Startup Stories - Mixergy #2293 $2 million / year AI engineering firm
Jan 12, 2026
Tarun Thummala, founder and CEO of PressW, leads an AI engineering firm that specializes in automating document-heavy workflows for regulated industries. In this discussion, he reveals how PressW has grown to over $2 million in annual revenue. Tarun shares insights on avoiding generic AI transformations by focusing on specific outcomes and the importance of building strong networks for early customer acquisition. He introduces innovative approaches like agent-driven development and custom AI solutions designed for sectors like healthcare and finance, highlighting the pressing demand for clarity and results.
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High-Automation Document Project
- Tarun built custom AI apps that automated up to 90–95% of document-heavy workflows for a background-checking client.
- He charged via fixed-fee estimates or a forward-deployed dedicated-engineer model instead of pure hourly billing.
Price For Value, Not Hours
- Do not charge strictly by hours when AI makes you faster, use fixed fees or dedicated-engineer retainers to preserve incentives.
- Estimate internally and offer capacity-based plans so speed improvements don't reduce your revenue per outcome.
First Deals From Old Connections
- Tarun's first customers came through relationships and a former employer who handed them project work.
- The founders accepted almost any paid work in the first six months before learning to say no and specialize.