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Notion: The Productivity Tool That Went from Near Shutdown to a $10 Billion Valuation in Just a Few Years

Updated: Oct 14


Notion app home page
Notion app home page

In the world of startups, where agility and speed often determine success, keeping everyone aligned and productive can be a daunting challenge. If you’re part of a growing team, you’ve probably felt the pain—juggling multiple roles, managing countless tasks, and keeping track of who’s doing what. It often feels like chaos, and the tools that promise to help sometimes make things even more complicated.


Sure, there are plenty of productivity tools out there, but let’s be honest: many of them are either too specialized or too overwhelming. If you’re a small to medium-sized startup with a team of 50-100 people, you might have tried tools like Jira, only to find them too complex, or perhaps Evernote, but missed the broader functionality. What you really need is something that brings it all together—a tool that’s powerful yet simple, comprehensive yet flexible.


That’s where Notion comes in. Notion offers a refreshing alternative: an all-in-one workspace that keeps everything you need—notes, tasks, projects, databases, and collaboration—in one place. It’s built with the startup mindset in mind, balancing ease of use with powerful customization options. It’s the tool that grows with you, not against you.

But Notion’s journey wasn’t always smooth sailing. It began with big ideas, faced significant setbacks, and even came close to shutting down. However, through resilience, a relentless focus on community, and a genuine desire to solve a real problem, Notion transformed itself from a nearly forgotten tool into a beloved platform for startups worldwide.

This case study will walk you through Notion’s unique journey—from its early failures to its incredible comeback—and how a single authentic idea can evolve into a million-dollar success story. Whether you’re a founder, a team member, or just someone looking to improve how you work, Notion’s story is one you’ll want to hear.

 

Section 2: The Early Journey of Notion - From Idea to Initial Failure


Notion’s story begins in 2013, with a young designer named Ivan Zhao and his co-founder Simon Last in San Francisco. Ivan Zhao, a designer by trade and a creator at heart, always felt frustrated with the limitations of existing productivity tools. He envisioned something more—a tool that could flex to meet the needs of any user, a tool that could be as simple or as complex as they needed it to be.

Founders of notion

The Early Inspiration: A Vision for a Different Kind of Tool


Inspired by the creativity and adaptability of 1980s software like HyperCard and the early visions from Xerox PARC that saw computers as tools for knowledge workers, Zhao set out to build something different. He wanted to create a tool that didn’t just offer features but empowered people to build their own systems. This meant a tool that could adapt to individual workflows and preferences, making it perfect for any task—whether taking notes, managing projects, or storing knowledge.



Facing the Reality of Failure


However, turning this vision into reality was anything but straightforward. Zhao and Last launched the first version of Notion in 2015, but the results were disappointing. The product faced severe technical issues and failed to resonate with users. It was too complex, too unclear in its value proposition, and didn’t seem to solve a specific pain point better than the competition.


Zhao found himself in a difficult situation. The startup had poured time, energy, and every penny of savings into building the product. The feedback from early users was brutally honest: they found it confusing and difficult to use. Some even questioned whether there was a need for such a tool at all. With the funds dwindling and traction non-existent, the young founder was left questioning everything.



The Low Point: Close to Shutting Down


In late 2015, Ivan Zhao faced a critical decision. The product wasn’t working, and the market wasn’t responding. The logical choice seemed to be shutting down and moving on. Friends and advisors told him it was time to pivot to something else or give up on the idea entirely. But Zhao couldn’t let go of his vision. He believed in the product and was convinced there was a need for a tool like Notion.



A Personal Turning Point: Kyoto, Japan – A Time for Reflection and Rebuilding


In a decisive moment of clarity—or desperation—Zhao and his small team of three decided to leave San Francisco, where high costs and relentless pressure were taking their toll. They moved to a tiny apartment in Kyoto, Japan. Living in near-isolation, they drastically cut down on expenses. The team had little more than the essentials—a few laptops, an internet connection, and a vision they weren’t willing to give up on.

It was a period of intense struggle and reflection. The team lived frugally, relying on instant noodles and cheap groceries. Zhao later described this time as "facing the void"—confronting the very real possibility of failure and deciding whether to push forward or admit defeat.



Rebuilding with a New Focus: Stripping Down to What Matters


Rather than succumbing to the pressure, Zhao chose to rebuild from scratch. He and his team took a step back and stripped down the product to its most essential elements. They committed to simplifying the user experience and prioritizing flexibility above all else. Zhao insisted on starting small, focusing on core functionalities, and most importantly, listening to what the users were actually asking for.


It was a grueling process. There were days when it seemed like nothing was working. The team often felt overwhelmed by the challenges and doubted whether their efforts would ever pay off. They lived with constant uncertainty—never sure if their savings would last, whether they would find a product-market fit, or even if anyone would care.


But Zhao had a philosophy: if they built something truly valuable, something that addressed real problems in a unique way, people would eventually find it.



The Breakthrough: A New Beginning Born from Struggle


After months of hardship, isolation, and countless iterations, the team emerged with a new version of Notion in 2018. This version was drastically simpler, more intuitive, and built with the user in mind. It allowed people to create their own workflows, customize their own spaces, and adapt the tool to their own needs.


It wasn’t just a tool anymore—it was a platform for creativity, collaboration, and customization. The feedback was immediately different. Early users loved the new direction. It was cleaner, more straightforward, and solved real problems in ways that were not possible with other tools.

 


 

Section 3: The Visionary Behind Notion


Ivan Zhao, the creative force behind Notion, didn’t set out to build just another productivity tool; he envisioned something much more profound—a tool that could fundamentally change the way people organize their thoughts, manage their work, and collaborate with others. Zhao's journey from a young designer with a passion for cognitive science to the founder of a billion-dollar startup is a story of perseverance, vision, and an unwavering belief in the power of creativity.


Zhao's early career was marked by a deep fascination with the intersection of design and human cognition. After studying at the University of Toronto, he spent time exploring how digital tools could be designed to enhance the way people think and work. His experiences as a designer in Silicon Valley exposed him to the limitations of existing productivity software—tools that were either too rigid, forcing users into predefined workflows, or too complex, overwhelming them with features they didn’t need.


This frustration became the seed for Notion. Zhao believed that there was a better way—a tool that wasn’t just a digital notebook or a project manager, but a flexible, all-in-one platform that could adapt to any user’s needs. His vision was to create something as powerful as the best software out there but as simple and intuitive as pen and paper. However, turning this vision into reality would prove to be one of the greatest challenges of his life.


Notion's early days were anything but smooth. Zhao and his small team faced significant setbacks, including a failed initial product launch and the looming threat of running out of funds. Yet, Zhao's deep conviction in his idea drove him to rebuild Notion from the ground up. He took bold steps, such as relocating the team to Kyoto, Japan, where they worked in near-isolation to refine their product. It was this period of intense focus and reinvention that laid the foundation for what Notion would eventually become.



 

Section 4: Adoption and Growth - From Niche to Mainstream


After relaunching Notion in 2018 with a renewed focus on simplicity and user-centered design, the team faced a new challenge: how to get people to notice, try, and adopt the product. With a minimal marketing budget and a small team, they knew that traditional advertising methods were not an option. Instead, they decided to take a different path—one that would focus on building a community around their product.

Projects managing in notion app


Community-Driven Growth: Building a Tribe of Believers


Notion’s growth strategy was anything but conventional. Instead of pouring money into ads, the team leaned heavily on organic, community-driven growth. They recognized early on that the best way to spread their product was to empower their users to do the talking. They invested in building strong relationships with early adopters—those curious, passionate users who loved tinkering with new tools and were eager to share their experiences.

One of the key moves was to actively engage with these users on platforms like Reddit, Twitter, and product forums. The team listened attentively to feedback, responded to questions, and embraced user suggestions. This open dialogue not only helped improve the product but also created a sense of ownership and loyalty among users.



Viral Content and Organic Reach: The Power of Templates


To further accelerate growth, Notion encouraged its users to create and share their own templates. This was a masterstroke. By providing the ability to create templates for different use cases—such as project management, personal to-do lists, meeting notes, and even journaling—Notion turned its users into brand ambassadors. Each shared template demonstrated the product's versatility and flexibility, sparking interest among new potential users.


Aesthetic notion template

The templates quickly went viral on social media platforms, with users showcasing their unique ways of using Notion. This user-generated content served as organic marketing, reaching broader audiences without any cost to the company. As more people began to see the diverse ways Notion could be used, the user base began to expand beyond the typical tech-savvy crowd. Soon, students, educators, freelancers, and small businesses were flocking to the platform.



Freemium Model: Lowering Barriers to Entry


Notion also strategically adopted a freemium model. Individuals could use Notion for free with access to most of its core features. This model was crucial in lowering the barriers to entry, especially for startups, students, and individual users who may not have been willing to invest in a paid product without trying it first. The free tier allowed people to explore, experiment, and realize the value of Notion at their own pace.

Freemium model image

To further encourage adoption among younger audiences, Notion offered free plans to students and educators. This move allowed Notion to capture a key demographic early in their professional journey, creating long-term users who would continue to rely on the tool as they transitioned into their careers.



Direct Engagement with the User Base: The Role of Feedback and Transparency


Notion didn’t stop at just encouraging community engagement; it also emphasized transparency and direct communication with its users. They launched a public product roadmap, allowing users to see what features were being prioritized and developed. This transparency fostered trust and created a sense of partnership with the community.

Moreover, Notion initiated programs like the "Notion Ambassadors" and "Notion Pros," empowering passionate users to host workshops, create content, and help spread the word about Notion’s capabilities. This grassroots marketing approach not only drove adoption but also cultivated a loyal, enthusiastic user base that felt deeply connected to the brand.



Gradual Evolution from Niche to Mainstream


As word-of-mouth spread and community-driven content continued to grow, Notion began to see exponential growth. By 2019, the platform had amassed over 1 million users. It wasn’t long before larger organizations started to take notice. Companies began to explore how Notion could be used not just for individual productivity but as a tool for team collaboration, knowledge management, and even company-wide wikis.


The platform’s flexibility allowed it to adapt to multiple use cases across different industries—tech startups used it for project management and wikis, creative teams leveraged it for brainstorming and content planning, and educators embraced it as a teaching tool. Notion had become a multi-purpose platform that resonated with various types of users.



The Result: A Rapidly Growing User Base and a Beloved Brand


By 2021, Notion had grown to over 20 million users globally, driven largely by organic growth and community advocacy. The company’s decision to invest in community-driven growth, transparency, and user-centric development paid off. Notion had successfully positioned itself as a beloved tool, not only for startups and small businesses but for anyone who needed a flexible, powerful productivity solution.

 

Notion growth


 

Section 5: Refusing Venture Capital - A Bold Decision in a Sea of Fundraising Frenzy


In the startup world, raising venture capital is often seen as a badge of honor—a sign that a company has "made it." Many startups aggressively pursue funding rounds to fuel rapid growth, expand teams, and scale operations. But Notion took a different route: they chose to refuse venture capital for years, focusing instead on staying small, nimble, and true to their vision.



Why Notion Said No to VC Funding

From the beginning, Ivan Zhao and his team believed in building a product on their own terms. They saw the pressures that came with taking on outside investment—rapid growth expectations, aggressive scaling, and often, a loss of control over the company’s direction. For Notion, the priority was clear: create a product that genuinely solved a problem and built a sustainable business model around it.


Rather than chase the headlines of a multi-million dollar funding round, Notion chose to bootstrap, relying on a small, dedicated team to iterate quickly based on user feedback. This lean approach allowed them to focus entirely on the product and the community, rather than becoming distracted by investor demands or growth-at-all-costs strategies.



Staying Lean and Maintaining Control


By refusing VC funding, Notion retained full control over its development path. They could afford to take their time, test different ideas, and iterate without the pressure of delivering rapid returns to investors. This decision allowed Notion to build a product that was shaped by user needs and genuine market demand, not by a boardroom full of venture capitalists.

This approach was risky—without VC funding, the team had to make tough decisions about expenses, growth, and even their salaries. But it also gave them the freedom to stay true to their values and vision. When the product started to gain traction, Notion wasn’t beholden to any external stakeholders. They could grow at their own pace, organically and sustainably.



A Strategic Gamble That Paid Off


While most startups were busy raising rounds, scaling fast, and burning through capital, Notion was quietly building a community-driven, user-focused business. Their decision to stay independent paid off. By the time Notion finally accepted a $10 million investment in 2020, it was on their terms, with a valuation of $800 million—far above what most startups could command.


By saying no to early VC funding, Notion preserved its autonomy, built a product that truly resonated with users, and grew on its own terms. It was a bold decision in a sea of fundraising frenzy, but it set Notion apart and positioned them for long-term success.

 


 

 

Section 6: Successful Startups and Companies Adopting Notion


Notion's flexibility and all-in-one approach have made it a favorite tool for numerous startups and companies worldwide. From fast-growing tech startups to creative agencies and even large enterprises, many organizations have adopted Notion to streamline their workflows, enhance collaboration, and manage knowledge in a more structured way. Here are some notable companies and startups that are using Notion:

Companies using notion app and software

A leading design and collaboration tool for teams, Figma has revolutionized how designers and developers work together.


How They Use Notion: Figma uses Notion for internal documentation, project planning, and managing company-wide knowledge. The platform helps Figma’s distributed teams stay aligned on goals and track progress in a single, unified workspace.



2. Loom

A video messaging platform that enables teams to communicate more efficiently through short video clips.


How They Use Notion: Loom leverages Notion for various purposes, including creating a company wiki, onboarding new employees, and managing team tasks. Notion's ease of use and collaboration features allow Loom to maintain transparency and keep everyone on the same page.



An online coding school that offers a unique income-sharing agreement model for students pursuing tech careers.


How They Use Notion: Lambda School uses Notion to manage its curriculum, organize student resources, and facilitate communication between instructors and students. Notion helps keep all educational materials and course updates easily accessible.



The parent company behind several popular dating apps, including Tinder, Match.com, and OkCupid.


How They Use Notion: Match Group uses Notion as a centralized platform for documentation, team collaboration, and project management. It helps various teams coordinate effectively, particularly in a remote-first environment.



A platform for building engaging forms, surveys, and quizzes.


How They Use Notion: Typeform utilizes Notion to build a shared knowledge base, manage projects, and track key performance metrics. The tool helps keep everyone aligned, from product development to marketing and customer support.



A language-learning app with millions of users worldwide.


How They Use Notion: Duolingo uses Notion for organizing research, managing design sprints, and facilitating cross-functional collaboration. It serves as a flexible platform for keeping track of everything from daily tasks to long-term goals.



A meditation and mindfulness app with millions of users globally.


How They Use Notion: Headspace relies on Notion to maintain a company-wide knowledge base, manage projects, and document standard operating procedures (SOPs). It helps different teams—such as product, engineering, and marketing—stay connected and aligned.



A renowned animation studio known for producing blockbuster animated films.


How They Use Notion: Pixar’s creative teams use Notion to brainstorm ideas, organize storyboards, and manage production schedules. Notion’s flexibility allows them to create dynamic workflows tailored to their unique creative processes.



A social media management platform.


How They Use Notion: Buffer uses Notion to build and manage their remote-first culture. They maintain everything from team handbooks to project roadmaps in Notion, which helps keep their fully distributed team aligned and engaged.



A real estate platform that simplifies buying and selling homes.


How They Use Notion: Opendoor uses Notion to manage internal documentation, align cross-functional teams, and track company objectives. It helps them stay organized while scaling rapidly.



11. Hotjar

A tool for analyzing website visitor behavior.


How They Use Notion: Hotjar uses Notion for company documentation, knowledge sharing, and cross-team collaboration. It allows them to maintain transparency and keep all team members informed, regardless of their location.



What These Companies Have in Common


These companies, despite varying in size and industry, have found unique ways to leverage Notion’s capabilities. They use it for internal documentation, project management, knowledge sharing, team collaboration, and more. The common thread among them is the need for a flexible, all-in-one platform that grows with their needs—something Notion provides exceptionally well.


With this widespread adoption across startups and established companies alike, it’s clear that Notion has become a go-to tool for teams looking to improve productivity and streamline their workflows.

 


 

How Your Startup Can Use Notion Effectively


If these successful companies can find value in Notion, so can your startup. Notion’s flexibility makes it the perfect tool for startups to manage various aspects of their operations without needing multiple platforms. Here’s a quick guide on how to get started:


1. Set Up Your Workspace:


Create a structured workspace for your team with pages and subpages dedicated to different departments or projects. Use templates like Project Management Boards or To-Do Lists to quickly organize tasks and objectives.



2. Manage Projects and Tasks:


Utilize Kanban boards or task lists to track projects, assign tasks, and monitor deadlines. Encourage team members to update their task statuses regularly to maintain transparency and alignment.



3. Build a Central Knowledge Base: 


Create a central repository for all important documents, SOPs, and resources. Use Notion’s database feature to categorize and tag information, making it easily searchable and accessible to everyone.



4. Foster Collaboration and Communication: 


Leverage Notion’s real-time collaboration features for brainstorming, co-editing documents, and capturing meeting notes. Integrate with tools like Slack for seamless notifications and updates.



5. Track Goals and Key Results (OKRs): 


Set up a dashboard to monitor team and individual goals. Assign ownership of key results and update progress regularly to keep everyone accountable and focused on achieving objectives.



6. Customize Templates for Efficiency: 


Create templates for repetitive tasks like client onboarding or weekly reports to ensure consistency and save time. This helps new team members get up to speed faster and reduces duplication of effort.



7. Integrate with Other Tools: 


Connect Notion with tools like Google Drive, Slack, Trello, and Zapier to automate workflows and reduce manual data entry, keeping all your information in sync across platforms.

  


 

Section 7: Competitive Analysis - How Notion Stacks Up Against Other Tools

Tool

Strengths

Where Notion Wins

When to Choose Notion

Jira

  • Best for software development teams

 
  • Robust issue tracking and agile project management tools

 
  • Excellent for Scrum and Kanban methodologies

  • Broader range of use cases beyond software development

 
  • Ideal for cross-functional teams and diverse workflows

 
  • Flexible enough to handle everything from project planning to note-taking

Choose Notion when you need a tool that serves multiple functions across different departments, not just for software development.

Trello

  • Simple, visual Kanban boards

 
  • Great for task management

 
  • Easy drag-and-drop interface

  • More advanced features like databases, collaborative documents, and custom workflows

 
  • Versatile for a variety of teams needing more than just task tracking

Choose Notion when you need more than task management—like creating a team wiki, tracking projects, and managing documents in one place.

Evernote

  • Powerful note-taking and search capabilities

 
  • Supports various formats (text, images, audio)

 
  • Strong integrations

  • Combines multiple productivity features beyond note-taking

 
  • Greater customization and flexibility

 
  • All-in-one platform for tasks, projects, and documentation

Choose Notion when you want an integrated platform for note-taking, project management, and collaborative work, rather than just note organization.

Airtable

  • Strong for database management and organization

 
  • Customizable views (grid, calendar, gallery, Kanban)

 
  • Ideal for data-heavy tasks

  • Easier for non-technical users

 
  • Combines databases with other productivity features (note-taking, project management)

 
  • Better for teams needing an all-in-one tool rather than just data management

Choose Notion when you need an intuitive interface that combines databases with other tools like task management, note-taking, and documentation.

ClickUp

  • All-in-one project management with various views (list, board, Gantt, etc.)

 
  • Time tracking, goals, and reminders

  • More intuitive for new users

 
  • Stronger community

 
  • driven growth and template sharing

 
  • Focuses on simplicity without sacrificing functionality

Choose Notion when you want a balance of simplicity and flexibility, with strong community support and customizable templates for varied use cases.

Microsoft OneNote

  • Great for detailed note-taking

 
  • Integrates well with Microsoft Office suite

 
  • Free-form text and multimedia support

  • Offers more robust collaboration features

 
  • Better for managing both personal and team workflows

 
  • Combines note-taking with project management and databases

Choose Notion when you want a more comprehensive tool that goes beyond note-taking to include project management and collaborative documents.

Coda

  • Powerful for creating interactive documents ("docs as apps")

 
  • Great for data manipulation and automation

  • Easier for building simple, customizable workflows

 
  • More user-friendly for teams not focused on advanced automation

 
  • Stronger visual and design appeal

Choose Notion when you need a tool that is user-friendly, visually appealing, and capable of handling diverse tasks from simple workflows to complex project management.



Today, Notion is no longer just a startup with a unique vision; it has grown into a widely recognized productivity powerhouse used by millions worldwide. With over 20 million users and a valuation of more than $10 billion as of 2023, Notion has become a go-to tool for individuals, startups, and large companies alike.

 

Notion’s journey from a struggling startup to a leading productivity tool shows that success often comes from daring to do things differently. By focusing on genuine problems, building with the community, and staying adaptable, Notion has created a tool that helps teams and individuals work better, together.


We’d love to hear your thoughts! Did you find this case study insightful? Have you had your own experiences with Notion or other productivity tools? Share your feedback, stories, or questions—we’re always eager to learn and engage with our readers.


Feel free to reach out to us directly, or leave a comment below. Let’s keep the conversation going!


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