Knapsack Revenue, Valuation & Funding (2024)

Knapsack entered 2021 with approximately $11,000 in annual revenue at the time its pre-seed round closed in January 2021. By November 2021, Strahl told Latka the company was generating approximately $40,000 per month in revenue, implying an annualized run rate of roughly $480,000, up from a near-zero base less than twelve months earlier.

Knapsack served approximately 80 customers in total as of November 2021, comprising roughly 15 enterprise accounts and a couple dozen smaller self-serve customers, with the remainder filling out the range. Strahl confirmed the approximately 80 figure when the host suggested it.

Pricing runs on two tiers. Team plans are $25 per user per month, available to anyone via self-serve sign-up. Enterprise plans are $50 per user per month and are targeted at larger organizations. Strahl said smaller customers typically start with five to ten users, representing roughly $1,500 to $5,000 per year. The largest customer holds over 700 seats and pays approximately $200,000 per year. The host estimated an average ACV of roughly $6,000 across the customer base, which Strahl did not dispute, and used that figure to arrive at the approximately $40,000 per month revenue estimate that Strahl confirmed.

Knapsack generates revenue through a per-seat SaaS subscription model with two tiers: a $25 per user per month team plan and a $50 per user per month enterprise plan. The company's core go-to-market motion is a land-and-expand strategy: acquire an initial team of five or so users at the team-plan price, demonstrate value, and then expand to additional teams within the same organization, converting them to enterprise plans.

Net dollar retention was 190 percent over the twelve months ending November 2021, reflecting strong expansion within existing accounts. Strahl described customer acquisition cost as in the $5,000 to $10,000 range per customer, though he noted the sample size was small and the metric was still maturing. At an average ACV of roughly $6,000, payback on a $5,000 CAC is approximately one year, which Strahl acknowledged was acceptable given the expansion trajectory. Gross margin, burn rate, and runway were not discussed in the interview.

Knapsack had 12 full-time employees and two contractors as of November 2021. The engineering function consisted of three dedicated engineers, one designer, one head of product, and one contractor engineer.

The team composition changed substantially during the transition from agency to SaaS company. Of the 12 people who were part of the Basalt agency at the time of the pivot decision in 2020, only four rolled over to Knapsack. Eight employees were new hires brought on to build a product-focused organization. Strahl said he wished more agency staff could have made the transition but that the skill sets required were different.