🌟 From Zero to $120,000 Annual Income: How the AI Platform Velvet Precisely Identifies Demand and Ignites User Growth?#
Hello everyone, I am Wealthy.
In this fiercely competitive AI market, how do you find the product-market fit? Today, let's delve into the growth story of Emma Lawler and her AI platform Velvet, revealing how she achieved breakthroughs and ultimately succeeded in her entrepreneurial journey.
From Freelancing to AI Entrepreneurship | Emma's Transformation Journey 💼#
Emma Lawler is a serial entrepreneur with an MBA, who previously served as an on-site entrepreneur at a venture capital firm in Chicago. Her last project, Moonlight, was a freelancing platform for developers, achieving a monthly recurring revenue (MRR) of $10,000 and eventually being successfully sold to the Google-backed startup PullRequest.
This time, she chose to enter a newer, faster-changing field: artificial intelligence. She founded Velvet—a platform focused on the analysis, evaluation, and monitoring of AI models.
In the early stages of her startup, Emma faced severe challenges: only two years of funding reserves, while the financing environment tightened abruptly due to the pandemic. This entrepreneurial journey was filled with challenges but also opportunities.
User Demand Drives Innovation | How to Find the Right Direction? 🔍#
Velvet's first product was an AI tool that supported text-to-SQL queries, but user feedback revealed greater potential: customers were using the tool to analyze large language models (LLMs) from OpenAI and Anthropic.
One client wanted to conduct a detailed analysis of cost, latency, and other metrics for OpenAI's batch request endpoint. Emma seized the opportunity and completed the custom service for the client in just a few months. This collaboration not only validated the product demand but also secured Velvet's first paying customer.
By September, they launched a self-service version of the platform, allowing developers to register and start capturing logs within five minutes. This flexible design attracted hundreds of developers.
Exploring Revenue Models | How to Achieve Profitability? 💡#
Initially, Velvet charged based on the number of requests, but as enterprise customer demand skyrocketed (for example, one client grew from 0 to 40 million log requests in a short time), this model became unsustainable.
The team introduced an annual subscription plan, offering enterprises higher log storage limits and premium features (such as monitoring and custom deployment), which significantly increased the renewal rate.
User Acquisition Strategy | Where Do Customers Come From? 🌐#
Emma's team adopted a dual approach:
- Self-service tools to attract developers: Offering free tools to lower the barrier to entry.
- Enterprise contract sales: Communicating directly with CTOs and product leads to secure annual contracts.
Growth strategies also included:
- Weekly newsletters: Sharing feature updates and industry trends via the Beehiiv platform.
- YouTube demo videos: Embedding on the official website to improve conversion rates.
- HackerNews hot posts: Frequently making it to the trending list, resulting in a surge of registrations.
- Developer conference talks: Engaging face-to-face with potential customers to build connections.
Entrepreneurial Secrets | Rapid Iteration and Momentum Maintenance 🏃♀️#
Emma emphasizes, “Momentum is the most important thing for a startup.” She maintains a high-efficiency pace through the following methods:
- Sending a team memo every Monday to clarify goals.
- Holding daily stand-ups on Slack for quick communication.
- Releasing new features weekly and pushing updates through newsletters.
📚 Recommended Reading and Resources#
Emma draws inspiration from the following resources during her entrepreneurial journey:
- "The Hard Thing About Hard Things": Insights on how startups face challenges.
- Paul Graham's essay collection: Profound insights on entrepreneurship and growth.
- HackerNews community discussions: Keeping up with technology and industry trends.
These resources not only provided her with a framework for strategic thinking but also laid the foundation for Velvet's rapid growth.
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