The Crisis Point
In December 2023, StackBlitz, a startup founded by Eric Simons and Albert Pai in 2017, faced a critical juncture. After years of struggling to gain traction with their browser-based development environment, the board issued an ultimatum: show real progress or face the consequences. The company’s revenue was lackluster, and growth was stagnant. The founders were given a stark choice: turn things around or consider acquisition or shutdown.
The Turning Point
The turning point came unexpectedly when Simons and Pai began experimenting with Anthropic’s Sonnet 3.5 AI model in June 2024. They created Bolt.new, a revolutionary tool that allowed non-technical users to create complex web applications using natural language prompts. This breakthrough was made possible by StackBlitz’s underlying WebContainers technology.
Bolt.new Launch
On October 3, 2024, StackBlitz launched Bolt.new, which quickly gained traction. The service generated $1 million in annual recurring revenue (ARR)) at $4 million in November, 2024.
Rapid Growth
The response was overwhelming. Within weeks, ARR soared to $4 million, and by December 2024, it reached $20 million. By March 2025, Bolt’s ARR had jumped to $40 million, with 5 million registered users. The success was unprecedented, and StackBlitz found itself profitable and growing rapidly.
New Pricing Model
The company introduced a tiered pricing model to accommodate heavy users, charging $20, $50, $100, and $200 per month. This innovative approach allowed customers to pay for the actual AI inference they used, making the service more attractive to a wider audience.
Competition and Future
The success of Bolt.new has not gone unnoticed. Figma, a graphic design giant, has announced a competing product called Figma Make. However, Simons remains confident that StackBlitz’s unique WebContainers technology gives it a significant edge in the market.
As StackBlitz continues to grow, it is clear that the company’s decision to pivot and focus on AI-powered coding has paid off. With a projected ARR of over $100 million on the horizon, the future looks bright for this innovative startup.
