Eric Koester

Eric Koester describes himself as a “reformed startup lawyer” who, while attending L.A. Startup Weekend, found himself with a group of interested investors, including actor Ashton Kutcher. Zaarly was launched.

Zaarly lets potential buyers name an item or service and the price they would be willing to pay. For example, a buyer may ask to buy a pair of Seattle Mariners tickets for $50, and interested sellers are connected with the buyer instantly, without sharing any personal information with the other party. Launched on May 18, Zaarly has already helped execute more than $1 million in transactions.

Koester, who was formerly with Seattle health care marketing software company Appature, founded Zaarly along with Bo Fishback and Ian Hunter. He talked with TechFlash about his plans.

Zaarly raised $1 million in investment money from Startup Weekend. What will this funding allow you to do? The $1 million has allowed us to grow awfully fast. We’re continuously launching into new markets.

Tell me about your service. How does it work? Primarily a mobile-based service, Zaarly allows buyers to name a price they would be willing to pay for a product or service. Our mobile site works on all web-enabled phones, but we also have an iPhone app and are developing an Android app. When I bought a new house, I used Zaarly to offer $50 to someone willing to hang paintings. Once a father offered $1,000 for an iPad for his daughter.

Zaarly launched in beta at an interesting place. Tell me more. We held a beta launch at South by Southwest (music and film event) in Austin, Texas, in March. We didn’t really have a strategic plan for how we were going to use this beta launch, but wanted to try the concept. … In 48 hours, we helped execute $10,000 in transactions and made adjustments based off the feedback.

What is your main competition in this space, and how do you differentiate your company from its rivals? Unlike eBay, Amazon or craigslist, which are seller-oriented, Zaarly is buyer-oriented. We’re also hyperlocal and community-based, so buyers and sellers can instantly connect. Zaarly is about urgency. I’ve never known a market where you can price urgency.

Is Zaarly hiring? What talents are you seeking and have you had difficulty recruiting? We’re definitely hiring. We’re looking for development talent. It’s hard to find talent in one area, so we’re finding where talent is located and building centers there. We currently have nine development centers throughout the country.

Where do you see Zaarly going in the next three years? I don’t know what I even think in the next three months. We’d like to expand internationally and become a platform where others can build apps and businesses around Zaarly.

What’s one thing you hope to do personally? I hope to run in the sausage race during a Milwaukee Brewers game at Miller Park (in Milwaukee) later this summer.