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SaaS Interviews with CEOs, Startups, Founders

He Used AI to Generate $6m Revenue at Dreamstories by Selling Childrens Books

SaaS Interviews with CEOs, Startups, Founders

Nathan Latka

Entrepreneurship, Business

4.6683 Ratings

🗓️ 21 November 2025

⏱️ 27 minutes

🧾️ Download transcript

Summary

How do you scale a consumer AI company to 100,000+ paying customers… without raising VC and while staying profitable?

Ricardo, founder of DreamStories.ai, joins Nathan to break down how he built an AI-powered personalized children's book studio that's already done $3M+ in lifetime sales, with average order value around $60 — and why most people misunderstand how to scale paid acquisition for an AI startup.

You'll learn:

— How he used Facebook ads to profitably acquire 100,000+ customers
— Why his CAC target equals his AOV (and why that works)
— The onboarding funnel that converts like magic (and why it's intentionally stupid-simple)
— How DreamStories runs 4+ A/B tests at all times
— The tech stack powering the company (Shopify, PostHog, Looks)
— Why he chose kids' books as the wedge into a much bigger AI content vision
— How parents create episodic "reverse books" that drive repeat purchases
— His seed fundraising strategy (less than $1M raised) and why he avoids the "VC money pit"
— Why personalization + paid ads is the most underpriced arbitrage right now

Ricardo previously helped scale Spotify (joined in 2009), built and exited multiple companies, and now leads a 7-person team building the next generation of personalized storytelling.

Whether you're a SaaS founder, investor, or operator looking for the next scalable AI business model, this is a masterclass in paid acquisition, funnel design, and consumer AI monetization.

Connect with Ricardo:
DreamStories.ai

Connect with Nathan:
Founderpath.com

Transcript

Click on a timestamp to play from that location

0:00.0

Can I ask how many sales total you have so far?

0:02.0

Yeah, close to 100,000.

0:03.0

That's a ton. When did you launch?

0:04.0

At the beginning of this year, we only really started scaling very recently, right? Can I just do that math? I mean, can I do 100,000 sales times 60 apiece. You guys have done six million bucks in total revenue life to date? I think this month, yes, we're in the six figures. Everything else you see is custom built. My guest today is Ricardo. He's the co-founder of Dream Stories,

0:22.1

harnessing generative AI to bring immersive storytelling and image creation to life. So I started noticing this repeatable pattern that I figured, you can build services around this, right? You know, something that grows with you and kind of, you know, matches the phase that you're in. Before launching the company in 2023, he was VP of growth at a body scan startup called

0:39.4

Neko Health.

0:40.1

Prior to that, he founded a snack company and was a founding member of Spotify's US team.

0:45.1

Ricardo, you ready to take us to the top?

0:47.0

Absolutely.

0:48.1

All right, people hear Spotify and early and they assume you got rich off options.

0:51.2

Is that accurate?

0:53.1

Fairly accurate, yes. I was early enough that it made sense, yes.

0:57.9

What year was that?

1:00.0

So I joined in 2009, I guess. Yeah.

1:04.6

Okay, interesting. And is it fair to say, because I want to understand they buildup

1:09.2

obviously to dreamstories.ai. Did you basically take a big chunk of the money you made there and sort of plow it into the new venture?

1:14.8

Or how did you think about that, those options?

1:17.3

Yeah, no, part of it, yes, but I did start a few companies in between as well that I've also had an exit for.

1:24.5

So a mix of both, right?

1:25.9

So the Spotify got the car and the house, you know,

1:29.6

and then the other stuff got the company going.

1:33.8

Fair enough.

...

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