MiddayAI

How Two Founders Built a $49/Month Financial Tool for Freelancers

January 4th, 2025

Founded By

Pontus Abrahamsson

Founders

Employees

2 (est.)

Profitable

Yes

Year Started

2023

Customer

B2B & B2C

Founded By
Pontus Abrahamsson: Founders
2

Employees
2 (est.): Profitable
Yes

Year Started
2023: Customer
B2B & B2C

Who is Pontus Abrahamsson?

Pontus Abrahamsson, co-founder of MiddayAI, hails from a small town near Linköping, Sweden. Self-taught in programming, he started his career in Stockholm at 19, founding a successful consulting firm and working at Klarna, which led to the creation of MiddayAI in collaboration with Victor, a former colleague and freelance designer.

MiddayAI Co-Founders; Pontus & Viktor

What problem does MiddayAI solve?

MiddayAI simplifies financial management for freelancers and small business owners by combining invoicing, expense tracking, and document storage into one platform, saving them from the hassle of juggling multiple tools.

Midday Homepage

How did Pontus come up with the idea for MiddayAI?

Pontus once faced a recurring challenge with the scattered tools used to manage his business finances as a consultant. With tedious tasks like sending invoices and collecting receipts across various platforms, he realized there was a gap in the market for an integrated solution that simplified these processes. His frustration was shared by his co-founder Victor, who encountered similar issues while running his own design studio.

The duo decided to explore a solution tailored specifically for freelancers and small businesses, envisioning a tool that automated mundane tasks and provided clear financial insights. They began by conducting thorough research to understand the limitations of existing tools and validated their idea by sharing initial designs publicly on platforms like Twitter.

Their journey involved leveraging user feedback throughout the development process, which helped refine their vision and address users' specific pain points. This iterative process, combined with a clear understanding of the market's needs, allowed them to create a product that resonated well with their target audience. They learned that maintaining transparency and engaging closely with their community was crucial in developing a product that genuinely solved problems for its users.

How did Pontus Abrahamsson build the initial version of MiddayAI?

Midday AI was developed with a focused and strategic approach. The initial product was built by a single engineer and a designer, leveraging a tech stack that included Next.js for the front-end and Supabase for the back-end, which provided database management, authentication, and storage solutions.

The development process extensively utilized Supabase's JavaScript SDK and edge functions, enabling efficient data retrieval and manipulation. The founders relied on open-source principles, hosting their full project on GitHub, which allowed for community contributions and transparency.

The first prototype aimed to integrate essential financial management functions in an accessible manner for small business owners, freelancers, and consultants. Despite limited resources, the development process spanned approximately eight months, with the founders engaging in a continuous cycle of testing and iteration based on user feedback from their active Twitter community.

Challenges in building the product primarily involved ensuring seamless integration of complex features like real-time data processing and AI-driven automation, all while maintaining a user-friendly interface.

What was the growth strategy for MiddayAI and how did they scale?

MiddayAI has effectively used social media, especially X (formerly Twitter), to build a community and gain traction. The founders consistently shared updates, feature announcements, and valuable content that resonates with their target audience of freelancers and solo entrepreneurs. By engaging directly with users and showcasing product updates in real-time, they’ve built a loyal following and received constant feedback.

embed:tweet

Why it worked: Social media platforms provide direct access to potential users, allowing real-time interaction and feedback. The founders' approach to sharing progress openly fostered trust and community engagement, drawing in users who feel part of the journey.

Open Source Transparency

Embracing open-source principles, MiddayAI has made its code publicly accessible on platforms like GitHub. This transparency not only builds trust with users but invites community contributions and feedback, enhancing the product collaboratively. It also amplifies their presence within the developer community, leading to organic growth as developers are attracted to the project’s openness and potential for collaboration.

Why it worked: Open-sourcing helps in establishing credibility and invites collaboration from a wider community, ultimately improving the product. It also draws in tech-savvy users who appreciate transparency and might contribute to the project’s development.

Customer Feedback and Iteration

For MiddayAI, customer feedback has been a core component in refining their product. They have conducted over 200 customer meetings to learn and iterate on their features. This direct communication allows them to adapt quickly to user needs, ensuring the product remains relevant and valuable.

Why it worked: Direct feedback loops allow businesses to remain agile, adapting to user needs swiftly. This approach not only enhances user satisfaction but also leads to a product that closely aligns with what the market truly wants.

Product Hunt Launch

The launch on Product Hunt was a strategic move to gain visibility within the tech and startup community. This platform provided exposure to a tech-savvy audience interested in discovering innovative tools. The launch amplified their reach, leading to an influx of new users and valuable feedback from early adopters.

Why it worked: Product Hunt is a hub for tech enthusiasts and early adopters, providing a perfect platform for gaining traction and visibility. It helped MiddayAI tap into a large audience that’s eager to try new tools, increasing their user base and gathering insightful feedback.

What's the pricing strategy for MiddayAI?

MiddayAI offers a free tier during its public beta and plans to charge $49 per month for its comprehensive financial management tool for freelancers and small businesses.

What were the biggest lessons learned from building MiddayAI?

Embrace Open Source Collaboration: MiddayAI thrived by making their code open source, which allowed a wide community to contribute, enhance, and scrutinize their platform for security and efficiency improvements. This openness built trust and accelerated the product's development.
Leverage AI for Simplification: By integrating AI, MiddayAI was able to automate complex financial tasks like invoice reconciliation and expense tracking. This not only reduced user stress but also enhanced productivity, allowing businesses to focus more on their core activities.
Iterate Based on Feedback: The team conducted over 200 customer meetings, leveraging direct feedback to iterate and refine MiddayAI. This close interaction ensured the product met real user needs and fostered a strong, loyal user base.
Build in Public for Momentum and Trust: By sharing their journey publicly on social media, they built a community around their vision. This transparency attracted users and provided valuable validation and momentum even before the product was fully developed.
Stay Adaptable with Team Dynamics: With just one engineer and one designer, MiddayAI showcased the importance of a small, agile team working closely together. Their ability to adapt quickly to tech innovations and user feedback was a key component of their success.

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