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Asynchronous funding rounds - Danke, Loom! The Return of the Power Law, Is PLG the end of sales, and more...

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This week in PLG šŸ—ž

Asynchronous funding rounds - Danke, Loom! The Return of the Power Law, Is PLG the end of sales, and more...

Ruchin Kulkarni
,
Rahul Krishnan
, and
Arjun Rakesh
Dec 9, 2021
5
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Asynchronous funding rounds - Danke, Loom! The Return of the Power Law, Is PLG the end of sales, and more...

www.topofthelyne.co

šŸ‘‹ Hey,Ā RuchinĀ here!Ā Welcome to this week’s editionĀ of the ✨Top of the Lyne✨ newsletter. Each week we publish the hottest news from the beautiful world ofĀ product-led growth! (PLG)

The outcome we're shooting for is simple... to get enough folks excited about the product-led world that we so dearly loveĀ ā¤ļø

Subscribe to get this newsletter every weekšŸ‘‡

Get early access to Toplyne for free 🤩


Into the Twitterverse 🐦🌌

  • Top of the Lyne and the Return of the Power Law… Part 2 šŸ˜…

    It’s back! The Power Law is back šŸ™ˆ We spoke about it here, here, here, and let’s not forget here. I’m obsessed. But can you blame me - spend enough time in VC and you’d obsess over ā€œtheā€ Law too!

    But why is it so addictive? Well, it’s TRUE. Here’s a brilliant tweet from Mathilde that shows how the power law drives all outcomes in the world of SaaS.

    Just 4% of SaaS companies reach $1M in ARR. Only 0.4% make it to $10m and 0.0X% make it to $50M.

    The global ~$200B SaaS market is basically driven by the top 0.00X% of companies who gave it a shot 🤯

    @Team Toplyne - the objective is clear. We’ve got to be the 0.00X% of folks who ever did it šŸ˜Ž

Twitter avatar for @collinmathilde
Mathilde Collin @collinmathilde
Just 4% of SaaS companies reach $1M in revenue, only .4% make it to $10M, and 0.0X% to $50M 😳
Image
7:14 PM āˆ™ Dec 7, 2021
1,998Likes230Retweets
  • Is PLG the end of sales? 🤭

    Aw Hell Naw | Know Your Meme

    Far from it! In fact, the best PLG companies have some of the best and most elaborate sales teams and processes. Figma, Calendly, Hopin, Shopify, you name it! We wrote about Figma’s sales process below šŸ‘‡šŸ»

    Top of the Lyne
    How Figma built a $10B GTM engine šŸŽØ
    Design meets Browser šŸŽØā€¦
    Read more
    2 years ago Ā· Arjun Rakesh

    Check out Brendan’s insightful tweet about how the best sales-led companies are taking a hit of PLG šŸ˜… and the best PLG companies are latching on good ol’ sales šŸ’°

    Twitter avatar for @brendanjshort
    Brendan 🌊 @brendanjshort
    Sales-led companies are adding PLG, and PLG companies are adding sales teams. You would never ask: "should we do sales *or* marketing?" *Both* should exist. Sales šŸ¤ marketing. Same with sales and PLG. The answer is not either/or, it's both. Sales šŸ¤ PLG.
    8:47 PM āˆ™ Dec 2, 2021
  • What is PLG?

    What is A Meme!? - YouTube

    Just SaaS? Naah…

    SaaS + consumer apps like Calm? Naahh… think bigger!

    PLG can go as far as selling your latest book. Just ask Andrew Chen. Here’s a free trial on his blog šŸ˜‰

    Does it work? Ask our office… half of them bought the book after our growth manager plugged the free chapter link on our Slack šŸ˜…

Twitter avatar for @andrewchen
Andrew šŸ‡ŗšŸ‡ø @andrewchen
Today is a big day After 3 years of research, interviews, and writing, MY FIRST BOOK IS OUT!!! At midnight, I obsessively hit refresh on my Kindle and Audible until - it felt like magic - it appeared. I hit play on the audiobook, and it was a ā€œholy shitā€ moment Here’s the pic
Image
6:32 PM āˆ™ Dec 7, 2021
1,448Likes78Retweets
  • Loom. Zoom. Room. šŸš€

    …and Boom! Sending a deck is soooo 2020 šŸ™„ The high stakes game of impressing investors no longer starts on Zoom in 2021, but rather on Loom! Here’s Garry Tan’s take on why… šŸ‘‡šŸ»

Twitter avatar for @garrytan
garrytan.eth 陈嘉兓 šŸ„‘šŸŒšŸ¦‡šŸ”ŠšŸŒšŸ”ŗ(āˆž, āˆž) @garrytan
"[Sending a deck] is like sending someone a song and some of the tracks of music are missing. Any slide that you put together is meant to be accompanied by your voice track. And so if you’re sending slides without that, it’s a terrible way to convey information."
Twitter avatar for @protocol
Protocol @protocol
During the pandemic, VCs have embraced Loom videos as a way to get an overview of a startup or its product before even committing to a ā€œget-to-know-youā€ meeting over Zoom. It even has its own catchphrase: ā€œLoom, Zoom, Room.ā€ https://t.co/laFr3YGpxG
8:16 PM āˆ™ Dec 6, 2021
61Likes8Retweets

šŸ”Ž The PLG hunt

  • The Time-traveller’s Debugger: Replay.io

    Replay is a tool that helps developers ā® play back and āŗ record websites down to lines of code. The app records the entire state of an application and lets developers inspect state by travelling back and forth in time to understand code interactions better.

    Over a decade, Brian Hackett and Jason Laster have built something that even the big boys at Apple and Microsoft have been trying to develop for years.

    Twitter avatar for @a16z
    a16z @a16z
    We’re excited to announce an investment in @replayio, which provides developers with a dramatically better debugging experience using familiar browser tools. a16z general partner Peter Levine has more on partnering with the Replay team on this journey šŸ‘‡ a16z.com/2021/09/15/inv…
    a16z.comInvesting in Replay | Andreessen Horowitzā€œThe most magical experience,ā€ ā€œa true game-changerā€ — not exactly the sentiments you expect to unanimously hear from developers, famously selective and opinionated about their tools. But we heard this over and over again when talking with devs about Replay…
    6:35 PM āˆ™ Sep 15, 2021
    54Likes12Retweets

    They raised $5.7M in seed funding from a16z earlier this year, and are hiring aggressively.

    Replay is really best described as ā€œmagic.ā€ The tool attempts to make debugging more visual, exploratory, and fun.

    13 Doctor Strange Gifs - Gif Abyss

Which hot and upcoming PLG company are you most excited about? šŸ‘‡šŸ»

Leave a comment


Growth Stories šŸš€

Overheard here at Toplyne HQ the other day:

ā€œAfter mmhmm, let’s write Clockwiseā€

We’re big fans of Clockwise, a browser extension that tucks away uninterrupted hours, sets up focus-time blocks, reschedules conflicts, and intelligently manages your time. In the year that followed their series A, Clockwise’s landed and expanded at companies like Slack, Spotify, Twitter, Etsy, and Pinterest and grew at a blazing pace of over 5% week over week.

Their Sales and Marketing budget at the time? $0

We covered the Clockwise story in detail here this week šŸ‘‡

Top of the Lyne
Growing 5x in one year with $0 spent: A Clockwise masterclass
And you run, and you run to catch up with the sun but it's sinking Racing around to come up behind you again In the fifty or so years that have followed the release of Pink Floyd’s Dark Side of the Moon, the average amount of time spent by an executive in meetings has roughly doubled to a stunning…
Read more
a year ago Ā· 5 likes Ā· Rahul Krishnan, Ruchin Kulkarni, and Arjun Rakesh

Here’s a growth story in just numbers:

Paid subscribers in Dec 2020: ~250,000

Paid subscribers in Feb 2021: 500,000+

We’re talking about Substack, of course. Substack’s growing user base is symptomatic of a larger shift of power from legacy media corporations to the individual creator. From r/wallstreetbets to Joe Rogan and Salman Rushdie, we cover some ground in the latest podcast.

šŸŽ™ Tune in!


Fundraising, Venture Capital and ExitsĀ šŸ¤‘

  • Opensource is a terrible bus…. erhmm… nevermind 😬

    Look out for ā€œHCPā€ on NASDAQ. Cloud software vendor HashiCorp’s IPO values the company at $14B, becoming one of the highest valued open-source tech companies.

Twitter avatar for @TechCrunch
TechCrunch @TechCrunch
HashiCorp's IPO will place it among the most richly valued open source tech companies tcrn.ch/3DkSZRf by @alex
tcrn.chHashiCorp’s IPO will place it among the most richly valued open source tech companies – TechCrunchYou can argue that HashiCorp deserves its 44x revenue run rate multiple, if you’d like. It wouldn’t be impossible to make an argument that it’s a bit rich, but this is 2021 and no one is doing that.
4:39 PM āˆ™ Nov 30, 2021
16Likes7Retweets
  • Did someone say easier app development? Sign us up!

    Shut Up And Take My Money! | Know Your Meme

    Started by two former Shopify employees, Gadget is a set of advanced building blocks designed to simplify app development. They just raised seed funding of $8.5M from Sequoia Capital and Bessemer Venture Partners.

Twitter avatar for @TechCrunch
TechCrunch @TechCrunch
Developer productivity startup Gadget raises $8.5M led by Sequoia and Bessemer tcrn.ch/3DzCr7R by @AiishaMalik1
tcrn.chDeveloper productivity startup Gadget raises $8.5M led by Sequoia and Bessemer – TechCrunchOttawa-based Gadget, a developer productivity company founded by two former Shopify employees, has raised $8.5 million in seed funding. The funding round was led by Sequoia Capital and Bessemer Venture Partners, with participation from Greg Brockman, the co-founder and CTO of OpenAI, Koen Koppen, th…
7:03 PM āˆ™ Dec 8, 2021
18Likes8Retweets
  • 4x YoY growth 🤤

    CEO Sid Yadav describes Circle as a ā€œShopify for creator and brand-led communities.ā€ Over the last year, Circle has grown from $1M to $4M in ARR while almost tripling headcount to ~40.

Twitter avatar for @sidyadav
Sid Yadav @sidyadav
I'm thrilled excited to announce that @circleapp has raised a $24.7m Series A led by Tiger Global at a $200m valuation! This round will help us become the defacto all-in-one community platform for all creators and brands next year. Here's the plan ⬇
techcrunch.comCircle comes around again with fresh capital, led by Tiger Global, for $200M valuation – TechCrunchThe company was founded in January 2020 to make engaging with paying customers and thus building creator businesses as effortless as possible.
3:09 PM āˆ™ Dec 7, 2021
520Likes35Retweets
  • Video killed the radio star… and now it’s coming for the others

    Picsart’s acquisition of DeepCraft reflects the recent growth of video creation on its service.

Twitter avatar for @TechCrunch
TechCrunch @TechCrunch
Picsart acquires R&D company DeepCraft in seven-figure deal to aid video push tcrn.ch/3DbHR9b by @sarahintampa
tcrn.chPicsart acquires R&D company DeepCraft in seven-figure deal to aid video push – TechCrunchSoftBank-based digital creation platform Picsart, which recently hit uniciorn status, announced today it’s acquiring the research and development company DeepCraft. The deal is a combination of both cash and stock and is in the seven-figure range, but the exact terms aren’t being disclosed. Picsart …
3:08 PM āˆ™ Dec 2, 2021
39Likes20Retweets

Launches, events, and releases šŸŽŠ

  • In democracy we trust! šŸ’ŖšŸ»

    Calendly launched their newest, shiniest feature this week. Meeting Polls allow attendees to vote for their preferred time slots.

Twitter avatar for @Calendly
Calendly @Calendly
Polling + Scheduling: Together at last. ✨ We’re thrilled to announce that Meeting Polls are now available on all Calendly plans! Simply offer times from your calendar for people to vote on and book the most popular time šŸ“ŠšŸ¤ bit.ly/3cZcNyv
bit.lyIntroducing Meeting Polls: Now it’s even easier for everyone to find time together! | CalendlyMeeting Polls make it easy to schedule meetings with multiple people. Vote on preferred times and book the actual meeting, all within Calendly.
8:01 PM āˆ™ Dec 2, 2021

Live reaction from Calendly users everywhere:


Nerding out on PLG šŸ¤“šŸ“š

Current VP of Sales at Figma, Kyle Parrish spent over five years at the OG of PLG: Dropbox.

In this podcast, Kyle breaks down his entry into the world of Sales, how to create the sales playbook, non-obvious traits to look for in Sales hires, and more.



Some housekeeping…

Is your mailbox trying to keep our content away from you! šŸ’” What can you do about it? Mark this email as ā€˜not spam’ 😱 or move it from your promotions to the primary folder šŸ‘‰šŸ»Ā It’s very easy!

Thanks again, and please tell a few friends if you feel like it.

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Asynchronous funding rounds - Danke, Loom! The Return of the Power Law, Is PLG the end of sales, and more...

www.topofthelyne.co
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