Falk: Developer tool startups make most revenue from enterprise deals, not individuals
Brendan Falk · DevOps Tool Fig Raised $2.2m in 2020, Now Approaching 100k MAU's, Whats Next? · Mar 1, 2022 · at 3:43
Brendan Falk, co-founder and CEO of Fig, explains the monetization strategy for developer tools and open-source startups to host Nathan Latka.
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“I think a lot of developer, developer tools companies that have done really well have realized that most of their money comes from massive enterprise deals. It's not from, you know, making five dollars here or there from the individual user.”
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More from Brendan Falk
Falk: Hacker News drove 2x to 3x more users than Product Hunt
“Fig was at the top of hack and use basically all day. Like it was a really long day for my co-founder and me, but that got us, I would say double if not triple the number of users from hack and use as opposed to product time.”
Falk: Top VCs like Sequoia and a16z always take 20% equity
“If we go with a big VC, like a Sequoia, an Andreessen, I say goes, if we're fortunate enough to go with one of them, they, they're always taking 20%. Like that's the way they work. So they'll increase the valuation, but they will, no matter what, take 20%.”
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“GitHub stars is, it's sort of like a like on Facebook. It's a bit of a vanity metric to be honest”
Fig CEO pledges open-source contributions will remain free forever
“So we aren't selling that exact code. We like our model is some of our stuff is open source, meaning all of that code is public and anyone can contribute. Some of our code is closed. The stuff that we're going to sell is the closed stuff. And so any of the ope…”