Insight
Santalo: Outsourcing engineering to agencies usually increases cash burn
“The outsourcing usually increases the burn.”
Insight
Santalo: A $25/month freemium SaaS model requires tens of millions in VC
“It's not a free trial at 25 bucks a month. You're just not going to get there without 10 tens of million dollars of venture money.”
Assertion Supported
Santalo: Leaving Bubble requires completely rebuilding applications from scratch
“Bubble's a great platform, but if you ever need to get off of it cause it's not scaling or whatever, you're gonna have to rebuild the whole thing.”
Opinion
Santalo: Low-code market is still in its first or second inning
“I mean, if you look at the real competition is people building things from scratch. So, you know, I would say in some areas, yeah, there's been solutions that have come out and made a difference, but there's still a lot of greenfield opportunity here. I'd say …”
Disclosure
Santalo: Why he didn't negotiate valuation on 8base's Series A
“So look, before I tell you, I didn't negotiate valuation on the term sheet. So I negotiated other things, but the valuation was something I didn't touch.”
Disclosure
Santalo: Eightbase will transition services to provider ecosystem
“The idea is that over time, we will transition the services side to an ecosystem of providers.”
Disclosure
Santalo: Eightbase sold less than 10% equity in $2M seed round
“No, we sold less than that.”
Insight
Santalo: MVPs should be light on features, not on architecture
“You build an MVP because it's a good thing to build an MVP, but an MVP that is light on features, not light on architecture.”
Disclosure
Santalo: 8base funds software development with services revenue over VC
“The idea is that the service revenue feeds the beast in lieu of venture capital while we build up the recurring platform revenue”
Disclosure
Santalo prefers to avoid Series A and later venture capital entanglements
“There are series A and after entanglements, which I would much rather avoid if I can.”
Assertion Not checkable as stated
Santalo: 8base monthly gross revenue churn is under 1%
“It's less than one percent.”
Disclosure
Santalo: 8base closed a $10.6M venture round in early 2022
“So we closed the 10.6 million dollar round earlier this year.”
Assertion Supported
Santalo: JavaScript has 14M developers, the largest single language community
“What we're trying to say is when you get into a base, you should already know what to do if you're a JavaScript developer, of which there are about fourteen million in the world. So it's the largest pool of developers, you know, around a language in the world.”
Opinion
Santalo: Foundry Group offered the cleanest term sheet he has ever seen
“It was the cleanest, best term sheet I've ever seen. And I've seen, you know, I've seen at least a dozen in my day.”
Assertion Not checkable as stated
Santalo: 8base's Series A term sheet had no ratchets or liquidation preferences
“There was no ratchet provisions. There was no liquidation preference. There was no, none of that.”
Disclosure
Santalo: 8base employs 30 people in Medellin, Colombia
“And then we now have 30 people in Medellin, Columbia that that's recent news as well.”
Disclosure
Santalo: Eightbase's Largest Customer Pays About $20k per Month
“First of all, it starts at free, and it goes, you know, the largest customer today is at about 20,000 dollars a month.”
Disclosure
Santalo: Eightbase PLG Accounts Average $100/mo Versus $1,250-$1,500 for B2B
“On the average customer on the product led growth side is probably somewhere around a hundred bucks a month. And on the B to B engagement side is probably closer to 12, 50, 1500 dollars a month.”
Disclosure
Santalo: Eightbase Has Approximately 1,200 Paying Customers
“Yeah somewhere around 1200.”
Assertion Not checkable as stated
Santalo: Non-recurring services make up around 50% of Eightbase revenue
“Non-recurring revenue now is, is somewhere around 50% of our overall revenue.”
Assertion Not checkable as stated
Santalo: Eightbase has already broken a $2 million run rate
“We have.”
Assertion Supported
Santalo: Eightbase reached $4.8M total raised via priced round
“We, we've closed, we're, we did a price round and closed the overall closing was 4.8. That includes the conversion of everything before.”
Assertion Not checkable as stated
Santalo: Eightbase maintains net dollar retention between 135% and 140%
“It's somewhere in the one 35 to one 40 range.”
Assertion Not publicly verifiable
Santalo: IBM Global Services uses 8base for European client work
“One of those is IBM global services actually uses a base for work they're doing in Europe.”
