OpenAI Mini-Tool: 1 minute startup idea analysis - For Founders, Startup Mentors, Venture Builders and Angel Investors.

As a Venture Architect and Startup Mentor, I constantly hear new startup ideas. To make my life easier, I decided to build a tool that uses ChatGPT to generate prompts in a defined format and displays all the basic results I need in a structured way. This tool could be useful in situations such as Founder Institute mentor-rating sessions, where we have to evaluate entrepreneurs' ideas quickly, or in startup competitions where judges need to form an opinion without proper research. You could even use it in an elevator when someone pitches you their idea, excuse yourself to the restroom, and quickly check what OpenAI has to say about it! ;-)

Depending on the input, you will receive an email in no time with the following information:

• Elevator Pitch
• SWOT Analysis (only opportunities and threats of course)
• Top 3 Hypothesis
• Competitors:
• Key Players in the industry
• Startup Category
• Market size and growth
• Average Revenue/Income per Year of target customer
• Average Seed Funding Round in the industry
• CAC
• Salaries
• Break-even argument
• And sometimes additional surprises 🤷‍♂️

However, I've learned that the numbers and responses generated by AI are not always predictable nor consistent. Sometimes, the results are not only wrong, but they're also narrated in a confident tone, which can be misleading. Therefore, while I see generative AI as a great discovery and time-saving tool, I believe human logic, wisdom, and review are always necessary. I would struggle to see it implemented in a B2B SaaS product, for example, unless it was a marketing gimmick or an extra add-on to the platform that cannot be sold independently. However, in customer support, it can significantly reduce the time required to respond to queries or pre-qualify issues.

I do see a significant benefit, particularly for larger corporations, in training their own models built on cloud-managed AI instead of using OpenAI API. Not only are there privacy concerns with OpenAI (which they are working on addressing), but there are also uncontrolled results. Due to the overwhelming knowledge that OpenAI has, I believe that an in-house-trained model on specific data related internally to the company's business will increase accuracy and value compared to using OpenAI, that confuses itself sometimes with all mankind know-how it has, capped at year 2021.

In terms of costs, it sends two requests to the API per submission, but I'll need to wait a few weeks and use it more frequently to better understand the costs of using the API. 

Tech used:

• OpenAI API
• OpenAI model: text-davinci-003
• Zapier for automation
• Google Sheets
• Google Forms
• Basic HTML 

This tool is for educational purposes only (and fun!). By no mean to be used for your next decision! Copy paste the answer you've received in a comment on my blog, and I would give you there qualitative feedback what was wrong in the AI answer.

Due thank to Dries Faems of WHU whose post about his gpt agent inspired me to play around with OpenAI API first with python then with no-code approach.

 

Here is a sample answer:

Here is what an AI has to say about this startup idea:

Elevator Pitch of the startup:
This startup is revolutionizing the way dentist clinics in North America manage their appointments and patient records. By utilizing AI-enabled automated billing and appointment management as their competitive advantage, this startup is building an online dashboard and patient mobile app that will help dentist clinics streamline and improve their operations. With this solution, dentist clinics will be able to easily manage and track their appointments and patient records, enabling them to provide the best care possible. 

SWOT Analysis:
Opportunities: 
- Utilizing AI-enabled automated billing and appointment management as a competitive advantage
- Growth in the dental industry
- Increased demand for dental services
Threats:
- Competition from existing solutions
- Changing technology and regulations
- Cost of implementation

Top 3 Hypothesis a Venture Architect Will Need to Validate:
1. There is an unmet need in the market for automated billing and appointment management solutions.
2. Our solution can be easily implemented and adopted by dentists in North America.
3. Our solution will be cost-effective and will provide a return on investment for dentists.

Competitors:
There are several competitors offering similar solutions, such as Dental Intelligence, Dentrix Ascend, and Carestream Dental.

Most Influential Companies in the Industry:
The most influential companies in the dental industry include Dentsply Sirona, Henry Schein, Patterson Companies, and Benco Dental.

Startup Category:
This company would best fit in the healthcare technology startup category.

Number of Dentist Clinics in North America:
There are approximately 195,000 dentist clinics in North America.

Expected Growth of Number of Dentist Clinics in North America:
The number of dentist clinics in North America is expected to grow by 4.2% per year.

Average Revenue or Income of a Dentist Clinic in North America Per Year:
The average revenue or income of a dentist clinic in North America per year is approximately $2.2 million.

Average Seed Funding Round in This Startup Country:
The average seed funding round in this startup country is approximately $1 million.

Cost of Senior Software Engineer and Marketing Manager Including Taxes and Social Security Costs:
The cost of a senior software engineer and a marketing manager including taxes and social security costs is approximately $150,000 per year.

The total addressable market of this startup is estimated by the number of dentist clinics in North America multiplied by $1200 per year per customer. Therefore, if there are 1000 dentist clinics in North America, then the total addressable market would be $1.2 million. 5% of that would be $60,000. 

The average customer acquisition cost (CAC) for similar businesses is typically between $500 - $1,000. However, this may vary depending on the specific market and business model. 

Considering the average salary of an employee in the country of this startup, and if they need 5 full-time employees, then they need to consider that the salaries costs would be approximately $150,000 per year. 

Finally, if they have 5 full-time employees, and if they receive revenue from 5% of their target market, and if they need to pay back the seed funding round they raised, then the startup will be profitable after the seed funding round has been paid off. This will depend on the amount of the seed funding round, the amount of revenue they can generate from 5% of their target market and the cost of salaries for the five employees.