Niching down with AI-powered SaaS for writers with Stew Fortier @type.ai

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 #3, Anna Nadeina talks with Stew, Co-Founder & CEO at Type.ai, an AI editor built for writing.

Stew Fortier has a rich background as an entrepreneur with a passion for writing. His journey into the world of AI began around 2016 when he joined the Allen Institute for Artificial Intelligence in Seattle. There, he gained firsthand experience in AI research and development, which fueled his interest and led him to explore the commercial viability of AI technologies.

After working on various projects, including a human-powered writing service called Foster, Stew recognized the challenges writers face and the potential for AI to address these issues. This realization paved the way for the creation of Type.ai, a tool designed to support writers in their creative process.

Challenges of Writing and the Vision for Type.ai

Writing is inherently challenging, even for seasoned professionals. Stew emphasizes two primary hurdles: the difficulty of generating clear ideas and the mastery of language required to communicate those ideas effectively. Many writers struggle to articulate their thoughts, and even talented individuals can find the writing process daunting.

Type.ai aims to mitigate these challenges by leveraging AI to enhance the writing experience rather than replace it. The goal is to enable writers to harness the capabilities of AI while maintaining control over their creative output.

Working with AI to Enhance Writing

Stew believes that AI can play a transformative role in the writing process. Rather than viewing AI as a tool that writes for users, Type.ai positions itself as a collaborative partner that enhances the writer’s capabilities. This approach encourages writers to actively engage with the AI, refining their ideas and improving their writing skills in the process.

By incorporating feedback and iterative processes, Type.ai allows users to produce higher-quality content more efficiently. This philosophy aligns with the belief that writing is an evolving process, much like the development of software, where iteration leads to improvement.

The Value of Participating in Y Combinator

Type.ai’s journey included participation in Y Combinator, a prestigious startup accelerator. Stew highlights the benefits of this experience, including access to a network of talented founders and mentors. He emphasizes that Y Combinator provides a unique environment for startups to focus intensely on their product and business model.

While some founders have the resources and connections to succeed independently, for many, Y Combinator offers invaluable support and guidance. The program fosters a community of like-minded individuals who share insights and experiences, which can be instrumental in a startup’s growth.

Targeting Professionals in Content Creation

As Type.ai developed, Stew and his team recognized the importance of defining their target audience. Initially, the tool was marketed as a solution for anyone needing writing assistance. However, they soon realized that focusing on professionals who spend significant time creating content would yield better results.

This shift in perspective led to a more refined customer profile, allowing Type.ai to tailor its features and marketing efforts to meet the specific needs of content creators. By honing in on this audience, Type.ai aims to provide a more effective and relevant writing tool.

Attracting Customers: Organic and Inbound Growth

In a competitive market, attracting customers can be a daunting task. Type.ai has primarily relied on organic and inbound growth strategies to reach potential users. The rising interest in AI tools for writing has generated significant inbound inquiries, allowing Type.ai to capture a slice of this expanding market.

Stew acknowledges that while the influx of interest is beneficial, it also brings challenges. Many users are exploring various writing tools, resulting in a mix of serious inquiries and casual users. Nonetheless, Type.ai has successfully converted a portion of these leads into loyal customers.

Standing Out in a Competitive Market

The AI-powered writing space is crowded, with numerous competitors vying for attention. To differentiate itself, Type.ai has focused on its unique value proposition: enhancing the writing process rather than replacing it. By emphasizing the collaborative aspect of AI, Type.ai aims to resonate with writers seeking a supportive tool rather than a substitute.

Additionally, Stew and his team have adopted a more targeted marketing approach, refining their messaging to attract the right audience. This strategy allows them to stand out in a competitive landscape while building a loyal customer base.

Staying Motivated in a Hyper-Competitive Space

In a rapidly changing industry, maintaining motivation can be challenging. Stew draws on his genuine passion for the writing process and the value of the product to stay focused. He believes that working on something meaningful and enjoyable provides the energy needed to navigate the ups and downs of startup life.

Understanding that growth takes time and that early speed is not always indicative of long-term success helps him remain grounded. By prioritizing the discovery of a scalable business model over immediate growth, Stew fosters a sustainable approach to building Type.ai.

Using the Product and Finding Value

Stew is not just the founder of Type.ai; he is also a user of the product. His personal workflow involves using Type.ai to refine his writing. He emphasizes the importance of the first draft, where he jots down his thoughts before leveraging Type.ai’s features to improve the clarity and quality of his writing.

Key features, such as text improvement tools and an embedded chat function powered by AI, allow users to iterate and enhance their writing efficiently. Stew’s hands-on experience with the product informs its development, ensuring that Type.ai continually evolves to meet user needs.

The Power of Timing

Timing has played a crucial role in Type.ai’s success. Stew acknowledges that the growing interest in AI technologies has created a favorable environment for their product. By launching Type.ai just before the surge in AI awareness, they positioned themselves to capitalize on this trend.

This timing has allowed Type.ai to gain traction in a market eager for innovative writing solutions. Stew believes that aligning the product with broader industry trends is essential for sustained growth.

The Value of Attending Events

Networking and building relationships are key components of startup success. Stew advocates for attending events that may seem financially challenging but offer opportunities to connect with interesting people. His experience at Capital Camp exemplifies the value of serendipity in networking.

By engaging with individuals in the industry, founders can uncover potential partnerships, investment opportunities, and valuable insights that contribute to their startup’s growth. Stew’s commitment to fostering connections underscores the importance of community in the entrepreneurial journey.