subbase

How Eric Helitzer Scaled a Construction SaaS to $600K ARR

February 22nd, 2025

Founded By

Eric Helitzer

Monthly Revenue

$50K

Founders

Profitable

Yes

Year Started

2021

Customer

B2B

Founded By
Eric Helitzer: Monthly Revenue
$50K

Founders
1: Profitable
Yes

Year Started
2021: Customer
B2B

Who is Eric Helitzer?

Eric Helitzer, the founder and CEO of SubBase, hails from Fort Lauderdale, Florida, and holds a Bachelor of Science in Construction Management from the University of Florida. Before founding SubBase, he spent over a decade in the construction industry, drawing inspiration from his family's involvement in the field.

What problem does subbase solve?

SubBase cuts through the chaos of emails, texts, and spreadsheets to streamline material management for construction, saving subcontractors headaches and boosting productivity.

Subbase Homepage

How did Eric come up with the idea for subbase?

Eric Helitzer's journey to founding SubBase started with a deep familiarity with the construction industry, having grown up in a family of contractors. This background gave him firsthand insight into the inefficiencies and challenges that subcontractors face, especially in material management. While working in the industry, Eric noticed how disorganized processes, like managing materials through scattered emails and spreadsheets, were persistent pain points.

Instead of jumping straight into starting a business, Eric spent time learning how technology could address these issues. His early exposure to emerging construction tech, like Procore, showed him the potential of digital solutions to streamline workflows. Armed with this knowledge, he partnered with technical experts who understood software but were unfamiliar with the intricacies of construction workflows. Together, they conducted research and initial validations to ensure their solution addressed the real pain points of the industry.

Throughout the development process, they focused on collecting feedback from industry insiders to refine SubBase, ensuring it was both user-friendly and effective without disrupting existing workflows. Eric's understanding of construction culture helped them overcome skepticism and convey the benefits of integrating a single platform to manage material procurement. An important lesson was learning to communicate that the platform was intended to enhance existing business relationships through improved efficiency and transparency, rather than replace traditional methods.

How did Eric Helitzer build the initial version of subbase?

SubBase was developed to digitize and streamline the construction material management process, which had long been hampered by outdated methods like emails and spreadsheets. The development began with Eric Helitzer and his team using a tech stack that included modern web technologies to build a platform that could handle procurement, tracking, and integration with existing accounting systems. The initial prototype focused on automating the invoice management using AI to match invoices with purchase orders, which was a significant pain point for subcontractors. This process involved multiple iterations to ensure seamless integration and ease of use, addressing early feedback from industry stakeholders. Building the product was challenging, especially in gaining trust from a traditionally tech-averse industry, making fast, frictionless onboarding a priority to encourage adoption.

What were the initial startup costs for subbase?

Funding: SubBase raised a $4 million seed round as part of their early funding efforts.
Additional Funding: They also raised $5 million to further their innovation in construction materials management.

What was the growth strategy for subbase and how did they scale?

SubBase utilized email marketing as a key strategy for customer acquisition and retention. They rolled out informative newsletters for potential and existing customers to keep them updated on feature updates and new solutions offered by the platform.

Why it worked:

Engaging with clients through regular newsletters kept SubBase at the forefront of their customers' minds. This direct communication allowed them to nurture relationships and offer value, effectively bringing existing clients back and converting leads into customers.

Networking and Referrals

SubBase emphasized relationships and referrals within the construction industry. Eric Helitzer, the CEO, highlighted the importance of personal connections and industry networks in their growth strategy.

Why it worked

This channel capitalized on the trust and reliability established through professional relationships. The construction industry, being highly relationship-driven, responded well to SubBase's personalized approach, resulting in quick customer acquisition and organic referrals.

Partnerships

SubBase formed strategic partnerships with key industry players to enhance market presence and foster growth. These collaborations were particularly pivotal in reaching a wider audience without substantial advertising expenditure.

Why it worked:

Collaborating with established industry entities enabled SubBase to leverage existing market trust and credibility. Partnerships expanded their reach effectively and aligned their solutions with industry needs, promoting adoption and engagement among target users.

What's the pricing strategy for subbase?

Subbase offers a free trial and then transitions to a paid model, with pricing adjusted based on company needs, focusing on large subcontractors and GCs in construction.

What were the biggest lessons learned from building subbase?

Understand the Industry Needs: Subbase started from a deep understanding of construction industry pain points, especially the chaos in material management. Knowing the unique struggles of your target market can guide product development and ensure relevance.
Simplify Adoption: Subbase emphasized a one-day setup for their platform. By making it easy to adopt, they overcame the hurdle of tech resistance, crucial for industries slow to change, like construction.
Value Relationships: Given the relationship-driven nature of the construction industry, Subbase focused on building trust with stakeholders—subcontractors, vendors, and GCs—ensuring the platform genuinely adds value without disrupting established practices.
Iterate with User Feedback: Initially offering their software for free helped Subbase gather valuable insights and iterate based on real user challenges, leading to a product that better addressed customer needs.
Embrace Resilience: Transitioning from a traditional job into entrepreneurship brought challenges, but Subbase thrived by staying committed to solving a well-defined problem, showing that perseverance pays off even amid uncertainty.

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