How Doxci CEO Austin Ambrozi grew Doxci to $1.2M revenue and 8 customers in 2024.

guys doxy.ai launched back in 2021 won the Nashville startup competition called 120 000 bucks there we're doing about five thousand dollars a month a year ago now doing 50. that's five zero thousand dollars per month across eight customers they help you automate anything that relates to paper right so they they say it as sort of like the GPT automated AI bot that takes care of all of your paperwork right now focused on sounds like insurance industry where there's a lot of paperwork that historically hasn't been able to be automated we'll see where it goes from there they're charging fifteen thousand hundred thousand dollar sign up fees 75 000 pre-seed round raised back in 2022 out of 10 million uh cap hey folks my guest today is Austin ambrosy he's building an AI powered paperwork employee at d-o-x-c-i dot AI That's doxy dot AI Austin you ready to take us to the top yes sir all right what is that what's a paperwork employee um so the official the official term used in the industry is intelligent document processor IDP and effectively the mission of the companies put paperwork on autopilot so that um that could take the form of variety of um ways it depends it depends on the nature of the paperwork um and the uh workflow that it's associated with and so give me an example of a customer that uses you today and what paper workflow they've automated so one of our clients is an insurance company uh they get all of their applications for coverage to a designated email inbox typically whenever someone applies for insurance they send in some supplementary documents you know a proof of address driver's license couple things like that so doxy will monitor the email inbox it will read uh whenever an email comes in for applying for coverage it'll read that email it'll read each of the corresponding documents it'll then calculate a rate that can be offered to the prospect based on the information provided and then since people are you know human and forget to submit things it'll automatically draft an email back to them saying hey you know this is the rate that we can offer you if you submit X Y and Z pieces of additional information we might be able to offer you a better rate it sends the email and that whole process is now automated and doesn't require human involvement at all wow how do you price what's the average customer pay per month or per year um so the price the way we have our pricing set up is we have one Implement upfront implementation fee which varies from anywhere from fifteen to a hundred thousand dollars depending on the nature of the architecture that we're integrating with if it's a newer system and it's just a few API calls and it's on the cheaper end of things and if it's some you know older Legacy systems um then it's on the pricier end of things that's for the implementation fee and then after that there's no licensing fees it doesn't matter how many people use the system some we charge based on throughput so cost per page model and we're in the process of converting to set tiers so it'd be sort of like buying minutes for uh uh for a cell phone plan and give me a general sense of what someone processing I don't know a thousand uh pages per month might pay um 250 bucks okay interesting what is your average customer pay today uh honestly that's uh that's uh that's tricky because we have a we have we have some clients that are you know only paying three thousand a month and we have other clients that that's kind of our our floor I would say is around the the 10 to 12 000 pages of the month is kind of the smallest client that we've seen so far and then we've also got uh we've got another client that's um paying close to or well they just signed but they'll be paying close to a hundred thousand dollars a month per um yeah once they reach full maturity okay what would they start out at though they're gonna start out at 12 500 a month interesting and did you just are those the two customers you have today or do you have more customers uh we have more customers as far as the total number I should probably know that off top of my head what's a range uh um less than 10. okay so you just when did you guys launch uh we launched uh technically 18 months ago but we have been um refining the product like mad uh and we actually we started off uh as known as slipbot um and we recently rebranded so when we started we were limited to one document type in one industry and that was the reinsurance slip in the reinsurance industry um and we we were making strides with that we won startup showdown in Nashville we beat there were 300 companies that entered we came in first place 120 000 uh from panoramic Adventures um but we we still were only limited to the reinsurance industry at that time and you know it was a great Niche but uh there was not uh we were not picking up steam like we are now we uh started working with um a management consultancy firm that has been largely involved in software purchasing decisions of several of the top 10 or top five reinsurance companies in the world and so they brought us some of their you know toughest documents that people have been unable to crack throughout the years and by the time that we refined the product to the point that it was able to handle those documents we realized that we could take on any document in any industry and so three months ago we rebranded to doxy and uh now we are now we're definitely picking up steam but the company back when you filed with Delaware or wherever when was that 2021 that was uh yeah that was uh yes uh oh what's going on there YouTube good to see you guys now imagine this you love watching these interviews with SAS Founders but imagine if we took all of the valuation data out from over 2807 interviews I've done manually saves you a lot of time well we've done this we've built the into the beautiful interface inside of founder path check this out I'll show you how you can access this in a second but you log in you connect your stripe account you see your valuation real time you can see what it changed over the past 88 days and even set goals for evaluation this year now the secret valuation is there's many different ways to value a SAS business so the reason you're going to see three or four different evaluations inside of your founder path dashboard this is all free by the way is because depending on who's doing the buying of your SAS company you're going to get a different valuation a VC is going to pay a different valuation private Equity Firm is different if you're going to do a minority sale that's different and if you sell the whole business that's a different valuation you can see all those when I hover over here here right so the teal is what a VC would pay yellow is what private equity and red is if you sold the whole thing outright now what's cool about this is this is not built off random data again you guys hear these interviews on YouTube all these datas are built from 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founderpath.com and hover over products click on get your evaluation here and go ahead and sign up to give it a whirl again all that valuation data live right inside the platform I hope to see you there all right let's jump back into the interview you fund yourself early with 120k from the national startup competition that was also in 2021. uh that was uh in 2022 that was actually this past September okay and have you have you boots drop since then or have you raised any Equity we raised 75 grand from an angel investor um that was I believe July 2022 or June okay how do you you know how do you determine the you know the cap on that or the paper that they sit on uh it's on a were you the tool the vehicle we're using is a safe uh with a 10 million post money evaluation and uh 10 million cap 20 discount no no I would say I was gonna say 24 month conversion date oh interesting is there a discount there or no discount um I do I noticed him no that's that's great Okay cool so you get the you get that in and it was a strategic value there like why you obviously want to keep as much Equity as possible why even let an angel in um we we knew that we had uh we knew that we had a ways to go with a product development and um it was just it made it made the most sense you know raise money when you need it um when you don't use it who's we you keep saying wait how many co-founders uh there's two two co-founders um Isaac Hicks and myself um and then total total employee...