Dear Reader,
Welcome to the 20th edition of the good reads newsletter by Malpani Ventures. Sharing your weekly dose of articles for this weekend’s reading!
PLG Now, PLG Later, or PLG Never
https://medium.com/angularventures/plg-now-plg-later-or-plg-never-e91f159e7ae9
Deciding your strategy becomes paramount in a resource-constrained world!
PLG companies traditionally pursue a two-pronged approach. They (1) chase top-down leads with large accounts for strategic reasons at the same time as they (2) try to build a scalable repeatable bottom-up self-service PLG funnel. This is very challenging, and very few companies can pull it off
Getting this wrong can be disastrous because it can lead founders to waste precious capital and time on the wrong GTM and/or the right GTM at the wrong time.
“How quickly should I be growing?”
A good piece summarising expected growth rates for venture-funded startups:
… baseline of ARR growth in a less than $10M stage to grow 125%+ to be venture-backable
Another common heuristic is the Triple, Triple, Double, Double, Double. Tripling your revenues the first 2 years, and then doubling every year for 3 years.
8-10% MoM will keep you in the “default investable” category.
Pipeline Analysis Playbook
https://tomtunguz.com/pipeline-analysis-playbook/
A short read on managing sales pipelines for startups
A single pipeline number, say $7m doesn’t mean much. But $7m ready-to-close this quartery with 80% belonging to the ideal customer profile on a $1.5m bookings number means the company is about to crush its target.
Image of the week: Hedge-fund Coatue’s 2x2 matrix for categorising startups
Until next time!