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Newton's law of product-led growth! How fast is SaaS compounding?

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This week in PLG 🗞

Newton's law of product-led growth! How fast is SaaS compounding?

The latest from the world of product led growth

Rahul Krishnan
,
Ruchin Kulkarni
, and
Arjun Rakesh
Dec 23, 2021
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Newton's law of product-led growth! How fast is SaaS compounding?

www.topofthelyne.co

👋 Hey, Ruchin here! Welcome to this week’s edition of the ✨Top of the Lyne✨ newsletter. Each week we publish the hottest news from the beautiful world of 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 love ❤️

Subscribe to get this newsletter every week👇

Get early access to Toplyne for free 🤩


Into the Twitterverse 🐦🌌

  • How fast is SaaS compounding? 📈

    While no one knows the exact number… 🤷🏻‍♂️ look no further than ProfitWell’s “ARR tracked” for a close enough proxy 🚀

    The company tracks ~$25B of ARR for its customers 🤯 A number that’s up ~40% YoY in 2021 and ~70% in 2020. I guess Satya Nadella wasn’t lying about the accelerating effect of Covid on the SaaS market 📈

How to Accelerate Your Time-to-Revenue Inside Microsoft Dynamics 365 for  Sales - CRM Software Blog | Dynamics 365
Twitter avatar for @Patticus
PC @Patticus
"You can't scale a free product bootstrapped" 🙏 to all who trust us. Hope we provide enough value.
Image
10:11 PM ∙ Dec 21, 2021
345Likes11Retweets
  • The great PLG opportunity 🥇

    Excited about PLG? Eager to learn and make a mark? Think you’re too late? HELL NO 🙅🏻‍♀️

    Hell No GIFs - Get the best GIF on GIPHY

    PLG is like early 1960s space tech. The opportunity to work at NASA, learn how NOT to build rockets, and eventually learn how to land on the moon is very much open. 👐🏻

    This Dave Rigotti tweet really resonated with the young folks in our offic who are excited to learn and eager to build expertise 💯

Twitter avatar for @drigotti
Dave Rigotti @drigotti
Product-led growth (PLG) is still very early. If you are early in marketing career it's a good thing to "own." I did this with social early in my career and its a great way to ride a way an grow your career faster.
10:14 PM ∙ Dec 16, 2021
17Likes1Retweet
  • Newton’s Law of product-led growth 🚀

    Friction is inversely proportional to growth!

Twitter avatar for @PaulYacoubian
Paul Yacoubian @PaulYacoubian
One underestimated feature of product-led growth business models is that it enables a startup team to totally focus on the product-user interaction as not only does that add the real value to the user but also to the company's core growth driver.
10:57 PM ∙ Dec 15, 2021
41Likes2Retweets

🔎 The PLG hunt

Which hot and upcoming PLG company are you most excited about? 👇🏻

  • Doppler grew over 6000% in four months on the back of their $2.3M seed funding round

    Doppler is a Universal Secrets Manager that helps developers optimize for speed, while not compromizing security. Founded by Brian Vallelunga, their breakneck growth led to $6.5M in additional funding in March 2021. Doppler is the first developer-first product in the growing modern secrets management market.

    The Doppler effect - The productivity unlocks of not being shackled by security are liberating for developers.

Twitter avatar for @stephzhan
Stephanie Zhan @stephzhan
Excited to share our partnership with @vallelungabrian & the @DopplerHQ team on their Seed round! Doppler's robust secrets manager will help developers maximize security & improve productivity while building core applications. @sequoia
seq.vcDoppler Raises $2.3 Million From Sequoia And Kleiner Perkins To Create The First Universal Secrets Management Solution For DevelopersSecrets management must be done well, or a developer team risks compromising their code at critical times. Brian Vallelunga has struggled first-hand with secrets management. He and his team have built Doppler to address the problem, allowing developers to build with speed and security.
6:17 PM ∙ Oct 6, 2020
33Likes2Retweets

Leave a comment


Growth Stories 🚀

There are only two kinds of SaaS companies in the world today: Those who are product-led and those who want to be. What separates one from the other? What did the PLG OGs like Slack, Asana, Shopify, and Figma do differently?

From being great storytellers to delivering value blazing fast and setting up the right infrastructure for the job, PLG companies are a cut above the rest.

Dive in 👇

Top of the Lyne
Product led growth: What makes Canva, Figma & Shopify the best
👋🏻 Hey, Ruchin here! Welcome to another edition of the Growth Stories series 🙌🏻 Every week we break down growth strategies employed by the hottest SaaS PLG Cos and share tactics that you can experiment with at work! If you’re a new subscriber or if you couldn’t find our emails this last month, fret not - We have you covered ❤️! Here are some of our …
Read more
a year ago · 8 likes · Rahul Krishnan, Arjun Rakesh, and Ruchin Kulkarni
  • Algolia’s v1 was built for mobile devices. By optimizing for mobile devices, Algolia’s founders serendipitously stumbled upon blazing-fast user-facing consumer-grade search.

    🎙 Tune into the story of the second largest search engine in the world:


Fundraising, Venture Capital and Exits 🤑

  • Based on growth numbers alone, Retool could be valued at 2x or 3x their latest valuation

    Retool founder David Hsu has decided to pursue a model of smaller, stepped funding rounds every 6-9 months after being bothered by the idea that those who joined weeks after big jumps in valuation at similar companies stood to face far less financial upside than those who joined only weeks before.

Twitter avatar for @alexrkonrad
Alex Konrad @alexrkonrad
Low code startup Retool just reached a $1.9B valuation. But founder @dvdhsu did it raising as little as possible — $20M in this Series C — and at a deliberately lower price. Here’s why he thinks most unicorn funding rounds aren’t helping employees.
forbes.comWhy Retool’s CEO Took A ‘Risky’ Fundraising Approach On The Way To A $1.9 Billion ValuationRetool CEO David Hsu took an unusual approach to his low code software startup’s Series C funding round, raising just $20 million from fellow founders like Stripe’s John and Patrick Collison and former GitHub CEO Nat Friedman in a bid to limit dilution for Retool employees.
2:33 PM ∙ Dec 22, 2021
135Likes26Retweets
  • Airtable: “I am the Walrus.ai”

    The no-code software testing platform Walrus.ai’s vision closely aligns with Airtable’s, and according to the former’s founding team, joining Airtable is the next step in bringing that vision to life.

Twitter avatar for @airtable
Airtable @airtable
We're excited to officially welcome the Walrus.ai founding team to Airtable! So thrilled for you to join us Scott, Jake and Akshay 🎉 @TechCrunch with the story: techcrunch.com/2021/12/21/air… via @fredericl
techcrunch.comAirtable acqui-hires Walrus.ai’s founding team – TechCrunchAirtable today announced that it quietly acquired Walrus.ai, a no-code software testing platform, earlier this year. “Acquired” may be overstating things a bit, though. Best I can tell, Walrus.ai’s homepage became unavailable a few months ago and Airtable tells me it has no plans to use any of the s…
5:54 PM ∙ Dec 21, 2021
24Likes1Retweet

Launches, events, and releases

  • Developers: "Jeez! I wish there was a way to plug search components into our e-commerce storefront without worrying about UI/UX"

    Algolia: Say no more.

Twitter avatar for @algolia
Algolia @algolia
We’re thrilled to introduce our first UI template, focused primarily on ecommerce. Learn all about it –
bit.lyAnnouncing our PWA Ecom UI Template in React | Algolia BlogFast, reliable and modern search and discovery
9:49 AM ∙ Dec 20, 2021
  • Notion’s getting into the festive spirit

    You can now add color to all of your new year resolutions.

Twitter avatar for @NotionHQ
Notion @NotionHQ
🎁 New: COLORS for your simple table rows and columns!
Image
8:07 PM ∙ Dec 21, 2021
1,404Likes79Retweets

Nerding out on PLG 🤓📚

The world and his wife have come out with a 2021 wrapped, and we don’t intend to add to that growing list. (not yet)

Having said that, here’s a super-thread on growth that we loved that does a great job of summarizing growth observations from 2021.

Twitter avatar for @GrowthTactics
Growth Tactics @GrowthTactics
The 7 most valuable growth threads of 2021:
9:11 PM ∙ Dec 22, 2021
159Likes26Retweets


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Newton's law of product-led growth! How fast is SaaS compounding?

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