The 8-Figure Open Source SaaS Playbook
He built a free tool as a lead magnet. Then customers started calling his cell phone, begging to pay for it. Ev Kontsevoy turned an open source SaaS side project into Teleport, now an 8-figure ARR business with 500+ customers. Founders will hear how a free GitHub project became an open source SaaS business worth eight figures - and why selling to the wrong buyer persona nearly capped growth.
Ev reveals how he spotted the signal that his side project was more valuable than his flagship product, why shifting from engineers to VP buyers nearly tripled average deal size, and how open source monetization built trust closed-source competitors could never match.
Teleport started as one component of Gravity, which was doing $4M ARR. COVID killed Gravity's pipeline while accelerating Teleport demand. The company now serves 500+ customers in 8-figure ARR, with AI agent identity emerging as a major growth driver.
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🔑 Key Lessons
🛠️ Your open source SaaS lead magnet might be your real product: Teleport was built as free demand generation for Gravity, but customers wanted to pay for it instead - listen when the market tells you where the value is.
🎯 Ask customers to sell your product back to you: Ev discovered most customers used a tiny fraction of Teleport by asking them to describe it, revealing a buyer persona mismatch that was capping growth.
🤝 Match your sales motion to your buyer's expectations: Shifting from engineers to VPs of platform engineering nearly tripled average deal size because the new buyer expected a sales-led conversation.
🔄 Focus is not a pivot - it is subtraction: Ev stopped four of five things Gravitational was doing and concentrated entirely on Teleport, which was already generating equal revenue with fewer engineers.
💰 Price with confidence even when improvising: The first Teleport enterprise deal closed at $25,000/year because Ev said "thousand" instead of "hundred" on a cold call - then built the enterprise product around real customer requests.
🚀 Open source SaaS builds trust faster for security products: Public code audits and community reviews gave Teleport credibility closed-source competitors could not match - a natural open source lead generation advantage.
🧠 Find startup ideas in the support queue: Ev found both Mailgun and Gravitational by listening to customer problems at his day job. This open source business model started from real pain, not brainstorming.
Chapters
What Teleport does and the infrastructure identity problem
Founding Mailgun and the Rackspace acquisition
How Teleport started as a free open source SaaS component
COVID kills Gravity pipeline and accelerates Teleport demand
The first enterprise deal - improvised on a cold call
Why open source SaaS builds trust for security products
Discovering they were selling to the wrong buyer persona
Shifting from engineers to VPs - 3x average deal size
AI as COVID 2.0 - identity for AI agents
Lightning round
Resources
Full show notes: https://saasclub.io/480
Join 5,000+ SaaS founders: https://saasclub.io/email
Cracking the Complexity: Teleport CEO Pushes Identity-First Security
In this on-the-road episode of The New Stack Makers, Editor in Chief Heather Joslyn speaks with Ev Kontsevoy, CEO and co-founder of Teleport, from the floor of KubeCon + CloudNativeCon Europe in London. The discussion centers on infrastructure security and the growing need for robust identity management. Citing alarming cybersecurity statistics—such as the $5 million average cost of a breach and rising attack frequency—Kontsevoy stresses that complexity is the root challenge in securing infrastructure.
Today’s environments involve countless layers and technologies, each with its own identity and access controls, increasing the risk of human error and breaches. Kontsevoy argues for treating all entities—humans, laptops, servers, AI agents—as identities managed under a unified framework. Teleport provides a zero trust access platform that enforces strong, cryptographically-backed identity across systems.
He also highlights Teleport’s version 17 release, which boosts support for non-human identities and integrates deeply with AWS. Looking ahead, Teleport is exploring support for emerging AI agent protocols like MCP to extend its identity-first approach.
Learn more from The New Stack about the latest insights about Teleport:
Removing the Complexity to Securely Access the Infrastructure
Why AI Can’t Protect You from AI-Generated Attacks
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How Teleport’s Leader Transitioned from Engineer to CEO
The mystery and miracle of flight sparked Ev Kontsevoy’s interest in engineering as a child growing up in the Soviet Union.
“When I was a kid, when I saw like airplane flying over, I was having a really hard time not stopping and staring at it until it's gone,” said Kontsevoy, co-founder and CEO of Teleport, said in this episode of the Tech Founders Odyssey podcast series. “I really wanted to figure out how to make it fly.”
Inevitably, he said, the engineering path led him to computers, where he was thrilled by the power he could wield through programming. “You're a teenager, no one really listens to you yet, but you tell a computer to go print number 10 ... and then you say, do it a million times. And the stupid computer just prints 10 million. You feel like a magician that just bends like machines to your will.”
In this episode of the series, part of The New Stack Makers podcast, Kontsevoy discussed his journey to co-founding Teleport, an infrastructure access platform, with TNS co-hosts Colleen Coll and Heather Joslyn.
Security in the New Normal with Ev Kontsevoy
About Ev
Ev Kontsevoy is Co-Founder and CEO of Teleport. An engineer by training, Kontsevoy launched Teleport in 2015 to provide other engineers solutions that allow them to quickly access and run any computing resource anywhere on the planet without having to worry about security and compliance issues. A serial entrepreneur, Ev was CEO and co-founder of Mailgun, which he successfully sold to Rackspace. Prior to Mailgun, Ev has had a variety of engineering roles. He holds a BS degree in Mathematics from Siberian Federal University, and has a passion for trains and vintage-film cameras.
Links:
Teleport: https://goteleport.com
Teleport GitHub: https://github.com/gravitational/teleport
Teleport Slack: https://goteleport.slack.com/join/shared_invite/zt-midnn9bn-AQKcq5NNDs9ojELKlgwJUA
Previous episode with Ev Kontsevoy: https://www.lastweekinaws.com/podcast/screaming-in-the-cloud/the-gravitational-pull-of-simplicity-with-ev-kontsevoy/
The Gravitational Pull of Simplicity with Ev Kontsevoy
About Ev Kontsevoy
Ev Kontsevoy is the CEO of Gravitational, where he and other engineers build open-source tools for other developers for securely delivering cloud apps to restricted and regulated environments. Besides computers, Ev’s obsessed with trains and old film cameras.
Links Referenced:
Gravitational website: https://gravitational.com/
Gravitational GitHub: https://github.com/gravitational
Teleport GitHub: https://github.com/gravitational/teleport