$2 million/year AI engineering firm
TL;DR: Tarun Thummala and two co-founders from their previous AI startup launched PressW as an AI development services firm in Austin. They chose services over products for three strategic reasons: they needed to learn how enterprises actually work, they recognized AI delivery required more professional services than traditional SaaS, and they wanted to avoid a 10-year bet while the market was still forming. Their first customer came through a former employer relationship, but 90%+ of revenue has come from net-new relationships formed through intentional networking at events, hosting their own gatherings, and building genuine relationships with VCs and PE firms. Tarun's approach focuses on naturally talking about AI rather than hunting for sales, which creates authentic connections that convert. They now host their own events and have built strong referral channels through VC portfolio companies.
Key Insights
- Starting with services instead of products lets you learn how the market works before committing to a 10-year bet
- 90% of revenue came from net-new relationships, not existing contacts, through intentional networking and events
- Hosting your own events creates a controlled environment to meet high-quality prospects on your terms
- Building VC/PE relationships creates a pipeline of portfolio company introductions without explicit sales pitches
Actionable Takeaways
- Start with services to gain industry context before building a product, especially in AI where delivery is complex
- Attend 1-2 quality networking events per week and be selective about which ones to invest time in
- Host your own small events and invite people you admire to bring friends, creating curated networking
- Build relationships with VCs by sharing AI knowledge genuinely, not pitching - let them connect you to portfolio companies