Flossy Revenue, Valuation & Funding (2026)

$4M/yr SaaS Founder: How To Add $100,000 in ARR Every Month - YouTube

https

//www.youtube.com/watch?v=U2RAjHVdHZM

Transcript

(00:00) You told me earlier about 500 per location. That puts you around like a 4 or 5 million run rate today. Am I in the right range? >> Yeah, we're not quite there, but we're we're pretty close. >> And for this AI receptionist today, what's the average customer paying you per month or per year to use the technology? It's about 500 bucks a month per location. (00:17) >> When did you raise the seed round? What was that? Like 4 or 5 million? >> We raised [music] 15 million or so. >> How many people in 2024 did you have to fire to right-size the team? About 30, I think. 60 to 70% month-over-month growth, does that mean you're adding like 50 to 100k of new ARR per month? Some months it's been more than that, yeah. (00:34) It's growing very, very, very fast. >> If someone came and offered you today 40 million bucks all cash up front, Miles, no strings [music] attached, do you take the deal? Hey folks, my guest today is Miles Beckett. He has been around the startup block. His first company, Everyday Health, built and sold over 6 years back in 2013. (00:52) Next, built and sold over another 6 years in 2019. Now today, working on Flossy, going face-first into the space of AI for dentists, [music] leaning in launched in 2020. And now 6 years into the journey. We're going to talk about how he launched, how he grew, and where he sees the space going. Miles, are you ready to take us to the top? Yeah, for sure. (01:08) All right. But, take me back to the launch story here because you were in this in 2020, which was before everyone is building sort of AI wrappers on top of the most recent LLMs and foundation models. How did you just even discover the issue of dental practices and an ability to use AI to make them faster? Yeah, so I think like all great companies, we are a pivot. (01:28) So, we launched the company in 2020 as a tech-powered dental discount plan. So, we had sold Silversheet, my prior business, to AMN Healthcare, the big staffing firm. And my partner and I were looking at new areas to innovate within healthcare and adjacent. And we just felt like dental was ripe for opportunity. (01:49) And specifically, the way people pay for dental care didn't make a lot of sense. Dental insurance is really not worth it when you look at the numbers. So, we started as a discount plan. We were matching patients to dentists and basically passing the insurance rate onto the patients that booked through us. And we got super into AI in 2023. (02:09) Like when ChatGPT launched, similar to I think many people, it was kind of an aha moment for us. And we started building a lot of internal tools at the original kind of business model using AI. So, we built like an LLM-powered pricing algorithm. We built some internal call analysis tools. And then we started building this AI receptionist with the idea that we could replace some of the call agents that we were using on our team. (02:37) And that's what really set us down the path. And for this AI receptionist today, what's the average customer paying you per month or per year to use the technology? It's about 500 bucks a month per location. That can go up or down depending upon usage. Interesting. And do most people sign up for one location? Are you going to the parent company and selling to 600 locations at once? Yeah, most are signing up for multiple locations. (02:59) I think one of our advantages is we have very deep relationships in the private equity world. And so, there's a lot of these dental roll-ups that are private equity backed. So, you know, we've signed, you know, multiple, you know, hundred location plus DSOs that are then doing like varying degrees of roll-out. (03:17) Sometimes in chunks, sometimes location by location. Can I ask, don't obviously name their name, but what's the largest customer in terms of number of locations on your platform? Yeah, I mean, we don't really talk about specific customers, but I can tell you that like there are multiple ones that you've heard of that, you know, we've either signed or we're pretty far along conversations with and will sign pretty soon. (03:35) Well, avoid saying their name. I don't want you to divulge anything confidential. I'm just asking on general. I mean, are you is your largest one 500 locations or 1,000 locations or 10 locations? About a hundred or so signed. And then there's a couple right now that are like 500 plus that we're pretty far along with. (03:51) Interesting. Okay, that's great. And did you were you always sort of going this top-down approach or back in 2020 when you launched, were you going more bottoms-up? I'm just trying to get a sense if there was a transition from sort of PLG to enterprise motion or something in between. >> Sure. Yeah, so with the discount plan, it was very much well, it was kind of a hybrid. (04:08) So, we signed a deal with a nationwide dental network. So, we sort of had a roster of dentists, very large one, nationwide. But, we still had to go location by location by location getting individual dentists to opt in to being part of this discount plan. When we pivoted to AI, we started out with about half a dozen locations that we had prior relationships with really to kind of prove the product out. (04:33) And then we started going to conferences. You know, we found with our last business, Silversheet, that we really sold a lot to surgery centers. So, we went to a lot of conferences in the space and that worked well. So, it started out more bottoms-up. Simultaneously, we were having conversations with larger DSOs and then private equity firms that own the DSOs. (04:54) And as we've gotten more traction with them, we've been a little bit more focused on the top-down. Although we are going to like, you know, a lot of conferences this year. And so, Miles, using conferences as growth specifically for your pivot to the Fiona product in mid to late 2024, fast forward to today, we're recording here in late January of 2026. (05:13) How many individual customers are you working with today? Hundreds. I don't know the exact number, but hundreds of customers at this point. Yeah, it's grown really, really fast. Fair to say between 100 and 500 customers? Yeah, higher than yeah, probably at least 3 to 500, maybe more. Okay, great. And is a customer a location or is that a brand that could have multiple locations? >> That would be brands that could have multiple locations, yeah. (05:35) Okay, so are you over the special 100 sorry, 1k location mark yet? I don't know if we are. I'd have to check. We might be. Maybe in terms of sign-ups. Okay, cool. Yeah. Um okay, tell us more about the Fiona product. When I see it on your website, again, I'm I'm a total novice here. I'm just meeting you today. I'm looking at it going, well, why wouldn't someone just use like an intercom or a general support tool in the bottom right of their of their sort of page? What's the answer to that? Yeah, so I think what you find is that (06:00) in all of these verticals that are very specific and a little old school. So, whether it's dental, healthcare more broadly, you know, veterinary, even frankly restaurant, you know, restaurants, like like tech companies and maybe big, big companies that are very tech-focused are going to use things like Intercom. (06:24) But, they're really not specific to the industry vertical. So, as an example in dental, the number one most important thing for a dentist in terms of communication with patients is booking those patients. It's really about scheduling and booking. So, right off the bat, if you look at an Intercom or a Finn or you know, one of those types of products, they're they're not focused on scheduling. (06:52) They're focused on conveying information. It's more like customer support. And if you look at what Fiona does, and we have some other products we haven't announced yet, but that are one one that's like we're actually selling right now behind the scenes. Like it's all very focused on booking patients, engaging re-engaging with patients, getting them to come back for appointments. It's a more active motion. (07:16) And so, the product is a little bit different. And then the business logic behind the scenes is totally different. Like being able to really nail scheduling is critical and we had a lot of prior experience with that from our original business because we were booking patients to go to dentists. Tell us more about how you capitalize this business, Miles. (07:35) I think I mean, you're a successful entrepreneur. You've exited two companies. In the third one here, have you said, you know what, let me do it myself or did you go out and raise? We raised money, yeah. We raised venture capital for the original business model. We've raised more money since then post-pivot. All from, you know, traditional VCs. (07:52) Guys, remember I am not just a YouTuber. I'm investing in my third fund. We've deployed 250 million dollars into 550 software companies so far. Again, at founderpath.com. If you're interested in capital, I would love to cut you a check because I know you're investing in your education. You watch my show. So, sign up at founderpath.com. (08:08) And when you get the onboarding email, I reply and I see all those. Just reply and say, "Nathan, I found you through YouTube." And I'll make sure to prioritize you. I would love to cut you a check. Check out founderpath.com. Can you take us through that storyline a bit? How, you know, when did you raise the seed round? So, we raised a raised a seed round for the original business in 2020 right when the pandemic hit. (08:29) We actually closed on the financing. We actually didn't do anything with the money. So, we went the like literally 4 or 5 million or It was like 3 million. And like again, we we the economy shut down or the everybody shut down. Everybody was, you know, in at home isolated and dental offices were closed. (08:53) And so, we were like, oh no, like, what do we do here? So, we actually didn't pay ourselves anything. You know, we had some money, so we were comfortable. We didn't need it. And we literally just sat on the cash. And we were kind of like, does this business even work? Should we fully change to a different model like with this cash? I don't know. (09:12) We had a lot of conversations with our investors and between my co-founder and I. And actually, when we had raised the money, the original model was to be like a better type of dental insurance, but we were actually going to be an insurer. And coming out of those conversations, we decided to do this discount plan. (09:30) And we started talking to some dental practices and figuring out what their pain points were. And so, we we actually built the product. We didn't start hiring people and building it until fall of 2020. And then we launched that original discount plan model in spring 2021. And then we raised a Series A. I don't remember exactly when that was. (09:52) I think it was in spring of '22 right before the market crashed. And we raised, I don't remember the exact amount but you know call it 15 million or so from that. Um And then we grew again. We grew that model. We were in you know a dozen or so states. We were in a bunch of local markets. (10:13) We raised a little bit more money. >> Something there's something here I don't understand because you ultimately moved away from the discount plan model but it must be extremely well if you raised a series of 15 million series A in 2022. Did something crazy happen between 2022 and 2023 where that revenue line just collapsed? No, the venture markets changed completely. (10:31) Were you ever close to running out of cash completely and shutting the company down in that period? Sure. I mean you mean as a founder I mean you're always if you're venture backed you're close to running out of money almost all the time. Not all the time but you know what I mean. Yeah. Sure. All the time. Yeah, every business is like that. (10:46) My first company when we sold that company and it was actually called Equal. We sold to Everyday Health. When we sold to Everyday Health we had to borrow $500,000 from them so we didn't run out of cash and we could actually close the transaction. How did you get that done though? You lost all your leverage. Didn't they just pound you on valuation? It looks like you grew it over eight figures of revenue. (11:08) Yeah. So um Yeah, we did. Um The short I don't know but I think it's because we had a breakup fee. So we had we had signed a term sheet with them. Uh that term sheet expired. We had a competing offer. Uh had two competing verbal offers and we had one competing term sheet. We got them back under term sheet but as part of that we required them to have a million dollar breakup fee. (11:38) So I think the answer is probably because of the breakup fee. They I mean they wanted to buy us but I think that that was the the pill that they didn't want was to not close the deal on passing $9. Okay, was it public? Did they release or can you share what this exit was for? Um I think it I don't know if it was public or not but I think it's out there. (11:53) It was around 30 million. Okay, was that what did you consider that a win at the time? Oh yeah, I mean we had raised very little money. I mean it was a it was I mean it's look it's not a massive venture exit but everyone made money. We had some we had a some investors at 10x their money. Everybody made 2x or more. (12:09) It was very personally meaningful for me and my co-founder and even you know senior people on the team. Yeah, it was definitely [snorts] one. That's great. >> Every every So you know knock on wood every company so far has been a net positive for investors and some you know better multiples than other and and everybody's done well on the team. (12:28) Which one was bigger in terms of revenue when you exited? AMN Healthcare or the one that you sold to Everyday Health? Um yeah, so Equal which we sold to Everyday Health was quite a bit bigger in revenue than Silversheet which we sold to AMN Healthcare but the Silversheet was a much bigger exit. Interesting. Oh interesting. (12:49) Why why what was Silversheet was under eight figures of revenue then if if if the one before was bigger but they exited for a higher a higher I guess total dollar value. Why was that? Just curious. Yeah, a combination of that Equal was a media business and so we sold for a smaller multiple on revenue than Silversheet which was a SaaS business and also the market at the time in 2019 it wasn't 2021 craziness levels but multiples were were still pretty crazy for SaaS businesses. (13:21) How many people in 2024 did you have to fire to right-size the team? About 30 I think. And what are you in terms of FTEs today? Uh we're about mid-20s [clears throat] but we were we got down to about eight. I think we were eight when we did the last. And you know it's always tough. I mean I I we had to do I've I did more layoffs at Equal. (13:37) Um that was and we did we didn't we never really do a layoff at Silversheet but we did we kind of outsourced the team at Silversheet but it's always really hard. Um You know that I would say we have a couple people from the OG team that actually came back. One of our sales people came back. One of our customer success people came back. (13:55) So that was kind of gratifying. That's great. Well, I mean it seems to be working. Can I take the 300 to 500 brands in around you maybe approaching a thousand locations today? You told me earlier about 500 per location. That puts you around like a four or five million run rate today. Am I in the right range? Yeah, we're we're we're not quite there but we're we're pretty close. Yeah. (14:13) We're and and again we're growing like you know we're growing like 60 70% month over month since launch. It's >> Yeah. Yeah. And then like I said you know we're really expanding into other AI agents for dental practices. Um really focused on customer engagement, customer retention, patient bookings, patient rebookings, um phone calls. (14:41) Fiona now does you know phone call, text, web chat, etc. So it's really become pretty rapidly like a full customer acquisition and engagement platform. So you're comfortable sharing that 60 70% month over month growth? Does that mean you're adding like 50 to 100k of new ARR per month? Yeah, it's actually in some months it's been more than that. Yeah. (15:01) I mean it's accelerating. It's it's again it's growing very very very fast. You know and I'm also go ahead. Go ahead. I was going to say I'm also an investor in a lot of companies and I've done SPVs in companies and you know prior to the market change and like some of those businesses are working are going to work out and some aren't. (15:18) And like you know it really comes down to were investors and management realistic about valuation and cap table and did they take necessary measures to fix things? And I think the answer in most cases is people did not. Um and you know there's been a lot of debate right now about the Brex exit which I'm sure you saw. (15:38) And like you know the Brex outcome was a great outcome. Like the reality is that was a great outcome. That was a win. They sold a company for five billion dollars in like eight or 10 years. They crushed it. You know it's not their fault that they raised at a 12 billion dollar valuation prior and like those investors aren't going to do great. I get it. (15:57) Like it happens. You know what's going to happen? Almost everybody who invested in 2020 2021 at the peak is not going to do well. That's just the reality. Yeah, that vintage that cohort it's going to That vintage is is is very very hard. Yeah. Yeah, unless you do things like we did you know. Yeah. (16:14) So as we wrap here I mean you're a hot AI company. You're growing 60 70% month over month. You're doing between call three and four million bucks of revenue. If someone came and offered you today 40 million bucks all cash upfront Miles no strings attached. Do you take the deal? No. I mean that not for me. I mean you know we're still trying to we want to build a very big business here and I think there's a big opportunity. (16:33) I mean I I think we are rapidly becoming the dominant platform in dental. And I think we will be I think by the end of this year it'll be clear that we've you know won in dental. We think that there are adjacent verticals that are similar to dental that we can go into as well. And so we think there's a really big opportunity. (16:51) Guys, there we have it. Miles founded Flossy back in 2020 seed round of three million 15 million series A in 2022 on a totally different business model discount plan but in the same space dental. He then pivoted in 2023 2024 going all in on Flossy and his agent Fiona which helps critically dental offices never miss a potential to book a meeting. That is their lifeblood. (17:11) That's how they make revenue. Fast forward to today he's working with 300 to 500 dental brands approaching a thousand locations doing between three and four million bucks of revenue with his team of 25 and adding call between 50 and sometimes more than 100k of new ARR per each month. It's growing rapidly. He's recapped the business so everyone is properly incentivized and he wants to go big. Check it out at flossy.com. (17:32) Miles, thank you for taking us to the top. Thank you. You won't believe this CEO's revenue. Click here to watch the next episode right now.