I'm building a privacy-first AI solution for companies looking for compliant and secure AI alternatives

In one line, what do you do and what is your most significant achievement?

At Avnr, we're developing a privacy-first AI solution that prioritizes local-first processing to give users control over their data. Our most significant achievement so far is generating early interest from companies looking for compliant and secure AI alternatives.

Who are you and what business did you start?

I'm Theodore Garson, a founder passionate about building secure and privacy-respecting AI solutions. I founded Avnr to advance AI adoption through privacy-first products, custom solutions, and professional services.

Our first product, Arc, is designed to help businesses harness AI's power while maintaining data control and security. It operates entirely within your browser, running locally in a sandboxed environment. This design means there's no need for external servers, APIs, or logs, ensuring that your data never leaves your device. With E2E encryption and optional anonymization, Arc prioritizes your privacy, allowing you to benefit from AI capabilities without user tracking or compromising sensitive information.

This approach provides businesses with the assurance of secure and compliant AI usage, enabling them to leverage powerful insights while keeping data fully under control.

What's your backstory?

I've spent 13 years building technology solutions across industries, ranging from startups to large organizations like SGX, Dell Technologies and Open Government Products. During this time, I noticed a growing challenge companies struggled to adopt new technologies like AI, especially when it came to privacy and integrating with existing systems. Many AI solutions require extensive data sharing and external server processing, which can expose sensitive information and create compliance risks, especially for regulated industries. Additionally, integrating AI into legacy infrastructures is often complex and costly, requiring specialized resources that many organizations lack. These barriers have prevented businesses from fully harnessing AI's potential to drive productivity and innovation.

The turning point came during Iterative's S24 program I went through. I saw a clear need for AI solutions that were advanced and also easy to integrate while being respectful of users' privacy. That insight led me to start Avnr, with Arc being our first step toward making AI both accessible and secure.

What should be the first steps to take to enter your industry?

Start by understanding the regulatory landscape around data privacy and compliance. Begin with key standards like GDPR (General Data Protection Regulation), CCPA (California Consumer Privacy Act), HIPAA (Health Insurance Portability and Accountability Act). These regulations provide a solid foundation. Build a solution that exceeds these standards. Ensure data security is at the forefront. With the integration of AI technologies, data security is becoming an even bigger concern.

In 2023, the average cost of a data breach reached an all-time high of USD 4.45 million, marking a 15.3% increase from 2020. Additionally, the number of publicly reported data compromises surged by 78% in 2023 compared to the previous year. The rise of AI has introduced new vulnerabilities, with cybercriminals leveraging AI-driven phishing and deepfake fraud to enhance their attacks. These developments show how important it is to work with tools and frameworks that focus on user consent and local data handling.

How did you spend your First 100 Days of launching your business?

The first 100 days focus on setting up the foundational aspects, such as legal incorporation, setting up essential tools and refining the product roadmap. It allows your business to operate smoothly and avoid roadblocks. Without a legal structure, you won't be able to bill clients, which you need to validate your product in real-world scenarios.

I also focus on validating the market need by engaging with potential early adopters and fine-tuning the product. Don't keep your idea in your head. Get it out there. Start with LinkedIn, former companies, or schools you're connected with; all of them make great starting points. Find a few potential clients and pitch it to them. See if it actually resonates with them. If you can get even five clients interested or willing to try it, you are onto something solid.

Make sure you also become the expert in your field. You want to be the one who understands all the players and solutions out there. That way, when someone asks, “What makes you different?” you're ready to answer with confidence and show why your product is the best fit. This builds credibility and shows people you're serious. This is something that's just as important as the product itself in those early days.

Since launch, what has worked to attract and retain partnerships/customers?

Currently, we're still in the pre-launch phase, so partnerships are being developed through early interest and word-of-mouth recommendations.

What has taken you from 0 to 100?

Understanding the market's demand for compliance-focused solutions. Then, aligning the product's development to meet those expectations. Focusing on user feedback and iterating. Building trust through transparency and focusing on secure, local-first data processing helped build momentum.

What is one underrated thing in your industry that business owners should start doing/using?

One underrated thing in our industry that business owners should start using is local-first processing. This means processing data directly on the device (like a computer or smartphone) rather than sending it to a cloud server. Most AI solutions today rely heavily on cloud-based processing, where data is sent to external servers to be analyzed. While this approach has its benefits, it also comes with risks. Your data leaves your environment, and depending on the provider, it may be stored or shared.

Local-first processing keeps data on your own device, which is a game-changer for privacy and security. Since the data doesn't travel over the internet to an external server, it's far less vulnerable to breaches, hacks, or unauthorized access. Plus, it offers better control over compliance since sensitive information stays within the company.

There's also a performance boost in many cases. For specific tasks, like quickly processing or summarizing documents, keeping data local can speed things up since you're not waiting for it to travel back and forth to a server. This is especially valuable when working with large files or time-sensitive information.

AVNR prioritizes this local-first approach to offer businesses a unique level of security and efficiency. Unlike competitors who rely on cloud-based solutions, we ensure your data remains in your environment. This allows you to fully benefit from AI while maintaining strict data control, especially important for industries where privacy is non-negotiable, like finance, healthcare, or legal services.

What was one failure you had to go through that others in your industry should look out for?

Overestimating how fast companies are willing to adopt new AI tools. Even with the right product, businesses need time to transition to new workflows. It's important to integrate seamlessly and even more important to prove clear, immediate benefits to the user to overcome initial resistance.Adoption is a gradual process. Many companies, especially larger ones, have long sales cycles and internal approval processes. Offering pilot programs gives clients a no-risk way to experience the benefits firsthand. It helps them see value early on without a full commitment.

For anyone new in the industry, credibility can be a big hurdle, especially when competing against established players. In my case, I demonstrate credibility by being transparent and knowledgeable in each interaction. I make it a point to share insights on industry trends and competitors' strengths and weaknesses (without bad-mouthing them), which show that I understand the market well. And if I didn't have a direct answer to a question, I followed up quickly, building trust through consistency and reliability.

What platform/tools do you use for your business?

I am using Notion for project management. I use Google Workspace for operations and Aspire for financial needs. For development, I use RemixJS for the client side and Supabase for the backend services. For AI, I use a local-first approach and my own custom framework for processing data securely.

How are you doing today and what does the future look like?

I'm currently focused on building out Avnr's offerings, with Arc leading the way. The future looks promising as we prepare to launch the first iteration, continue development, and push the boundaries of privacy-first AI. Big things are coming. Stay tuned!