Two Cluely co-founders spin out to launch Instinct Inc, claim $1.2M ARR in 7 days
Sep 12, 2025
Key Points
- Two Cluely co-founders launch Instinct Inc and claim $1.2M ARR within seven days of operating in stealth, though the company discloses no details on what it actually does.
- Instinct Inc's rapid revenue suggests either heavy initial demand or a quick-converting business model, likely a creative agency according to analyst speculation.
- The critical test is whether Instinct Inc's revenue sticks; if it evaporates due to churn, the team has repeated Cluely's core weakness despite the spinout.
Summary
Two co-founders of Cluely have spun out to launch Instinct Inc, claiming $1.2M in ARR within seven days of operating in stealth. Chris announced the move in a social post saying the founders have "left Cluely to start our own thing" and jokingly added "had no idea making money was this easy."
The post reveals nothing about what Instinct Inc does. One analyst guesses the team has started a creative agency, which would explain the speed-to-revenue. The real question is whether Instinct Inc has solved a core problem that dogged Cluely: stickiness and sustainable demand.
Cluely gained significant buzz through viral marketing and generated notable download velocity, but genuine product-market fit remained unclear. Use cases ranged from exam assistance (legally risky) to interview prep to enterprise sales, with hints at brain-computer interfaces and VR. The team was experimenting broadly without a clear anchor. Retention and repeat usage were not obvious strengths. Downloads did not clearly translate to engaged, retained users.
With $1.2M ARR claimed in the first week, Instinct Inc is either riding heavy initial demand or has found a revenue model that converts quickly. The critical unknown is whether that revenue sticks if viral momentum stops. If the $1.2M evaporates within two weeks due to churn, the team has repeated Cluely's leaky-bucket problem at a different company. If retention holds, it may indicate they have learned something about sustainable unit economics in the interim.