The Board Game Billionaire: From a $10k Kickstarter to $100M/Year Business - My First Million Recap

Podcast: My First Million

Published: 2025-04-21

Duration: 1 hr 17 min

Guests: Elan Lee

Summary

Elan Lee shares how he turned a simple card game idea into a $100M/year business with Exploding Kittens by combining creativity, community-focused marketing, and an obsessive commitment to quality.

What Happened

Elan Lee, co-creator of Exploding Kittens, discussed how he turned a $10,000 Kickstarter campaign into a $9 million phenomenon in just 30 days and built a $100M/year company. He explained how his partnership with Matthew Inman, creator of The Oatmeal, was pivotal. Inman’s audience engagement strategies and the decision to focus on community over funding helped the campaign become the most backed Kickstarter project in games history, with 219,000 backers.

Lee emphasizes that the success of Exploding Kittens lies in its philosophy: games should not be inherently entertaining, but should make the players entertaining. This insight shaped the design of their games, which foster social interaction and replayability. The team tests every game with their network of 400 families, the “Kitty Test Pilots,” and iterates until 100% of testers say they want to play again.

Marketing strategies were equally unconventional. Lee shared how they used guerrilla tactics at conventions, from placing branded cut-outs in urinals to building an 8-foot-tall, fur-covered vending machine that dispensed random items. These stunts drew massive crowds, with lines stretching out of convention halls, despite having virtually no marketing budget.

The episode also explores Lee’s problem-solving mindset. For example, during COVID-19 when warehouses shut down, Lee pivoted by renting parking lots and using trucks to repackage games. This relentless refusal to accept no as an answer is a recurring theme in his story.

Collaboration with Tim Ferriss on a new game highlighted Lee’s iterative creative process. Starting from basic mechanics like rock-paper-scissors, they brainstormed and tested ideas until they found a game that players consistently wanted to replay. Lee’s approach to creativity centers on constraints, which he believes fuel innovation.

Lee also discussed his commitment to quality, sharing how he rejects entire production runs if even minor flaws are detected. This perfectionism extends to understanding customers, going so far as to work as a Walmart associate to observe buying behaviors firsthand.

The conversation touched on how Lee views business as a game itself, where the absence of fixed rules allows for constant experimentation and reinvention. His playful, problem-solving approach has not only built a successful company but also cultivated a culture of joy and curiosity around his work.

Key Insights

• Exploding Kittens became the most backed Kickstarter game ever by flipping the usual script: instead of focusing on funding, they focused on community. Matthew Inman’s audience engagement strategies attracted 219,000 backers, turning a $10,000 goal into $9 million in 30 days.
• Elan Lee designs games with a radical premise: the game itself doesn’t need to be entertaining—players do. This philosophy drives their testing process with 400 families, where no game launches unless 100% of testers want to replay it.
• When COVID-19 shut down warehouses, Lee rented parking lots and used trucks as makeshift distribution centers to repackage games. His refusal to accept logistical roadblocks as final was a recurring theme in scaling a $100M/year company.
• Elan Lee’s obsession with customer insight went as far as working as a Walmart associate to study shopper behavior firsthand. This commitment to understanding his audience is matched by his perfectionism—he’s scrapped entire production runs over minor flaws.

Key Questions Answered

How did Exploding Kittens raise $9 million on Kickstarter?

Exploding Kittens focused on engaging the crowd rather than just raising funds. Matthew Inman of The Oatmeal drove early momentum with his fanbase, and the campaign incorporated community-driven stretch goals like 'post a photo of 10 Batmans in a hot tub,' which kept backers excited and involved.

What is Elan Lee's philosophy on game design?

Elan Lee believes that 'games should not be entertaining; they should make the players entertaining.' This approach emphasizes social interaction, replayability, and creating tools that make players the center of the experience.

What guerrilla marketing tactics did Exploding Kittens use?

Elan Lee shared unconventional strategies like placing branded cut-outs in urinals at conventions and creating a fur-covered vending machine that dispensed random items. These stunts attracted massive crowds without a large marketing budget.