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Software 2017 - Where are we now and where are we going?

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Software 2017. Originally presented by Neeraj Agrawal at CloudNY, a conference for founders and CEOs of breakout cloud and SaaS companies, on May 18, 2017. For more information on CloudNY and to register for CloudNY 2018, visit cloudny.com.

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Software 2017 - Where are we now and where are we going?

  1. 1. Battery Ventures Company Confidential | 1 QUIET EXPERTISE THAT SPEAKS VOLUMES. VENTURE + GROWTH | PRIVATE EQUITY 2017 Software 2017 Where are we now and where are we going? Neeraj Agrawal Logan Bartlett
  2. 2. Battery Ventures Company Confidential | 2 2017 Disclaimers This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with such verbal or written comments, is referred to herein as the “presentation.” This presentation is being provided for informational purposes only. Nothing herein is or should be construed as investment, legal or tax advice, a recommendation of any kind or an offer to sell or a solicitation of an offer to buy any security. This presentation does not purport to be complete on any topic addressed. The information in this presentation is provided to you as of May 17th unless otherwise noted and Battery Ventures does not intend to update the information after its distribution, even in the event the presentation becomes materially inaccurate. Certain information in this presentation has been obtained from third party sources and, although believed to be reliable, has not been independently verified and its accuracy or completeness cannot be guaranteed. Certain logos, tradenames, trademarks and copyrights included in the presentation are strictly for identification and informational purposes only. Such logos, trade names, trademarks and copyrights may be owned by companies or persons not affiliated with Battery Ventures and no claim is made that any such company or person has sponsored or endorsed the use of such logos, trade names, trademarks and copyrights in this presentation. This presentation includes various examples of companies in which Battery Ventures has invested. These examples are included as illustrations of various investment strategies. For a complete list of all companies in which Battery Ventures has invested, please visit here. Information regarding the specific performance of prior investment recommendations is available upon request. Past performance is not evidence of future results and there can be no assurance that a particular Battery Ventures Fund will achieve comparable results to any other Battery Ventures Fund. There can be no assurance that the investment objectives of a Battery Ventures Fund will be achieved or that the investment strategies utilized will be successful. The information contained herein is based solely on the opinions of Neeraj Agrawal and Logan Bartlett and nothing should be construed as investment advice. The anecdotal examples throughout are intended for an audience of entrepreneurs in their attempt to build cloud-focused businesses and not recommendations or endorsements of any particular business.
  3. 3. Battery Ventures Company Confidential | 3 2017 CloudNY was started with our friends from FirstMark Capital. Our goal from the start was to provide a forum for CEOs of leading cloud software companies to collaborate and learn from one another in a private setting. We hope to foster a sense of giving back by those that have successfully navigated the journey before and an environment of shared learning by those that are on the journey currently. New York was an obvious destination as it has personal affinity to both the teams from Battery and FirstMark and it allows us to highlight the burgeoning ecosystem of software companies in the area – plus New York in May is tough to beat. We are already in the preliminary stages of planning next year’s event, so if you would like to get your name on the list for potential attendance, please visit www.cloudny.com and request and invitation. We would love to see you there! Best, Neeraj and Logan
  4. 4. Battery Ventures Company Confidential | 4 WHY WE ARE LONG SOFTWARE
  5. 5. Battery Ventures Company Confidential | 5 2017 Overall software spend continues to grow Source: Gartner Market Databook, 4Q16 Update; Forrester; PwC 21.6% 20.1% 18.7% 17.0% 16.4% 2.3% 2.3% 2.2% 2.2% 2.2% 7.1% 6.8% 6.5% 6.3% 6.5% (0.6%) 2.7% 2.6% 2.6% 2.9% -5% 0% 5% 10% 15% 20% 25% 2016 2017 2018 2019 2020 SaaS CAGR: 18.3% Software CAGR: 6.9% US GDP CAGR: 2.2% Total IT CAGR: 2.3% vs. vs. vs. 18.3% 6.9% 2.3% 2.2% 2016-2020 CAGR SaaS spend 2016-2020 CAGR Software spend 2016-2020 CAGR Total IT spend 2016-2020 CAGR Total US GDP
  6. 6. Battery Ventures Company Confidential | 6 2017 Software has consistently grown through different eras & delivery models Source: Battery Ventures; Forrester; Gartner; the Yankee Group; BEA.gov; Input Research Note: Homegrown/Internal Software is estimate based on hours worked. $0 $100 $200 $300 $400 $500 $600 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 2018 Billions Homegrown/Internal Software On-Prem + Mainframe SaaS Global Software Industry Revenue
  7. 7. Battery Ventures Company Confidential | 7 2017 $406 $771 $1,174 $2,450 $1,558 $2,817 $1,337 $948 $950 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 Cloud/Software IPOs since 2009 Cloud/Software IPOs since 2009 TotalAmountRaisedinIPOs(Millions) Source: Battery Ventures and Capital IQ. Includes all new cloud/software public offerings listed on major US exchanges. * Denotes a current or former Battery portfolio company * * * * * * * *
  8. 8. Battery Ventures Company Confidential | 8 2017 PrivateCompanies 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD $525 $1,200 $1,650 $2,325 $700 $1,100 $3,700* $689 $1,341 $1,100 $675 $900 $614 $660 $850 $1,000 $675 $800* $610 (PND) $600* $930 $594 $800 $600 $752 (PND) $750 (PND) $650 $600 1 4 4 6 5 7 4 $525 $2,549 $4,441 $6,107 $2,644 $5,600 $5,524 PublicCompanies $1,676* $1,033 $3,764 $4,608 $2,640* $8,300 $4,500 $29,000 $721 $1,763 $1,921 $1,608 $2,613 $4,000 $9,300 $1,640 $1,050 $514 $2,505 $4,300 $1,397 $2,800 $958 $2,400 $625 $1,800 $1,790* $1,650 $1,100 $850 $663 $625 $544 $532 $509 1 2 2 6 3 3 3 15 $1,676 $1,754 $5,527 $11,149 $5,298 $11,427 $11,005 $57,863 Total 1 3 2 10 7 9 8 22 4 $1,676 $2,279 $5,527 $13,698 $9,739 $17,534 $13,649 $63,463 $5,524 Cloud M&A Analysis since 2009 Data is as-of 5/15/2017 and prices are in millions. “PND” denotes price not disclosed; price for Digital Insight represents acquisition by NCR in December 2013. * Denotes a current or former Battery portfolio company * * * * * *
  9. 9. Battery Ventures Company Confidential | 9 2017 Software and IT have had a strong impact on productivity Source: OECD.org; “The U.S. Software Industry: An Engine for Economic Growth and Employment”, SIIA, 2014 Note: Constant currency for 2010 USD $0 $10 $20 $30 $40 $50 $60 $70 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 USDollars Productivity - GDP Per Hour Worked in the US 52% 49% 46% 17% 7% 24% 31% 44% 30% 1974-1995 1995-2004 2004-2012 IT Increased Workforce Skills Other IT's Contribution to Productivity Growth
  10. 10. Battery Ventures Company Confidential | 10 2017 Software has had a demonstrable impact on employment Source: “The $1 Trillion Economic Impact of Software”, BSA | The Software Alliance, June 2016 The US software industry supports nearly 10 million jobs 2.5M directly employed in the software industry 7.2M software-supported indirect and induced jobs $$The average annual wage for software developers is > 2x the average annual wage for all US jobs
  11. 11. Battery Ventures Company Confidential | 11 2017 We believe that software’s impact on the US economy will reach $2 trillion and 10% of GDP by 2020 $1.4 $2.0 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2015 2020 Trillions Software as a Percentage of 2015 GDP8% Software Industry Value-Add to US GDP 6.9% 2016-2020 CAGR(1) 10% Software as a Percentage of 2020 GDP Source: Battery Ventures analysis using 2015 US GDP data; “The $1 Trillion Economic Impact of Software”, BSA | The Software Alliance, June 2016 (1)US Software Spend CAGR: Gartner Market Databook, 4Q16 Update; Forrester; PwC Note: includes direct, indirect and induced impacts on GDP.
  12. 12. Battery Ventures Company Confidential | 12 BUT WE FEEL THIS IS JUST THE BEGINNING
  13. 13. Battery Ventures Company Confidential | 13 2017 The Five Forces of Software’s Accelerating Growth Software is infiltrating what were once niche markets Every company is becoming a software company Software is displacing hardware Software is displacing services & labor Existing software markets are growing over time1 2 3 4 5
  14. 14. Battery Ventures Company Confidential | 14 The Five Forces of Software’s Accelerating Growth 2017 Existing software markets are growing over time * * * ILLUSTRATIVEEXAMPLES * * Denotes a current or former Battery portfolio company * Source: Morgan Stanley; IDC; Gartner; Accel 2016 State of the Union Report Mainframe Era Client Server Era Desktop SaaS Era Cloud-First Era Golden Years 1970 -1985 1985 - 2000 2000 - 2015 2015 - Potential Users 1M 10M-100M 1B+ 10B+ Buyer IT IT Business Units Business Users Customers Gov’t, Manufacturing, Financial Large Businesses Most Businesses All Businesses Market Size $ $$ $$$ $$$$$ CRM ERP HR/Accounting Expense Mgmt Procurement Systems Mgmt Content Mgmt Contact Center Identity BI
  15. 15. Battery Ventures Company Confidential | 15 The Five Forces of Software’s Accelerating Growth 2017 Software is infiltrating what were once niche markets * * Denotes a current or former Battery portfolio company SUBSCRIPTION COMPUTE CapEx OpEx LIMITED DISTRIBUTION COSTS Plumbing, HVAC and Electrical Construction Real Estate Asset Managers and Brokers Law EnforcementHome-health Ticketing + Visitation Illustrative Vertical Market Examples Sales Tax SOX/Audit/ SEC Compliance Cap Table Management Document Signing Visitor ManagementSales BI * Illustrative Hyper-Focused Business Processes Examples Marketing Automation Email Customer Service CRM Accounting + Budgeting E-Commerce Illustrative SMB Market Examples * * *
  16. 16. Battery Ventures Company Confidential | 16 The Five Forces of Software’s Accelerating Growth 2017 Hardware Software As-a-Service Software is displacing hardware of organizations plan to increase spending on data center infrastructure 10% of organizations plan to increase spending on cloud applications 60% Hardware Software Car Console Watch Source: IDC Worldwide Quarterly Cloud IT Infrastructure Tracker, Q4 2015
  17. 17. Battery Ventures Company Confidential | 17 The Five Forces of Software’s Accelerating Growth 2017 Software is displacing services & labor
  18. 18. Battery Ventures Company Confidential | 18 The Five Forces of Software’s Accelerating Growth 2017 Every company is becoming a software company * Source: 451 Research. Includes all announced software acquisitions by historically non-technology buyers with transaction value over $250M since 11/2014. Date Acquirer Target Total Deal Amount 12/09/2014 $710 05/19/2015 $687 10/08/2015 $675 10/31/2016 $632 04/27/2015 $600 03/11/2016 $581 08/03/2015 $500 05/05/2015 $448 11/05/2014 $427 11/03/2014 $400 11/11/2014 $325 10/26/2015 $262 * Denotes a current or former Battery portfolio company Date Acquirer Target Total Deal Amount 06/15/2015 $4,000 12/06/2016 $2,800 08/03/2015 $2,738 08/01/2016 $2,400 07/01/2016 $1,500 04/20/2015 $1,300 01/25/2017 $1,100 01/25/2016 $970 11/14/2016 $915 06/21/2016 $900 02/22/2016 $800
  19. 19. Battery Ventures Company Confidential | 19 2017 $0 $100 $200 $300 $400 $500 $600 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Billions ~5 Global Software Industry Revenue We’re still in the early innings of the software revolution Source: Battery Ventures; Forrester; Gartner; the Yankee Group; BEA.gov; Input Research
  20. 20. Battery Ventures Company Confidential | 20 2017 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 Billions ~5 Global Software Industry Revenue We’re still in the early innings of the software revolution Source: Battery Ventures; Forrester; Gartner; the Yankee Group; BEA.gov; Input Research
  21. 21. Battery Ventures Company Confidential | 21 2017 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 Billions TODAY Assumed 2017-2050 CAGR Global Software Revenue ~5% Global Software Industry Revenue We’re still in the early innings of the software revolution Source: Battery Ventures; Forrester; Gartner; the Yankee Group; BEA.gov; Input Research $1 TRILLION
  22. 22. Battery Ventures Company Confidential | 22 SO WHAT DOES THIS MEAN FOR YOU? Considerations for the Modern Software CEO
  23. 23. Battery Ventures Company Confidential | 23 2017 Considerations for the Modern Software CEO * Denotes a current or former Battery portfolio company * * * * * ** * * * * * * * * ** * * * Sample Company Examples from Disparate Geographies Software innovation is now global Are you fully cognizant of your international competitors? Are you building your product and go-to-market for global scale? Note: Map not to scale
  24. 24. Battery Ventures Company Confidential | 24 2017 There are competitors in all segments of the software market Enterprise Mid-market SMB CRM E-Commerce B2C Marketing Marketing Automation HCM/Accounting Applicant Tracking Customer Service Telephony Procurement Expense Management System Management How aware are you of competitors that may be upstream or downstream? What are your soft spots that your competitors could exploit? * * ILLUSTRATIVEEXAMPLES * Denotes a current or former Battery portfolio company Considerations for the Modern Software CEO * * *
  25. 25. Battery Ventures Company Confidential | 25 2017 Product now drives software sales 1970-2000 2000-2015 2015- Era Sales-driven software purchases Marketing-driven software purchases Product-driven software purchases Sample Companies to Emerge Sample Enablers Does your product require detailed voice-over or speak for itself? Do you know what features drive adoption, loyalty and high NPS? Best-in-Class Good Average Net Promoter Score 50+ 30-50 10-30 * * * * * * Considerations for the Modern Software CEO * Denotes a current or former Battery portfolio company PENDO* NPS BOARD SLIDE
  26. 26. Battery Ventures Company Confidential | 26 2017 Network effects and ecosystems build moats and drive stickiness Does each incremental customer and user make your product more valuable? What are data or network moats that can keep competitors at bay? ILLUSTRATIVEEXAMPLES Considerations for the Modern Software CEO * The largest open source community in the world * * Denotes a current or former Battery portfolio company
  27. 27. Battery Ventures Company Confidential | 27 2017 Internet Mobile AI/Machine Learning Time 1995-2005 2005-2015 2015- Enabler .com Smartphones Big Data Consumer Lighthouses Platform SaaS Mobile Apps Voice? Sample B2B Leaders AI and machine learning are enabling applications Are you leveraging AI and machine learning where appropriate in your product? Are you prepared for what a potential platform shift might entail for your market? Considerations for the Modern Software CEO 0 50 100 150 2004-01 2005-01 2006-01 2007-01 2008-01 2009-01 2010-01 2011-01 2012-01 2013-01 2014-01 2015-01 2016-01 2017-01 Google Trends: Interest in “Internet” Peak popularity: Jan ‘04 0 50 100 150 2004-01 2005-01 2006-01 2007-01 2008-01 2009-01 2010-01 2011-01 2012-01 2013-01 2014-01 2015-01 2016-01 2017-01 Google Trends: Interest in “Mobile” Peak popularity: Jan ‘12 Google Trends: Interest in “Machine Learning” 0 20 40 60 80 100 2004-01 2005-01 2006-01 2007-01 2008-01 2009-01 2010-01 2011-01 2012-01 2013-01 2014-01 2015-01 2016-01 2017-01 Peak popularity: Current
  28. 28. Battery Ventures Company Confidential | 28 2017 Microservices architecture and rapid product delivery are now must-haves How quickly can you deliver production code with no customer impact? How dependent are you on your infrastructure provider? Sample Tools Infrastructure Orchestration / Runtime Provisioning / Deployment Visibility / Monitoring Security / Governance Best-in-Class Good Average Many times a day Many times a week Every week Mainframe 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Client Server Multi-Tenancy Cloud-Native How quickly can you deliver production code? Considerations for the Modern Software CEO * Denotes a current or former Battery portfolio company SALESFORCE AWS O365 * * * Three Tier
  29. 29. Battery Ventures Company Confidential | 29 2017 Culture is paramount and employee feedback is public Are you keeping the talent bar high as you scale? Are culture and diversity top CEO priorities? BEST-IN-CLASS GOOD AVERAGE Company Rating 4.5+ 4.0-4.5 3.3-4.0 CEO Approval 94%+ 80-94% 67-80% Business Outlook 88%+ 75-88% 45-75% * Considerations for the Modern Software CEO * Denotes a current or former Battery portfolio company AVERAGE COMPANY RATING COMPARISON AVERAGE CEO APPROVAL RATING COMPARISON AVERAGE BUSINESS OUTLOOK COMPARISON
  30. 30. Battery Ventures Company Confidential | 30 2017 Source: Wall Street Journal Culture is paramount and employee feedback is public (cont.) Considerations for the Modern Software CEO
  31. 31. Battery Ventures Company Confidential | 31 2017 Find a Product Wedge Illustrative Legacy Examples Illustrative Modern Examples Okta leveraged the proliferation of cloud apps as its wedge into Windows’ leadership in identity management with Active Directory Box used the ability to sync cross-device, particularly on mobile as its wedge into customers that were already using Microsoft Sharepoint Contentful decoupled the back-end of the CMS from the front-end of the website, which allowed it an entry point into Adobe’s entrenched position in the CMS space Appboy leveraged mobile app marketing as a wedge into ExactTarget’s customer base before broadening its suite of services to include email marketing Procurement Enterprise HR/Accounting Workplace Communication * *SMB HR and Benefits Find a wedge and change the market dynamic Is there a product gap in an incumbent solution that you can exploit? Is there a weakness in an incumbent’s business model that you can use to your advantage? Enterprise File and Document Management Identity Digital Content Management B2C Marketing * Denotes a current or former Battery portfolio company Considerations for the Modern Software CEO * * Find a Business Model Wedge Illustrative Legacy Examples Illustrative Modern Examples Workday moved to subscription sales, decreasing the upfront switching cost for PeopleSoft customers Coupa provided the supplier network for free, decreasing the friction for suppliers to join its marketplace Slack leveraged bottoms up selling and “fair pricing”, enabling end-users to try the product themselves and IT administrators to only pay for users utilizing the service Zenefits and Bob monetize the insurance broker subscription instead of simply monetizing through traditional software sales
  32. 32. Battery Ventures Company Confidential | 32 2017 Grow fast or die slow Are you strategically using capital to capture your market? Are you moving to where the market will be in 24 months, not just where it is today? * * Considerations for the Modern Software CEO * Denotes a current or former Battery portfolio company
  33. 33. Battery Ventures Company Confidential | 33 2017 In software, being first seldom decides a market Considerations for the Modern Software CEO (1) Disclosed acquisition price according to 451 Research (2) Enterprise value as of 5/2/2017 (3) Most recent private company financing valuation Sample Vendors Market Core Competitive Time Early to Market Valuation Market Leader Valuation Relational Database 1980 – 1986 N/A $185.4B(2) Spreadsheets 1982 – 1987 N/A N/A Expense Management 1996 – 2001 $160M(1) $8.3B(1) Web Conference 1999 – 2002 $200M(1) $3.2B(1) CRM 2000 – 2003 $5.9B(1) $61.9B(2) Applicant Tracking 2000 – 2004 $115M(1) $1.9B(1) Learning Management 2007 – 2010 $400M(1) $2.2B(2) Pharma CRM 2008 – 2012 $415M(1) $7.5B(2) SMB E-Commerce 2008 – 2013 N/A $7.5B(2) Enterprise E-Commerce 2008 – 2013 $1.0B(1) $2.9B(1) Online Payments 2012 – 2016 $800M(1) $9.1B(3)
  34. 34. Battery Ventures Company Confidential | 34 2017 Category leadership is all that matters 71% 79% 72% 29% 21% 28% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2000-2003 2004-2008 2009-2013 Category King Everyone Else Equity Value by Category Leader Category king Everyone else 70% market share in their respective markets Category kings consistently captured more than (1) Considerations for the Modern Software CEO (1) Period slightly skewed by Facebook Source: “Time to Market Cap: The New Metric That Matters”, Play Bigger Advisors
  35. 35. Battery Ventures Company Confidential | 35 2017 Are you fully cognizant of your international competitors? Are you building your product and go-to-market for global scale? How aware are you of competitors that may be upstream or downstream? What are your soft spots that your competitors could exploit? How quickly can you deliver production code with no customer impact? How dependent are you on your infrastructure provider? Is there a product gap in an incumbent solution that you can exploit? Is there a weakness in an incumbent’s business model that you can use to your advantage? Software innovation is now global There are competitors in all segments of the market Does your product require detailed voice-over or speak for itself? Do you know what features drive adoption, loyalty and high NPS? Product now drives software sales Are you keeping the talent bar high as you scale? Are culture and diversity top CEO priorities? Culture is paramount and employee feedback is public Does each incremental customer and user make your product more valuable? What are data or network moats that can keep competitors at bay? Network effects and ecosystems build moats and drive stickiness Are you leveraging AI and ML where appropriate in your product? Are you prepared for what a platform shift might entail for your market? AI and machine learning are enabling applications Microservices architecture and rapid product delivery are now must haves Find a wedge and change the market dynamic Are you strategically using capital to capture your market? Are you moving to where the market will be, not just where it is today? Grow fast or die slow Summary: Tactical considerations to help the modern software CEO become a category king Considerations for the Modern Software CEO
  36. 36. Battery Ventures Company Confidential | 36 2017 Top 5 execution missteps and tactical advice Equating early product-market fit with long-term company success  Look for the operational issues when things are going well 1 Being reluctant to let your team drive key deals  The sooner the sales team does the selling the better you are 2 Waiting too long to embrace team-building as a key priority  Executive recruiting should consume 50% of your time3 Focusing only on 1st level management vs. 2nd level management  2nd level management is the true leverage point in scaling 4 Viewing the board in isolation  Hire and recruit board members just like your executive team 5
  37. 37. Battery Ventures Company Confidential | 37 WE FEEL THAT THIS IS JUST THE BEGINNING
  38. 38. Battery Ventures Company Confidential | 38 2017 Nasdaq Composite Index 0 1,000 2,000 3,000 4,000 5,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Capital IQ
  39. 39. Battery Ventures Company Confidential | 39 2017 Disruptive software companies will be started in all markets Nasdaq Composite Index 0 1,000 2,000 3,000 4,000 5,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 * * * * ** * * * * * Denotes a current or former Battery portfolio company Includes public cloud companies with TEV >$500M as of 5/3/17 according to Capital IQ, cloud companies acquired for over $500M since 2009 according to Pitchbook, and private cloud companies valued at over $1.5B as of 5/3/2017 according to Crunchbase. Excludes companies based in Asia.
  40. 40. Battery Ventures Company Confidential | 40 2017 $0 $100 $200 $300 $400 $500 $600 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Global Software Industry Revenue * * * * * * * * * Denotes a current or former Battery portfolio company Includes public cloud companies with TEV >$500M as of 5/3/17 according to Capital IQ, cloud companies acquired for over $500M since 2009 according to Pitchbook, and private cloud companies valued at over $1.5B as of 5/3/2017 according to Crunchbase. Excludes companies based in Asia. Billions *
  41. 41. Battery Ventures Company Confidential | 41 2017 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 ~5 We’re just getting started Billions * Denotes a current or former Battery portfolio company Includes public cloud companies with TEV >$500M as of 5/3/17 according to Capital IQ, cloud companies acquired for over $500M since 2009 according to Pitchbook, and private cloud companies valued at over $1.5B as of 5/3/2017 according to Crunchbase. Excludes companies based in Asia. * * * * * * * * * Your Logo Here? Global Software Industry Revenue
  42. 42. Battery Ventures Company Confidential | 42 2017 Biographies Logan is a vice president in Battery’s Boston office, focused on growth investments for business-to- business software companies. He is currently involved in Battery’s investments in Amplitude, Appboy, Narvar, Pendo, and TrendKite. In 2017, Logan was named to Forbes’ “30 Under 30” list of leading young entrepreneurs, innovators and game changers. Logan graduated with a BS from Washington and Lee University, where he played men’s lacrosse. Neeraj joined Battery in 2000 and invests in SaaS and internet companies across all stages. He was a founding investor in BladeLogic and has invested in several other companies that have gone on to stage IPOs, including Bazaarvoice, Coupa, Guidewire Software, Marketo, Nutanix, Omniture, RealPage and Wayfair. He also invested in several Battery portfolio companies that have experienced M&A events. Neeraj’s current private investments include Amplitude, Appboy, BloomReach, Catchpoint, Chef, Cohesity, Glassdoor.com, OpsGenie, Optimizely, Outlyer, Pendo, SmarterHQ, Sprinklr, StellaService, Tealium, TrendKite and Yesware. He has been recognized as a top-100 global venture capitalist on the Forbes Midas List for the past seven consecutive years. Twitter: @neerajvc Email: neeraj@battery.com Twitter: @jloganbartlett Email: logan@battery.com Neeraj Agrawal Logan Bartlett Special thanks to Galit Krifcher for her tireless work on this with us

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