How Flossy grew Flossy to $4M revenue and 300 customers in 2026.

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

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(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...