# Top 10 in Tech - What to know for Week ending May 24, 2024

Published: 23 May 2024
Canonical: https://www.top10in.tech/posts/week-ending-may-24-2024

## 1. SaaS METRIC OF THE WEEK: ARR.

Two cool publications. The first one was sent from a buddy of mine, "[The Ultimate Guide to ARR](https://www.dropbox.com/s/fhnhsvnwukt78qq/Ultimate%20Guide.pdf?dl=0)," which offers practical advice on measuring, influencing, and reporting ARR based on experiences at Intercom, Atlassian, and Stripe; the second one is from Bessemer Ventures and claims to be [a founder's roadmap to $100 million ARR](https://www.dropbox.com/scl/fi/3l6ip738mgg1ipzd8biy0/From-Start-to-Centaur-The-founders-roadmap-to-100-million-ARR-Bessemer-Books-Edition-040924.pdf?rlkey=4ltw3wg37okf76glvamq184fv&dl=0).

Link: https://www.dropbox.com/s/fhnhsvnwukt78qq/Ultimate%20Guide.pdf?dl=0

## 2. MVSP

Here is one more for your tech dictionaries - MSVP stands for [Minimum Viable Secure Product](https://mvsp.dev/mvsp.en). This is a simplified security checklist for B2B software and outsourcing providers. It outlines essential controls to ensure a minimal yet effective security posture. Not quite the SOC/ISO/APRA level stuff some of us have to deal with - but great for those of you outside of Enterprise and Financial Services.

Link: https://mvsp.dev/mvsp.en

## 3. SHAPE UP

This is the annual refresher for your tech dictionaries and reading list. Software product development requires innovative strategies based on today's cadence expectations of continuous integration, micro-services, feature delivery, and scale. The team at [Basecamp](https://basecamp.com/) (I'm an old-school fan) has developed [ShapeUp, their publications, and toolbox of techniques designed to eliminate chaos when it comes to designing, prioritizing, and shipping products/features](https://basecamp.com/shapeup).

Link: https://basecamp.com/

## 4. SEED

Carta's [latest report takes a look at investments into pre-seed/Seed Stage companies](https://carta.com/blog/state-of-pre-seed-q1-2024/) - SAFEs are the most common instruments in pre-seed financings, most pre-seed rounds are around $1M, and the typical valuation cap is $8-$10M. 88% of pre-priced rounds use SAFEs instead of convertibles. This underlines the ongoing shift towards more flexible and founder-friendly funding mechanisms.

Link: https://carta.com/blog/state-of-pre-seed-q1-2024/

## 5. INVESTMENTS (AI)

Silicon Valley/Bay Area is still dominant and [secured more than 50% of all global investments into AI startups last year](https://news.crunchbase.com/ai/sf-bay-area-leads-tech-startup-funding/), according to Crunchbase (and that's nearly double the prior year's total: $27B vs. $14B). Despite repeated claims of its imminent demise throughout the years, Silicon Valley ain't going anywhere anytime soon.

Link: https://news.crunchbase.com/ai/sf-bay-area-leads-tech-startup-funding/

## 6. INVESTMENTS (AI)

The bubble builds? AI valuations are soaring big time, with early-stage AI companies valued above $70 million and late-stage at around $100 million in Q1 2024, according to [this PitchBook report](https://www.dropbox.com/scl/fi/ygcnfqb7snpwaow3r8fgy/Q1_2024_US_VC_Valuations_Report.pdf?rlkey=57ekjzbhlkfg1hy1eibx4yzqs&dl=0). While the rest of us in the VC landscape see an increase in flat and down rounds, AI remains a top focus for investors. Some investors out there (such as Sierra Ventures) are calling for a more diversified approach within AI and caution against the short-term hype we have seen a few times before. There are already [some signals](https://www.theinformation.com/articles/stability-ai-facing-cash-crunch-discusses-sale) that [not all is well](https://news.ycombinator.com/item?id=40415803). [Gross Margins may not be that great](https://www.dropbox.com/scl/fi/1z0pgabgw21mkdtzlw11k/486dd523-8d8b-457f-b5b4-e81ac6194a77_1300x896.png?rlkey=wnwulexu0gmslrd3l820rgnpm&dl=0), either.

Link: https://www.dropbox.com/scl/fi/ygcnfqb7snpwaow3r8fgy/Q1_2024_US_VC_Valuations_Report.pdf?rlkey=57ekjzbhlkfg1hy1eibx4yzqs&dl=0

## 7. GROWTH

Coming off the back of last week's quite popular post on Growth Marketing - [is it even marketing in the first place?](https://www.em-v.com/blog/if-growth-is-not-marketing-then-what-is-growth-marketing) I like this find, and I've been sitting on it a little while - but share it with your marketing team: The [Strategic Growth Calendar Framework](https://growthhit.com/strategic-growth/) is a year-long blueprint that combines "Always On"growth channels with impactful "Marketing Moments." Emphasizing integrating steady, foundational channels like SEO and email with high-impact campaigns such as product launches, events, influencer collaborations, and the like. Aligning these strategies with seasonal demand over your calendar year optimizes planning and (hopefully) continuous/steady growth throughout the year.

Link: https://www.em-v.com/blog/if-growth-is-not-marketing-then-what-is-growth-marketing

## 8. AI LEAD GEN

I had a bit of a [unique GenAI moment this week](https://www.linkedin.com/posts/jonnydavies_i-experienced-a-first-today-an-inbound-lead-activity-7198513617443438592-kXDM?utm_source=share&utm_medium=member_desktop), my first inbound lead from ChatGPT and hopefully not the last. Do we need a form of LLM SEO? Meta is also now sticking generative features into [its core advertising platform](https://www.facebook.com/business/news/Introducing-Enhanced-Gen-AI-Features-and-Other-Tools-to-Help-Build-Your-Business?lh_aid=3853160&lh_cid=n2pohyrqyq&di=3c07ebff86b55ab6614e74341e36139a), which lets ads be generated programmatically. The big question here: Will my organic traffic disappear because of AI?

Link: https://www.linkedin.com/posts/jonnydavies_i-experienced-a-first-today-an-inbound-lead-activity-7198513617443438592-kXDM?utm_source=share&utm_medium=member_desktop

## 9. ADVISORS

Startups need them; often they can be a little over plentiful and a little predatory. If you find a sound advisor, how should they be compensated? Peter Walker from Carta [has some data for you](https://www.linkedin.com/feed/update/urn:li:activity:7196639132826185728/?lh_aid=3853160&lh_cid=n2pohyrqyq&di=3c07ebff86b55ab6614e74341e36139a). TL;DR market rates are 0.23%-0.07% median based on stage unless full-time hires who get 1% typically.

Link: https://www.linkedin.com/feed/update/urn:li:activity:7196639132826185728/?lh_aid=3853160&lh_cid=n2pohyrqyq&di=3c07ebff86b55ab6614e74341e36139a

## 10. CASE STUDY

Squarespace is now part of the [$1 Billion+ ARR Club](https://www.saastr.com/the-1-billion-arr-club/) with $1.1 billion in annual revenue. They have also decided to delist and go Private. At private sale, they were valued at $7 billion, which works out to be about 6x ARR and growing nearly 20% YoY.

Link: https://www.saastr.com/the-1-billion-arr-club/

## POD OF THE WEEK

Adding onto #1**, [Funnel and revenue math kindly explained by Mark Roberge and Matt Plank of Rippling](https://podcasts.apple.com/za/podcast/the-funnel-and-revenue-math-w-matt-plank-cro-rippling/id1692614906?i=1000625343513)** in the Science of Scaling podcast.

Link: https://podcasts.apple.com/za/podcast/the-funnel-and-revenue-math-w-matt-plank-cro-rippling/id1692614906?i=1000625343513