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Daydream adds $1M of ARR a month automating dental billing
Daydream uses AI to verify insurance, submit and appeal claims, and post payments for dental practices, taking 2.5 to 3.5% of every dollar it processes. CEO Shreyas Parab, 25, says the roughly 2.5-year-old company adds $1 million in net new ARR each month, has raised $11.5 million, and will finish the year above $10 million in revenue.
$1M
Net new ARR added per month · USD/month
“Okay, sounds good. My name is Shreyas, and I'm the CEO of Daydream, and we are adding $1 million a month helping dentists automate back office tasks.”
Framework
Buy the manual service business you plan to automate
Daydream began by acquiring a dental-billing service business with less than $1M in revenue, then grew by automating the work to improve its margins. Parab says the timing was ideal because human-run service firms hit a ceiling where adding people lowers quality.
“Um, and another underrated thing is, so the way our business started was we actually went out and acquired an existing service business. So before, you know, people would be doing this work manually, right? So we actually bought this company and then we've just been improving their margin.”
Steal thisAcquire a small, manual service business in your target vertical, then grow it by automating the work and widening margins, instead of selling software to that vertical cold.