PLG Startup of the Week:
Endgame is a powerful connective layer and dashboard that helps sales teams identify which accounts to target based on product usage patterns. Every PLG company will eventually hire a sales team, but given that the PLG customer journey is different than in traditional sales, PLG sales teams need new tools to direct their efforts. Endgame recently announced $17M of Series A (Menlo) and Seed funding (Upfront). The company is working with top PLG companies as early design customers including Figma, Loom, Airtable, and Retool. Endgame is a company to watch as it will enable PLG companies to optimize sales by organizing and analyzing troves of customer usage data to help GTM teams focus their efforts and resources.
I reached out to Alex (CEO) and he shared his philosophy on PLG:
“The modern GTM motion is inverted. Instead of looking at what we [the sellers] do, you have to look at what they [the customers] do. That means understanding what users and buyers are doing in your product and using that information to identify the best sales opportunities.”
If you have suggestions for PLG startups to feature, please email me at zach@wing.vc
PLG Tweet of the Week:
Notable Recent Financings (Private Cos):
Orum: AI-powered platform to automate outbound calls for inside sales teams raised $25M led by Craft w/ participation from Unusual Ventures.
Stytch: flexible, passwordless authentication infrastructure for developers raised $30M @ $210M post-money led by Thrive w/ participation from Index and Benchmark.
Teamflow: virtual office where you can move your video bubble around and talk to nearby colleagues raised $35M @ $225M post-money led by Coatue w/ participation from Menlo and Battery.
Bubble: no-code builder for interactive, multi-user apps for desktop and mobile raised $100M led by Insight w/ participation from SignalFire, Neo and BoxGroup.
1password: password manager to log in to sites and fill forms securely with a single click raised $100M @ $2B post-money valuation led by Accel w/ participation from Sound Ventures. Accel previously led the prior round ($200M).
Algolia: customizable search and discovery infrastructure for developers raised $150M @ $2.25B post-money led by Lone Pine w/ participation from Fidelity, Salesforce Ventures and Accel.
Recent Performance (Public Cos):
Biggest Stock Gainers (1 week):
Agora: 21%
Atlassian: 20%
Monday.com: 8%
Biggest Stock Gainers (1 month):
Atlassian: 24%
Bill.com: 12%
Cloudflare: 12%
Enterprise Value / TTM Revenue:
Top quartile: 36.0x
Median: 21.3x
Lower quartile: 14.0x
Enterprise Value / NTM Revenue:
Top quartile: 27.0x
Median: 15.5x
Lower quartile: 10.0x
Median % of Sales:
S&M: 45%
R&D: 30%
G&A: 18%
Net Revenue Retention:
Top quartile: 130%
Median: 123%
Lower quartile: 115%
GM-Adjusted CAC Payback Period (Months):
Top quartile: 14
Median: 22
Lower quartile: 32
15 Highest EV / NTM Multiples:
Notorious PLG Dataset (click to zoom):
Note: TTM = Trailing Twelve Months; NTM = Next Twelve Months. Rule of 40 = TTM Revenue Growth % + FCF Margin %. GM-Adjusted CAC Payback = Change in Quarterly Revenue / (Gross Margin % * Prior Quarter Sales & Marketing Expense) * 12.
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