SlideShare ist ein Scribd-Unternehmen logo
1 von 57
State Of The Cloud 2019
BYRON DEETER
Partner
BVP
@bdeeter
KRISTINA SHEN
Partner
BVP
@kshenster
ANNA KHAN
Vice President
BVP
@annarchyy
Byron Deeter
Partner
BVP
@bdeeter
Kristina Shen
Partner
BVP
@kshenster
State Of The Cloud 2019
www.bvp.com/cloud
Anna Khan
Vice President
BVP
@annarchyy
BESSEMER’S
TOP 10 LAWS
OF CLOUD
COMPUTING
2008
0
HOW MANY $1B+
PRIVATE CLOUD
COMPANIES ARE
THERE, TODAY?
HOW MANY $1B+
PRIVATE CLOUD
COMPANIES ARE
THERE, TODAY?
Bessemer Venture Partners' 2019 State of the Cloud
55
S o u r c e : T e c h C r u n c h , F o r b e s , R e c o d e , M a r k e t W a t c h , M o r g a n S t a n l e y H e a d l i n e s
S A A S T R A N N U A L 2 0 1 9
S o u r c e : A r i L e v y , T w i t t e r
S A A S T R A N N U A L 2 0 1 9
2018 ALONE SAW >$90B
OF LARGE M&A
$1.9B
$2.9B$8B $7.5B
$2.4B $1.6B $1.4B
$33B
S o u r c e : C a p I Q a n d P i t c h b o o k
~$44B ALSO ADDED IN MARKET
CAP THROUGH CLOUD IPOS
S o u r c e : C a p I Q a n d P i t c h b o o k ( M a r k e t C a p a f t e r D a y 1 o f T r a d i n g . )
IN FACT THE BUYING DEMAND FOR
CLOUD SHARES HAS HIT RECORD HIGHS
VCDollarsRaised($B)
$MarketCap($B)
Comb in ed Clou d L iq u id ity 2 0 1 0 – 2 0 1 8 , an d VC I nvestments Rais ed
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
2010 2011 2012 2013 2014 2015 2016 2017 2018
M&A IPO VC Dollars Raised
S A A S T R A N N U A L 2 0 1 9
S o u r c e : C a p I Q a n d P i t c h b o o k
Bessemer Venture Partners' 2019 State of the Cloud
$0
$200
$400
2010 2011 2012 2013 2014 2015 2016
WE PREDICTED THE CLOUD MARKET
CAP WOULD HIT $500B IN 2020
$BMarketCap
Pu b lic Clou d Market Cap
S A A S T R A N N U A L 2 0 1 9
$250
S o u r c e : C a p I Q a n d P i t c h b o o k
WE PREDICTED THE CLOUD MARKET
CAP WOULD HIT $500B IN 2020
$BMarketCap
Pu b lic Clou d Market Cap
S A A S T R A N N U A L 2 0 1 9
$0
$200
$400
$600
$800
$1,000
$1,200
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
$500B
S o u r c e : C a p I Q a n d P i t c h b o o k
INSTEAD, WE HIT THE MARK 2 YEARS
EARLIER IN MARCH 2018
$BMarketCap
Pu b lic Clou d Market Cap
S A A S T R A N N U A L 2 0 1 9
$0
$200
$400
$600
$800
$1,000
$1,200
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
March 2nd 2018
$500B $500B
S o u r c e : C a p I Q a n d P i t c h b o o k
PUBLIC CLOUD HAS A PATH TO $1T+$BMarketCap
Total Clou d Market Cap
S A A S T R A N N U A L 2 0 1 9
$690B
Feb 5th 2019
$1T
$0
$200
$400
$600
$800
$1,000
$1,200
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
S o u r c e : C a p I Q a n d P i t c h b o o k
THE CLOUD 100 IS
VALUED AT $175B+
S o u r c e : P i t c h b o o k
HOW DO WE
PROTECT FOR
VOLATILITY ?
S A A S T R A N N U A L 2 0 1 9
BVP Nasdaq Emerging Cloud Index
HOW TO BUILD A
RESILIENT COMPANY
Q: WHEN WAS THE
LONGEST BULL
MARKET?
Longest Bull Run in
History ~10 years
2nd Longest Bull
Run 9.5 years
S o u r c e : y a h o o f i n a n c e . S & P 5 0 0 f r o m 1 9 5 0 t o 1 / 2 9 / 2 0 1 9 .
HOW TO BUILD A
RESILIENT COMPANY
GROWTH
(ARR)
S A A S T R A N N U A L 2 0 1 9
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
1 2 3 4 5 6 7 8 9 10 11 12 13 14
$ARR(inM)
Years
YEARS FROM $1M TO $100M ARR
S o u r c e : C a p I Q , i n t e r n a l s o u r c e s a n d c o m p a n y a n n o u n c e m e n t s .
N o t e : U s e q u a r t e r l y r e v e n u e t i m e s f o u r a s a p r o x y f o r A R R .
N o t e : A s s u m i n g i t t a k e s 2 4 m o n t h s f r o m f o u n d i n g t o $ 1 M A R R i f d o n o t h a v e a c t u a l d a t a .
S A A S T R A N N U A L 2 0 1 9
$100
YEARS FROM $1M TO $100M ARR
S A A S T R A N N U A L 2 0 1 9
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
1 2 3 4 5 6 7 8 9 10 11 12 13 14
$ARR(inM)
Years
Pu b lic Clou d Comp an ies
5.3 yrs
Top 25%
7.3 yrs
Median
10.6 yrs
Bottom
25%
S o u r c e : C a p I Q , i n t e r n a l s o u r c e s a n d c o m p a n y a n n o u n c e m e n t s . .
N o t e : U s e q u a r t e r l y r e v e n u e t i m e s f o u r a s a p r o x y f o r A R R .
N o t e : A s s u m i n g i t t a k e s 2 4 m o n t h s f r o m f o u n d i n g t o $ 1 M A R R i f d o n o t h a v e a c t u a l d a t a .
BVP GROWTH BENCHMARK
S A A S T R A N N U A L 2 0 1 9
F rom $ 1 mm ARR
Yearsto$10MARR
Yearsto$100MARR
3Years
7Years
4Years
10Years
2Years
5Years
BEST
GOOD
BETTER
HOW TO BUILD A
RESILIENT COMPANY
GROWTH
(ARR)
S A A S T R A N N U A L 2 0 1 9
RETENTION
IS YOUR
BEST FRIEND
RETENTION FOR DIFFERENT
CUSTOMER SEGMENTS
S A A S T R A N N U A L 2 0 1 9
Gross Retention 80 – 90%70 – 80% 90%+
Net Retention 90 – 120%80 – 100% 100%+
Average ACV $12 – $50K<$12k $50K+
SMB EnterpriseMidmarket
S A A S T R A N N U A L 2 0 1 9
RETENTION IS A MAJOR DRIVER
OF VALUATION
$40
$60
$85
$115
$150
$180
$200
50%
42%
35%
30% 20%
11%
0%
20%
40%
60%
80%
100%
$0
$50
$100
$150
$200
$250
$300
$350
2013 2014 2015 2016 2017 2018 2019
Net Retention 110%
Assumed 2019
Revenue Mult 10x
Enterprise
Value
$2.0bn
S A A S T R A N N U A L 2 0 1 9
AN ADDITIONAL 1% IN NET
RETENTION = $100M OF VALUE
Net Retention 125%
Enterprise
Value $3.5bn
Increased
Value +$1.5bn
$40
$66
$102
$148
$209
$276
$347
65%
54%
46%
41% 32%
26%
0%
20%
40%
60%
80%
100%
$0
$50
$100
$150
$200
$250
$300
$350
2013 2014 2015 2016 2017 2018 2019
S A A S T R A N N U A L 2 0 1 9
CHURN DRAMATICALLY
DECREASES VALUE
Net Retention 100%
Enterprise
Value $1.4bn
Decreased
Value -$630m
$40
$56
$75
$97
$120
$135 $137
40%
34%
29%
24%
13%
1%
0%
20%
40%
60%
80%
100%
$0
$50
$100
$150
$200
$250
$300
$350
2013 2014 2015 2016 2017 2018 2019
S A A S T R A N N U A L 2 0 1 9
+
HOW TO BUILD A
RESILIENT COMPANY
GROWTH
(ARR)
S A A S T R A N N U A L 2 0 1 9
RETENTION
IS YOUR
BEST FRIEND
IN THE
BANK
S A A S T R A N N U A L 2 0 1 9
S A A S T R A N N U A L 2 0 1 9
QUEEN
MANAGE
YOUR
RUNWAY
Buffer for
contingency plan
18 – 24 months
runway
Hiring is a big
lever
THINK ONE FINANCING AHEAD
ARR Reven u e Mu ltip les of Clou d Comp an ies
S o u r c e : C a p I Q , i n t e r n a l s o u r c e s a n d c o m p a n y a n n o u n c e m e n t s . P r i c e d a s o f 1 / 2 3 / 2 0 1 9
N o t e : U s e q u a r t e r l y r e v e n u e t i m e s f o u r a s a p r o x y f o r A R R .
I n c l u d e s 5 2 p u b l i c c l o u d c o m p a n i e s i n t h e E M C L O U D .
S A A S T R A N N U A L 2 0 1 9
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
1/1/11
5/1/11
9/1/11
1/1/12
5/1/12
9/1/12
1/1/13
5/1/13
9/1/13
1/1/14
5/1/14
9/1/14
1/1/15
5/1/15
9/1/15
1/1/16
5/1/16
9/1/16
1/1/17
5/1/17
9/1/17
1/1/18
5/1/18
9/1/18
1/1/19
Peak – Mar 2014
~10x
Trough – May 2014
5.8x
Trough – Feb 2016
4.6x
Current
9.8x
HOW TO BUILD A
RESILIENT COMPANY
GROWTH
(ARR)
S A A S T R A N N U A L 2 0 1 9
RETENTION
IS YOUR
BEST FRIEND
IN THE
BANK
TARGETED SPEND
(“EFFICIENCY”)
S A A S T R A N N U A L 2 0 1 9
DEFINING EFFICIENCY
Net New
ARR
Net Burn
=
BVP Efficiency
Score
(<$30M ARR)
S A A S T R A N N U A L 2 0 1 9
BVP Nasdaq Emerging Cloud Index
EFFICIENT
BUSINESSES
ARE
REWARDED
IN ALL
MARKETS
S A A S T R A N N U A L 2 0 1 9
BVP EFFICIENCY SCORE
(<$30M ARR)
BEST
> 1.5x
GOOD BETTERNet New ARR
Net Burn
= < 0.5x 0.5x – 1.5x
S A A S T R A N N U A L 2 0 1 9
$12
$24
($2)
Ending ARR Net Burn
($ in M)
BEST
> 1.5x
$12M
(= $24 - $12)
$2M
6.0x
BVP Efficiency Score
GOOD BETTERNet New ARR
Net Burn
= < 0.5x 0.5x – 1.5x
=
BVP EFFICIENCY SCORE
(<$30M ARR)
S A A S T R A N N U A L 2 0 1 9
HOW TO CALCULATE YOUR GRIT SCORE
+++Growth
(ARR)
In The Bank
Targeted
Spend
(Efficiency)
Retention
Is Your Best
Friend
%AnnualNet
Retention
%YoYGrowth YearsofRunway NetNewARR/
NetBurn
0.5–1.5x80–150% 1–3Years50–200%
= GRIT
SCORE
3–4
4–6
>6
GOOD
BETTER
BEST
S A A S T R A N N U A L 2 0 1 9
EXAMPLE 1 – TWILIO (<$5M ARR)
+++
%AnnualNet
Retention
%YoYGrowth Years ofRunway NetNewARR/
NetBurn
0.5–1.5x80–150% 1–3Years50–200%
= GRIT
SCORE
BEST
1.5
(1.5xEfficiency)
2
(2Years)
3
(300%+Growth)
1.6
(160%Retention)
8.1
G I TR
+++ =
S A A S T R A N N U A L 2 0 1 9
EXAMPLE 1 – SERVICETITAN (<$5M ARR)
+++
%AnnualNet
Retention
%YoYGrowth Years ofRunway NetNewARR/
NetBurn
0.5–1.5x80–150% 1–3Years50–200%
= GRIT
SCORE
BEST
3.4
(3.4xEfficiency)
2
(2Years)
2
(200%+Growth)
0.9
(90%Retention)
8.3
G I TR
+++ =
Bessemer Venture Partners' 2019 State of the Cloud
2019 PREDICTIONS
#1 ROBOTS TO THE RESCUE
AGRICULTURE
ACCOUNTING
CUSTOMER SUPPORT
MARKETING
AUDIT
FRAUD
SALES
HEALTHCARE
S A A S T R A N N U A L 2 0 1 9
#2 PRODUCT HAS PURSE STRINGS
$PRODUCT
SALES
SERVICES SUPPORT
MARKETING
S A A S T R A N N U A L 2 0 1 9
#3 OPENSOURCE MAKES MONEY
BiggestIPOEver
DeepBenchofStrong
Privates
LargestM&As
S A A S T R A N N U A L 2 0 1 9
#4 DEEPER VERTICALIZATION OF MOBILE
VERTICALSOFTWARE
CONSTRUCTION FIELD SERVICES RETAIL SALES
EDUCATIONWORKFORCE MGMT SAFETY/COMPLIANCE
FLEET TRANSPORTATION REAL ESTATE RECRUITING
S A A S T R A N N U A L 2 0 1 9
#5 LOW CODE/NO CODE
Developer BusinessAppsEasy
Automation
BESSEMER’S 5
PREDICTIONS
FOR 2019
1 Robots to the rescue
Product has purse strings2
Opensource makes money3
Deeper verticalization of mobile4
Low code/no code5
CLOUD REIGNS
$1 TRILLION
Bessemer Venture Partners' 2019 State of the Cloud
Thank You
www.bvp.com/cloud

Weitere ähnliche Inhalte

Was ist angesagt?

DocSend Fundraising Research: What we Learned from 200 Startups Who Raised $360M
DocSend Fundraising Research: What we Learned from 200 Startups Who Raised $360MDocSend Fundraising Research: What we Learned from 200 Startups Who Raised $360M
DocSend Fundraising Research: What we Learned from 200 Startups Who Raised $360MDocSend
 
Zero to 100 - Part 1: Intro + First Section
Zero to 100 - Part 1: Intro + First SectionZero to 100 - Part 1: Intro + First Section
Zero to 100 - Part 1: Intro + First SectionDavid Skok
 
ICONIQ Growth SaaStr Workshop Wednesdays vF (4).pptx
ICONIQ Growth SaaStr Workshop Wednesdays vF (4).pptxICONIQ Growth SaaStr Workshop Wednesdays vF (4).pptx
ICONIQ Growth SaaStr Workshop Wednesdays vF (4).pptxsaastr
 
Value Creation in SaaS Businesses
Value Creation in SaaS BusinessesValue Creation in SaaS Businesses
Value Creation in SaaS BusinessesBattery Ventures
 
Zero to 100 - Part 5: SaaS Business Model & Metrics
Zero to 100 - Part 5: SaaS Business Model & MetricsZero to 100 - Part 5: SaaS Business Model & Metrics
Zero to 100 - Part 5: SaaS Business Model & MetricsDavid Skok
 
A High Growth SaaS Playbook - 12 Metrics to Drive Success
A High Growth SaaS Playbook - 12 Metrics to Drive SuccessA High Growth SaaS Playbook - 12 Metrics to Drive Success
A High Growth SaaS Playbook - 12 Metrics to Drive SuccessSaaStock
 
Numbers that Actually Matter. Finding Your North Star
Numbers that Actually Matter. Finding Your North Star Numbers that Actually Matter. Finding Your North Star
Numbers that Actually Matter. Finding Your North Star Mamoon Hamid
 
12 Key Levers of SaaS Success
12 Key Levers of SaaS Success12 Key Levers of SaaS Success
12 Key Levers of SaaS SuccessDavid Skok
 
The SaaS business model and metrics
The SaaS business model and metricsThe SaaS business model and metrics
The SaaS business model and metricsDavid Skok
 
Zero to 100 - Part 6: Experiences putting Theory into Practice
Zero to 100 - Part 6: Experiences putting Theory into PracticeZero to 100 - Part 6: Experiences putting Theory into Practice
Zero to 100 - Part 6: Experiences putting Theory into PracticeDavid Skok
 
Time to Wow! and Buyer-centric Funnel Design
Time to Wow! and Buyer-centric Funnel DesignTime to Wow! and Buyer-centric Funnel Design
Time to Wow! and Buyer-centric Funnel DesignDavid Skok
 
The SaaS Founder’s Journey: What Matters at Each Stage
The SaaS Founder’s Journey: What Matters at Each StageThe SaaS Founder’s Journey: What Matters at Each Stage
The SaaS Founder’s Journey: What Matters at Each StageDavid Skok
 
Kiwi SaaS Metrics That Matter 2023^LLJ r2.2.pdf
Kiwi SaaS Metrics That Matter 2023^LLJ r2.2.pdfKiwi SaaS Metrics That Matter 2023^LLJ r2.2.pdf
Kiwi SaaS Metrics That Matter 2023^LLJ r2.2.pdfssuser62db4d1
 
Zero to 100 - Part 3: Founder-led Selling - Pete Kazanjy
Zero to 100 - Part 3: Founder-led Selling - Pete KazanjyZero to 100 - Part 3: Founder-led Selling - Pete Kazanjy
Zero to 100 - Part 3: Founder-led Selling - Pete KazanjyDavid Skok
 
How to scale a health tech business to $100M and beyond
How to scale a health tech business to $100M and beyondHow to scale a health tech business to $100M and beyond
How to scale a health tech business to $100M and beyondBessemer Venture Partners
 
Square pitch deck
Square pitch deckSquare pitch deck
Square pitch deckpitchenvy
 

Was ist angesagt? (20)

DocSend Fundraising Research: What we Learned from 200 Startups Who Raised $360M
DocSend Fundraising Research: What we Learned from 200 Startups Who Raised $360MDocSend Fundraising Research: What we Learned from 200 Startups Who Raised $360M
DocSend Fundraising Research: What we Learned from 200 Startups Who Raised $360M
 
State of the Cloud 2017
State of the Cloud 2017State of the Cloud 2017
State of the Cloud 2017
 
How to Build a Cloud Unicorn
How to Build a Cloud Unicorn How to Build a Cloud Unicorn
How to Build a Cloud Unicorn
 
Zero to 100 - Part 1: Intro + First Section
Zero to 100 - Part 1: Intro + First SectionZero to 100 - Part 1: Intro + First Section
Zero to 100 - Part 1: Intro + First Section
 
Bessemer's State of the Cloud 2021
Bessemer's State of the Cloud 2021Bessemer's State of the Cloud 2021
Bessemer's State of the Cloud 2021
 
ICONIQ Growth SaaStr Workshop Wednesdays vF (4).pptx
ICONIQ Growth SaaStr Workshop Wednesdays vF (4).pptxICONIQ Growth SaaStr Workshop Wednesdays vF (4).pptx
ICONIQ Growth SaaStr Workshop Wednesdays vF (4).pptx
 
Value Creation in SaaS Businesses
Value Creation in SaaS BusinessesValue Creation in SaaS Businesses
Value Creation in SaaS Businesses
 
Zero to 100 - Part 5: SaaS Business Model & Metrics
Zero to 100 - Part 5: SaaS Business Model & MetricsZero to 100 - Part 5: SaaS Business Model & Metrics
Zero to 100 - Part 5: SaaS Business Model & Metrics
 
A High Growth SaaS Playbook - 12 Metrics to Drive Success
A High Growth SaaS Playbook - 12 Metrics to Drive SuccessA High Growth SaaS Playbook - 12 Metrics to Drive Success
A High Growth SaaS Playbook - 12 Metrics to Drive Success
 
Numbers that Actually Matter. Finding Your North Star
Numbers that Actually Matter. Finding Your North Star Numbers that Actually Matter. Finding Your North Star
Numbers that Actually Matter. Finding Your North Star
 
12 Key Levers of SaaS Success
12 Key Levers of SaaS Success12 Key Levers of SaaS Success
12 Key Levers of SaaS Success
 
The SaaS business model and metrics
The SaaS business model and metricsThe SaaS business model and metrics
The SaaS business model and metrics
 
Zero to 100 - Part 6: Experiences putting Theory into Practice
Zero to 100 - Part 6: Experiences putting Theory into PracticeZero to 100 - Part 6: Experiences putting Theory into Practice
Zero to 100 - Part 6: Experiences putting Theory into Practice
 
Time to Wow! and Buyer-centric Funnel Design
Time to Wow! and Buyer-centric Funnel DesignTime to Wow! and Buyer-centric Funnel Design
Time to Wow! and Buyer-centric Funnel Design
 
The SaaS Founder’s Journey: What Matters at Each Stage
The SaaS Founder’s Journey: What Matters at Each StageThe SaaS Founder’s Journey: What Matters at Each Stage
The SaaS Founder’s Journey: What Matters at Each Stage
 
Kiwi SaaS Metrics That Matter 2023^LLJ r2.2.pdf
Kiwi SaaS Metrics That Matter 2023^LLJ r2.2.pdfKiwi SaaS Metrics That Matter 2023^LLJ r2.2.pdf
Kiwi SaaS Metrics That Matter 2023^LLJ r2.2.pdf
 
Zero to 100 - Part 3: Founder-led Selling - Pete Kazanjy
Zero to 100 - Part 3: Founder-led Selling - Pete KazanjyZero to 100 - Part 3: Founder-led Selling - Pete Kazanjy
Zero to 100 - Part 3: Founder-led Selling - Pete Kazanjy
 
How to scale a health tech business to $100M and beyond
How to scale a health tech business to $100M and beyondHow to scale a health tech business to $100M and beyond
How to scale a health tech business to $100M and beyond
 
Square pitch deck
Square pitch deckSquare pitch deck
Square pitch deck
 
Front Series B Deck
Front Series B DeckFront Series B Deck
Front Series B Deck
 

Ähnlich wie Bessemer Venture Partners' 2019 State of the Cloud

State of the Cloud 2019 from Bessemer Venture Partners
State of the Cloud 2019 from Bessemer Venture PartnersState of the Cloud 2019 from Bessemer Venture Partners
State of the Cloud 2019 from Bessemer Venture Partnerssaastr
 
State of the Cloud 2019: Europa Edition with Bessemer Venture Partners
State of the Cloud 2019: Europa Edition with Bessemer Venture PartnersState of the Cloud 2019: Europa Edition with Bessemer Venture Partners
State of the Cloud 2019: Europa Edition with Bessemer Venture Partnerssaastr
 
Canadian Government Grants--2018 and Beyond
Canadian Government Grants--2018 and BeyondCanadian Government Grants--2018 and Beyond
Canadian Government Grants--2018 and BeyondReza Akhlaghi
 
Explore Canadian Government Grants for Your Business
Explore Canadian Government Grants for Your BusinessExplore Canadian Government Grants for Your Business
Explore Canadian Government Grants for Your BusinessRDP Associates
 
SunFunder @ MakerHaus Make-Good-Society Series
SunFunder @ MakerHaus Make-Good-Society SeriesSunFunder @ MakerHaus Make-Good-Society Series
SunFunder @ MakerHaus Make-Good-Society SeriesSameer Halai
 
SunFunder Talk @ Makerhaus Make-Good-Society
SunFunder Talk @ Makerhaus Make-Good-SocietySunFunder Talk @ Makerhaus Make-Good-Society
SunFunder Talk @ Makerhaus Make-Good-SocietySameer Halai
 
EIA2018Portugal - David Carvalhao - The ABC of Fundraising
EIA2018Portugal - David Carvalhao - The ABC of FundraisingEIA2018Portugal - David Carvalhao - The ABC of Fundraising
EIA2018Portugal - David Carvalhao - The ABC of FundraisingEuropean Innovation Academy
 
Online video Landscape
Online video LandscapeOnline video Landscape
Online video LandscapeQuid Inc.
 
Work_SheetEnter the appropriate amount or item in the shaded cells.docx
Work_SheetEnter the appropriate amount or item in the shaded cells.docxWork_SheetEnter the appropriate amount or item in the shaded cells.docx
Work_SheetEnter the appropriate amount or item in the shaded cells.docxambersalomon88660
 
Minnesota's Value of Solar: Can a Northern State’s New Solar Policy Defuse Di...
Minnesota's Value of Solar: Can a Northern State’s New Solar Policy Defuse Di...Minnesota's Value of Solar: Can a Northern State’s New Solar Policy Defuse Di...
Minnesota's Value of Solar: Can a Northern State’s New Solar Policy Defuse Di...John Farrell
 
ERBQUEST WELLNESS
ERBQUEST WELLNESSERBQUEST WELLNESS
ERBQUEST WELLNESSWillDhana
 
MMA Forum México 2018 - Javier Garcia Head of Connections AB InBev presentation
MMA Forum México 2018 -  Javier Garcia Head of Connections AB InBev presentationMMA Forum México 2018 -  Javier Garcia Head of Connections AB InBev presentation
MMA Forum México 2018 - Javier Garcia Head of Connections AB InBev presentationMobile Marketing Association
 
AI in Banking Summit 2017 - Brett King
AI in Banking Summit 2017 - Brett King AI in Banking Summit 2017 - Brett King
AI in Banking Summit 2017 - Brett King Abe
 
Data-Driven Attribution Under the Hood - Simon Poulton
Data-Driven Attribution Under the Hood - Simon PoultonData-Driven Attribution Under the Hood - Simon Poulton
Data-Driven Attribution Under the Hood - Simon PoultonState of Search Conference
 
How to Understand the ROI of Investing in People
How to Understand the ROI of Investing in PeopleHow to Understand the ROI of Investing in People
How to Understand the ROI of Investing in PeopleGreenhouseSoftware
 

Ähnlich wie Bessemer Venture Partners' 2019 State of the Cloud (20)

State of the Cloud 2019 from Bessemer Venture Partners
State of the Cloud 2019 from Bessemer Venture PartnersState of the Cloud 2019 from Bessemer Venture Partners
State of the Cloud 2019 from Bessemer Venture Partners
 
State of the Cloud 2019: Europa Edition with Bessemer Venture Partners
State of the Cloud 2019: Europa Edition with Bessemer Venture PartnersState of the Cloud 2019: Europa Edition with Bessemer Venture Partners
State of the Cloud 2019: Europa Edition with Bessemer Venture Partners
 
Rain colombia ppt
Rain colombia pptRain colombia ppt
Rain colombia ppt
 
Canadian Government Grants--2018 and Beyond
Canadian Government Grants--2018 and BeyondCanadian Government Grants--2018 and Beyond
Canadian Government Grants--2018 and Beyond
 
Explore Canadian Government Grants for Your Business
Explore Canadian Government Grants for Your BusinessExplore Canadian Government Grants for Your Business
Explore Canadian Government Grants for Your Business
 
SunFunder @ MakerHaus Make-Good-Society Series
SunFunder @ MakerHaus Make-Good-Society SeriesSunFunder @ MakerHaus Make-Good-Society Series
SunFunder @ MakerHaus Make-Good-Society Series
 
SunFunder Talk @ Makerhaus Make-Good-Society
SunFunder Talk @ Makerhaus Make-Good-SocietySunFunder Talk @ Makerhaus Make-Good-Society
SunFunder Talk @ Makerhaus Make-Good-Society
 
New mci ppt
New mci pptNew mci ppt
New mci ppt
 
BIMA + Creative Equals Evening Masterclass: How to Shape Great Creative
BIMA + Creative Equals Evening Masterclass: How to Shape Great CreativeBIMA + Creative Equals Evening Masterclass: How to Shape Great Creative
BIMA + Creative Equals Evening Masterclass: How to Shape Great Creative
 
EIA2018Portugal - David Carvalhao - The ABC of Fundraising
EIA2018Portugal - David Carvalhao - The ABC of FundraisingEIA2018Portugal - David Carvalhao - The ABC of Fundraising
EIA2018Portugal - David Carvalhao - The ABC of Fundraising
 
Online video Landscape
Online video LandscapeOnline video Landscape
Online video Landscape
 
Work_SheetEnter the appropriate amount or item in the shaded cells.docx
Work_SheetEnter the appropriate amount or item in the shaded cells.docxWork_SheetEnter the appropriate amount or item in the shaded cells.docx
Work_SheetEnter the appropriate amount or item in the shaded cells.docx
 
Minnesota's Value of Solar: Can a Northern State’s New Solar Policy Defuse Di...
Minnesota's Value of Solar: Can a Northern State’s New Solar Policy Defuse Di...Minnesota's Value of Solar: Can a Northern State’s New Solar Policy Defuse Di...
Minnesota's Value of Solar: Can a Northern State’s New Solar Policy Defuse Di...
 
ERBQUEST WELLNESS
ERBQUEST WELLNESSERBQUEST WELLNESS
ERBQUEST WELLNESS
 
MMA Forum México 2018 - Javier Garcia Head of Connections AB InBev presentation
MMA Forum México 2018 -  Javier Garcia Head of Connections AB InBev presentationMMA Forum México 2018 -  Javier Garcia Head of Connections AB InBev presentation
MMA Forum México 2018 - Javier Garcia Head of Connections AB InBev presentation
 
AI in Banking Summit 2017 - Brett King
AI in Banking Summit 2017 - Brett King AI in Banking Summit 2017 - Brett King
AI in Banking Summit 2017 - Brett King
 
1 arkadGROUP
1 arkadGROUP1 arkadGROUP
1 arkadGROUP
 
Data-Driven Attribution Under the Hood - Simon Poulton
Data-Driven Attribution Under the Hood - Simon PoultonData-Driven Attribution Under the Hood - Simon Poulton
Data-Driven Attribution Under the Hood - Simon Poulton
 
How to Understand the ROI of Investing in People
How to Understand the ROI of Investing in PeopleHow to Understand the ROI of Investing in People
How to Understand the ROI of Investing in People
 
OW Media Kit
OW Media KitOW Media Kit
OW Media Kit
 

Mehr von Bessemer Venture Partners

101 guide to building your communication strategy_VF_BessemerVenturePartners_...
101 guide to building your communication strategy_VF_BessemerVenturePartners_...101 guide to building your communication strategy_VF_BessemerVenturePartners_...
101 guide to building your communication strategy_VF_BessemerVenturePartners_...Bessemer Venture Partners
 
Data trends: Visualizing the global cloud industry in 2023
Data trends: Visualizing the global cloud industry in 2023Data trends: Visualizing the global cloud industry in 2023
Data trends: Visualizing the global cloud industry in 2023Bessemer Venture Partners
 
Benchmarks for growing health tech businesses vF_8_2_2022.pdf
Benchmarks for growing health tech businesses vF_8_2_2022.pdfBenchmarks for growing health tech businesses vF_8_2_2022.pdf
Benchmarks for growing health tech businesses vF_8_2_2022.pdfBessemer Venture Partners
 
The Rise of Cloud in Europe from Bessemer Venture Partners
The Rise of Cloud in Europe from Bessemer Venture PartnersThe Rise of Cloud in Europe from Bessemer Venture Partners
The Rise of Cloud in Europe from Bessemer Venture PartnersBessemer Venture Partners
 
Bessemer Venture Partners' 2015 State of the Cloud
Bessemer Venture Partners' 2015 State of the CloudBessemer Venture Partners' 2015 State of the Cloud
Bessemer Venture Partners' 2015 State of the CloudBessemer Venture Partners
 

Mehr von Bessemer Venture Partners (16)

101 guide to building your communication strategy_VF_BessemerVenturePartners_...
101 guide to building your communication strategy_VF_BessemerVenturePartners_...101 guide to building your communication strategy_VF_BessemerVenturePartners_...
101 guide to building your communication strategy_VF_BessemerVenturePartners_...
 
Data trends: Visualizing the global cloud industry in 2023
Data trends: Visualizing the global cloud industry in 2023Data trends: Visualizing the global cloud industry in 2023
Data trends: Visualizing the global cloud industry in 2023
 
The Rise of SaaS in India 2023
The Rise of SaaS in India 2023The Rise of SaaS in India 2023
The Rise of SaaS in India 2023
 
State of the Cloud 2023—The AI era
State of the Cloud 2023—The AI eraState of the Cloud 2023—The AI era
State of the Cloud 2023—The AI era
 
State of the Cloud 2023
State of the Cloud 2023State of the Cloud 2023
State of the Cloud 2023
 
Is AI generation the next platform shift?
Is AI generation the next platform shift?Is AI generation the next platform shift?
Is AI generation the next platform shift?
 
Internet Marketplaces in India
Internet Marketplaces in IndiaInternet Marketplaces in India
Internet Marketplaces in India
 
Benchmarks for growing health tech businesses vF_8_2_2022.pdf
Benchmarks for growing health tech businesses vF_8_2_2022.pdfBenchmarks for growing health tech businesses vF_8_2_2022.pdf
Benchmarks for growing health tech businesses vF_8_2_2022.pdf
 
The ABCs of health tech businesses
The ABCs of health tech businessesThe ABCs of health tech businesses
The ABCs of health tech businesses
 
The Rise of SaaS in India
The Rise of SaaS in IndiaThe Rise of SaaS in India
The Rise of SaaS in India
 
Scaling from $1 to $10 million ARR
Scaling from $1 to $10 million ARRScaling from $1 to $10 million ARR
Scaling from $1 to $10 million ARR
 
The Rise of Cloud in Europe from Bessemer Venture Partners
The Rise of Cloud in Europe from Bessemer Venture PartnersThe Rise of Cloud in Europe from Bessemer Venture Partners
The Rise of Cloud in Europe from Bessemer Venture Partners
 
Bessemer's State of the Cloud 2020
Bessemer's State of the Cloud 2020 Bessemer's State of the Cloud 2020
Bessemer's State of the Cloud 2020
 
State of the Cloud Report 2018
State of the Cloud Report 2018State of the Cloud Report 2018
State of the Cloud Report 2018
 
Bessemer's 2016 State of the Cloud
Bessemer's 2016 State of the Cloud Bessemer's 2016 State of the Cloud
Bessemer's 2016 State of the Cloud
 
Bessemer Venture Partners' 2015 State of the Cloud
Bessemer Venture Partners' 2015 State of the CloudBessemer Venture Partners' 2015 State of the Cloud
Bessemer Venture Partners' 2015 State of the Cloud
 

Kürzlich hochgeladen

IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfIaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfDaniel Santiago Silva Capera
 
Empowering Africa's Next Generation: The AI Leadership Blueprint
Empowering Africa's Next Generation: The AI Leadership BlueprintEmpowering Africa's Next Generation: The AI Leadership Blueprint
Empowering Africa's Next Generation: The AI Leadership BlueprintMahmoud Rabie
 
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...Will Schroeder
 
20230202 - Introduction to tis-py
20230202 - Introduction to tis-py20230202 - Introduction to tis-py
20230202 - Introduction to tis-pyJamie (Taka) Wang
 
Igniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration WorkflowsIgniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration WorkflowsSafe Software
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Websitedgelyza
 
UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8DianaGray10
 
Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024SkyPlanner
 
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdfUiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdfDianaGray10
 
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online CollaborationCOMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online Collaborationbruanjhuli
 
AI Fame Rush Review – Virtual Influencer Creation In Just Minutes
AI Fame Rush Review – Virtual Influencer Creation In Just MinutesAI Fame Rush Review – Virtual Influencer Creation In Just Minutes
AI Fame Rush Review – Virtual Influencer Creation In Just MinutesMd Hossain Ali
 
Videogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfVideogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfinfogdgmi
 
Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)Commit University
 
UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7DianaGray10
 
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...DianaGray10
 
9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding Team9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding TeamAdam Moalla
 
Cybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptxCybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptxGDSC PJATK
 
Nanopower In Semiconductor Industry.pdf
Nanopower  In Semiconductor Industry.pdfNanopower  In Semiconductor Industry.pdf
Nanopower In Semiconductor Industry.pdfPedro Manuel
 

Kürzlich hochgeladen (20)

IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdfIaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
IaC & GitOps in a Nutshell - a FridayInANuthshell Episode.pdf
 
Empowering Africa's Next Generation: The AI Leadership Blueprint
Empowering Africa's Next Generation: The AI Leadership BlueprintEmpowering Africa's Next Generation: The AI Leadership Blueprint
Empowering Africa's Next Generation: The AI Leadership Blueprint
 
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
 
20230202 - Introduction to tis-py
20230202 - Introduction to tis-py20230202 - Introduction to tis-py
20230202 - Introduction to tis-py
 
Igniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration WorkflowsIgniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration Workflows
 
20150722 - AGV
20150722 - AGV20150722 - AGV
20150722 - AGV
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Website
 
UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8
 
20230104 - machine vision
20230104 - machine vision20230104 - machine vision
20230104 - machine vision
 
Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024Salesforce Miami User Group Event - 1st Quarter 2024
Salesforce Miami User Group Event - 1st Quarter 2024
 
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdfUiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
 
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online CollaborationCOMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
 
AI Fame Rush Review – Virtual Influencer Creation In Just Minutes
AI Fame Rush Review – Virtual Influencer Creation In Just MinutesAI Fame Rush Review – Virtual Influencer Creation In Just Minutes
AI Fame Rush Review – Virtual Influencer Creation In Just Minutes
 
Videogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdfVideogame localization & technology_ how to enhance the power of translation.pdf
Videogame localization & technology_ how to enhance the power of translation.pdf
 
Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)
 
UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7
 
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...
Connector Corner: Extending LLM automation use cases with UiPath GenAI connec...
 
9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding Team9 Steps For Building Winning Founding Team
9 Steps For Building Winning Founding Team
 
Cybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptxCybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptx
 
Nanopower In Semiconductor Industry.pdf
Nanopower  In Semiconductor Industry.pdfNanopower  In Semiconductor Industry.pdf
Nanopower In Semiconductor Industry.pdf
 

Bessemer Venture Partners' 2019 State of the Cloud

  • 1. State Of The Cloud 2019 BYRON DEETER Partner BVP @bdeeter KRISTINA SHEN Partner BVP @kshenster ANNA KHAN Vice President BVP @annarchyy
  • 2. Byron Deeter Partner BVP @bdeeter Kristina Shen Partner BVP @kshenster State Of The Cloud 2019 www.bvp.com/cloud Anna Khan Vice President BVP @annarchyy
  • 3. BESSEMER’S TOP 10 LAWS OF CLOUD COMPUTING 2008
  • 4. 0
  • 5. HOW MANY $1B+ PRIVATE CLOUD COMPANIES ARE THERE, TODAY? HOW MANY $1B+ PRIVATE CLOUD COMPANIES ARE THERE, TODAY?
  • 7. 55
  • 8. S o u r c e : T e c h C r u n c h , F o r b e s , R e c o d e , M a r k e t W a t c h , M o r g a n S t a n l e y H e a d l i n e s
  • 9. S A A S T R A N N U A L 2 0 1 9 S o u r c e : A r i L e v y , T w i t t e r
  • 10. S A A S T R A N N U A L 2 0 1 9
  • 11. 2018 ALONE SAW >$90B OF LARGE M&A $1.9B $2.9B$8B $7.5B $2.4B $1.6B $1.4B $33B S o u r c e : C a p I Q a n d P i t c h b o o k
  • 12. ~$44B ALSO ADDED IN MARKET CAP THROUGH CLOUD IPOS S o u r c e : C a p I Q a n d P i t c h b o o k ( M a r k e t C a p a f t e r D a y 1 o f T r a d i n g . )
  • 13. IN FACT THE BUYING DEMAND FOR CLOUD SHARES HAS HIT RECORD HIGHS VCDollarsRaised($B) $MarketCap($B) Comb in ed Clou d L iq u id ity 2 0 1 0 – 2 0 1 8 , an d VC I nvestments Rais ed $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 M&A IPO VC Dollars Raised S A A S T R A N N U A L 2 0 1 9 S o u r c e : C a p I Q a n d P i t c h b o o k
  • 15. $0 $200 $400 2010 2011 2012 2013 2014 2015 2016 WE PREDICTED THE CLOUD MARKET CAP WOULD HIT $500B IN 2020 $BMarketCap Pu b lic Clou d Market Cap S A A S T R A N N U A L 2 0 1 9 $250 S o u r c e : C a p I Q a n d P i t c h b o o k
  • 16. WE PREDICTED THE CLOUD MARKET CAP WOULD HIT $500B IN 2020 $BMarketCap Pu b lic Clou d Market Cap S A A S T R A N N U A L 2 0 1 9 $0 $200 $400 $600 $800 $1,000 $1,200 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 $500B S o u r c e : C a p I Q a n d P i t c h b o o k
  • 17. INSTEAD, WE HIT THE MARK 2 YEARS EARLIER IN MARCH 2018 $BMarketCap Pu b lic Clou d Market Cap S A A S T R A N N U A L 2 0 1 9 $0 $200 $400 $600 $800 $1,000 $1,200 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 March 2nd 2018 $500B $500B S o u r c e : C a p I Q a n d P i t c h b o o k
  • 18. PUBLIC CLOUD HAS A PATH TO $1T+$BMarketCap Total Clou d Market Cap S A A S T R A N N U A L 2 0 1 9 $690B Feb 5th 2019 $1T $0 $200 $400 $600 $800 $1,000 $1,200 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 S o u r c e : C a p I Q a n d P i t c h b o o k
  • 19. THE CLOUD 100 IS VALUED AT $175B+ S o u r c e : P i t c h b o o k
  • 20. HOW DO WE PROTECT FOR VOLATILITY ? S A A S T R A N N U A L 2 0 1 9 BVP Nasdaq Emerging Cloud Index
  • 21. HOW TO BUILD A RESILIENT COMPANY
  • 22. Q: WHEN WAS THE LONGEST BULL MARKET?
  • 23. Longest Bull Run in History ~10 years 2nd Longest Bull Run 9.5 years S o u r c e : y a h o o f i n a n c e . S & P 5 0 0 f r o m 1 9 5 0 t o 1 / 2 9 / 2 0 1 9 .
  • 24. HOW TO BUILD A RESILIENT COMPANY GROWTH (ARR) S A A S T R A N N U A L 2 0 1 9
  • 25. $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 1 2 3 4 5 6 7 8 9 10 11 12 13 14 $ARR(inM) Years YEARS FROM $1M TO $100M ARR S o u r c e : C a p I Q , i n t e r n a l s o u r c e s a n d c o m p a n y a n n o u n c e m e n t s . N o t e : U s e q u a r t e r l y r e v e n u e t i m e s f o u r a s a p r o x y f o r A R R . N o t e : A s s u m i n g i t t a k e s 2 4 m o n t h s f r o m f o u n d i n g t o $ 1 M A R R i f d o n o t h a v e a c t u a l d a t a . S A A S T R A N N U A L 2 0 1 9 $100
  • 26. YEARS FROM $1M TO $100M ARR S A A S T R A N N U A L 2 0 1 9 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 1 2 3 4 5 6 7 8 9 10 11 12 13 14 $ARR(inM) Years Pu b lic Clou d Comp an ies 5.3 yrs Top 25% 7.3 yrs Median 10.6 yrs Bottom 25% S o u r c e : C a p I Q , i n t e r n a l s o u r c e s a n d c o m p a n y a n n o u n c e m e n t s . . N o t e : U s e q u a r t e r l y r e v e n u e t i m e s f o u r a s a p r o x y f o r A R R . N o t e : A s s u m i n g i t t a k e s 2 4 m o n t h s f r o m f o u n d i n g t o $ 1 M A R R i f d o n o t h a v e a c t u a l d a t a .
  • 27. BVP GROWTH BENCHMARK S A A S T R A N N U A L 2 0 1 9 F rom $ 1 mm ARR Yearsto$10MARR Yearsto$100MARR 3Years 7Years 4Years 10Years 2Years 5Years BEST GOOD BETTER
  • 28. HOW TO BUILD A RESILIENT COMPANY GROWTH (ARR) S A A S T R A N N U A L 2 0 1 9 RETENTION IS YOUR BEST FRIEND
  • 29. RETENTION FOR DIFFERENT CUSTOMER SEGMENTS S A A S T R A N N U A L 2 0 1 9 Gross Retention 80 – 90%70 – 80% 90%+ Net Retention 90 – 120%80 – 100% 100%+ Average ACV $12 – $50K<$12k $50K+ SMB EnterpriseMidmarket
  • 30. S A A S T R A N N U A L 2 0 1 9 RETENTION IS A MAJOR DRIVER OF VALUATION $40 $60 $85 $115 $150 $180 $200 50% 42% 35% 30% 20% 11% 0% 20% 40% 60% 80% 100% $0 $50 $100 $150 $200 $250 $300 $350 2013 2014 2015 2016 2017 2018 2019 Net Retention 110% Assumed 2019 Revenue Mult 10x Enterprise Value $2.0bn
  • 31. S A A S T R A N N U A L 2 0 1 9 AN ADDITIONAL 1% IN NET RETENTION = $100M OF VALUE Net Retention 125% Enterprise Value $3.5bn Increased Value +$1.5bn $40 $66 $102 $148 $209 $276 $347 65% 54% 46% 41% 32% 26% 0% 20% 40% 60% 80% 100% $0 $50 $100 $150 $200 $250 $300 $350 2013 2014 2015 2016 2017 2018 2019
  • 32. S A A S T R A N N U A L 2 0 1 9 CHURN DRAMATICALLY DECREASES VALUE Net Retention 100% Enterprise Value $1.4bn Decreased Value -$630m $40 $56 $75 $97 $120 $135 $137 40% 34% 29% 24% 13% 1% 0% 20% 40% 60% 80% 100% $0 $50 $100 $150 $200 $250 $300 $350 2013 2014 2015 2016 2017 2018 2019
  • 33. S A A S T R A N N U A L 2 0 1 9 +
  • 34. HOW TO BUILD A RESILIENT COMPANY GROWTH (ARR) S A A S T R A N N U A L 2 0 1 9 RETENTION IS YOUR BEST FRIEND IN THE BANK
  • 35. S A A S T R A N N U A L 2 0 1 9
  • 36. S A A S T R A N N U A L 2 0 1 9 QUEEN
  • 37. MANAGE YOUR RUNWAY Buffer for contingency plan 18 – 24 months runway Hiring is a big lever
  • 38. THINK ONE FINANCING AHEAD ARR Reven u e Mu ltip les of Clou d Comp an ies S o u r c e : C a p I Q , i n t e r n a l s o u r c e s a n d c o m p a n y a n n o u n c e m e n t s . P r i c e d a s o f 1 / 2 3 / 2 0 1 9 N o t e : U s e q u a r t e r l y r e v e n u e t i m e s f o u r a s a p r o x y f o r A R R . I n c l u d e s 5 2 p u b l i c c l o u d c o m p a n i e s i n t h e E M C L O U D . S A A S T R A N N U A L 2 0 1 9 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 1/1/11 5/1/11 9/1/11 1/1/12 5/1/12 9/1/12 1/1/13 5/1/13 9/1/13 1/1/14 5/1/14 9/1/14 1/1/15 5/1/15 9/1/15 1/1/16 5/1/16 9/1/16 1/1/17 5/1/17 9/1/17 1/1/18 5/1/18 9/1/18 1/1/19 Peak – Mar 2014 ~10x Trough – May 2014 5.8x Trough – Feb 2016 4.6x Current 9.8x
  • 39. HOW TO BUILD A RESILIENT COMPANY GROWTH (ARR) S A A S T R A N N U A L 2 0 1 9 RETENTION IS YOUR BEST FRIEND IN THE BANK TARGETED SPEND (“EFFICIENCY”)
  • 40. S A A S T R A N N U A L 2 0 1 9 DEFINING EFFICIENCY Net New ARR Net Burn = BVP Efficiency Score (<$30M ARR)
  • 41. S A A S T R A N N U A L 2 0 1 9 BVP Nasdaq Emerging Cloud Index EFFICIENT BUSINESSES ARE REWARDED IN ALL MARKETS
  • 42. S A A S T R A N N U A L 2 0 1 9 BVP EFFICIENCY SCORE (<$30M ARR) BEST > 1.5x GOOD BETTERNet New ARR Net Burn = < 0.5x 0.5x – 1.5x
  • 43. S A A S T R A N N U A L 2 0 1 9 $12 $24 ($2) Ending ARR Net Burn ($ in M) BEST > 1.5x $12M (= $24 - $12) $2M 6.0x BVP Efficiency Score GOOD BETTERNet New ARR Net Burn = < 0.5x 0.5x – 1.5x = BVP EFFICIENCY SCORE (<$30M ARR)
  • 44. S A A S T R A N N U A L 2 0 1 9 HOW TO CALCULATE YOUR GRIT SCORE +++Growth (ARR) In The Bank Targeted Spend (Efficiency) Retention Is Your Best Friend %AnnualNet Retention %YoYGrowth YearsofRunway NetNewARR/ NetBurn 0.5–1.5x80–150% 1–3Years50–200% = GRIT SCORE 3–4 4–6 >6 GOOD BETTER BEST
  • 45. S A A S T R A N N U A L 2 0 1 9 EXAMPLE 1 – TWILIO (<$5M ARR) +++ %AnnualNet Retention %YoYGrowth Years ofRunway NetNewARR/ NetBurn 0.5–1.5x80–150% 1–3Years50–200% = GRIT SCORE BEST 1.5 (1.5xEfficiency) 2 (2Years) 3 (300%+Growth) 1.6 (160%Retention) 8.1 G I TR +++ =
  • 46. S A A S T R A N N U A L 2 0 1 9 EXAMPLE 1 – SERVICETITAN (<$5M ARR) +++ %AnnualNet Retention %YoYGrowth Years ofRunway NetNewARR/ NetBurn 0.5–1.5x80–150% 1–3Years50–200% = GRIT SCORE BEST 3.4 (3.4xEfficiency) 2 (2Years) 2 (200%+Growth) 0.9 (90%Retention) 8.3 G I TR +++ =
  • 49. #1 ROBOTS TO THE RESCUE AGRICULTURE ACCOUNTING CUSTOMER SUPPORT MARKETING AUDIT FRAUD SALES HEALTHCARE S A A S T R A N N U A L 2 0 1 9
  • 50. #2 PRODUCT HAS PURSE STRINGS $PRODUCT SALES SERVICES SUPPORT MARKETING S A A S T R A N N U A L 2 0 1 9
  • 51. #3 OPENSOURCE MAKES MONEY BiggestIPOEver DeepBenchofStrong Privates LargestM&As S A A S T R A N N U A L 2 0 1 9
  • 52. #4 DEEPER VERTICALIZATION OF MOBILE VERTICALSOFTWARE CONSTRUCTION FIELD SERVICES RETAIL SALES EDUCATIONWORKFORCE MGMT SAFETY/COMPLIANCE FLEET TRANSPORTATION REAL ESTATE RECRUITING S A A S T R A N N U A L 2 0 1 9
  • 53. #5 LOW CODE/NO CODE Developer BusinessAppsEasy Automation
  • 54. BESSEMER’S 5 PREDICTIONS FOR 2019 1 Robots to the rescue Product has purse strings2 Opensource makes money3 Deeper verticalization of mobile4 Low code/no code5