Turning the Page: Reflecting on Paxton and Embracing What's Next

Farewell to Paxton, and an Exciting Next Chapter

Hello everyone,

I'm sharing a personal update today. After two intensely rewarding years helping build Paxton from the ground up as CTO and co-founder, I've decided it's time for me to step down from my role. This feels like the right moment – a natural pause to reflect on the incredible journey we've shared, the milestones we've hit, and to offer a glimpse into what lies ahead on my own entrepreneurial path, particularly within the AI space I'm so passionate about.

A Journey of Transformation at Paxton

When we founded Paxton, our vision was ambitious: to fundamentally revolutionize legal workflows using cutting-edge AI. What started as that initial spark of an idea rapidly grew into a thriving company that is genuinely reshaping how legal professionals approach their work. The energy of these past two years, particularly the last nine months, has been incredible.

The metrics certainly tell a powerful story of validation: witnessing a 14x increase in Monthly Recurring Revenue confirmed our product-market fit and showed the legal industry's hunger for intelligent solutions. Our active customer base expanded 8x, bringing in legal professionals across the country whose invaluable feedback helped us refine everything. But the numbers only capture part of the experience.

Technically, I'm incredibly proud that we pioneered a first-of-its-kind AI Legal Citator, using generative AI to solve the critical pain point of verifying case references – setting a new standard. Behind the scenes, our team designed and built a scalable AI architecture capable of processing millions of documents with accuracy and speed.

None of this happens without the right people. We truly assembled an engineering dream team – brilliant engineers, designers, and product specialists united by a shared passion for legal tech AI. Together, we fostered a culture of rapid iteration, launching new features at a pace that kept us learning and improving constantly. Seeing the team's hard work recognized with over 10 legal industry awards and nominations from respected organizations like Law.com, the American Bar Association, and here in Oregon via the Technology Association of Oregon (TAO), was fantastic external validation.

Startup Stages and My AI Journey

Reflecting on this intense period of creation and growth at Paxton, and looking back at my previous journey successfully building and scaling ZestyAI – where we applied AI to transform property insurance – from concept through Series B, brings to mind a helpful framework I use for thinking about startup evolution. You sometimes hear it described using terms like 'Commandos, Soldiers, and Police' – the basic idea being that companies go through distinct phases needing very different approaches.

My energy and passion have always burned brightest in that initial 'Commando' stage – the '0-to-1' period. This is where you're navigating uncharted territory, operating with immense speed and creativity, often amidst chaos, focused intently on finding product-market fit and creating something viable out of nothing, especially when leveraging powerful new technologies like AI. It's unpredictable, demanding, and exhilarating. (I actually wrote down more of my thoughts on this framework and how it relates to my experiences here: https://pioneeringthoughts.substack.com/p/commandos-soldiers-and-police-how).

Paxton's Next Chapter and My Path Forward in AI

As Paxton successfully closed its Series A funding, the company is now decisively entering its next crucial phase – what you might call the 'Soldier' stage. This phase is all about scaling: building robust structures, repeatable processes, and driving disciplined operational expansion. It's about consolidating the territory gained and building durable, scalable systems. This requires a different kind of focus and leadership skillset than the initial founding stage.

Recognizing this natural evolution, and after many thoughtful discussions with the board and my co-founder Tanguy, it became clear that Tanguy, as CEO, possesses the ideal experience and focus to lead Paxton through this essential scaling chapter. His leadership is perfectly suited for the disciplined execution required now.

For me personally, while I learned invaluable lessons leading teams through scaling at ZestyAI and deeply respect the 'Soldier' phase, my core drive remains strongest in that earlier, formative 'Commando' stage, particularly applying AI to new challenges. This transition allows me to return to that environment – the space where I feel I can contribute most effectively, tackling ambiguity and building from scratch.

I step away with immense confidence in Paxton's future. The company has a strong and dedicated team, solid financial backing from the Series A, and clear, aligned leadership under Tanguy ready for this scaling phase. As a continuing shareholder and passionate supporter, I'll be enthusiastically cheering them on from the sidelines.

What's Next? My Third AI Venture (Stay Tuned!)

After taking a brief period to recharge here in Bend, Oregon and reflect further, I plan to dive back into the startup ecosystem with renewed energy, focusing again on the transformative potential of artificial intelligence. I'm particularly fascinated by exploring untapped AI applications where adoption lags despite clear potential, and designing tools that genuinely augment human capabilities through thoughtful human-AI collaboration. Essentially, I'm looking for that next 'Commando' mission in the AI landscape.

I've actually been working on something new along these lines. This next project will mark my third venture focused on harnessing the power of AI to solve significant industry problems, building on the experiences and lessons from both ZestyAI and Paxton. I’m really excited to share more about it in the coming weeks. Please stay tuned!

A Final Note of Gratitude

Building a company takes a village, and none of Paxton's success would have been possible without the incredible people involved. To the brilliant Paxton team: your dedication, talent, and hard work were foundational to everything we achieved. To our early customers: thank you profoundly for your trust, partnership, and invaluable feedback – you helped shape the product. To our investors: your belief in our vision and your support were crucial catalysts. And to my co-founder, Tanguy: I am deeply grateful for the partnership, the shared vision, the late-night problem-solving sessions, the insights, and the friendship throughout this journey.

Great companies are built by people who believe in possibilities before they become obvious. Thank you to everyone who believed in Paxton. The entrepreneurial path is rarely straight, but embracing the journey, with its distinct stages and challenges, is always worthwhile, especially when driven by the potential of transformative technology like AI. I can't wait to share what's just around the corner.

Mike