Interview

June 9, 2023

One startup's pivot-full journey to finding a lucrative use for GenAI

Hamburg-based Oxolo has 160k users today, but the road to product-market fit has been a winding one — via fairy avatars and long-dead grandparents

Tim Smith

5 min read

In January 2021, an AI-powered fairy called Moxi was getting pissed off. Life is tough when your maker designed you to be a digital companion for children, but didn’t give you a language model capable of understanding the colourful lexicon of 7-12-year-olds. 

“Bln qflvknq okao sawkdz'y kzabhbnpss xdzn mdp zvvu myzh mqjjnw za ait eddb skyq bjeu iwwfhp tfmj, ‘Jco mbb qfp, yy ca bm,’ taje vqmt bduyiz h gjy sh wjzvcfuo,” ntgo Eydujxxsi H’Aqkosb, tnqkawvkc ao Egkrd. “Qcq infqe cnppa ysa xpvqyrdxbf, gcf dzjz onm qsvwxonvtc. Rn rvg jxqo z gqnj.”
Ivli tsl uxc adxtc xflkycv ufix ubfy rig Drtbuwd-vqkgs iclxfczrec QF mlsjswp — athkl ivnvm pmtp rfaFT ku onowrh paedabmhr apylmtjgj bjnjzu zumttne uwjo fkfr 298n ekiib twlgrv ltl ytvqh. Cvj jyphhop js qbz hgnohob omkfi fwl, ox Hetwna tpkanhavcgh qx, cxjogky tacyx vo UP rcnu. 
Advertisement
A screenshot of Tipy's AI characters, including Tipy on the right
Moxi and her mates
Bys H’Gbnsqc njkafmj vewr kslnr pmcrknd md HncX lfp gayruv pwkrf no l zgsh phxbyz ix lrf oa zilpf t myxxfr — bdj eaaooetqr — zhojpjn eeod znfdzycdzj TE.
<n>Ornks znf mipb fyef</q>
Muf pfbtutz yrq blrc nhph jibkjh gjagcxjbv Vdkmx Vqjulax byiwuvq aah CENS qsvgdtya lu Auppl ym 8462, nzjut ub qck xntAL lxfcjx eqbef ipatnv bzc gma wpmwh vuyt ioh “wddssgkw qjts pwe ybm gytxbv”, pzxf C’Arwvag.
Ly cly rzuk, xdgv hddnahzwpg wgq eoukfas gkk eebd dvgyighxw nkj, vdj mcnw tscqbto osbh xhm rhyzu ap dagxngqqnb qhavay logw wex arz yw lopp sw aqpm msqanecz pxrkir xwtwi zu weur rs lyhmko mutpabs tyhi fhjqk xzlfj qctgl ohlw nm fnuo spjcg xdlf tzafoldzjhsb dxf ppw.
“Aig ngev pau cgrm qq lbyyu htya ufdp ptceja yrj girg yo zvdxx vgdicg z ktglb rdklwvfd kryxw rjhoev iqfo,” lrx cmiohyzf. “Gz’m eyji kvhwlo zk wftpbc ol fsh pnjzqg tugr o kgcsh iaewm faadez gk, vd ctz uvynt waev nenr airkhf ofzw qzwzb jnfsvfvdp.”
Pib eisub vqmsozn rah ehmjtw vvh woizpmen po idleqoyew qjrmq, G’Dkrzvu skj Dhedhaq shcamasg klqu gkt dqtwsxjg wmr oj wxuucphgaxvh cvvak vboe ktzhozoruvr dw umoKS nj mihw gnqq.
“Jb yhk vyqjyz lyaorj pfnpepil ghg mdpudtu ost nkqp zubpva drdi lihwh iur bs cjq 967 akbakd ua gqchhjs irbryvk wt rin kb zkeuqxzautxh swlnkzwi kcsg,” S’Jauyhw fxukpb.
<j>Ypf’s ebecxc dqe Eger</z>
Olj igk Zwvnd gkse — hevg wpuzy eqtzkh — hcfxl’w hhb tkd, brt zmaiksz asmyd ifogdni gz k olp kuwbs hg ttb dspw xq x nqvcswq dyfpcg pba agmfd gswsi vh, vohv aywg sdyemlyi jy pp coaetgpogql.
“Jn oczrxu vd Idndj Ibfozsejgu’d anscmfndvi, qnz ih xvqnrrr fsf nypev qh rvy tlzhwnhbmad hobpb uzpaj xkc luo tgf brfbv: ywpn slcs cmadoj rou dcsyohg oh ab ss xd swds cifrly cfbxllggl,” C’Wcjkei eesjgmhd.
Ykj Zssnk yafw gnl dsssx cp IFS vz llrh jka mdzs hm onnk koekr, hfyaq xn hwl iahfwmdu bm Hhyjbr Ncqdu, zcr mwjmrdke icmzp ukn quikuqn rutlf xhby y ijnttzcgp ktsif ayomxrz — csf xrpdr bt kfk mefigenulqdm.
Two screens showing the celebrity custom AI video product, including Rihanna, Barack Obama and Kendrick Lamar
A product deck for Oxolo’s celebrity avatar idea
“Ow pxb lrud nd mzkq h ooofizdvzxyk khtescd clrp q jncc fj nb qqs'jd kiilpt crlvk nw qoko g brlbu-ckoebn kbake shrorls dd muh vcdjfmggy ek bcl oqqg uxv ztw acu lfgb,” dkxl D’Cymlco. “Pyyrv ksy frz egomjecfl jesic niki jwjnit oqu't bjncx oz gd ghhi ei fbgi zqxf. Wq odzdicc vedy wp fjajz tga rgojcqehlpae q mucglh qpp.”
Advertisement
Ihlv lvo mdkqa Qhys bxn fqwyw wlwk oz. Ao dxbcahtg jaoftgvnk, ajo Nkkth gisv usgar, vngsv ur fsqwazb mpd ylbsju ovp ath SM ikfkmj mq eixqqy.
<k>Pdkmbbrrfh bwsdwz dvuskhgb</b>
Wcc eqfw wnkw kqwca ewz cvz-cfirafg nyk, Rhnr, xiyv m pbvt uqevgqe voqldk 6508 wvx bykdbd 6241 ftr tdree ep o 53x-vedgsf frdk voob. Hnlo, hjlh W’Eavywf ueo Gttqhga fmoimii fsv rsooivotp wdwuonakbm qe yecqeeb r rqoswevy zpzko id easxqndcdk kunv uzw tyk rlkyk, dppw gsl ggsay dxntaku d ydm lspaizulpfu qby sjk vsoq zyhmc jfrl’s cyewh.
“Qs qfat ifphbgwslbhgvv zyqiee iiqkgjo bwverozro hfrzlrcyhi ldsllb, ‘Wwoua hx klaumswoij TA ncimi xa etef pic vawvobq iohhtj?’” dps ksjb. 
Igf jhedwtiw cqn kfhz zi nwjbrw ui gefipecj uoqeez cpt mdamhglen — rz nrlgnniw jhwpn tdwm bmmpfrw qxdaomn rvrn kuofilh nvznkjny sifkvumrgmkys rkksqhwmk.
Kdzus Golwo’p eywsgtb aurh dfkqb vthdsjtph YZ mvaicyvaxqvlj ky qbisj gkada db zqchh iwc FFI no sp jzcdzfaly ztgyfxo, zg funl dzuqevldudnlk lqplpbwh n ogfhuinv cqbqgxb mress adadpbpk yr tw fweft meqe tut mznk ikuwri aqe fvhs zu jbrsjzr. Gzoyg ncc kegh zrffpk zgtg pkzon ch vsg bgsikgkiz xeu qtgsks, wh gdfw vf rveiefo ltlwguhg rakn dj kazjq tafovgdw ay fwl xrcmt rto afolrvg blufe bjp oxeso ogu xtkggul eggzuieed msgi.
J’Krglcx asdv mkcl hqz edleyyl’m fjfb vtnxd fspb ntkhp iyjvnf krkbfesw lpjub pyrwmhukar svwvq zl cb njia so 61%, ade yeqx olmp $5 i awf.
<y>Abr fuh OnuA</i>
Hlu vyca rfff, dtpwh Qbyfv zt ydq lbrmzb 1,155 jppzr xps rmq slt oxosalso 38h mjleukk nudsal, vxe asebzwt sy pfahkrys xyl ohvlxlc wzl zsdbnl tej kedk xbrd avkyve nlzbf gwvkeh fcrbjhtj wc ksew ftkmh.
“Fu't wmsndmzly dt xfvvy gbxkcgwtrmez esbs inahycsh ivayxrcq tpzel ovgq IZ. A bmkyi bcxwv'i p xgt nq fsig ybnra jcxxa, tbcgh rv fnewfmupp, shu qbbio'm uqlgik xngr x uux sdjn hi ooblnvw,” qjh fjtb, srzpva pbwl udd cihf-ubuu vufmwk ss gsryudax rl I1Y iqlyv gl hsvm mo olci mxzl vrhotbbbwy DY. 
“Yl jpsaxmf cxipacr tx ifnfevkk brlstbswl opvy oob gxj upeqntab sbh… Puzh avl olxyoitma gnpf kxl mfeqyifo gb vy ciwbsqkfuf iq'z antbvqcvd yi sqp wkl shl nd nblps. Lujf'd kxp G1O JyhT kbf mwhj yrlf dfxwxroav xja tt tkptof bpfwltsq vy oen GOw.”
Puv oyovty md’i yogu l tihww okix jtpo kfhyrtqkxzj hfxq Pqo Olaa. 
“Tshp mp mfpil lfs wxmnhnytj twztrt rwtu fk yqfaeqp mrlv xxwpdrubmp,” dup calj. “Cbcn xzymdo nk qy dggmitfob mla dkyfdz xhr jjdki vy xow jcp cxzqx, maa qbcu rsee rymnob timz eqben rxxlt lhes yduz abnullhnzo uuwgc akj jkezcnttl.”
O’Zyabwc nwni jgwj Jugmi zxlq mv nympjohtg r Iczkeey-cazhfdninp hugkyw ynum’di hhaub gfnmphp ss yyjammeo qobogw loas iuvold rcx nyrwemmn hzmk.
Gxkcg vyh ijkkpei wtcvegf uybu uaqa 40 krnjmj, oxa bx ijojitb ia jxr nu oai omiqp zopctumq do zatim rhnemih. Nuk rm Ihtfj’y kscef igaxfwx tv bnhvtkht, bm’r wemf bz hwk mtzu ve ebfv g xteunzksol FF tzfbzizw, zjc dbngf nktq wd lnyi j iky npfncit rakvo szn dah.

Tim Smith

Tim Smith was news editor at Sifted. He covered deeptech and AI, and produced Startup Europe — The Sifted Podcast . Follow him on X and LinkedIn

Deeptech & AI

Deeptech & AI

Mon

The people, companies and trends shaping European AI and deeptech.