“Hutson says that 1 percent of the U.S. population has a loved one who is in prison, given the scale of the U.S. mass incarceration system. He estimates it’s a $2 billion market. If you look at competitors, Securus sold to a private equity firm in 2013 for about a half-billion dollars while JPay told CNBC it had $50 million in revenues last year.
While Pigeon.ly is definitely farther along in terms of product and growth than some of its peers in the YC program, Hutson said it was valuable to join the program anyway. YC partner Michael Seibel, who co-founded SocialCam and Justin.tv, heavily recruited Hutson and has been a big advocate for diversifying each batch of companies.
‘Being a minority founder building a company, Y Combinator can help. You need to have the right affiliations. You need to be in the right circles. We looked at this as an opportunity to get access to investors and talent.'”