The New Cloud Funding Model for Enterprise Applications 
Matt Holleran 
General Partner, Cloud Apps Capital Partners 
@Clo...
Safe Harbor 
Safe harbor statement under the Private Securities Litigation Reform Act of 1995: 
This presentation may cont...
Matt Holleran 
General Partner, Cloud Apps Capital Partners 
www.cloudappscapital.com
Who’s building the next great enterprise SaaS 2.0 business? 
SaaS life sciences software 
NYSE: VEEV value $3.8b (9/23/14)...
Agenda 
The New Cloud Funding Model for Enterprise Apps 
Real-World CEO Stories 
Q&A 
www.cloudappscapital.com
The new cloud funding model: introductions 
CEO PANEL 
Dave Yarnold 
Godard Abel 
Matt Holleran 
www.cloudappscapital.com
Enterprise SaaS 1.0 companies had to build everything 
Built 100% own infrastructure 
Built 100% own distribution 
Require...
Enterprise SaaS 2.0 companies leverage everything 
$$ 
Leverage cloud platforms 
Leverage business app marketplaces 
Less ...
Veeva: introducing the new cloud funding model 
9 
•$7m total investment* 
•$130m revenue as of 1/13/2013* 
•NYSE IPO: VEE...
Dave Yarnold 
CEO, ServiceMax
ServiceMax: a look inside a mission critical SaaS company 
People 
Service Inventory 
GLOBAL CUSTOMERS 
Installed Base 
Se...
Sources: Crunchbase and ServiceMax 
ServiceMax: the new cloud funding model 
A 
$2m 
11/2008 
B 
$8m 
04/2010 
C 
$14m 
D ...
Godard Abel 
CEO, SteelBrick 
Former CEO, BigMachines
SteelBrick: making enterprise CPQ simple to setup and use 
Sources: SteelBrick 
Configure, price, quote (CPQ) 
Automate ...
SteelBrick: the new cloud funding model 
Build enterprise product 
•Leverage existing cloud platforms like Salesforce1 
•D...
Matt Holleran 
General Partner, Cloud Apps Capital Partners 
www.cloudappscapital.com
Ideal experience for your board 
A 
$2-4m 
B 
$10m 
C 
$30m 
D 
$50m 
Primary capital 
Primary capital 
Primary and second...
The new formula for enterprise SaaS 2.0 companies 
Critical elements for enterprise SaaS 2.0 success: 
Domain expertise i...
@CloudAppsVC 
Cloud Apps Capital Partners 
Focused on cloud business application companies at the “old-school” Series A st...
@CloudAppsVC 
Cloud Apps Capital Partners 
www.cloudappscapital.com
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New Cloud Funding Model for Enterprise SaaS 2.0 Companies - presented at Dreamforce '14 session for entrepreneurs

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Matt Holleran from Cloud Apps Capital Partners, along with David Yarnold from ServiceMax and Godard Abel from SteelBrick, defines the new cloud funding model for the new enterprise SaaS 2.0 companies being built today in a Dreamforce 2014 session for entrepreneurs.

New Cloud Funding Model for Enterprise SaaS 2.0 Companies - presented at Dreamforce '14 session for entrepreneurs

  1. 1. The New Cloud Funding Model for Enterprise Applications Matt Holleran General Partner, Cloud Apps Capital Partners @CloudAppsVC www.cloudappscapital.com
  2. 2. Safe Harbor Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of salesforce.com, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of product or service availability, subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services. The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, new products and services, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, the outcome of any litigation, risks associated with completed and any possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of salesforce.com, inc. is included in our annual report on Form 10-K for the most recent fiscal year and in our quarterly report on Form 10-Q for the most recent fiscal quarter. These documents and others containing important disclosures are available on the SEC Filings section of the Investor Information section of our Web site. Any unreleased services or features referenced in this or other presentations, press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.
  3. 3. Matt Holleran General Partner, Cloud Apps Capital Partners www.cloudappscapital.com
  4. 4. Who’s building the next great enterprise SaaS 2.0 business? SaaS life sciences software NYSE: VEEV value $3.8b (9/23/14) Global SaaS field service market leader in 6 years Next generation CPQ Founded 2006 Founded 2008 Founded 2010 www.cloudappscapital.com
  5. 5. Agenda The New Cloud Funding Model for Enterprise Apps Real-World CEO Stories Q&A www.cloudappscapital.com
  6. 6. The new cloud funding model: introductions CEO PANEL Dave Yarnold Godard Abel Matt Holleran www.cloudappscapital.com
  7. 7. Enterprise SaaS 1.0 companies had to build everything Built 100% own infrastructure Built 100% own distribution Required $50-150m primary capital to become a public company www.cloudappscapital.com
  8. 8. Enterprise SaaS 2.0 companies leverage everything $$ Leverage cloud platforms Leverage business app marketplaces Less primary capital required for a successful exit www.cloudappscapital.com
  9. 9. Veeva: introducing the new cloud funding model 9 •$7m total investment* •$130m revenue as of 1/13/2013* •NYSE IPO: VEEV •$3.8b valuation on 9/23/14 •6 years to IPO $4m Series A 140 120 100 80 60 40 20 0 JAN/13 JAN/06 JAN/07 JAN/08 JAN/09 JAN/10 JAN/11 JAN/12 Built on the Salesforce Platform Founders had deep expertise in both product and sales $3m “super angel” funding is today’s “old-school” Series A – gave them the right amount of funding to reach critical milestones $3m “super angel” financing Sources: Crunchbase and Veeva S-1 filing REVENUE (m) www.cloudappscapital.com
  10. 10. Dave Yarnold CEO, ServiceMax
  11. 11. ServiceMax: a look inside a mission critical SaaS company People Service Inventory GLOBAL CUSTOMERS Installed Base Service P&L Everyone at ServiceMax must be a field service management expert www.cloudappscapital.com
  12. 12. Sources: Crunchbase and ServiceMax ServiceMax: the new cloud funding model A $2m 11/2008 B $8m 04/2010 C $14m D $27m E $71m 06/2011 11/2012 03/2014 2009 2013 What kind of experience do you want on your board? Financial market experience is critical at the later stage Operating experience and networks are critical at the early stage What do you need to accomplish at each stage? www.cloudappscapital.com
  13. 13. Godard Abel CEO, SteelBrick Former CEO, BigMachines
  14. 14. SteelBrick: making enterprise CPQ simple to setup and use Sources: SteelBrick Configure, price, quote (CPQ) Automate proposals, contracts, orders and renewals Fast, Easy Implementations Live in 2-10 Weeks! Next Generation CPQ GROWING CUSTOMER BASE www.cloudappscapital.com
  15. 15. SteelBrick: the new cloud funding model Build enterprise product •Leverage existing cloud platforms like Salesforce1 •Demonstrate product-market fit with initial customer success $3m “old-school Series A” •Bring in experienced executives and team members •Determine CAC model Scale CAC model •Ramp up new customer acquisition model – including marketing, partnerships and sales 1 2 3 Sources: SteelBrick New enterprise SaaS 2.0 companies need $3-4m Series A to hit early critical milestones over 18 months to then get a strong Series B valuation www.cloudappscapital.com
  16. 16. Matt Holleran General Partner, Cloud Apps Capital Partners www.cloudappscapital.com
  17. 17. Ideal experience for your board A $2-4m B $10m C $30m D $50m Primary capital Primary capital Primary and secondary capital Primary and secondary capital Operating + investment experience is critical at this stage Operating + investment experience is important at this stage Operating + investment experience is nice to have at this stage Financial markets experience is critical at this stage “Old-school” Series A is the right amount to hire key executives, demonstrate customer success and refine your CAC model. Series B goes toward hiring more executives and team members and scaling your customer acquisition and success model. Series C enables you to invest in large enterprise customer acquisition and success – globally. Series D is where you prepare your company for the public markets. The new cloud funding model for Enterprise SaaS 2.0 www.cloudappscapital.com
  18. 18. The new formula for enterprise SaaS 2.0 companies Critical elements for enterprise SaaS 2.0 success: Domain expertise in both product and sales Ability to leverage the marketplace and ecosystem The right funding & board member to hit critical success metrics Starts with $3-4m Series A Cloud funding model Financial models Business app marketplaces Cloud development platforms www.cloudappscapital.com
  19. 19. @CloudAppsVC Cloud Apps Capital Partners Focused on cloud business application companies at the “old-school” Series A stage. Combine operating and investing experience. Deep experience within the salesforce.com ecosystem. Leverage our network for introductions, recruiting and follow-on financings. www.cloudappscapital.com www.cloudappscapital.com
  20. 20. @CloudAppsVC Cloud Apps Capital Partners www.cloudappscapital.com

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