Meeting note-taker Circleback adds a free tier to attract more customers

Circleback Launches Freemium Tier to Tackle Crowded AI Note-Taker Market

In a direct response to intensifying competition, Y Combinator-backed Circleback is launching a free subscription tier for its AI meeting note-taker. This strategic shift aims to broaden its user base in a market that has recently seen new entrants from dictation app Wispr and scheduling tool Calendly, alongside heavily-funded incumbents like Granola, Read AI, and Fireflies. By removing the initial payment barrier, Circleback is betting on product-led growth to capture users who might otherwise churn after a limited trial period.

The new free plan, which mirrors a similar offering introduced by Granola a few months ago, provides substantial value to attract new users. Prior to this, Circleback's plans started at $20.83 per month, but the company is now introducing paid tiers starting at a lower $14 per month (billed annually). Founded in 2023, the company raised $2.5 million in 2024 and reports it has been profitable since, achieving an impressive run-rate revenue of approximately $8 million with a lean team of eight. The company's free offering includes:

• Unlimited meeting transcriptions
• Access to the last 30 days of meeting history
• AI-powered querying of transcripts
• Mobile and Apple Watch applications
• Integrations with Linear and Slack

According to co-founder Ali Haghani, the previous limited trial model resulted in a significant user drop-off. The new freemium tier is positioned as a marketing expense, replacing spending on platforms like Google and Meta Ads to get the product in front of more people. This move allows Circleback to leverage its product's quality to convert free users to its paid plans, which unlock unlimited history and full API access. This strategy enables the bootstrapped startup to compete more effectively against larger, venture-backed competitors by turning its own software into its primary customer acquisition engine.

In a rapidly commoditizing AI software market, the freemium model is becoming a crucial competitive lever, forcing companies to use their product as the primary marketing channel for sustainable, product-led growth.