Founders: Matthias Neumayer & Dima Rubanov
Brand Name: Oscar Stories
Founded: 2023
Monthly Revenue: $6,000
User Base: 50,000+
Funding: Bootstrapped + Government Grant
Profitability: Profitable
Are you one of the many parents who run out of ideas when your child says, “Tell me a bedtime story”? Two young founders from Vienna solved this very problem with AI — and turned it into a growing business. In just two months, they built Oscar Stories, a personalized children’s bedtime story app that attracted 500 users on its first day and has since grown to over 50,000 users, generating $6,000 in monthly revenue.
What’s even more remarkable? The entire idea came from one simple, heartfelt request:
“Can you tell me a story where I’m the main character?”
Table of Contents
🌱 The Spark: A Child’s Wish Becomes a Business Idea — AI Bedtime Story
The idea came from co-founder Matthias Neumayer’s godson, Oscar, who kept asking for stories where he and his friends were the heroes. With a background in law and film direction, Matthias saw an opportunity to bring storytelling and technology together. He teamed up with his high school friend Dima Rubanov, an economics graduate, and together they launched Oscar Stories — a mobile app powered by GPT-3 that creates customized bedtime stories with kids as the stars.
Their goal was to solve a universal parenting problem: making bedtime meaningful and creative — even on exhausting days. With Oscar Stories, children can see themselves in the stories they hear, while parents gain a tool that delivers fresh ideas instantly.
🛠 From Idea to App: A Two-Month Sprint to MVP
The duo built the minimum viable product (MVP) in just two months, using React Native for the frontend, Express for the backend, and integrating GPT-3 for content generation.
Interestingly, technical development wasn’t the biggest challenge — ensuring that content was safe, age-appropriate, and bias-free was. To solve this, the team partnered closely with parents and education experts to continuously refine the app’s storytelling engine. That commitment to quality laid the foundation for sustainable growth.
📈 The Growth Formula: A Four-Pronged Strategy
Oscar Stories adopted a focused, smart go-to-market strategy:
1. Product Hunt Launch
In March 2023, they launched on Product Hunt, quickly earning 500+ users and the title of “Weekend Product of the Day.” Product Hunt’s community of early adopters helped generate buzz and credibility.
2. ASO & SEO Optimization
By investing in app store optimization and search engine visibility, they ensured long-term organic traffic. High ratings and positive reviews fueled a growth loop that brought in new users consistently.
3. PR & Media Coverage
They secured media coverage from outlets like WIRED, which helped establish brand trust. The founders also leveraged their network to gain newspaper and TV exposure, drawing in curious and engaged parents.
4. Offline Events & Face-to-Face Feedback
Participation in startup expos and events — such as Austria’s Game City — allowed the team to interact directly with families. This real-world engagement strengthened user relationships and provided valuable product feedback.
💰 Monetization: Smart, Flexible Pricing for All User Types
Oscar Stories offers a smart freemium model:
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Free trial: 2 personalized stories upon registration
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Monthly subscription: $4.99/month for unlimited stories
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Annual plan: $39.99/year (20% discount)
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One-off purchases: Pay-per-story via token system
This strategy balances accessibility for casual users and value-maximization for power users.
💡 Startup Lessons: What Makes Oscar Stories Work?
1. Co-Creation with Target Users
Involving parents in the product journey ensured the app aligned with children’s developmental needs. Community feedback was vital at every stage.
2. Experimenting with Monetization
Rather than relying on one-size-fits-all pricing, the team tested and refined different payment models to find what resonated most with users.
3. Strategic PR as a Growth Lever
Media features — especially in WIRED — boosted their legitimacy and reach, demonstrating how earned media can supercharge early-stage traction.
4. Values-Driven Design
Oscar Stories puts emphasis on minimizing gender bias and creating inclusive narratives. This ethical stance adds value to their brand in a market that increasingly values responsibility.
5. Iteration Based on Real User Behavior
They tracked how real users interacted with the app, using those insights to prioritize improvements, such as reducing loading time and refining story quality.
🚀 Final Takeaway: Big Impact from a Small Insight
Oscar Stories is a testament to how a simple real-life observation — paired with AI — can lead to meaningful innovation. By addressing a relatable parental challenge with empathy, technical agility, and smart marketing, these founders have carved out a profitable niche in edutainment.
The key lesson? Stay close to your users, validate with real behavior, and never underestimate the power of a child’s imagination.
Sources:
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Oscar Stories Official Website: oscarstories.com
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About Oscar Stories: oscarstories.com
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WIRED Article on AI Bedtime Stories: WIRED
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