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We did not have any investment money to burn, Kagi was completely bootstrapped until June when we raised a very small amount from our users. What changed is:
by freediver 3y ago
We did not have any investment money to burn, Kagi was completely bootstrapped until June when we raised a very small amount from our users.
What changed is:
- Price of LLM APIs dropped significantly faster than we anticipated
- Kagi started getting adopted more broadly, which in turn meant more people who do not search as much started using it, lowering our average cost per user
Combination of those two factors made us more comfortable to adapt pricing again and pass all anticipated savings to our members.
- strogonoff 3y agoThanks for the reply! My concern is with counting on people who do not search a lot to be a big part of your user base. Flat rate means those people might feel like they are overpaying, and if they leave you will start losing money on people who search a lot.
- freediver 3y agoBeing concerned is healthy, there are no worry free businesses.
- strogonoff 3y agoThere are no worry free businesses, but there are more and less sustainable business models and different attitudes to existential risk management. Kagi at first seemed strategic with metered paid search, but choosing to go for growth and hoping most users will not search a lot feels like a downgrade from that.