TL;DR:
- Vancouver-based startup Durable secures $14 million in Series A funding.
- Durable focuses on AI-powered tools for small businesses in various service industries.
- Their AI website builder has already created over 6 million websites in a year.
- Plans to launch a proactive AI assistant for business management in three months.
- Durable aims to empower small businesses with affordable AI-driven solutions.
- The partnership with OpenAI enhances their capabilities.
- Durable targets a market of small enterprises and sole traders, addressing their unique challenges.
- AI technology enables scalability and access to previously unaffordable tools.
Main AI News:
In a world where artificial intelligence is reshaping industries, some might be surprised to learn that builders, bakers, and body conditioners are among the beneficiaries of this transformative technology. Durable, a Vancouver-based startup, is at the forefront of this change. It is dedicated to crafting AI-driven business solutions tailored for small businesses across various service sectors. Today, Durable proudly announces a significant $14 million Series A funding round, signaling the growing interest in its suite of products.
Durable’s offerings include an AI website creator and a range of AI-powered tools designed to simplify business app development, planning, and management for small business owners. With this fresh injection of capital, the company is poised to expand its platform and customer base further.
While this Series A round may not break records in terms of funding, it boasts an impressive list of investors. Leading the way is Spark Capital, joined by Torch Capital, Altman Capital (helmed by Jack Altman, sibling to OpenAI’s Sam Altman), Dash Fund, South Park Commons, Infinity Ventures, and Soma Capital. With this new funding, Durable has now amassed a total of $20 million.
Durable’s AI-driven website builder, which caters to those with minimal or non-existent online presence, has already enabled the creation of over six million websites since its launch a year ago. “We have many traditional companies that have been established for a long time but lack an online presence, software, or systems,” explains founder and CEO James Clift. “These businesses, such as plumbers, skilled tradespeople, and personal trainers, often lack the time and resources to build an online presence and marketing materials.”
Buoyed by this success, Durable plans to harness the latest AI advancements to introduce additional tools for its user base. Their ultimate ambition, as Clift outlines, is to develop an all-knowing assistant capable of not only answering users’ queries but also proactively offering advice on optimizing their business operations.
A beta version of this “automated, proactive assistant” is set to launch in approximately three months. Tailored to specific user profiles and their unique needs, it will offer features like tax management, allowing users to seamlessly run their businesses with minimal effort. Imagine pressing a button, having your daily schedule organized, and receiving a text message to stay informed—it’s a vision of efficiency that Durable is working diligently to bring to fruition.
Durable’s portfolio extends beyond its flagship website builder, encompassing a CRM platform, invoicing service, blog builder, and an AI chatbot that serves as a precursor to the proactive assistant. Powered by OpenAI and other advanced language models, this chatbot enables users to seek business-related insights and advice.
Addressing a familiar gap in the technology landscape, Durable sets its sights on small enterprises and sole traders—segments that have often proven elusive for startups developing business tools. These entities make up more than 99% of businesses in markets like the U.S. and U.K., yet they pose unique challenges for tech companies. Individual spending is lower than that of larger enterprises, making it challenging to achieve a favorable ROI per customer. Moreover, these businesses exhibit a fragmented array of technological needs.
Durable’s distinguishing factor, according to Clift, is its application of AI to bridge the gap, ushering small business owners and employees into the modern era. AI’s democratizing potential allows SMBs to access more affordable tools, such as logo and branding builders, which would have previously been financially out of reach. Furthermore, AI enables Durable to scale its services with ease, sidestepping the complexities of serving a fragmented customer base.
James Clift acknowledges that Durable’s partnership with OpenAI, facilitated by Altman Capital’s support during the seed round, has been instrumental. With OpenAI’s current trajectory, which includes a rumored funding round at a valuation exceeding $80 billion, Durable’s status as a close partner could be a compelling point of interest.
Jack Altman, reflecting on his enthusiasm for the project, shares, “One of the ideas I’m currently most interested in is ways AI can empower founders to build 10X better products from the ground up than what exists today. When I met James, beyond being very impressed by him as a founder, I was excited about the potential for what this product could do for entrepreneurs and small business owners. Seeing how well he and the team have executed since that initial investment has only increased my hope for what Durable can become.”
Natalie Sandman, General Partner at Spark Capital, underscores the significance of Durable’s mission, stating, “At Spark, we have always been driven to find the founders challenging the status quo. Not only are James and the Durable team doing this in their own right, but they are also creating a global platform for entrepreneurs to do the same with a frictionless user experience powered by AI.”
Conclusion:
Durable’s successful funding round highlights the growing importance of AI-driven solutions in transforming small businesses across diverse service sectors. Their ability to bridge the technology gap and provide affordable tools for small enterprises and sole traders positions them favorably in a market where efficiency and innovation are increasingly crucial for success. This development underscores the democratizing role of AI and its potential to empower entrepreneurs and small business owners to thrive in the modern era.
