The Official SaaStr Podcast: SaaS | Founders | Investors SaaStr 781: How to Think About Product-Led Growth, Bootstrapping vs VC, and Early Exits with Jason Lemkin
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Dec 18, 2024 Dive into key strategies for SaaS startups, including the vital differences between product-led growth and traditional funding methods. Explore the journey of bootstrapped companies, and learn about the nuances of venture capital versus private equity. Key insights on achieving product-market fit emphasize real customer demand over superficial relationships. The discussion also highlights sales strategies and the complexities of hiring a CEO, making it a treasure trove of practical advice for founders navigating a competitive landscape.
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PLG or Sales-Led
- Focus on either millions of cheap product users or thousands of expensive ones.
- Avoid the middle ground of a small number of converting users, which can lead to failure.
PE for Bootstrapped Companies
- Consider private equity (PE) if your bootstrapped SaaS company has $20M+ ARR and 20-40% growth.
- VCs likely won't invest due to insufficient growth, but PE firms find such companies attractive.
Product-Led Growth Requirements
- True product-led growth requires a massive market and a self-onboarding product.
- If your market or product isn't exceptional, a sales-led approach may be necessary.