Lyzr · B2B · AI agent software for enterprises
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
Mixedorganic-socialpositioning-nichecommunity
What they did
In July 2024, to show what the Lyzr agent framework could do, the team built Jazon, an open-source AI SDR agent, as a free alternative to well-funded AI SDR startups like 11x (then charging $70K-$100K a year) and Artisan. They seeded it on Twitter, LinkedIn and Reddit with the message that an open-source version is available to try, so you don't have to pay that much. Demand followed, sold via AWS-funded pilots. In October 2024 they stopped because AI SDRs could mass-email but not reliably book meetings; they gave all signed-up customers the open-source version and went back to the core agent framework.
What happened
0 to $4M contracted ARR in three months (by September 2024) and ~400 inbound leads/month; product discontinued in October 2024 because the AI SDR promise broke; 2024 revenue finished at $0
- Stage
- Pre-launch (Pre-revenue, 2024)
This shipped together with other changes, so the result can't be credited to this alone.
“The idea was to show that, "Hey, you can have AI SDR completely open source."”
“So we started seeding on Twitter and LinkedIn and Reddit highlighting that you have an open source version that is available that you could try.”
“What we did, we gave the open source option to all our customers who had already signed up, and we just discontinued the AI SDR to go back to the core product, which is the agent framework itself.”
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More from this episode
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- 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