He took a 97% downround—then grew to $400M ARR & a $575M valuation in 2 years. | Dan Park, CEO of Clutch

A Product Market Fit Show | Startup Podcast for Founders

Dan Park joined Clutch when it was selling 20 cars a month. Then he grew it from $20M in 2019 to $200M in sales by 2022. He was one of Canada's fastest growing companies. Just as he was going to close a $100M round, the macro changed completely. Suddenly, he was left with only six weeks of cash. He was forced to go through a 97% down round at a $15M valuation.

Just two years later, he not only grew right back to a $575M valuation, he also doubled revenue from its previous peak to $400M.

This episode unpacks every near-disaster move, including turning off test-drives (and why it worked), re-engineering unit economics in real time, and renegotiating debt so Clutch could keep buying cars.

Dan’s hard-won lessons will change the way you think about speed, iteration, and survival.

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Why You Should Listen

1. He had just six weeks of runway – Find out exactly how Dan rescued Clutch from the brink.

2. Taking a car startup to $400M in sales – The surprising moves that made consumers buy cars online, sight unseen.

3. Cutting 75% of staff—then doubling revenue – The inside story of Clutch’s brutal pivot and swift rebound.

4. How to survive capital-intensive nightmares – Lessons on debt, term sheets, and crisis-mode fundraising.

5. Why fast iteration trumps everything – Dan’s secret to making big bets—then yanking them back if needed.

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Keywords

Used Car Marketplace, Capital-Intensive Startup, Near-Bankruptcy Turnaround, Automotive E-Commerce, Cash Flow Management, Startup Layoffs, Rapid Iteration, Debt Restructuring, Growth vs. Profitability, Founding Team Dynamics

Timestamp
(00:00:00) Intro
(00:02:23) The Birth of Clutch
(00:04:37) The Chicken and Egg Problem
(00:08:31) How Do We Scale This?
(00:14:21) Baby Steps and Achievable Milestones
(00:22:45) Becoming Profitable
(00:34:45) Do Whatever Makes Sense for The Business
(00:37:29) Finding Product Market Fit
(00:42:23) Piece of Advice
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Chapters

1. He took a 97% downround—then grew to $400M ARR & a $575M valuation in 2 years. | Dan Park, CEO of Clutch (00:00:00)

2. The Birth of Clutch (00:02:23)

3. The Chicken and Egg Problem (00:04:37)

4. How Do We Scale This? (00:08:31)

5. Baby Steps and Achievable Milestones (00:14:21)

6. Becoming Profitable (00:22:45)

7. Do Whatever Makes Sense for The Business (00:34:45)

8. Finding Product Market Fit (00:37:29)

9. Piece of Advice (00:42:23)