min read
· Posted on
September 23, 2021

Aussie tech giant Atlassian zooms past a US$100 billion market cap

Atlassian have come a long way since 2002, when their now-billionaire founders used a $10k credit card to start their own software biz.

What's the key learning?

  • Aussie software company Atlassian became Australia's first unicorn back in 2015, with a US$1 billion valuation
  • Now, Atlassian's surpassed a whopping US$100 billion market cap - making it a hectocorn
  • The tech giant uses a product-led growth strategy. So, rather than spending on paid advertising, Atlassian lets its software products drive sales.

Background: Atlassian is the Aussie software company founded by now-billionaires Mike Cannon-Brookes and Scott Farquhar. They used a $10k credit card to start the biz, and they launched the first version of their flagship product, Jira, back in April 2002.

What happened: The crew turned over $1 million in their first year. 19 years later, they are turning over US$2.1bn. Now, Atlassian boasts nifty products like Confluence, Trello, and of course - Jira.

What else: The company became Australia's first unicorn - aka reached the US$1 billion valuation mark - back in 2015 after a record IPO. Now, its market cap has surpassed a whopping US$100 billion - making it a hectocorn. And it's mainly thanks to its product-led growth strategy.

So what's the key learning?

💡Product-led growth is a business model, where user growth is driven by the company's product.

💡A company with a product-led growth strategy doesn't have a bloated sales team to drive sales. And, it doesn't spend a heap of money on paid advertising. Instead, it lets the product do the selling.

💡They often work using a "freemium" pricing model. In other words, the basic model is free to get started with...and when users realise they can't live without it, they pay for the premium access. It's what Atlassian's done since the get-go, and it's clearly working for them.

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