Eraser: Collaboration Tool for Technical Teams Reaches 1 Million Users

From Chief of Staff to Startup Founder: Introducing Eraser

Shin Kim dedicated almost two years to assisting Elad Gil, a well-known entrepreneur and investor, with deal assessment and concept development as his chief of staff. During this time, a particularly promising concept emerged. This concept, now realized as Eraser, is a year-old startup focused on a collaborative digital canvas designed for whiteboarding and note-taking.

Seed Funding and Rapid User Growth

Eraser has successfully secured $4 million in seed funding, spearheaded by Caffeinated Capital. Since its launch in March, the platform has garnered over 1 million users, ranging from small startups with five employees to large, multinational technology corporations, according to Kim.

The Transition to Entrepreneurship

We recently spoke with Kim to gain insights into his journey from a supportive executive role to becoming a startup founder. We also explored his confidence in Eraser’s potential for growth within a market increasingly populated with tools for remote team collaboration.

Educational Background and Early Career

TC: You hold two computer science degrees, one from the University of Chicago and another from Berkeley. How did your path lead you to work with Elad Gil?

SK: Following my education, I entered the field of finance and investing in San Francisco, initially as an associate at JPMorgan, and later at Oak Hill Capital. I connected with Elad through my brother, who was an investor in Bitwise Asset Management, a cryptocurrency asset management firm where my brother serves as CTO.

Elad was seeking a chief of staff due to a growing workload, operating with only himself and an executive assistant at the time. I joined to support him with company evaluations, conducting thorough due diligence, and analyzing company financials and data.

Incubation and the Birth of Eraser

We also collaborated on developing new ideas, which was a significant attraction for me. Beyond investing, Elad aimed to identify and build solutions for unmet needs. Eraser was a direct result of this collaborative effort, arising during the pandemic.

Identifying a Critical Need

TC: What was the core insight that drove the creation of Eraser?

SK: Remote collaboration presented significant challenges during the pandemic. Many processes were disrupted and shifted to platforms like Zoom. Through conversations with numerous companies, both large and small, it became clear that initiating projects – the ideation phase – was particularly difficult, in contrast to executing on existing projects.

Specifically, the process of brainstorming and building upon each other’s ideas remotely proved to be a substantial hurdle. This observation formed the foundation for Eraser’s development.

Eraser: An Ideation Platform for Technical Teams

TC: You describe Eraser as an all-in-one ideation platform for technical teams. Could you elaborate on what that entails?

SK: When we refer to “technical teams,” we primarily mean engineering and data science teams. Our platform offers three core functionalities. First, a visual collaboration canvas allows users to create diagrams, system architectures, and wireframes for UI mockups. It also supports annotations, including mathematical equations, using a stylus on devices like the iPad.

Second, a note editor enables users to transform these visuals into documentation or reference materials. This feature specifically caters to technical teams, who often copy and paste images from separate visualization tools into platforms like Google Docs. Eraser integrates this capability natively.

Real-Time Communication

TC: And what is the third key component of Eraser?

SK: Users can conduct entire brainstorming sessions on Eraser, utilizing real-time audio chat. We observed that during remote brainstorming, many users relied on audio-only communication via platforms like Zoom or Google Meet, as they were already familiar with each other and didn’t require video for ideation. The focus remained on the content itself.

Future Audio Features

TC: Does Eraser currently record these audio sessions for later review or searching?

SK: That functionality is planned for future development and is currently on our roadmap. At present, we only offer real-time audio communication.

Diverse Use Cases

TC: You’ve mentioned not yet disclosing customer names. What types of applications are you currently observing?

SK: We see individuals utilizing Eraser for personal projects, and educators are also adopting the platform. However, our primary user base consists of teams and companies using it for professional work. It’s a lightweight solution compared to many alternatives.

Engineers often hesitate to use design-focused tools like Figma, but Eraser provides a comfortable environment for them to create wireframes and visualize their ideas. The platform’s usability, minimal learning curve, and lightweight nature are common themes in user feedback.

Go-to-Market Strategy

TC: How are you expanding Eraser’s reach?

SK: Word-of-mouth referrals have been instrumental. We’ve also established partnerships with virtual office platforms such as Kumospace and Gather, a “metaverse” startup that recently secured $50 million in Series B funding co-led by Sequoia Capital and Index Ventures.

Partnership Model

TC: Regarding these partnerships, who covers the costs associated with the virtual real estate? Are you charging your partners?

SK: We are not currently charging our partners. Monetization is a goal for later next year, but we wouldn’t impose charges on our partners even then. Instead, we plan to charge end-users who find value in the whiteboard functionality and wish to extend its use to their entire teams.

Revenue Sharing

TC: Will these partners receive a share of any transactions?

SK: That aspect is still under discussion. We believe we’re adding value by providing a whiteboard experience for their users, something they would otherwise need to develop independently, which would be a significant undertaking.

Monetization Strategy

TC: When you begin charging, do you envision a per-seat or per-session model?

SK: We are leaning towards a monthly subscription model, charging users on a per-user basis.

Competitive Landscape

TC: Microsoft recently unveiled a suite of new collaboration tools. Given the crowded market, what are your thoughts on these announcements?

SK: While Microsoft Loop positions itself as a collaborative canvas, it appears to be primarily a next-generation document editor, competing with platforms like Notion and Coda. Eraser’s core use cases center around visual collaboration, such as diagramming and wireframing, suggesting a distinct product identity.

We are specifically focused on serving technical teams – engineers and data scientists – and aim to develop features tailored to their needs, like programmatically generating diagrams. Microsoft Loop’s scope is likely broader, and therefore, it shouldn’t significantly impact our mission of creating a comprehensive ideation platform for technical teams.