AI note-taker Circleback adds free tier amid intensifying market competition

Y Combinator-backed startup Circleback is launching a free subscription tier for its AI meeting note-taking application. The move comes as the dedicated transcription market becomes increasingly saturated with new offerings from established scheduling and dictation platforms.

The new plan allows users to transcribe an unlimited number of meetings, though access to historical records is capped at 30 days. It includes mobile and Apple Watch applications, AI-powered transcript queries, and integrations with Linear and Slack.

Previously, Circleback required users to pay at least $20.83 per month with no free option. Under the revised structure, premium subscriptions featuring unlimited history, full API access, and complete integrations now start at $15 per month when billed annually.

This strategic pivot addresses a high user drop-off rate previously caused by limited trial periods. Co-founder Ali Haghani noted that opening access serves as an alternative to traditional marketing, as the company does not spend on Google or Meta advertisements.

“If we just open the gates and allow more people to use the product, that’s gonna bring Circleback in front of more people,” Haghani said. “Then we’re very good at making the product good and monetizing those users.”

Founded in 2023 by Haghani and Kevin Jacyna, the company raised $2.5 million in 2024. The startup states it has been profitable since that round, generating approximately $8 million in annual recurring revenue with a team of eight employees.

Despite interest from investors, Circleback is not actively seeking new capital, citing no current bottlenecks in its growth trajectory. Haghani emphasized that the business is successfully winning customers against larger, better-funded competitors.

“We are consistently competing and winning customers against much bigger companies, both in terms of number of people and funding raised,” he said. The company will only consider fundraising if capital becomes necessary to solve a specific operational problem.