# Top 10 in Tech - What to know for Week ending October 21, 2022

Published: 20 October 2022
Canonical: https://www.top10in.tech/posts/week-ending-october-21-2022

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

So, according to [CatchJS](http://catchjs.com), we're all [calculating churn rates wrong](https://catchjs.com/Blog/Churn). But if you love Statistics, the article is worth reading. It even gives some Python code to perform the more complicated probability-based equation they recommend. Is this not how you want to start your new year? Then check out [this tool](https://docs.google.com/spreadsheets/d/1ruI7JYoTpGdabZI_nB4S5un7FmLWXyXRYPtY8WRYnPQ/edit)(as a handy Google Sheet) from Newfund as a way to analyze the strength of revenue streams for any B2B startup. A complimentary article outlining the methodology behind the tool is [here (and you should read it first)](https://medium.com/entrepreneurial-resolutions/how-to-analyze-your-revenues-resiliency-e853a327c556).

Link: http://catchjs.com

## 2. BILLING AND PRICING

What are your pricing plans for 2023? Check this [joint report from SaaS Optics and Chargify on B2B SaaS Trends in Billing & Financial Operations](https://www.dropbox.com/s/z62yst3jk8i8d2u/2022_Trends_Report.pdf?dl=0) to benchmark yourself. According to this report, Forty-Two percent of us opt for a sales-negotiated pricing model. Additionally, 37% are planning to expand into new pricing models. A variable pricing model (such as consumption-based pricing) is the most desired addition. ARR remains the top priority for most SaaS businesses.

Link: https://www.dropbox.com/s/z62yst3jk8i8d2u/2022_Trends_Report.pdf?dl=0

## 3. PRODUCT

Now matter how much Workshopping and strategy development go into a Product, things don't always work out IRL. First Round Review is back again this week to discuss this topic and have a [list of things to avoid when building highly-technical products](https://review.firstround.com/how-product-strategy-fails-in-the-real-world-what-to-avoid-when-building-highly-technical-products).

Link: https://review.firstround.com/how-product-strategy-fails-in-the-real-world-what-to-avoid-when-building-highly-technical-products

## 4. DIGITAL TRANSFORMATION

I learned this during the GFC recession: Inflation and other economic factors pressure below-the-line business costs (Capex and Opex). This, in turn, triggers a bunch of Technology based transformations within a company to optimize productivity and lower operational costs. According to [this report, 70% of CFOs agree and are ready for aggressive tech investments.](https://www.ciodive.com/news/inflation-technology-digital-investments/633788/) Plenty of B2B SaaS opportunities are in store.

Link: https://www.ciodive.com/news/inflation-technology-digital-investments/633788/

## 5. VENTURE 1 (CAPITAL)

In the US, California-based Startups remain the poster child for VC investment according to [Pitchbook's Q3 report](https://nvca.org/wp-content/uploads/2022/10/Q3_2022_PitchBook-NVCA_Venture_Monitor.pdf) by raising 3x more than New York-based startups, who were in second place on a [State by State](https://docs.google.com/spreadsheets/d/1h-gAoxSad-Iga3aJ1JESW-Ur7ncM_Tm0/edit#gid=2088535098) measure. Meanwhile, on the other side of the pond, European VC funding dropped [43% for Q3 22](https://public.flourish.studio/visualisation/11439542/?utm_source=showcase&utm_campaign=visualisation/11439542) compared to Q3 21, and the UK is down [60% from last quarter](https://sifted.eu/articles/q3-2022-in-data/).

Link: https://nvca.org/wp-content/uploads/2022/10/Q3_2022_PitchBook-NVCA_Venture_Monitor.pdf

## 6. VENTURE 2 (DEBT)

[Venture debt levels halved in Q3 22 ($4.7B) compared to Q2 ($9.7B)](https://pitchbook.com/news/articles/structured-equity-liquidation-preference-startup-funding) - rising interest rates are likely to blame. In addition, structured financing deals have [become common with restrictive terms that favor investors and structured debt](https://inside.com/vc/posts/startups-raising-up-rounds-with-steep-liquidation-preferences-320468) (convertible, warrants, preferred equity financing). Investor-friendly deals like this are preferred to the other dreaded option - raising down rounds. There is so much to learn in these new down markets.

Link: https://pitchbook.com/news/articles/structured-equity-liquidation-preference-startup-funding

## 7. FINTECH CLOUD

I need to yell this one: NINE OUT OF TEN BANKS STILL USE FRIGGIN MAINFRAMES! So, because it's not 1982, [check out what Google and Amazon are doing](https://www.protocol.com/enterprise/google-cloud-dual-run-mainframe) to get this FinTech business via their Mainframe migration tools called [Dual Run](https://cloud.google.com/blog/products/infrastructure-modernization/open-infrastructure-announcements-at-google-cloud-next) and [AWS Mainframe Modernization](https://docs.aws.amazon.com/m2/latest/userguide/what-is-m2.html). Public Cloud, across the board, is [aggressively coming after businesses' budgets](https://www.ciodive.com/news/AWS-Microsoft-Google-hyperscalers-cloud-budget/633979/).

Link: https://www.protocol.com/enterprise/google-cloud-dual-run-mainframe

## 8. GREEN vs. BLUE

Apple is a business who have done something impressive: They have [locked in a new generation of users using peer pressure and color](https://appleinsider.com/articles/22/01/08/green-texts-in-imessages-nudges-teens-to-use-iphones). Thanks to the use of a [gross green color](https://uxdesign.cc/how-apple-makes-you-think-green-bubbles-gross-e03b52b12fed) and mainly because of the group vibe of Apple Messenger - keeping things strictly Blue-bubbled in peer-based groups has led to [iPhone ownership among US Teens hitting almost 90%](https://www.pipersandler.com/1col.aspx?id=6216), more than double since 2012.

Link: https://appleinsider.com/articles/22/01/08/green-texts-in-imessages-nudges-teens-to-use-iphones

## 9. CUSTOMER

There was an interesting discussion in one of my Slack groups a few weeks back about customer surveys and how customers know the past best and not necessarily the future. It got me thinking way more than most comments, and [this article validated why earlier this week](https://hackernoon.com/how-to-stay-user-focused-as-a-product-manager). I'm always listening to customers, what they talk about, the problems in their business, how they talk, etc. So when it comes to Product, it's important to be [user-focused and not necessarily user-led.](https://www.linkedin.com/pulse/customer-focused-product-management-kooper-barton)

Link: https://hackernoon.com/how-to-stay-user-focused-as-a-product-manager

## 10. CASE STUDY

The study of a SaaS CEO. This one is a rollercoaster of totally relatable anguish and smiles. From SaaStr: [5 Very Good Days, and 5 Pretty Bad Days, as a SaaS CEO](https://www.saastr.com/5-very-good-days-and-5-pretty-bad-days-as-a-saas-ceo/).

Link: https://www.saastr.com/5-very-good-days-and-5-pretty-bad-days-as-a-saas-ceo/

## POD OF THE WEEK

*If it ain't blue, I can't be friends with you". [This is the podcast version of #8 above - about how iPhone users judge other people with green text bubbles](https://podcasts.apple.com/us/podcast/why-do-iphone-users-judge-people-with-green-text-bubbles/id1295289748?i=1000438156122)*. A great podcast about how Technology forces us to make specific choices.

Link: https://podcasts.apple.com/us/podcast/why-do-iphone-users-judge-people-with-green-text-bubbles/id1295289748?i=1000438156122