18 Month Old Startup Already Has 3 Customers Paying $100k/yr. Is AI over valued?
Nov 2, 2023
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A founder shares his experience of getting his first 3 customers to pay $100k each; success with enterprise customers and revenue breakdown; revenue recognition process and top three customer contributions; promoting 'Shark Tank for SaaS' and joining the private Slack community.
Softbrick has achieved significant success with three customers paying over $100,000 per year.
Softbrick is actively exploring options to increase revenue and plans to raise funds for growth and expansion.
Deep dives
Softbrick is a conversational AI company catering to various industries
Softbrick offers customer intelligence through conversational AI that allows companies to better connect with their customers via voice messages and interactive user experiences without the need for an app. They serve companies in telecom, healthcare, insurance, and other sectors, primarily targeting enterprises. Their pricing ranges from $5,000 per year for small customers, $25,000 per year for medium customers, and up to $100,000 per year for enterprise call centers.
Softbrick has successfully acquired high-paying customers and is focused on scalability
Softbrick has achieved significant success in a relatively short time, with three customers paying over $100,000 per year for their services. These customers individually send over a million messages each year. In total, Softbrick currently serves 60 paying customers out of the 300 who have used their product. They have raised around $900,000 in funding and are now seeking a $3.5 million round at a valuation of approximately $20 million to fuel their growth and expansion.
Softbrick faces challenges with revenue generation and is planning for future growth
Softbrick has a burn rate of $45,000 per month, leading to concerns about runway and financial stability. While revenue is being generated and they have identified potential growth opportunities in the healthcare industry, they are currently operating with a relatively tight margin. Softbrick is actively exploring options to increase revenue, including potentially raising the quota for their sales team and hiring additional top-quality engineers, primarily AI scientists. They plan to use the funds from the upcoming round to support these initiatives.
Most founders think you can't launch and ask customers to pay $100,000 per year. This founder got his first 3 customers to pay $100k each. He's managed to hold on to 80% of his company. How'd he do it?
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