Snyk: How Freemium Can Help Your Start-up Grow from Series A to $2.6B in 30 Months
Snyk was founded with the mission to help developers make their code secure, providing a platform to automatically assess and remediate open source vulnerabilities. The company’s success has been largely driven by its developer-led freemium model, going from Series A funding to a valuation of $2.6B in just 30 months.
Accel had the chance to lead Snyk’s Series A 30 months ago and then the Series B a year later, before the company reached unicorn status with its $150m Series C in late 2019. It recently announced the closing of a $200m round at $2.6B.
Earlier this year, I was on a panel with Guy Podjarny, Snyk’s founder, at SaaStock Remote to discuss how the team’s community-driven freemium approach led to the company’s stellar growth. Here’s a short summary of the discussion:
Guy, you launched Snyk in 2015, and a large part of your success was driven by your freemium model. With COVID, we’re getting into a world with tighter budgets and likely longer sales cycles. How can a product-led sales motion help in the current environment, and how important is a freemium model to drive product-led growth?
Guy: To give you more context, at Snyk, we have this interesting combination of user and buyer. The two aren’t the same. The most important user of our product is the developer. However, the entity in the organization with the job of keeping the organization secure and the budget to accommodate for that is the security team. As we wanted a direct path (Read more...)