This Week in Startups – Episode E2214 Summary

Episode Title: Even great startups sometimes need to pivot (feat. Francisco Cornejo of Theo)
Date: November 24, 2025
Host: Jason Calacanis
Guests: Francisco Cornejo (Familify/Theo), Colin Sebastian (On Verite), Jake Triton (Pitch Perfect)
Main Theme: The power of startup pivots and experiment-driven growth as exemplified by Familify’s leap from Storybook to Theo, and insights from two other startup founders.

Episode Overview

This episode focuses on how successful startups sometimes need to pivot or run bold experiments to unlock new growth. Jason Calacanis talks with Francisco Cornejo—whose company Familify developed both Storybook (a children’s bedtime relaxation app) and Theo (a fast-growing Christian prayer app)—about the process and impact of pivoting. The episode also includes quick interviews with Colin Sebastian from On Verite (founder due diligence software), and Jake Triton from Pitch Perfect (compliant SMS marketing for high-volume sales).

Key Segments & Insights

1. Familify: From Storybook to Theo – A Strategic Pivot

[00:00–15:00]

Founding Story & Initial Traction

• Jason highlights the value of consistent experimentation and cases like Ray Kroc’s pivotal McDonalds moment. He sets the stage for Francisco’s story:

  “Running experiments consistently can lead to a founder learning about a new opportunity...it’s never too late.” (Jason, [00:00])

• Francisco recounts launching Storybook in 2020 to support children’s sleep with meditations, massage, and stories during a crisis of children’s mental health. Rapid global growth followed, with tens of thousands of subscribers and stellar app reviews. But growth plateaued before the desired 3x annual pace.

The Experiment: Adding Prayer & Bible Stories

• The spark for their biggest experiment came when Francisco and his wife/co-founder Daniela, both deeply Christian, noticed prayer was already a central ritual for many Storybook families:

  “We are as founders also deeply spiritual. I would say deeply Christian. And we thought, yes, this is something we would use. Why don't we run this experiment? Let's launch some prayer and Bible stories on a storybook.” (Francisco, [00:26])

• Optional Bible stories were added to Storybook in 2024, bringing a marked uptick in conversion, retention, and user acquisition cost. This revealed a market that wasn’t just seeking better sleep, but a tool for passing on faith to children.

Pivoting to Theo: A New Brand and Explosive Growth

• Recognizing a separate use case, they spun out Theo—a rebranded, faith-focused app using Storybook’s tech but new stories. Within weeks of launching in March 2025, Theo’s daily sales surpassed Storybook; by late 2025, Theo contributed 90% of company revenue.

  “In just a few weeks, Theo became the number one product. As of today, Theo represents around 90% of our revenues...and our year over year growth just skyrocketed.” (Francisco, [05:14])

Deciding on a Separate App

• The rationale to launch Theo as a standalone rather than a “super app” was clear after user interviews:

  “The obvious reason for us was talking to users and realizing that it was a different use case. So Storybook is, I want my kids to fall asleep. And for this one is I want to pass on my faith. It was different.” (Francisco, [12:29])

Go-to-Market & Organic Demand

• Theo’s adoption has been viral, especially on social media:

  “We launched our social media channels, and everything went viral...There was such a hunger for a product like Theo in so many households in the U.S...for every dollar we invested, we got two or three dollars back.” (Francisco, [13:17])

Faith, Unity, & App Design

• On designing for all Christian denominations rather than fragmenting:

  “We firmly believe in unity...My wife is Catholic. And that conversation led us to create a product that is available for everyone. It’s built on the history of the Catholic Church...but if you’re not Catholic, you can select evangelical, and you will get the content that suits your family. At the end of the day, 95% of the stories...are for everyone.” (Francisco, [14:18])

Growth Lessons: Product Velocity

• Jason draws parallels between meditation and prayer (“they both do the same thing, which is turn off that wandering mind”), and commends Francisco for his curiosity and rapid product velocity:

  “You are the perfect example of a founder with product velocity, world class design and your builders...you put those three things together...that’s a founder who could find the diamond mined.” (Jason, [15:00])

Accelerator & Founder Lessons

• Francisco credits the intense experience of the Launch Accelerator and constant investor pitching for later fundraising polish and discipline:

  “Those 16 weeks were amazing to help me polish that. So I think that was fantastic.” (Francisco, [19:05])

• “Talent can come from anywhere.” Jason recalls how they recruited Francisco after a one-minute online pitch from Ecuador ([24:41]).

2. On Verite: Due Diligence for Founders & VCs

[27:18–39:24]

Product Pitch & Problem Statement

• Colin Sebastian presents On Verite: a platform that helps founders prepare for and pass VC due diligence, helping avoid costly mistakes (80% of founders fail due diligence first time). Integrates banking and financial data directly to authenticate and reduce fraud risk.

  “80% of new founders will fail due diligence the first time...we can shave about 50 hours off of a founder’s time and knock two months off a fundraising cycle.” (Colin, [27:45])

VC-Side Benefits & Pricing

• Automates report and legal doc generation, customizes deal docs based on risk profile, helps improve founder–investor relationships.
• Pricing: $30/user/month for founders, $150/user/month for investors.
• Jason suggests they should standardize and possibly double pricing.

Notable Moment

• “If people don’t use a platform like this, that would be a bit of a tell, right?” (Jason, [37:33])

3. Pitch Perfect: SMS Compliance and Sales Automation

[40:04–51:31]

Product & Problem

• Jake Triton pitches Pitch Perfect, which helps high-volume sales pros send compliant SMS campaigns instead of wrestling with telecom regulations (“10DLC”).
• Reduces compliance time from three weeks to three days; features include AI script/workflow builder and competitive pricing ($0.007 per text).
• “We’re growing 300% month over month...just off Reddit posts, cold emails, and a referral program alone.” (Jake, [42:03])

Category & Future Vision

• Targeting insurance, solar, real estate—“relationship-based, multi-step processes.”
• Rapid development of sales CRM features, VA (virtual assistant) replacements with AI-powered agents upcoming.

Pricing Model & Customer Acquisition

• SaaS subscriptions plus usage-based pricing; referral-driven growth limits onboarding to maintain quality.

Notable Quotes

• “People love submitting their phone number to someone selling insurance or solar. That’s their preferred communication method today.” (Jason, [43:53])
• “Typically see about five times higher reply rates on SMS.” (Jake, [44:56])

Memorable Quotes & Moments

On Pivots and Experiments:

“Running experiments consistently can lead to a founder learning about a new opportunity...it’s never too late.”
— Jason Calacanis [00:00]

"In just a few weeks, Theo became the number one product...our year over year growth just skyrocketed. Thank you to...Theo App."
— Francisco Cornejo [05:14]

On Startup Mindset:

“Great founders can come from anywhere… Canva worth 40 billion is in Australia. Spotify is in Sweden."
— Jason Calacanis [24:41]

On Product Velocity & Design:

“You are the perfect example of a founder with product velocity, world class design and your builders... a founder who could find the diamond mined.”
— Jason Calacanis [15:00]

On Faith-Product Unification:

“We firmly believe in unity...we want this available for everyone...95% of the stories and the content are for everyone.”
— Francisco Cornejo [14:18]

Timestamps of Key Segments

• [00:00] – Introduction to Familify’s pivot; importance of experiments
• [05:14] – Launching Theo, seeing viral growth and market hunger
• [12:18] – Deciding on a new standalone app; faith-focused use case
• [13:17] – Go-to-market, viral social media growth
• [14:18] – Embracing faith unity, product content for all denominations
• [19:05] – Accelerator experience and advice for founders
• [27:18] – On Verite: Due diligence challenges and VC fraud risk
• [40:04] – Pitch Perfect: SMS compliance, viral lead gen, and future roadmap

Takeaways for Founders & Listeners

• Growth plateaus can unlock hidden opportunities. Persistent experimentation and openness to bold pivots (e.g., Storybook → Theo) can transform a business.
• Product velocity and design matter. Building quickly, and with care for UX, sets a strong foundation.
• Listen to your users. Segmenting by use case can reveal untapped, high-lifetime-value markets.
• Surprising “old” channels (e.g., SMS) can drive outsized results if you solve compliance or regulatory pain and embed AI.
• Global talent is everywhere. Effective founders can come from unexpected geographies.

Conclusion

This episode is a master class in why even “great” startups should never stop experimenting. Francisco Cornejo’s journey shows how data, customer insight, and rapid execution can unlock adjacent markets and drive exponential growth. The supporting interviews with On Verite and Pitch Perfect founders reinforce the value of problem-first, user-obsessed innovation in B2B SaaS.

For founders:

• Stay curious, experiment relentlessly, and always check your data for hidden “diamond mines.”
• Product velocity, sharp pitching skills, and attention to customer feedback dramatically improve your odds of breakthrough.

For those inspired by these stories: as always, keep testing, keep building, and look twice at that “plateau”—your giant leap may lie just beneath the surface.