From ChatGPT wrapper to VC-Backed SaaS: product, timing, & marketing with Iliya Valchanov @Team-GPT

saas.unbound is a podcast for and about founders who are working on scaling inspiring products that people love, brought to you by https://saas.group/, a serial acquirer of B2B SaaS companies.

In episode #49, Anna Nadeina talks with Iliya, CEO and founder of Team-GPT, your shared AI workspace to help you seamlessly integrate AI into your team’s workflow.

Iliya Valchanov’s journey into the tech world is both inspiring and intriguing. Originally from Bulgaria, he was a national mathematics competitor for over a decade. His academic pursuits took him to Italy, where he graduated in finance from Bocconi University. After some time in China, Iliya co-founded 365 Data Science, an educational platform that thrived at a time when data science was just beginning to gain recognition. With over 100 courses created and millions of users educated, the company generated about $30 million in revenue.

Fast forward to the advent of ChatGPT, which Iliya initially approached with skepticism. However, witnessing the capabilities of this large language model transformed his perspective, leading to the creation of Team-GPT. Initially launched as a wrapper for ChatGPT, Team-GPT quickly evolved to include collaboration features and a prompt library, responding to the growing demand for better integration of AI in team environments.

Challenges and successes in AI collaboration

The success of Team-GPT is not without its challenges. Iliya emphasizes the importance of user feedback in shaping the product. During the initial phases, they gathered insights from users and identified thousands of use cases that AI could address. This data-driven approach allowed them to refine their hypothesis about the most valuable applications of AI, leading to the development of user-friendly interfaces and tools.

One significant challenge was the competition from larger entities like OpenAI and Microsoft. Iliya notes that while these companies have vast resources, they also face bureaucratic limitations that smaller, agile startups can navigate more effectively. The focus on collaboration has been a key differentiator for Team-GPT, as many existing AI tools fail to provide a satisfactory collaborative experience.

Understanding and mastering AI

For many users, the biggest hurdle in utilizing AI is understanding its capabilities and potential. Iliya describes a common journey where users initially have limited awareness of what AI can achieve. Through repeated interactions with AI, users often experience “lightbulb moments” that expand their understanding and ignite their curiosity to explore further.

To facilitate this learning process, Team-GPT has developed educational resources, including courses that guide users through the fundamentals of AI. Iliya believes that building a solid foundation is crucial for users to effectively leverage AI tools. By catering to both technical and non-technical audiences, they aim to democratize AI knowledge and empower a wider audience to become proficient in utilizing these technologies.

Marketing strategies for SaaS growth

When it comes to marketing, Iliya’s approach is multifaceted. Initially, he was the sole marketer for Team-GPT, leveraging his experience to drive early growth. He emphasizes the significance of timing, noting that being an early player in the AI space provided a strategic advantage. However, he also highlights the importance of a robust marketing strategy that encompasses various channels and touchpoints.

One of the successful campaigns involved creating a series of educational videos that addressed common questions about AI. This content was not only informative but also served to engage potential users across multiple platforms, including Instagram, LinkedIn, and YouTube. The result? A significant increase in followers and user engagement.

AI articles and video campaigns

Content repurposing has been a cornerstone of Team-GPT’s marketing strategy. The educational videos created were transcribed into articles, optimized for SEO, and published on their website. This strategy not only boosted their search visibility but also provided valuable resources to users seeking to understand AI better.

By employing this content marketing approach, Team-GPT ensures that they remain relevant in search engine results while also providing users with valuable information. Iliya’s insights on the importance of content repurposing highlight the need for effective marketing strategies that maximize the reach and impact of each piece of content produced.

Creating an online course

Recognizing the demand for structured learning, Team-GPT created an online course that covers the fundamentals of AI. This course is designed to equip users with the knowledge and skills needed to navigate the complexities of AI applications. By offering this course for free, they aim to build loyalty among users and establish themselves as thought leaders in the AI education space.

SEO and repurposing content

SEO plays a pivotal role in driving traffic to Team-GPT’s platform. Iliya emphasizes the importance of long-tail keywords and optimizing content to rank well in search engines. The goal is to create valuable content that not only attracts users but also addresses their specific needs and questions.

Incorporating user-generated content and insights into their articles has proven effective in enhancing their SEO efforts. By aligning their content strategy with user interests, Team-GPT can maintain a competitive edge in an increasingly crowded market.

Long tail keywords vs. prompts

The distinction between long-tail keywords and prompts is becoming increasingly blurred in the age of AI. Iliya explains that while long-tail keywords are essential for traditional search engines, prompts are becoming more relevant as users interact with AI tools. Understanding how to optimize for both will be crucial for businesses looking to leverage AI effectively.

Raising funds and scaling

As Team-GPT gained traction, the decision to raise funds became necessary to scale operations. Iliya shares his experience of navigating the fundraising landscape, highlighting the challenges of securing investment in a competitive environment. The funding round raised $4.5 million at a valuation of $17.5 million, marking a significant milestone for the company.

For Iliya, the process was not just about securing capital but also about gaining access to a network of experienced investors and advisors. This network can provide valuable insights and resources that can accelerate growth and enhance the company’s strategic direction.

Biggest wins and failures

Reflecting on his journey, Iliya identifies the biggest win as the successful fundraising round, which not only validated their business model but also inspired the broader tech ecosystem in Bulgaria. However, he also acknowledges the challenges faced during the fundraising process, including rejections that led to self-doubt.

The experience taught him valuable lessons about resilience and the importance of maintaining momentum in product development, even during challenging times. This dual perspective on wins and failures underscores the complexities of entrepreneurship.