Take a long, hard look at yourself
Fresh off the PLG press🗞: Figma sells out, Dreamforce takes over downtown SF, Fazz and Codacy get wings, and a lot more!
👋 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 ❤️
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Into the Twitterverse 🐦🌌
Figma sells out
Firstly - congratulations to the entire Figma team on the acquisition. Super well deserved! But as a vocal member of “Team David”, I must say it was a sad day for me seeing Goliath get away with it.
Context - Figma announced earlier last week that it will be acquired by Adobe for roughly ~$20B. The market reacted strongly against the move and Adobe’s stock plummeted 20% as a result.
Now, here’s why I think the market has it all wrong - and why the math makes perfect sense for Adobe:
Where Figma is today: Projected ~$450M ARR at the end of 2022 and ~$800M at the end of 2023
GTM arbitrage: If historic acquisitions of high-growth tech companies by public market giants are to be considered (GitHub and LinkedIn by Microsoft, Slack by Salesforce), these companies are worth a whole lot more inside the acquirer than they are on their own. Something I like to call a “GTM arbitrage trade”
The question to ask: If Figma is going to be at $800M ARR next year as an independent company, what can they achieve if they are to sell the product through Adobe's go-to-market engine. i.e., one of the meanest, baddest sales and marketing org on planet earth?
Answer: A whole lot more than $800M. Let’s imagine for a second that it is $2B.
Not so expensive: If Adobe, is able to achieve this - the $20B price tag doesn’t look so expensive anymore. It would be 10x next year’s ARR! Perfectly in line with long-term SaaS multiples.
Is there a price too high for survival? Adobe would also have taken out its #1 competitor and existential threat in the product design space.
TL;DR - I don’t think the market has done the GTM arbitrage math on Adobe’s transaction. Adobe might’ve managed to pull one of the shrewdest trades in recent M&A history.
Dreamforce takes over downtown SF ☁️
The 20th Dreamforce has already given us the Salesforce Genie and the new Slack Canvas. We heard from Bono, Jane Goodall, Stewart Butterfield, and RHCP. We saw 30-foot artificial waterfalls and a man who attempted to dress himself head to toe with just free swag (and failed). All good stuff.
But lest we fail to forget amidst all the noise of Dreamforce - yesterday was the day Matthew McConaughey announced that a presidential run may be “inevitable.”
Take a long hard look at yourself. 🪞
…if you think CRMs are broken for PLG. And then a long hard look at what you’re feeding into your CRM.
If that doesn’t change your mind, maybe drop by the Moscone Center today. When Salesforce flex, they really flex.
🔎 The PLG hunt
Faster replies 🤝 Positive Replies ft. Lavender 💜
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Which hot and upcoming PLG company are you most excited about? 👇🏻
Fundraising, Venture Capital, and Exits 🤑
Fazz raises $100M Series C💸
Fazz empowers businesses in Southeast Asia with easy access to digital payments, growth capital, and inventory management.
Codacy closes a $15M Series B🎉
Codacy helps companies understand code quality, security, compliance, and performance. Round led by Bright Pixel Capital.💰
Launches, events, and releases
Make user research joyful ft. Betafi ✨
Capture and share your “aha” moments from user interviews to usability testing with a single click. Make product decisions enabled by user insights and not just good old intuition!
Can I have your retention? ft. Retention AI
Synch your customer data with your marketing channels and use the data to create winning strategies!
Brb, on our way to save time and money while improving our LTV😎
Nerding out on PLG 🤓📚
Community is where it is at!🔥
Claire Butler, Senior Director of Marketing, Figma deep dives into how Figma layered community into its GTM strategy at every stage from stealth to enterprise.
From taking over design twitter to design advocates, it is a true masterclass in fueling growth led by community!🚀
Blazing Hot Meme Zone ⚡️
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