For many of today’s fastest growing SaaS startups, product usage serves as the primary driver of user acquisition, expansion and retention, meaning these companies can forgo spending large sums on traditional marketing and sales activities. Instead, they rely on the products themselves to supply a pipeline of satisfied users to convert to paying customers.
This phenomenon is what OpenView calls product-led growth – a capital efficient model through which companies can scale quickly. This philosophy has been championed by many of OpenView’s own portfolio companies.