing, but not at the pace we have seen during the last three years,” Mikayel said.

Picsart itself fully embraced generative AI, empowering creators with new tools such as its AI logo maker. With Picsart Ignite having turned into a full suite of AI-enabled design products, we are looking forward to seeing what it will launch next.

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Venture Capital
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Fundraising
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