Podcast Summary:

SaaS Interviews with CEOs, Startups, Founders
Host: Nathan Latka
Guest: Sabari Nir, Co-founder and CEO of Skillveri (skilveriVR.com)
Episode Title: From $500K to $1.5M ARR: Bootstrapping VR SaaS for Trade Skills
Date: December 31, 2025

Episode Overview

This episode explores how Sabari Nir bootstrapped and scaled Skillveri, a VR-based SaaS company revolutionizing vocational training in trade skills like welding and spray painting. The conversation covers Skillveri’s early challenges, pivot from hardware to SaaS, current growth trajectory, customer base, and strategies for growth in the U.S. educational market.

Key Discussion Points and Insights

1. Skillveri’s Product and Market

• Product Overview:
  • Skillveri sells virtual reality & mixed reality (XR) simulations for hands-on vocational training (e.g., welding, spray painting).
  • The product runs on off-the-shelf VR headsets (e.g., Meta Quest, Pico), sometimes paired with custom hardware extensions like a spray gun or welding gun for added realism.
    [01:08–01:35]
• Customer Segments:
  • Primary: High schools, middle schools, and community colleges in the U.S. with Career and Technical Education (CTE) programs.
  • Secondary: Industrial employers requiring in-house staff training (mainly outside the U.S.).
    [01:43–02:05; 05:03–05:24]
• Business Model:
  • Unique in offering a SaaS subscription (starting at $4,000/year for up to five headsets), compared to competitors’ expensive, one-time-purchase setups ($35,000+).
  • Hardware accessories are available as upgrades ($2,500 per extension, one-time purchase).
    [02:13–03:09; 11:10–12:16]

2. Revenue, Pricing & Growth Metrics

• ARR and Customer Base:
  • 2024 Revenue: $500K
  • 2025 Run Rate: $1.5M
  • U.S. customer base: ~100 schools (~500 headset installations)
  • Global reach: ~250 additional customers
    [07:06–07:54; 08:15–08:21]
• Pricing Details:
  • Most schools pay $15k–$20k/year for software; some start at $4k.
  • Largest current contract is $350k/year; average school is around $15–20k/year. [04:03–04:40]
  • Schools typically buy a mix of VR headsets and a few hardware extensions per classroom (not always 1:1 with headsets).
    [12:53–13:16]
• Revenue Mix:
  • 60% software (recurring), 40% hardware and packages (one-off plus perpetual license software).
    [03:33]

3. Business Pivot & Funding Journey

• Company Origins & Pivot:
  • Founded in 2012, initially focused exclusively on hardware.
  • Pivot to software/SaaS in 2021 after pandemic-induced revenue collapse and shipping challenges.
    [08:21–09:18]
• Funding History:
  • Raised $1.2M Series A in 2016 (early-stage capital for hardware business).
  • Bought out early (Indian, impact-investor) investors in 2021 at 50% of original investment, regaining founder control.
    [09:25–10:08]
• Current Stance on Fundraising:
  • Operating bootstrapped, open to raising only for expansion into adjacent product lines.
    [10:34–10:53]

4. Hardware Choices & Ecosystem

• Hardware-Agnostic Approach:
  • Software compatible with major VR headsets (Meta Quest, Pico); schools purchase these off-the-shelf.
  • Custom hardware designed as lightweight, tactile tool extensions to enhance immersion.
    [11:02–12:16]
• Strategy on Hardware:
  • Not planning to return to heavy, proprietary hardware—extensions now serve as accessories, not core.
    [11:42–12:07]

5. Go-to-Market and U.S. Expansion via Resellers

• Scaling with Resellers:
  • Shift from direct sales to a network of 10 independent U.S. resellers, especially as the customer base scales geographically.
    [07:54–08:15; 13:16–13:38]
  • Commission ranges: 3–4% (supported sales) up to 20% (independent sales).
    [16:03–16:09]
  • Notable reseller: Learning Labs (LLI), covers multiple states.
    [15:05–15:12]
  • Reseller selection via word of mouth and direct outreach, with dedicated training and onboarding workshops.
    [13:38–14:54]
• Rationale Against Expanding In-house U.S. Sales Team:
  • High logistical costs and broad distribution make reseller model more efficient, especially for $5K–$30K deals.
    [16:42–17:25]

6. Vision and Growth Aspirations

• Market Opportunity:
  • Only scratched the surface: 26,000 U.S. schools with CTE; 1,000 community colleges.
  • Goal: Reach 2,000 schools ($10M ARR) in U.S. in near term; 8,000 in 5 years.
    [07:06–07:54; 17:47–18:00]
• Buyer Reluctance to Sell:
  • Not interested in selling today, even at $4M cash, due to confidence in future growth.
    [00:27–00:32; 17:47–18:00]

Notable Quotes & Memorable Moments

• Bootstrapping & Investor Buyout:

  "We paid about 50% of what we had."
  — Sabari Nir, on buying out early investors at a discount after pandemic challenges [09:38]

• On Selling the Business:

  "No, I see a lot of growth right now. I would like to take you to 2,000 schools in the next two years, 8,000 schools in five years."
  — Sabari Nir, on turning down a $4M all-cash acquisition offer [17:47]

• On the VR Learning Experience:

  "So you would have a school which has multiple screens, and one student would be using it. Four or five other students would be watching … there would be a sense of competition as well … it encourages more and more practice in a very gamified manner."
  — Sabari Nir, describing the collaborative/gamified classroom use case [06:16]

• Commission Structure for Resellers:

  "It could range from something like 3, 4% to as high as 20%."
  — Sabari Nir, on reseller commission rates [16:03]

• Biggest Lesson for Young Entrepreneurs:

  "I realized that building is tough, but it is tougher to sell. It is tougher to have a financial way of thinking. So I wish the financial skills I had, or at least I knew the importance earlier on."
  — Sabari Nir [18:53]

Important Timestamps

• [00:02]: Largest software contract to-date: $350K
• [01:08–01:35]: Product overview: VR/MR simulation with hardware extensions
• [03:33]: Revenue mix: 60% software / 40% hardware
• [04:03]: Largest customer contract, $350K/year
• [07:06]: ARR confirmation: $1.5M, plan to reach $10M
• [08:15]: Last year's revenue: $500K
• [09:38]: Buying out investors at 50% of investment
• [11:10]: Off-the-shelf VR hardware pricing and compatibility
• [13:38]: Finding and scaling with resellers
• [15:05]: Example reseller: Learning Labs (LLI)
• [16:03]: Reseller commission: 3–20%
• [17:47]: Wouldn’t sell for $4M—growth focus
• [18:53]: Advice to younger self: Sales skills matter most

Lightning Round

• Favorite Business Book: Peter Drucker or Eliyahu Goldratt works [18:05]
• CEO Admired: Sridhar Vembu (Zoho) [18:12]
• Favorite Tool: Unity + emerging use of AI tools (Perplexity) [18:24]
• Personal: Married, no kids, age 42 [18:44–18:49]

Summary

Sabari Nir’s journey with Skillveri is a testament to resilience, strategic pivots, and bootstrapped growth. From a pandemic-induced crisis and investor buyout, Skillveri rebounded by focusing on scalable, cost-effective SaaS VR for trade skills—achieving $1.5M ARR, serving 100+ U.S. schools, and partnering with local resellers for distribution. With massive market potential, clear product differentiation, and a founder determined to keep building, Skillveri is poised for significant expansion in the years ahead.