# Top 10 in Tech - What to know for Week ending October 20, 2023

Published: 19 October 2023
Canonical: https://www.top10in.tech/posts/week-ending-october-20-2023

## 1. SaaS METRIC OF THE WEEK

Usage-based pricing and MRR/ARR models are often mentally complex to compute collectively (I know this from experience), so [this article was a sight for sore eyes earlier this week, discussing the mental mapping required from Annual to Monthly and Usage-Based Metrics](https://kellblog.com/2022/10/13/mapping-from-annual-to-monthly-and-usage-based-saas-metrics/) (and introducing Implied ARR) from [David Kellogg](https://twitter.com/Kellblog). A recent analysis of usage-based pricing from Bessemer Ventures is [here](https://www.bvp.com/atlas/linear-volumetric-or-bundling-which-type-of-usage-based-pricing-is-right-for-you) to help you think about your own pricing models.

Link: https://kellblog.com/2022/10/13/mapping-from-annual-to-monthly-and-usage-based-saas-metrics/

## 2. VERTICAL SAAS

A lot of Big Tech is threatened by narrowly focused SaaS companies taking market share in niche areas and building massive businesses (for example, Toast is currently valued at [$10B +](https://beststocks.com/toast-inc-unveils-strong-revenue-projections/)). Check [the difference between vertical and horizontal SaaS here](https://www.koombea.com/blog/vertical-horizontal-saas/). Then, look at [how these vertical SaaS companies are taking market share from those cloud giants](https://www.protocol.com/enterprise/vertical-saas-platform-industry-cloud) and how [AI may accelerate everything in Vertical SaaS](https://medium.com/point-nine-news/will-ai-accelerate-vertical-saas-adoption-2889de09f936) even more.

Link: https://beststocks.com/toast-inc-unveils-strong-revenue-projections/

## 3. VENTURE

According to a new report from Pitchbook - [VC funds have hit a pretty significant low](https://pitchbook.com/news/articles/VC-performance-IRR-down-double-digits), -17% (that's a minus, not a hyphen), the worst in a decade. Downhill, this means that Firms will need more access to capital. Stability is forecasted for 2023, though, with generative AI as the promising focus.

Link: https://pitchbook.com/news/articles/VC-performance-IRR-down-double-digits

## 4. EXPONENTIAL GROWTH

It's all marketing hype and doesn't exist in real life. [Take a look at this article, which explains it more](https://longform.asmartbear.com/docs/exponential-growth/) by taking a deep dive into the numbers of "Exponential" companies such as Slack ($0-$10m ARR in 10 months!!), Facebook, and HubSpot. [According to McKinsey](https://www.dropbox.com/s/92toit0p31z2pi7/saas-and-the-rule-of-40-keys-to-the-critical-value-creation-metric.pdf?dl=0), despite the sector's image as a bastion of hypergrowth, only a tiny share of SaaS companies sustains growth rates above 30 to 40 percent.

Link: https://longform.asmartbear.com/docs/exponential-growth/

## 5. DEVOPS

Google Cloud's DevOps Research and Assessment (DORA) team has just released their [2023 DevOps report](https://services.google.com/fh/files/misc/2023_final_report_sodr.pdf). AI has yet to deliver substantial benefits to development teams - but in my experience, that is a lagging metric. Current key success factors for high-performing teams include user-focused development, rapid code reviews, and a high-trust culture.

Link: https://services.google.com/fh/files/misc/2023_final_report_sodr.pdf

## 6. CONTENT MARKETING

Mastering great content writing is a skill - and I've [snagged an excellent guide for us all here](https://www.dropbox.com/s/w3az7q1haxqxrs9/mastering-content-writing-businesses.pdf?dl=0) on that topic; here[is great info on how to plan a data-backed B2B content marketing strategy](https://www.smartinsights.com/b2b-digital-marketing/b2b-content-marketing/how-to-plan-data-backed-b2b-content-marketing-strategy/)

Link: https://www.dropbox.com/s/w3az7q1haxqxrs9/mastering-content-writing-businesses.pdf?dl=0

## 7. FREEMIUM

Freemium is only sometimes [the best pricing strategy for every SaaS startup](https://wraptext.equals.com/the-fallacy-of-freemium-in-saas). Beyond free trials and freemium models, you can give your users [Opt-In Free Trials, Opt-Out Free Trials, Usage-Based Free Trials, Freemium, New Products, and Sandboxes](https://productled.com/blog/6-product-led-free-models-and-examples).

Link: https://wraptext.equals.com/the-fallacy-of-freemium-in-saas

## 8. -1 to 0

One for your tech-dictionaries and inspiration read when you need to think differently. In startup land, it's a tech-ism on "going from 0 to 1". But [this article argues that we are missing a step - the "-1 to 0" stage](https://blog.southparkcommons.com/what-is-negative-1-to-0/) is key. It's choosing your next decade's focus and replacing good ideas with great ones.

Link: https://blog.southparkcommons.com/what-is-negative-1-to-0/

## 9. TECHNO OPTIMIST

Don't put away your tech dictionaries just yet - pencil this one in and save it for when you have time, as it's a longer form read to process. Andreessen Horowitz is back with a new, post-pandemic manifesto, '[The Techno-Optimist Manifesto](https://a16z.com/the-techno-optimist-manifesto/?).' Their Pandemic Manifesto was "[Time to Build](https://a16z.com/its-time-to-build/)," this new one is an extension of that that argues against the current pessimistic view of technology, embracing it as a crucial driver of societal progress and solution to problems. It encourages fostering growth through technology, asserting that it's pivotal for overcoming challenges and improving human living standards.

Link: https://a16z.com/the-techno-optimist-manifesto/?

## 10. CASE STUDY

Supabase's CTO discusses the company's unique "[Launch Week](https://supabase.com/blog/supabase-how-we-launch)" approach, emphasizing regular product updates and team autonomy. Integral to their Product-Led Growth strategy, this method has shifted the needle with their growth.

Link: https://supabase.com/blog/supabase-how-we-launch

## POD OF THE WEEK

Beneficial for me **- [Modern Engineering Management](https://www.heavybit.com/library/video/modern-engineering-management-with-russell-smith)** with Russell Smith, co-founder and CTO at Rainforest QA. He discusses some core engineering management concepts essential for success in today's fast-paced, mainly remote, and highly competitive engineering environment.

Link: https://www.heavybit.com/library/video/modern-engineering-management-with-russell-smith