This data point may be specific to the moment we are in: First, because public tech companies overall are less profitable than a mere year ago. Second, because not so long ago, PLG companies had higher net income margin than their sales-led peers. But just because this reversal might be temporary doesn’t mean it isn’t worth looking into.
“The PLG playbook is still being written — and what’s happening today will be an important chapter in that playbook.” OpenView Partners' Kyle Poyar
Product-led growth these days is no longer the exception to the rule: Following the footsteps of Atlassian, Zoom and Snowflake, many private startups adopted this model. If it is inherently less profitable, founders will want to know — especially now that investors once again pay attention to a company’s path to profitability and no longer reward growth at all costs.
OpenView is a Boston-based VC firm known for advocating for product-led growth, so it definitely has several horses in the race. But this also means it’s invested in ensuring that PLG is a recipe for success and keen to look into what can make it happen. Here’s what Poyar had to say on the topic:
Product-led growth and profitability: What’s going on? by Anna Heim originally published on TechCrunch
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