Lyzr · B2B · AI agent software for enterprises
Get AWS to pay for the first 3 months of each customer's pilot
Helped reach $4M contracted ARR in 3 months; converted many customers
Workedpartnershipspayments-checkout
What they did
Lyzr told prospects honestly that it didn't know if the AI SDR would work, but asked them to sign a 12-month contract. Lyzr worked with AWS, which has a program to fund pilots, so the first three months were paid by AWS and the remaining nine by the customer; if it worked, they converted into a paying customer. This let them show the product with no upfront cost to the buyer, booked as contracted ARR.
What happened
$4M contracted ARR in three months; guest says they converted a lot of customers
- Stage
- 2024, AI SDR period
This shipped together with other changes, so the result can't be credited to this alone.
“Because we we told our customers that, very honestly, that, "Hey, we don't know whether it will work, but sign up with us and we'll work with AWS to even fund the internal the the pilot." And AWS has a plan to fund these pilots.”
“The first three months was covered by AWS, and the rest nine months by the customer. This is the business model that allowed us to show the product really well and and then we were able to convert a lot of customers who came on board.”
Related topics
Get tactics like this every Monday
New tactics from the week's founder interviews, each linked to where it was said.
More from this episode
- Lyzr: Release a free open-source copy of a pricey hyped tool built on your platform$0 to $4M contracted ARR in 3 months; shut down when the product underdelivered
- Lyzr: Rank in search for your free tool to drive inbound demo requests400 inbound leads a month; 60% demo conversion
- Lyzr: Pitch enterprises on keeping their data in-house instead of sending it to AI labsGuest credits it for growth from $650K to $12M ARR in 9 months
- Lyzr: Launch with a $10K annual plan, then add $50K and $100K plans25 customers and $250K ARR in Q1; $650K ARR by Q3
- Lyzr: Sell your software inside an on-prem box, offered first to existing clientsJust launched; pre-orders open, no sales numbers yet
- Lyzr: Ship the buyer a working prototype in 10 days to beat bigger rivalsWon two deals against Palantir, incl. a ~$2M federal contract
- Lyzr: Give every new signup a free account with 500 credits to start building80,000 builders on the platform; link to paid deals not stated
- Lyzr: Help IT consulting firms ship to their clients so they bring you dealsAccenture invested twice in six months; several integrators invest and partner
- Send two cold emails with links and screenshots, not a seven-email dripLearned from running AI SDRs for customers; no numbers