ScaleApp Podcasts with Prof Dan Isenberg
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ScaleApp Podcasts with Prof Dan Isenberg
Episode #20 - FactoredAI 70% YOY Growth and Leading the AI Revolution - CEO/Founder Israel Niezen
Background / Intro
FactoredAI was incubated in 2019 by Israel Niezen out of Andrew Ng’s AI Fund with $2.5 mio “we didn’t really need,” and today has over 300 of the top 1% of talent in LATAM solving complex data problems by building world-class AI and ML/LLM solutions. Factored went from $.7mio in 2020 to $3mio to $8mio to $13mo to $18 mio in 2024, and will break $30mio in 2025. Their plan is to break $100mio in 2028. Clients include global leaders in retail, car rental, dating apps, and healthcare.
Key Themes
- Talent Arbitrage with Quality Focus – FactoredAI taps into the top 1% of LATAM data scientists, mathematicians and engineers, offering US clients best talent-lower cost tech development.
- Still, FactorAI competes on quality, not price. Cost savings is a "bonus."
- Services Model, Not a Marketplace – FactoredAI embeds engineers long-term or delivering fully managed solutions.
- Word-of-Mouth Driven Growth – The company grew to $18 mio ARR before hiring sales and marketing, relying on Israel’s personal network and repeat business from client executives who moved companies.
- Remote-First but Culture-Strong – With 300+ employees in 21 countries (14 in Latin America), FactoredAI fosters community through in-person gatherings, festivals, and weekly virtual rituals.
My Favorite Quotes
“Making this top talent feel excited and part of a team is the biggest challenge and the one thing we have gotten right.“
“We have a high density of top talent people, people who really care, and they are the best quality filters for new talent.”
“The other thing we got right is being authentic about our mission: We are allowing US companies to grow by giving them the best of the best.”
"Fall in love with a problem that you really, really authentically want to solve."
"Execution informs strategy. You learn by doing first, and strategy follows."
"We are not creating a body shop. We’re building one of the world’s highest caliber AI services firms."