- Raise a million dollars from friends and family.
- Set up an app whose only function was giving people $10 for signing up.
- A hundred people sign up the first month, word of the app gets out, and 99,900 sign up the second month.
- You have a large and enthusiastic user base with a huge growth rate, things that venture capitalists love.
- Raise another $1 billion from VCs at an enormous valuation, cashing out a few hundred million dollars for the founders.
- Step 6 is a mystery.