InstaText
About the Company
InstaText is an AI-powered writing tool designed to improve readability and quality in English texts, mainly aimed at non-native speakers in professional settings. It stands out from traditional grammar checkers by providing content enhancement, transforming text into a more natural-sounding form. Founded by Matej Guid, an academic and entrepreneur, InstaText's technology leverages deep learning and reinforcement learning to deliver a tool that refines writing by maximizing clarity and coherence.
The tool’s development has roots in Guid’s research and academic experience, where he saw firsthand the challenges non-native speakers faced when writing in English. InstaText has grown its customer base significantly, reaching over 150 countries with active users across various sectors, including academia, business, and marketing. Unlike other competitors, InstaText emphasizes learning and optimizing content clarity, which has resonated with international users.
From the beginning, InstaText focused on solving the unique challenges of professional English communication for non-native speakers. This approach not only set it apart but also allowed the team to expand organically, capturing global demand without outside investment. The company’s rise to “Startup of the Year” in Slovenia in 2020 solidified its position as an innovative leader in the AI writing assistant space.
Idea Behind Company
The inspiration for InstaText came from Guid’s background in AI and his experience as a university professor. While working in academia, Guid noticed that editing academic papers took immense effort, with many non-native English writers struggling to make their content readable. This led to the realization that a tool was needed to provide real-time, high-quality text improvements beyond basic grammar corrections.
Advances in AI, particularly in deep learning and reinforcement learning, suggested the feasibility of an interactive tool that could “play” with text, refining it as a human might. Guid was inspired by AI models like AlphaZero, which optimized learning through self-improvement, and wondered if this principle could apply to language tools, enhancing text quality to meet native-like standards.
Through experiments with his own academic texts, Guid tested the technology and found it promising. This initial success propelled him to partner with Marcus, a language technology expert, to further develop a robust system capable of assisting non-native speakers in real-time. They envisioned a tool that could act as a “language coach,” helping users improve their English effectively and effortlessly.
Creating the Company
Development of InstaText began in 2018, with Guid and Marcus initially bootstrapping the venture. They expanded the team by adding front- and back-end developers, gradually building out the platform. Early tests of the product received positive feedback, although the user experience was still evolving. By May 2019, they had an initial version ready for broader testing, which set the stage for refining the business model and technical capabilities.
In September 2019, InstaText had a basic minimum viable product (MVP), and the team focused on gathering insights to define a sustainable model. They aimed to understand the needs of different user segments to tailor their marketing and user experience. By creating a lean, part-time team, the company managed to remain agile, with the founders dedicating their efforts to refining the product based on user feedback.
The team focused on academics as their primary target audience, reasoning that this segment would benefit most from the tool’s ability to improve academic writing. Building relationships within this community, InstaText began organizing meetups and live presentations, which allowed them to understand users’ needs deeply and build a product that directly addressed those requirements.
Launching the Business
InstaText was officially founded in March 2019 to secure initial funding, and the team managed to obtain a state grant, which was used to develop the platform further. By September, they launched the tool publicly, focusing on academics and professionals. Without advertising, they relied on word-of-mouth and mentor-led insights to define an effective sales strategy, eventually employing a part-time salesperson on a commission basis.
The team learned quickly that the product could either be priced low for online sales or positioned higher for corporate clients, eventually choosing the academic sector for its reliability and scalability. InstaText saw its first notable sales from academic users, as meetups and workshops began to generate interest. Early adopters within academia became champions of the product, referring it to colleagues and institutions.
The onset of the COVID-19 pandemic in early 2020 shifted all presentations online, expanding InstaText's reach and lowering sales costs. With virtual workshops and product demos on platforms like Zoom, the team could present the tool to a broader audience. This strategy was pivotal, as online exposure increased significantly, further supporting InstaText’s growth and reputation.
Earnings
InstaText has seen a steady increase in revenue since its initial launch. In its first year, 2019, sales were minimal, but by 2020, monthly revenues climbed to $50,000. The tool has attracted a global audience and maintained nearly 100% retention among B2B clients. Despite a lean team, InstaText managed to expand its earnings through strategic upselling and customer renewals, with academic and institutional licenses providing a stable revenue base.
In 2020, they achieved approximately $130,000 in sales, growing this figure to nearly $600,000 in 2021 by expanding their online presence and integrating credit card and PayPal payment options. This enabled international sales and streamlined transactions, contributing to their revenue growth. With a balanced model between B2B contracts and online sales, InstaText’s profitability and customer satisfaction remain high.
Currently, InstaText is planning further integrations with web applications like Gmail and Google Docs, aiming to increase accessibility for everyday users and reinforce its market position. The company continues to grow profitably, setting the stage for sustained expansion as it introduces additional functionalities, such as support for academic writing platforms like Overleaf.
