Adlega Blog:
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Horizontal SaaS
What is Horizontal SaaS? Horizontal SaaS refers to software that can be used by any business, regardless of industry. Think of it as the “one-size-fits-many” approach to software. Key characteristics: Industry-agnostic solutions Broad market appeal General business functions Wide user base Standardized features 👆 By the way, an interesting fact: The term “horizontal” in business…
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Value Proposition: Definition, Examples & How to Write One
A value proposition is a clear statement of how your product solves a customer's problem, the benefits it delivers, and why they should choose you over competitors. It's your product's elevator pitch.…
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Engagement Loop
What is an Engagement Loop? An engagement loop is a cycle of actions and rewards designed into a product that encourages users to engage repeatedly. It’s like a continuous feedback cycle where each action leads to a reward, which motivates more actions. 🔄 What makes it work: Triggers that prompt action Clear user actions Rewarding…
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Product-Led Growth (PLG): Definition, Examples & vs Sales-Led
Product-led growth (PLG) is a go-to-market strategy where the product itself drives acquisition, conversion, and expansion, letting users try and adopt it with little or no sales involvement. Used by Slack, Zoom, Dropbox, and Canva.…
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Product-Market Fit
What is Product-Market Fit? Product-Market Fit (PMF) means creating something people want so much they’re telling others about it! Think of it as the perfect match between your product and your customers’ needs 💝 It means: Your product solves a real problem Customers love using it They’re willing to pay for it They recommend it…
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Bootstrapping a SaaS Startup: What It Means and the 2026 Benchmarks vs VC-Backed Companies
Bootstrapping means building a company on your own money and customer revenue instead of outside investors. Here is what that looks like in 2026 numbers: growth, retention, spending and profitability for bootstrapped versus equity-backed SaaS companies.…
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Venture Capitalist: What They Do & How They Make Money
A venture capitalist (VC) is a professional investor who manages a fund of other people's money and invests it in high-growth startups. VCs make money through management fees and carried interest, the '2 and 20' model, and take active roles like board seats.…
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Angel Investor: Definition, Examples & vs Venture Capital
An angel investor is a wealthy individual who invests their own money in early-stage startups in exchange for equity, typically $10K–$500K plus mentorship and connections. Unlike VCs, angels use personal funds, invest earlier, and decide faster.…
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Accounts Receivable (AR): Definition, Formula & vs Payable
Accounts receivable (AR) is money customers owe you for products or services already delivered but not yet paid for. It's a current asset on the balance sheet, the opposite of accounts payable (AP).…
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Net Revenue Retention (NRR)
What is Net Revenue Retention (NRR) in SaaS? Net Revenue Retention measures how much recurring revenue you keep from existing customers over time, including expansions, upgrades, downgrades, and cancellations. It is also called Net Dollar Retention (NDR). The private B2B SaaS median sits around 101-102%, but that number hides a wide split by contract size.…
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SaaS Gross Margin: Formula, Benchmarks & How to Calculate
SaaS gross margin is the percentage of revenue left after the direct costs of delivering your software, hosting, support, and infrastructure. The formula is ((Revenue − COGS) ÷ Revenue) × 100. Best-in-class SaaS exceeds 80%.…
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Free Cash Flow
What is Free Cash Flow? Free Cash Flow (FCF) is the actual cash a company has left after paying for everything it needs to maintain and grow its business. It shows: How much cash is actually available Ability to fund growth Financial flexibility True operational efficiency 👆 By the way, an interesting fact: Warren Buffett…