SubBase Revenue, Valuation & Funding (2024)

SubBase generated $600K in revenue in 2024.

SubBase is targeting more than $1 million in annual recurring revenue by the end of 2024. Helitzer confirmed the $1 million ARR figure as the year-end goal when asked directly by host Nathan Latka in September 2024, declining to confirm a higher figure. When Latka suggested a $2 million to $3 million run rate based on the stated average contract value and customer count, Helitzer said the company was not there yet, noting that many early customers remain on discounted early-adopter pricing.

SubBase had approximately 100 paying customers as of the September 2024 interview. Helitzer described the customer base as companies that are seeing measurable return on investment from the platform, with sales still largely founder-led but transitioning to a dedicated sales team.

Pricing is annual and usage-based, tied to transaction volume. Most customers pay between $20,000 and $30,000 per year, which Helitzer identified as the segment where the material procurement pain is most acute. The range extends from $10,000 per year at the low end to $30,000 to $50,000 per year for larger accounts, with pricing often customized. A customer at the $20,000 annual price point typically processes thousands of invoices, hundreds of purchase orders, and millions of dollars in purchasing volume through the platform. Many early customers remain on lower early-adopter pricing, which Helitzer said the company intends to maintain for now given the value those customers provide as design partners and references.

SubBase generates revenue through annual subscriptions priced on transaction volume rather than a flat per-seat fee. The model scales with the customer as the customer's business grows, which Helitzer described as intentional. There is no one-size-fits-all tier; pricing is customized based on company size and purchasing activity.

Profitability was not discussed in the interview. The company is in a growth and investment phase, with seed capital directed primarily toward go-to-market and product engineering. An embedded lending or inventory financing product is on the roadmap but not yet live; Helitzer described it as a future wedge into the financial layer of the procurement workflow, with current focus remaining on workflow optimization.

The average contract value for a typical customer is approximately $20,000 per year. With roughly 100 customers and a $1 million ARR target for year-end 2024, the implied average across the full book is below the stated $20,000 to $30,000 range for the core segment, which Helitzer attributed to early-adopter customers still on lower legacy pricing. Gross margin, churn, retention, CAC, LTV, and burn rate were not discussed in the interview.

SubBase had more than 20 full-time employees as of the September 2024 interview. Helitzer described the team as weighted toward product and engineering, with a heavy investment in customer success and implementation given the complexity of onboarding construction companies onto new software. The company also employs quota-carrying sales representatives and recently hired a dedicated head of sales to support the transition away from a purely founder-led sales motion. A number of additional advisors support the company in non-full-time capacities.