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Pivoting from Consulting to $1M ARR (The AI Agent Strategy) | Cotera

Nov 27, 2025

Ibby Syed, co-founder of Kotera, transformed a struggling customer analytics tool into a thriving AI agent platform that surpassed $1M ARR. He shares the pivotal moment sparked by just 100 lines of OpenAI code, leading to a shift from consulting-heavy services to product-led growth. Ibby also discusses effective LinkedIn outreach strategies, the trap of early revenue, and why horizontal tools might be more defensible compared to vertical AI solutions. Tune in for his invaluable insights on innovation and entrepreneurship!

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ANECDOTE

Pivot Triggered By A 100-Line Win

Ibby Syed and Tom built a customer analytics product that reached ~$150K ARR but felt like consulting, not software.
A 100-line OpenAI API script solved a ticket-topic task and sparked their pivot to Kotera.

ADVICE

Outbound: Lead With Tangible Value

Send prospects real, immediate value (for example, actual leads) instead of generic pitches.
Use your product to generate demonstrable proof that hooks interest and prompts meetings.

ADVICE

Run High-Volume LinkedIn Interviews

Use LinkedIn outbound with concise, honest asks (interviews, help) and leverage credibility to get ~8–10% replies.
Book ~25 interviews/week by sending 150 requests across founders and iterate from those calls.

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Ibby Syed accidentally built a consulting agency while trying to build software. Then, he executed a SaaS Pivot to AI Agents and hit $1M ARR.

In this episode, Ibby (Co-founder of Cotera) reveals how to escape the "Service Trap." Learn why hitting $150k ARR in consulting revenue was actually a "local maxima" that nearly killed the startup, how his co-founder replaced months of data science work with 100 lines of code, and the specific LinkedIn Outbound Strategy (sending free leads) that books meetings with high-value buyers. He also breaks down why teaching customers to build their own AI Agents is the secret to scaling a horizontal platform.

🔑 Key Lessons

📉 The Consulting Trap: Why early revenue can trick you into building a service business instead of a product.
🤖 The AI Pivot: How 100 lines of OpenAI API code outperformed a massive data science stack.
📧 LinkedIn Outbound: The "Value-First" message script that books 25+ meetings a week.
🛠️ Horizontal vs. Vertical: Why broad tools (like Zapier/Cotera) will outlast niche AI wrappers.
💰 Pricing Strategy: Moving from custom enterprise contracts to a $20/mo usage model to fuel PLG.

📖 Chapters:

Introduction & The "White Collar" Quote
The Y Combinator Journey & The First Idea (Customer Analytics)
Old Outbound vs. New Outbound (LinkedIn Strategy)
The "Consulting Trap": Revenue vs. Scalability
The Wake-Up Call: 100 Lines of Code vs. Data Science
The Pivot: Building an AI Agent Platform (Cotera)
The "Teach, Don't Do" Service Model
Prompt-Based Workflows vs. Drag-and-Drop
Pricing Evolution: From Enterprise Sales to PLG
Why Vertical AI Startups Might Die
Founder Advice: Focus & The "Local Maxima"

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