Company Testing Framework

Atomic is a company that systematically tests and builds new companies using a structured approach to validate business ideas through prototypes and market testing.

Initial Testing Framework

• Typical initial investment: $50-75k per idea
• Tests 20-30 business ideas annually
• Purpose: Get initial signal and validate concepts
• Can expand to $100-200k for promising ideas

Testing Process Components

• Internal team of 20-30 operators/entrepreneurs
• Build prototypes over short timeframes
• Test distribution channels
• Collect customer data and metrics
• Compare metrics across multiple ideas simultaneously

Distribution Testing Methods

• Consumer products:
  • Instagram ads
  • Facebook ads
  • Google ads
  • Direct mail
  • Radio
• B2B products:
  • Sales calls
  • Automated calls
  • Price point testing
  • Offer testing

Success Case Study: Hims

• Initial investment: $50k
• Built prototype over one weekend
• Created mobile app for men's health
• Generated $1M in waitlist sales within 5 weeks
• Started with manual email confirmation process
• Used early data to validate customer profiles and willingness to pay

Staffing Approach

• Runs Founder in Residence program
• 5-10 internal founders at any time
• Founders work with partners to prototype ideas
• Successful founders become leaders of spun-out companies
• Internal founders evaluate multiple ideas before choosing final direction

Notable Successes

• Bungalow: Co-living company
• Homebound: Construction company for natural disaster rebuilding
• Terminal: Remote engineering education and recruitment
• Each raised $40-50M+ from major investors

This framework allows Atomic to systematically validate ideas with relatively small initial investments before committing to full company launches.