logo
At 23, he built a $400 business in mom's basement—then sold it for millions

At 23, he built a $400 business in mom's basement—then sold it for millions

Newsweek20-07-2025
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
In 2014, Feliks Khaykin was 23 years old and working out of his mother's basement with $400 and a vision. Now, he has sold the business he started then for over $4 million.
Khaykin, 34, from New Jersey, began startup DankStop as a direct-to-consumer online retailer for cannabis accessories. "At the time, cannabis was still very much taboo," he told Newsweek. "There were no online retailers taking it seriously yet. We saw the growing popularity and acceptance and wanted to provide a clean, modern, professional outlet."
DankStop launched in April 2014 and quickly scaled into a full-fledged operation: warehouse logistics, wholesale distribution, private label brands. By 2020, the company was generating $5 million in annual revenue.
A picture of the DankStop warehouse, left, and Feliks Khaykin poses in cap and shades, right.
A picture of the DankStop warehouse, left, and Feliks Khaykin poses in cap and shades, right.
Feliks Khaykin
North America's legal cannabis sector has experienced massive growth over the past decade, fueled primarily by legalization of cannabis in the U.S. and Canada. From roughly $5 billion in 2015 to almost $45 billion in 2024, the sector is set to surge further to $355 billion by 2033.
But the journey wasn't smooth. "It was our first real business, and the learning curve was brutal," Khaykin said.
One of the biggest hurdles came when Google's algorithm changes wiped DankStop from search results—the company's primary traffic source. "We went from $600k/month to $100k/month overnight. It was devastating," he said.
From left: The interior of the DankStop warehouse is seen before the sale.
From left: The interior of the DankStop warehouse is seen before the sale.
Feliks Khaykin
Forced to cut costs and staff, Khaykin changed things. DankStop transformed into a third-party dropship marketplace, allowing brands to list products and fulfill orders directly. "It was a survival move that became our new model," Khaykin said.
It paid off. In 2021, Canadian cannabis giant High Tide approached Khaykin with an acquisition offer. The company was buying up U.S.-based eCommerce platforms to build market share ahead of federal legalization. "It was aggressive, and we felt the timing was right," Khaykin said. DankStop sold for $4 million.
Khaykin recently shared his experience in a Reddit post, inviting people to ask him anything about his experience. Here, users asked questions from the revenue and profit margins to first products and marketing approaches.
Now, with a return of 999,900 percent on his original $400 investment, Khaykin isn't finished with business. He had his team had built custom software to run DankStop's operations and post-sale, and they spun those tools into a new venture: CrowdShip, a dropshipping automation platform now used by major cannabis retailers across North America.
His latest project, another eCommerce solution, launched just two weeks ago. "DankStop was the beginning," Khaykin said. "But the real legacy is the software we built along the way."
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Squeaky Tesla Cybertruck Prompts Buyback Request from Owner
Squeaky Tesla Cybertruck Prompts Buyback Request from Owner

Miami Herald

timean hour ago

  • Miami Herald

Squeaky Tesla Cybertruck Prompts Buyback Request from Owner

The Tesla Cybertruck launched with more hype than most vehicles in recent memory. Years in the making and wrapped in stainless steel, it promised performance, durability, and an aggressive departure from conventional pickup design. But it's facing a problem – primarily, pricing. Even with the most affordable Long Range version costing over $70,000 before options and credits, demand has not met Tesla's lofty forecasts. Sales in the first half of the year are down significantly compared to the same period last year. And then, quality issues. Several have been reported, but there's one that's getting traction among Cybertruck owners: a persistent squeaking noise – something that's apparently difficult to fix. In posts to the Cybertruck Owners Only Facebook group, user HR CG described an ongoing issue with their vehicle involving squeaky noises from the front left pillar. The noise appeared to originate from the windshield area. First reported in June, HR CG said service centers attempted to resolve the issue but to no avail. Other Cybertruck owners in the group reported a similar issue – all are in contact with their respective service centers looking for a solution. "After spending a total of 50 days in service-including 40 consecutive days-Tesla still hasn't been able to fix a persistent squeaking noise. They've replaced parts, added insulation, and tried multiple approaches, but the issue remains," HR CG said. HR CG noted that Tesla service staff had been responsive, but the issue remained unresolved. In their latest post, a supposed message from the service staff claimed that they reassembled the electric vehicle, but the squeaky noise remains. HR CG is getting understandably frustrated with the situation, leading them to other solutions beyond repair. "At this point, I honestly hope Tesla will either give me a 2025 replacement or buy it back at the original price," HR CG said in the latest post. HR CG's experience is not isolated. Other Cybertruck owners across forums and Facebook groups have reported their vehicles spending weeks – sometimes over a month – in service. Common complaints include rattling panels, inconsistent trim alignment, malfunctioning tailgates, and defective glass. One Reddit user compiled a list of known problems from early units, including electrical issues and extensive NVH (noise, vibration, and harshness) symptoms. Some have described their trucks as essentially undrivable due to unresolved problems, with others posting photos of Cybertrucks on flatbeds headed for service. While Tesla has historically improved build quality over time, early Cybertruck adopters appear to be bearing the brunt of initial teething issues. For some, the novelty may still outweigh the flaws. For others, like HR CG, patience is wearing thin. Copyright 2025 The Arena Group, Inc. All Rights Reserved.

How a major Mexican tomato exporter is affected by Trump's 17% tariff
How a major Mexican tomato exporter is affected by Trump's 17% tariff

Chicago Tribune

time4 hours ago

  • Chicago Tribune

How a major Mexican tomato exporter is affected by Trump's 17% tariff

AJUCHITLAN, Mexico — The Trump administration's decision to impose a 17% duty on fresh tomatoes imported from Mexico has created a dilemma for the country providing more tomatoes to U.S. consumers than any other. The import tax that began July 14 is just the latest protectionist move by an administration that has threatened dozens of countries with tariffs, including its critical trading partner Mexico. It comes as the Mexican government tries to also negotiate its way out of a 30% general tariff scheduled to take effect Aug. 1. While the impacts of the tomato tariff are still in their infancy, a major grower and exporter in central Mexico shows how a tariff targeting a single product can destabilize the sector. Green tomato plants stretch upward row after row in sprawling high-tech greenhouses covering nearly six acres in the central state of Queretaro, among the top 10 tomato producing states in Mexico. Climate controlled and pest free, Veggie Prime's greenhouses in Ajuchitlan send some 100 tons of fresh tomatoes every week to Mastronardi Produce. The Canadian company is the leading distributor of fresh tomatoes in the U.S. with clients that include Costco and Walmart. Moisés Atri, Veggie Prime's export director, says they've been exporting tomatoes to the U.S. for 13 years and their substantial investment and the cost to produce their tomatoes won't allow them to make any immediate changes. They're also contractually obligated to sell everything they produce to Mastronardi until 2026. 'None of us (producers) can afford it,' Atri said. 'We have to approach our client to adjust the prices because we're nowhere near making that kind of profit.' In the tariff's first week, Veggie Prime ate the entire charge. In the second, its share of the new cost lowered when its client agreed to increase the price of their tomatoes by 10%. The 56-year-old Atri hopes that Mastronardi will eventually pass all of the tariff's cost onto its retail clients. Experts say the tariff could cause a 5% to 10% drop in tomato exports, which last year amounted to more than $3 billion for Mexico. The Mexican Association of Tomato Producers says the industry generates some 500,000 jobs. Juan Carlos Anaya, director general of the consulting firm Grupo Consultor de Mercados Agrícolas, said a drop in tomato exports, which last year amounted to more than 2 billion tons, could lead to the loss of some 200,000 jobs When the Trump administration announced the tariff, the Commerce Department justified it as a measure to protect U.S. producers from artificially cheap Mexican imports. California and Florida growers that produce about 11 million tons would stand to benefit most, though most of that production is for processed tomatoes. Experts believe the U.S. would find it difficult to replace Mexico's fresh tomato imports. Atri and other producers are waiting for a scheduled review of the measure in two months, when the U.S. heads into fall and fresh tomato production there begins to decline. In reaction to the tariff, the Mexican government has floated the idea of looking for other, more stable, international markets. Mexican Agriculture Secretary Julio Berdegué said Thursday that the government is looking at possibilities like Japan, but producers quickly cast doubt on that idea, noting the tomatoes would have to be sent by plane, raising the cost even more. Atri said the company is starting to experiment with peppers, to see if they would provide an option at scale. President Claudia Sheinbaum said recently her administration would survey tomato growers to figure out what support they need, especially small producers who are already feeling the effects of a drop of more than 10% in the price of tomatoes domestically over fears there will be a glut in Mexico.

Apple beta season is here
Apple beta season is here

The Verge

time7 hours ago

  • The Verge

Apple beta season is here

Hi, friends! Welcome to Installer No. 91, your guide to the best and Verge-iest stuff in the world. (If you're new here, welcome, how is summer more than a month over already, and also you can read all the old editions at the Installer homepage.) This week, I'm pondering the leaked Pixel 10 lineup, marveling at BYD's leaping Yangwang U9 supercar, reading about why everyone's reading Reddit, already looking forward to Ted Lasso's fourth season, rewatching MKBHD's videos about the Escobar folding phone, melting with joy at the new Pokémon Concierge season 2 trailer, dreaming of buying the Lego Game Boy but not actually doing so because my toddler would destroy it, and listening to Lucius' recently released self-titled album. I also have for you some new betas from Apple, a retro-styled PC, some thoughts about cases, and how to play Dance Dance Revolution at home today. (As always, the best part of Installer is your ideas and tips. What do you want to know more about? What awesome tricks do you know that everyone else should? What app should everyone be using? Tell me everything: installer@ And if you know someone else who might enjoy Installer, forward it to them and tell them to subscribe here.) Thanks to everyone who replied to my quandary about whether or not I should keep using a phone case. There were a bunch of great perspectives and feelings, so I'm sharing a few of them here in the newsletter — a lot more people go caseless than I expected! As for my own decision? Well, I haven't reached one yet, and honestly, I may never pick one lane. Typically, my iPhone 16 Pro lives in this slim Torras case, but as I write this, it's sitting on top of the case, not in it. Will I put the case on before I walk out the door? We'll see! 'I, too, felt the urge to go caseless. I'm pretty careful with my electronics, so I still didn't love the idea of setting my phone down on tables and things alike. I got the magnetic back from Nomad, and it has felt like the perfect meet-in-the-middle accessory for me! Phone feels almost caseless, and I still get the back protection.' – Omesh 'I am totally the same with cases. I know I'll drop it once a year and totally ruin the thing and I hate that. What I do is take the case off when I'm just chilling at my desk or couch or chair. That way I get the joy of the smooth phone, but when I am in danger of dropping it on concrete or getting out of my truck, I have the protection it needs.' – Travis 'I ran my first gen Pixel Fold without a case (while living in a beachy resort town) for two years! If the Fold can survive it, so can a 16 Pro. The Fold is still alive and well as a secondary device/backup phone. Of course, it's definitely not pristine, so if you don't want your phone to bear its scars, you should probably keep a case on it.' – John 'I have the Peak Design GNAR case. Saw some complaints online about the protection being too minimal for the front of the phone, but it's been solid for me. Does well being outdoors (I run outside all the time). I'm rocking no screen protector.' – airwr3ck6669 'I never used cases until I got my current phone (Pixel 6A) because the Razer Kishi controller I used no longer fit snuggly around it, so I found a case that allowed it to fit again. I would say the case would eventually come off, but I only realized as I was reading this article that even though I no longer use that controller, I hadn't thought to take the case off.' – xPutNameHerex Today, I'm featuring Keith Broni, the editor-in-chief of Emojipedia. I thought of reaching out to him for this section after World Emoji Day on July 17th (the date shown on the calendar emoji), and he graciously replied. He initially got involved with the site in 2018 and took on increasing responsibilities 'over the years' before taking the editor-in-chief job in 2022. In addition to everything about his homescreen, I wanted to know what he's looking forward to in the world of emoji. 'I'm excited to see what the next unexpected emoji repurposing meme is going to be, especially as Gen Alpha becomes more and more online,' he tells me, like how Millennials repurposed the Eggplant and Peach and how Gen Z repurposed the Skull. Emoji fascinate me — full disclosure, I submitted proposals that helped bring the Saluting Face, Bubbles, Waffle, and Yawning Face emoji into the world — so I'm to share more of the emoji universe with Installer readers. Here's Keith's homescreen and his explanation of what's on it. The phone: Google Pixel 6. Like Molly last week, I'm an 'until the wheels fall off' type of person when it comes to my personal phone, though I use an iPhone 15 Pro for work. The wallpaper: A 2019 picture of me (I'm in all black, bar the white soles of my sneakers) wandering the grounds of the Zōjō-ji Temple in Tokyo, with the Tokyo Tower looming in the background. The apps: I also asked Keith to share a few things he's into right now. Here's what he said: Here's what the Installer community is into this week. I want to know what you're into right now as well! Email installer@ with your recommendations for anything and everything, and we'll feature some of our favorites here every week. For even more great recommendations, check out the replies to this post on The Verge, this post on Threads, and this post on Bluesky. 'I use Outplay on my Apple Watch to track the soccer matches I play. It shows a heat map of my movement during a match and has metrics specific to playing soccer like sprints. It works better for me than using the built-in Apple Workout app or Strava.' – Harry Tequila 'Been playing the macOS version of Cyberpunk 2077 on a base M4 Mac Mini. I am impressed with the game and graphic quality of this version. Just hoping this is the start for more Mac-native versions of A & S tier games.' – penguinchiller 'I just completed the (not so) Endless Tower in Clair Obscur: Expedition 33 and beat Clea... on an MSI Claw 8 with an Intel chip! Didn't expect that after panning the first Claw. It's the only handheld I've really enjoyed this game on so far!' – Sean 'I've become obsessed with the Twos app and using it constantly. Highly recommend!' – Rich 'After steadfastly avoiding it because of its difficulty, I recently purchased and have been dying over and over again in Returnal. The environment really does feel like a hostile alien planet, and with headphones it feels like I can hear every drop of rain. And yeah, it's really difficult.' – Aram 'Been playing Lushfoil Photography Sim and it is so relaxing and lovely.' – Allison 'I've been binging CityNerd on YouTube. The channel discusses cities, transportation, urban design, walkability, etc. Good stuff.' – low_light_mixes Last week, I included a tidbit from a reader who has been playing Dance Dance Revolution recently. As someone who played a lot of DDR when I was a kid ('Butterfly,' anyone?), I was curious to learn more about how he does it. Here's some of what the reader, Tom, told me — he also pointed me to a starter guide on Reddit: 'I'll start with acknowledging I am fully not an expert in the scene, but spent a lot of time in the local arcade and at home playing on a PS2 when I was growing up. 'I grabbed the Deluxe 1-inch thick foam pad from along with the extension cord and the preloaded Stepmania Flash drive. Stepmania is the open-source clone of DDR. People make their own stepcharts (the arrows that scroll up during a song) and make custom songs that you can download and load in, as well as songs from the actual DDR games. 'Someone who is really into playing may want to eventually invest in a metal pad, like what's in the arcades. They're super sturdy and will last for years of use, whereas soft mats could potentially tear over time. There are many manufacturers out there, and the price range is usually from $400 and up for the metal pads. People even buy old arcade cabinets for thousands of dollars and have them in their home.' Thanks, Tom! See you next week, everyone! Posts from this author will be added to your daily email digest and your homepage feed. See All by Jay Peters Posts from this topic will be added to your daily email digest and your homepage feed. See All Installer Posts from this topic will be added to your daily email digest and your homepage feed. See All Tech

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store