Navigating economic uncertainty, Leveraging AI in software development, PLG as a compliment to SLG #0027

21/12/2023

NAVIGATING ECONOMIC UNCERTAINTY

Russ Heddleston, Founder at Distill, guids founders on how to build resilient companies amid economic challenges in "A blueprint for founders navigating economic uncertainty"

• Building a Solid Foundation: "Companies founded today must focus on becoming profitable while growing...keeping operations efficient and focused is vital for maximizing the potential for monetization."

• Adapting to Investor Preferences: "Investors are quick to walk away from a deal that doesn’t catch their eye immediately...Prioritizing quality over quantity in investor outreach and being intentional with building relationships creates trust."

• Efficient Sales Strategy: "Consider skipping a sales team early on and looking within. Founder-led sales before hiring a complete staff utilize the resources at hand."

• Product Scoping and Market Fit: "The quicker the target user is identified, the quicker the product can be monetized and profitable...ensuring some cash flow at an early stage is critical."

• Responding to Market Challenges: "A lot can be gleaned from interactions with investors...Remaining flexible and constantly reassessing and adjusting fundraising strategies helps build a stronger pitch."

LEVERAGE AI IN SOFTWARE DEVELOPMENT

Harry Stebbing, Founder @ 20VC interviews Gustav Söderström, Co-President, CPO & CTO at Spotify , Scott Belsky, Chief Strategy Officer, Executive Vice President of Design & Emerging Products at Adobe, Tomer Cohen, Chief Product Officer at LinkedIn to understand how AI assists in software development, its impact on developer roles and responsibilities, and the future trajectory of software development in “Roundtable #7: Spotify, Adobe and Linkedin on How AI Changes The Future of Product & Design | E1097“

• Adapt to an AI-First Mindset in Software Development:

  • Context: "You need to start figuring out how are you using these AI tools to help you be successful and it's no longer just the actual code writing, it's really evolving your thinking to the big picture."

  • Suggestion: Founders should encourage their teams to adopt an AI-first approach. This means thinking beyond traditional coding and considering how AI can be integrated into various aspects of software development and system architecture.

• Focusing on Developer Happiness and Retention:

  • Context: "We know that in a survey that we have run through our users, 85% of that percent felt more confident in their code quality and also code reviews were completed 15% faster."

  • Suggestion: Use AI tools not just for productivity but also for enhancing developer satisfaction and confidence. Happy developers are more likely to stay with your startup, reducing turnover and fostering a more stable development environment.

• AI Tools as a Learning Accelerant for Junior Developers:

  • Context: "The junior developers when they start usually we expect them to be able to write simple code but if now there is an AI assistant that is helping them writing code, they can spend more time from the get-go understanding the system, understanding the environment that they are building."

  • Suggestion: Utilize AI tools to fast-track the learning curve for junior developers. This can help them quickly move beyond basic coding to understanding larger systems and the broader context of their projects.

PLG AS A COMPLIMENT TO SLG

Jason M. Lemkin, SaaStr and SaaStr VC Founder and Henry Schuck, CEO & Founder at ZoomInfo discuss the opportunity of doing both product led and sales led motion simultaneously, and how his sales teams are benefiting from AI in “Running a PLG and Sales-Led Motion at the Same Time: What’s New at ZoomInfo with CEO Henry Schuck”

• ZoomInfo's Dual Approach: PLG and Enterprise Sales:

  • "...we’re doubling down on Product-Led Growth (PLG) and going Enterprise simultaneously... In Enterprise, we have around 2,000 companies spending $100k or more [...] At the same time – there are only 1,000 Fortune 1k companies, right? [...] So to serve both segments at the simultaneously, ZoomInfo has been rolling out a Product-led sales motion, that gives the ability for an SMB customer to sign up directly on their website for a free trial and grow into a paid customer, without ever having to talk to an sales rep or go through a demo process."

• On Focusing Enterprise Expansion:

  • "It’s a better use of time and a much more efficient sales cycle to focus the team on expanding and attracting these Enterprise accounts, rather than having them follow up and call every person when they could sign up for the platform now themselves."

• On Integrating Advanced AI:

  • "AI has allowed ZoomInfo to now instead, automate this process incredibly well so that whenever a user comes in, it’s already preconfigured and personalized exactly to which companies, intent, people, and signals are important. It also delivers contextual information for what your communications to those companies should be based on your website, case studies, and its understanding of your business."

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