Insight certainty 4/5 debate potential 3/5

Santalo: A $25/month freemium SaaS model requires tens of millions in VC

Albert Santalo · 8base is a next generation backend-as-a-service for powering SaaS and other go-to-market applications. · Sep 11, 2020 · at 15:15

Albert Santalo, founder and CEO of 8base, discusses the unit economics and capital requirements of a low-cost freemium developer tool pricing model.

0:00 / 0:06exact quote · 6.7s
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“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.”

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More from Albert Santalo

Insight
Santalo: Outsourcing engineering to agencies usually increases cash burn
“The outsourcing usually increases the burn.”
Albert Santalo Aug 20, 2022 ▶ 14:23 How he negotiated term sheet to raise $10m and pivot his no code platform from services to SaaS
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.”
Albert Santalo Sep 11, 2020 ▶ 18:41 8base is a next generation backend-as-a-service for powering SaaS and other go-to-market applications.
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 …”
Albert Santalo Aug 20, 2022 ▶ 1:22 How he negotiated term sheet to raise $10m and pivot his no code platform from services to SaaS
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.”
Albert Santalo Aug 20, 2022 ▶ 9:03 How he negotiated term sheet to raise $10m and pivot his no code platform from services to SaaS
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.”
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Disclosure
Santalo: Eightbase sold less than 10% equity in $2M seed round
“No, we sold less than that.”
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