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

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