# Top 10 in Tech - What to know for Week ending August 4, 2023 Published: 30 July 2023 Canonical: https://www.top10in.tech/posts/week-ending-august-4-2023 ## 1. SaaS METRIC OF THE WEEK Developer productivity: There are two primary frameworks for measuring developer productivity: [DORA](https://www.leanix.net/en/wiki/vsm/dora-metrics) (with a free poster!) or [the GitLab source](https://docs.gitlab.com/ee/user/analytics/dora_metrics.html). 5 metrics for a four-letter acronym to measure DevOps performance and [SPACE](https://queue.acm.org/detail.cfm?id=3454124) - a more holistic framework for [productivity](https://future.com/on-workplace-productivity/). And also, as a little bonus, how to measure [DevEx](https://queue.acm.org/detail.cfm?id=3595878) (Developer Experience) Link: https://www.leanix.net/en/wiki/vsm/dora-metrics ## 2. ANNUAL DISCOUNT If, like me, you are [part of the great SaaS Ponzi Scheme](https://twitter.com/top10intech/status/1460448403326844933?s=20), it may come as no surprise to you that annual contracts are discounted. But how much? [10% is the median - and the range is tighter than I thought - 6%-14%](https://www.forentrepreneurs.com/wp-content/uploads/2021/10/Slide49.png). Link: https://twitter.com/top10intech/status/1460448403326844933?s=20 ## 3. FRAMEWORKS Beyond the above laws, a successful framework can distill complex processes or models to make execution more of a simple recipe. Kinda why OKRs exist. Sarah Tavel has [compiled a great list of compelling Frameworks](https://sarahtavel.medium.com/frameworks-12c220e775eb) covering: The 10x model, The hierarchy of engagement, Hype cycles, and more! Link: https://sarahtavel.medium.com/frameworks-12c220e775eb ## 4. DUE DILIGENCE As reported last week, Startup formation has significantly declined[over the past 3 years](https://news.crunchbase.com/venture/startup-creation-challenges-opportunities-charts-sagie/). Some of which is VC based. This means that Due Diligence of the VC kind has gotten more complicated and longer. So read [this article from Allison Weil Lechnir at Hyde Park Venture Partners](https://www.hydeparkvp.com/articles/vc-explained-diligence-process?) for great insight into what VCs expect when deciding to invest. FE International has a [similar article but written from an acquisitions lens](https://feinternational.com/blog/saas-due-diligence-how-to-evaluate-a-saas-business-model). Link: https://news.crunchbase.com/venture/startup-creation-challenges-opportunities-charts-sagie/ ## 5. CAPITAL Another follow-up from last week's report on the significant decline in Startup formation over the past 3 years comes with news that [Sequoia Capital has downsized two of its recent funds](https://www.wsj.com/articles/sequoia-capital-slashes-crypto-fund-as-it-downsizes-amid-startup-crunch-f396bb0b) - the crypto fund is down from $585M to $200M. They also halved the ecosystem fund from $900M to $450M. This is likely to provide/return liquidity to their partners - it also looks like Sequoia is going through some [non-fund restructuring](https://www.forbes.com/sites/kenrickcai/2023/07/24/sequoia-talent-team-layoffs-firm-restructuring/?sh=24caed425f4f). Link: https://www.wsj.com/articles/sequoia-capital-slashes-crypto-fund-as-it-downsizes-amid-startup-crunch-f396bb0b ## 6. MOBILE 2022 was a negative growth year both in app downloads and mobile consumer spend but in H1 2023, [$67.5 billion in consumer spend and 76.8 billion app downloads were measured globally across iOS and Google Play](https://www.data.ai/en/insights/market-data/h1-2023-market-pulse-apps/?mkt_tok=MDcxLVFFRC0yODQAAAGNSB7_bG2ZXJ2HK5ec2ex2DIqR9FvKsbVfA1ykC_jayx-_W9imoZ7ChCIV6yhjK1xGHMn91eA7zRLPX_nG_xfG0_Zop8HwiEuyywJJSg2TDCnbO3E) (that's a 5.3% and 3.2% increase respectively), most of the spend was on iOS (5.8% vs. 4.3% on Google Play). TikTok is the major player in consumer spending outside of gaming -31% growth. At the same time, other apps that rely on subscriptions, such as Disney+, YouTube, and Duolingo, also delivered solid growth at 33%, 39%, and 48%, respectively. Link: https://www.data.ai/en/insights/market-data/h1-2023-market-pulse-apps/?mkt_tok=MDcxLVFFRC0yODQAAAGNSB7_bG2ZXJ2HK5ec2ex2DIqR9FvKsbVfA1ykC_jayx-_W9imoZ7ChCIV6yhjK1xGHMn91eA7zRLPX_nG_xfG0_Zop8HwiEuyywJJSg2TDCnbO3E ## 7. APPLE-GPT Get outta the way Siri, expanding on #6 above, to keep their iOS stronghold in terms of Mobile Growth; how might more modern AI fit into the Apple Empire? Take a read of [this analysis and report from Bloomberg](https://finance.yahoo.com/news/apple-tests-apple-gpt-develops-161551252.html). Historically, they may be [late to the party](https://www.computerworld.com/article/3703129/apple-eyes-a-late-arrival-to-the-generative-ai-party.html) with these significant technology adoptions - but their execution is where they excel. Link: https://finance.yahoo.com/news/apple-tests-apple-gpt-develops-161551252.html ## 8. SALES COMP (PLG) Figuring out the proper sales comp and plan is super tricky for high-growth companies, and it gets even trickier for [companies that have PLG + Sales](https://www.maxio.com/blog/sales-led-vs-product-led-why-you-dont-have-to-choose). So check [this guide on PLG Comp Plans](https://openviewpartners.com/blog/your-guide-to-sales-compensation-plg/?) from the team over at OpenView. Link: https://www.maxio.com/blog/sales-led-vs-product-led-why-you-dont-have-to-choose ## 9. FOLLOW-UP I probably push this too hard on Sales follow-ups and nudges, so I needed to subject myself to this article last week: [How often to follow up: Follow-up Frequency to Close Deals Instead of Annoying People](https://blog.close.com/how-often-should-you-follow-up). It was great to see "Way more than you think." though 🙂 . There is also this concept of the "Rule of 7," which states that a potential customer needs to see or hear your message seven times before they buy something. Link: https://blog.close.com/how-often-should-you-follow-up ## 10. CASE STUDY [Z-Scaler is probably got some of the best growth metrics out there](https://www.saastr.com/5-interesting-learnings-from-zscaler-at-1-5-billion-in-arr/), and most people have never heard of them - FYI, they are a cloud security company: $1.5 Billion ARR, 125% NDR, 46% YoY Groth and 45% of revenue is non-US. Link: https://www.saastr.com/5-interesting-learnings-from-zscaler-at-1-5-billion-in-arr/ ## POD OF THE WEEK From Lenny's Newsletter and complimenting #1 this week: [How to measure and improve developer productivity](https://www.lennysnewsletter.com/p/how-to-measure-and-improve-developer) from Nicole Forsgren (Microsoft Research, GitHub, Google). Link: https://www.lennysnewsletter.com/p/how-to-measure-and-improve-developer