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State of the OpenCloud 2019

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We’re at a major inflection point in enterprise IT—and the future, we believe, is open, and in the cloud.

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State of the OpenCloud 2019

  1. 1. State of the OpenCloud 2019 Battery Ventures Confidential Dharmesh Thakker Dan Nguyen-Huu Danel Dayan
  2. 2. 1 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 November 6, 2019 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. Past performance is not evidence of future results and there can be no assurance that a particular Battery portfolio company investment will achieve comparable results to any other investment. There can be no assurance that the investment objectives or the investment strategies described in this presentation will be successful. The information contained herein is based solely on the opinions of Dharmesh Thakker, Dan Nguyen-Huu, and Danel Dayan 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. Disclaimers This presentation includes proprietary information of Battery Ventures
  3. 3. Acknowledgements 2 This presentation includes proprietary information of Battery Ventures Shlomi Ben Haim – CEO, JFrog Ramin Sayar – CEO, Sumo Logic Felix Van de Maele – CEO, Collibra Matthew Scullion – CEO, Matillion Evan Kaplan – CEO, InfluxData
  4. 4. We’re Long Cloud Infrastructure & Open Source Software This presentation includes proprietary information of Battery Ventures
  5. 5. We’re Long Cloud Infrastructure & Open-Source Software 4 Cloud is increasing the attack surface and uncovering new cyber opportunities Software developers are innovating rapidly with cloud and open source building blocks Cloud adoption has enabled a new class of cloud-native and open source companies Yet cloud adoption is still nascent, and we are in the early innings Cloud infrastructure is growing quickly and contributing to significant value creation 2 1 3 4 5 This presentation includes proprietary information of Battery Ventures
  6. 6. Public cloud vendors added ~$20B in LTM revenue and are expected to continue growing at +50% Y/Y. Public Cloud Vendors Are Massive and Growing Quickly 5 Source: Company Data, Goldman Sachs Global Investment Research. Cloud vendors include Google Cloud, Alibaba AliCloud, Microsoft Azure, Amazon AWS, Oracle IaaS + PaaS, Salesforce App Cloud, and Rackspace. This presentation includes proprietary information of Battery Ventures $5 $6 $6 $7 $8 $9 $10 $12 $14 $16 $18 $20 $22 $25 $27 $31 $35 $39 $43 $48 $3 $4 $4 $6 $6 $7 $7 $8 $8 $9 $10 $11 $13 $14 $16 $18 $19 $20 $22 $24 $8 $9 $10 $12 $14 $16 $18 $20 $22 $25 $27 $31 $35 $39 $43 $48 $53 $59 $65 $72 58% 65% 72% 82% 73% 71% 70% 63% 58% 56% 54% 54% 57% 58% 58% 57% 54% 51% 50% 57% $0bn $80bn Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3E Q4E 2015 2016 2017 2018 2019 Prior Year LTM Revenue New Incremental Revenue vs. Prior Year Y/Y % growth PublicCloudRevenue(US$bn)
  7. 7. Cloud Providers Are Contributing to Significant Value Creation 6 This presentation includes proprietary information of Battery Ventures Illustrative Revenue Multiple Implied Cloud Valuation Parent Co. Enterprise Value Cloud Contribution to Enterprise Value 2019E Cloud Revenue 8.0x $288bn $919bn 31% $36bn 8.0x $136bn $1,045bn 13% $17bn 8.0x $72bn $771bn 9% $9bn Source: Company Data, Goldman Sachs Global Investment Research. Deutsche Bank Research. Capital IQ as of 11/1/2019.
  8. 8. $75 $76 $75 $75 $75 $75 $75 $182 $210 $203 $209 $211 $214 $217 $127 $136 $140 $148 $156 $165 $174 $185 $211 $228 $252 $278 $307 $337 $25 $32 $40 $50 $61 $74 $89 $13 $16 $19 $23 $27 $31 $36 $0bn $1,000bn $569 $633 $646 $684 $721 $761 $803 $37 $48 $59 $73 $89 $106 $124 7 Cloud Infrastructure Adoption is Still Nascent and We Are in the Early Innings This presentation includes proprietary information of Battery Ventures Disruption Potential Cloud penetration is still early at only ~10% of ~$700B in overall infrastructure spend in 2019. Source: Gartner Market Databook, Goldman Sachs Global Investment Research. IaaS and PaaS Disruption Potential (ex-IaaS and ex-PaaS) PaaS IaaS Infrastructure Software (ex-PaaS) Data Center Services IT Hardware Support Services 2017 2018 2019 2020 2021 2022 2023 93% 92% 91% 89% 85%88% 86% ITMarketSpend(US$bn)
  9. 9. $34.4bn $15.7bn $7.5bn $6.5bn $5.2bn $2.7bn $2.6bn $2.1bn $1.1bn $8.0bn $10.1bn $6.9bn $11.1bn $4.9bn $6.3bn $4.2bn $5.5bn $3.8bn $2.7bn $2.9bn $6.9bn $2.1bn $6.5bn $1.8bn $1.7bn $1.8bn $14.7bn $1.2bn $8.2bn $1.2bn $1.5bn $7.1bn $6.2bn $4.0bn $3.3bn $2.8bn $2.5bn $2.0bn $2.0bn $1.5bn $1.2bn $1.2bn $1.1bn $1.0bn Early Crop of Open Source and Cloud-Native Companies Are Promising 8 This presentation includes proprietary information of Battery Ventures @IPO Current * Select Recent M&A Purchase Price Select Recent IPOs Enterprise Value Select Private Unicorns Last Disclosed Valuation IPO * * * * Source: Pitchbook data. Capital IQ as of 11/1/2019. Select Private Unicorns based on private companies that are enterprise infrastructure-focused with valuations of $1.0B or greater as of November 2019. IPO valuation as of pricing. Enterprise Value calculation based on fully-diluted shares outstanding. Pivotal and MuleSoft current IPO figures represent M&A purchase price. Cloudera / Hortonworks represents the combined fully-diluted equity value. * Denotes a past or current Battery company. For a full list of all Battery investments, please click here.
  10. 10. Developers Are Innovating Rapidly with Cloud and Open Source Building Blocks 9 This presentation includes proprietary information of Battery Ventures 23M+ Software developers 100M+ Technical team members 800M+ Knowledge workers 1. Software developers are innovating faster. Digital transformation = rapid innovation 2. Low-code / no-code platforms are enabling a larger audience to be pseudo-software developers. Source: Atlassian Investor Presentation. Knowledge workers as of 2016 (Forrester Research), technical team members as of 2013 (Evans Data), software developers as of 2018 (Evans Data).
  11. 11. Cloud Is Increasing the Attack Surface and Uncovering New Cyber Opportunities 10 This presentation includes proprietary information of Battery Ventures Hosted-Based (Anti-Virus) Network Perimeter (IDS/IPS) Endpoint / Sandboxing Cloud Security 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Threat Vector Security Spend Threat Landscape Notable Strategic Activity $3.2B $7.4B (18% CAGR) $16.4B (17% CAGR) $96.3B (29% CAGR) 2000 – 2004 Strategic Activity 2005 – 2009 Strategic Activity 2010 – 2014 Strategic Activity 2015 – 2019 Strategic Activity Viruses / Worms Spyware / Rootkits APTs / Cyberware Increased Attack Surface M&A: IPOs: * * * * * Source: Momentum Cyber, Cybersecurity Almanac 2019. *Denotes a past or current Battery company. For a full list of all Battery investments, please click here.
  12. 12. Why Now This presentation includes proprietary information of Battery Ventures
  13. 13. 50 Years Major Enterprises Are Finally Modernizing / Transforming Their IT Stack 12 Logos shown for illustrative purposes. 1871 1870 1823 1792 1804 1886 This presentation includes proprietary information of Battery Ventures Silicon Valley is a recent phenomenon and only now are multi-generational enterprises realizing they must catch up. January 2009 February 2004
  14. 14. Many non-tech companies are already hiring software developers on par with technology companies. 5k 7k 8k 8k 8k 8k 11k 11k 11k 11k 13k 15k 16k 18k 20k 24k 26k 49k 58k 68k Uber Walmart Adobe Ford Verizon UnitedHealth Salesforce Bank of America Wells Fargo AT&T Honeywell Facebook Lockheed JPM Chase GE Oracle Apple Google Amazon Microsoft Tech BehemothsEveryone Else Every Company Is a Software Company 13 This presentation includes proprietary information of Battery Ventures Technology Companies Financial Services Other Non-Tech Companies Source: LinkedIn.* Includes current or past title that has architect, developer, product manager, developer, engineer, or DevOps at respective companies. NumberofTechnicalEmployees*
  15. 15. Working Population 14 The Opportunity for Software to Reach Non-Desk Workers Is Only Beginning Source: Capital IQ as of 11/1/2019. Working population estimates are based on U.S. Census data of a population of 318.9M x 59.4% employment ratio, yielding a total working population of 189.4M. Of which ~43.3% to 60% are full-time and/or white collared workers and 40% to 57.7% are hourly and/or blue collared workers. According to an Edison Research survey, 84% of hourly workers own a smartphone. *Denotes a past or current Battery company. For a full list of all Battery investments, please click here. $31BEV from Non-Desk Workers EnterpriseValue 76MFT Workers U.S. Only Worldwide 113MNon-Desk Workers 84% smartphone penetration ~600MDesk Workers ~2B+Non-Desk Workers $845BEV from Desk Workers This presentation includes proprietary information of Battery Ventures * *
  16. 16. Data & Privacy Security Operations Management 50 Billion Connected Devices and Data Are Transforming Every Industry 15 This presentation includes proprietary information of Battery Ventures Things Connected to the Internet People on Earth Connected Devices per Person 2005 2010 2015 2020 500 million 13 billion 25 billion 50 billion 6.3 billion 6.8 billion 7.2 billion 7.6 billion 0.08x 1.84x 3.47x 6.58x Themes Catalyzed Select Industries Impacted * * There will be 50 billion devices connected to the internet by 2020 generating more data than ever before. Source: Cisco IBSG. *Denotes a past or current Battery company. For a full list of all Battery investments, please click here.
  17. 17. Illustrative Companies Applications Within the Enterprise Cutting Edge Companies Are Pushing the Envelope with AI/ML 16 This presentation includes proprietary information of Battery Ventures Computer Vision Natural Language Processing 2009 2019 2009 2019 2009 2019 Sales | Customer Support | Compliance & Legal | HR & Talent | Engineering | IT * Source: Google Trends. *Denotes a past or current Battery company. For a full list of all Battery investments, please click here. Machine Learning Google Trends Popularity
  18. 18. Top 10 Operational Best Practices for OpenCloud Companies This presentation includes proprietary information of Battery Ventures
  19. 19. Focus on Individual Software Buyers / Influencers, in Addition to Traditional CIOs 18 This presentation includes proprietary information of Battery Ventures Users of the product are now the buyer and / or influencer of the product, driving bottoms up adoption. *Denotes a past or current Battery company. For a full list of all Battery investments, please click here. Sales-driven software purchases Marketing-driven software purchases Product-driven software purchases CIO, CISO, CFO VP of IT, Engineering, Product, HR, Procurement DevOps, Data Engineer, Architect, VP of App Dev, CTO Sales Qualified Leads (SQLs) Account Executive Deals Won Quota Attainment Marketing Qualified Leads (MQLs) Trials to Paid Conversion LTV : CAC Ratio Community Growth Net Promoter Score (NPS) Self-Serve vs. Sales-Driven Growth Go-To-Market Strategy IT Buyer Success Criteria Companies to Emerge * * * * 1
  20. 20. Leverage Open Source as an Efficient Customer-Acquisition Channel 19 This presentation includes proprietary information of Battery Ventures 60M 15,000 $346M “…[W]e didn’t open source [MongoDB] to get help from the community, to make the product better. We open sourced as a freemium strategy; to drive adoption” – Dev Ittycheria, MongoDB CEO, June 2019 350M 8,800 $305M It only takes a small percentage of users to convert to paying customers to build an enduring business. Source: Company Financials. Computer Business Review, MongoDB’s CEO on Open Source, Taking on Oracle and Scaling Up (June 2019). Total Downloads Total Customers (% of Total Downloads) LTM Total Revenue (0.0025%)(0.025%) (65% Y/Y growth)(67% Y/Y growth) 2
  21. 21. Successful customer acquisition channels can manifest themselves in various ways; the key is to define the criteria for community and create a community-driven adoption model (whether open-source or closed). Tap Freemium and Cloud-Based Trials to Acquire Customers 20 This presentation includes proprietary information of Battery Ventures Source: Company Website and Financials. (1) represents Cloud users only. *Denotes a past or current Battery company. For a full list of all Battery investments, please click here. Freemium 5K Contributors 350M Downloads 60M Downloads 40M Developers 2K Contributors * 380K Paid Users Most Open 10M Active Users(1) 7M Developers 3
  22. 22. Leverage New Cloud Marketplaces to Discover and Reach Customers 21 This presentation includes proprietary information of Battery Ventures 5,000+ Products 1,300+ ISVs 500+ Million Hours on EC2 via AWS Marketplace 12,000+ Apps & Services 350K/mo Customer Leads $90M/mo in Marketplace Revenue 1. Leverage cloud marketplaces to sell to a broader audience and take advantage of their reach. 2. Cloud marketplaces should be one of many GTM channels; build relationships with cloud partners and leverage opportunities for collaboration as cloud providers retire quota for partner sales today. Source: Company Websites. AWS Partner Summit Mumbai 2018. Deutsche Bank Research, Partner Checks, Investor Bogeys (July 2019). 4
  23. 23. Focus on “Time to Value” to Lock in Users/Buyers 22 This presentation includes proprietary information of Battery Ventures 90 Seconds For the user to understand the product 90 Minutes For the user to get value from the product 90 Days For the user to buy the product Time to value is driven by product / engineering but can be measured through go-to-market behaviors; use the “Rule of 90s” to ensure product is delivering value to customers in the field. 5
  24. 24. 23 Build Trust With Users Through Clear and Transparent Pricing This presentation includes proprietary information of Battery Ventures Common Pricing Market Fit Models API * INTEGRATIONUSAGEDEVELOPER Transparency across all aspects of the company builds trust with customers, especially with self-serve buyers. Pick a pricing model to align with customers ROI. Source: Company Websites. *Denotes a past or current Battery company. For a full list of all Battery investments, please click here. 6
  25. 25. Bottoms-Up / Self-Service Sales Combining bottoms-up and enterprise sales is a delicate balance, so align incentives across your GTM engine so your customers are getting the best value through the best / right channels. Re-Wire Sales Comp Plans to Accommodate Bottoms-Up, GTM Motions 24 This presentation includes proprietary information of Battery Ventures Top-Down / Enterprise Sales Lead Generation: AE - Sales Development Marketing - Inside Sales Purchasing Driver: Relationships Marketing - Usage / Consumption Sales Cycle: Months Days Quota(s): ~$1.2M - $1.5M ~$500K - $750K CAC: High Low Sales Incentives: New Logos Free Trial - Consumption / Expansion LTV:CAC: Low – High (If Users Engaged Effectively) High 7
  26. 26. Carefully Monitor and Understand Pay-As-You-Go Transaction Revenue Streams 25 This presentation includes proprietary information of Battery Ventures Best Practices from Pay-As-You-Go Models • Consider implementing: • commit to consume comp structures • volume discounts • per-second / usage billing • Align GTM to move with cloud providers • Build internal dashboards for monitoring • Beware of customer concentration Source: Capital IQ as of 11/1/2019. Deutsche Bank Research, Usage-Based Model Fueling Best-in Class Growth (October 2018). Twilio’s usage-based model means…customer overages are actually encouraged, with pricing discounts applied upon attainment of key thresholds rather than retroactive penalties...the end result is a more symbiotic customer relationship in which Twilio shares in a customer’s success. This model also lends itself to consistently best in class expansion rates, ranging between 130-170%. – Michael Turrin, October 2018, StockPricePerformance%sinceIPO 547% 434% 0% 1000% 2016 2017 2018 2019 Customer concentration concerns Transaction Revenue Streams Have Only Recently Been Recognized Current 8
  27. 27. Know Your Open-Source Software Licensing Model 26 This presentation includes proprietary information of Battery Ventures Understand your licensing models in relation to your monetization models and defend appropriately. Source: Company licensing change blogs. Low (GPL, A/LGPL, Custom) High (MIT, Apache, BSD) Paid Features Openness Examples 24/7 Technical Support Community Forums Professional Services Improved Availability Horizontal Scalability Access Controls Cloud-Hosted Elastic Scalability Advanced Controls Enhanced Security/Backup Support & Services Open Core Managed Service 9
  28. 28. Align Your Org Around Continuous Learning & Product Improvement 27 This presentation includes proprietary information of Battery Ventures Product Customer * * * * * * Product/engineering and customer-facing teams require consistent feedback loops to deliver time to value. *Denotes a past or current Battery company. For a full list of all Battery investments, please click here. 10
  29. 29. Building a Lasting Public Company Focus On KPIs that Matter This presentation includes proprietary information of Battery Ventures
  30. 30. 0% 120% CRWD OKTA TWLO DDOG ESTC MULE AYX CLDR ZS MDB TENB PD DOMO NET FSLY TLND SWI PVTL APTI PING APPN DT Median: 48% Last Twelve Months Revenue Growth at IPO 29 This presentation includes proprietary information of Battery Ventures * Cloud infrastructure markets are large and growing; companies attached to these mega-trends are experiencing the benefits of these tailwinds. Source: Company filings. Excludes ForeScout, SailPoint, Carbon Black, and Nutanix due to lack disclosed metrics. Talend financials based on constant currency. *Denotes a past or current Battery company. For a full list of all Battery investments, please click here. Best >70% Better 70-45% Good <45%
  31. 31. 0.0x 2.5x TWLO DDOG ESTC CRWD FSLY NET OKTA MULE PD DT AYX ZS TENB PING MDB PVTL CLDR SWI TLND APPN APTI DOMO Median: 0.7x Average Magic Number Over Last Twelve Months at IPO 30 This presentation includes proprietary information of Battery Ventures Product-led growth and bottoms-up are enabling companies to be more efficient in customer acquisition. Note: Magic number calculated as (((Q(t) – Q(t-1))*4)/S&M(t-1) subscription revenue, unless ARR is disclosed. Source: Company filings. Excludes ForeScout, SailPoint, Carbon Black, and Nutanix due to lack disclosed metrics. Ping Identity, Dynatrace, and SolarWinds excludes amortization/depreciation of acquired assets and restructuring costs. Talend financials based on constant currency. *Denotes a past or current Battery company. For a full list of all Battery investments, please click here. Best >1.0x Better 1.0x-0.7x Good <0.7x *
  32. 32. 0% 180% TWLO PVTL CRWD DDOG ESTC CLDR PD DT AYX FSLY MDB TENB OKTA TLND ZS MULE APPN PING NET SWI DOMO APTI Median: 126% Dollar-Based Net Retention at IPO 31 This presentation includes proprietary information of Battery Ventures Bottoms-up and transaction-based revenue streams have far more consistency and expansion potential than we all anticipated. Source: Company filings. Excludes ForeScout, SailPoint, Carbon Black, and Nutanix due to lack disclosed metrics. Ping Identity, Dynatrace, and SolarWinds excludes amortization/depreciation of acquired assets and restructuring costs. Talend financials based on constant currency. *Denotes a past or current Battery company. For a full list of all Battery investments, please click here. Best >140% Better 140-120% Good <120% *
  33. 33. 0.0x 7.0x TWLO DDOG CRWD ESTC PD PING NET DT AYX OKTA MULE ZS FSLY TENB PVTL MDB SWI TLND APTI CLDR APPN DOMO Median: 2.4x LTV:CAC at IPO 32 This presentation includes proprietary information of Battery Ventures Efficient customer acquisition while focusing on enterprise-grade customers results in higher expansion potential. Source: Company filings. Excludes ForeScout, SailPoint, Carbon Black, and Nutanix due to lack disclosed metrics. Ping Identity, Dynatrace, and SolarWinds excludes amortization/depreciation of acquired assets and restructuring costs. Talend financials based on constant currency. LTV calculated as GAAP subscription gross margin / (gross churn (est.) + 11% discount rate). CAC calculated as LTM GAAP S&M exp. / (Qo subscription revenue)*4 – (Q-4 subscription revenue)*4). ARR used instead of subscription revenue if disclosed. *Denotes a past or current Battery company. For a full list of all Battery investments, please click here. Best >3.0x Better 3.0-2.5x Good <2.5x *
  34. 34. 0% 80% DOMO MDB CLDR ESTC CRWD PD PVTL TENB DDOG NET OKTA FSLY APTI TWLO ZS AYX PING TLND APPN MULE DT SWI Median: 24% 0% 140% TWLO SWI PING FSLY DT PVTL APPN DDOG NET APTI ESTC PD TENB ZS TLND MULE AYX CRWD MDB OKTA CLDR DOMO Median: 53% Last Twelve Months R&D and S&M as Percentage of Revenue at IPO 33 This presentation includes proprietary information of Battery Ventures S&M R&D * * Bottoms-up companies have flexibility to invest in research & development given efficient GTM engine. Source: Company filings. Excludes ForeScout, SailPoint, Carbon Black, and Nutanix due to lack disclosed metrics. Ping Identity, Dynatrace, and SolarWinds excludes amortization/depreciation of acquired assets and restructuring costs. Talend financials based on constant currency. *Denotes a past or current Battery company. For a full list of all Battery investments, please click here. Best 25-45% Better 45-65% Good 65-120% Best 70-35% Better 35-20% Good 20-10%
  35. 35. R² = 0.5469 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 0% 10% 20% 30% 40% 50% 60% Index to the Cloud and Know Your Cloud Metrics Fundamentals 34 This presentation includes proprietary information of Battery Ventures EV/NTM Sales vs. NTM Sales Growth EV/NTM Sales vs. LTV:CAC * Investors are rewarding companies with 1) high-growth and indexed to the cloud, 2) efficient go-to-market functions enabling lower CAC, and 3) clear customer expansion patterns driving higher LTV. Source: Company filings. Excludes ForeScout, SailPoint, Carbon Black, and Nutanix due to lack disclosed metrics. Ping Identity, Dynatrace, and SolarWinds excludes amortization/depreciation of acquired assets and restructuring costs. Talend financials based on constant currency. *Denotes a past or current Battery company. For a full list of all Battery investments, please click here. EV/NTMSalesMultiple EV/NTMSalesMultiple NTM Sales Growth % LTV:CAC Ratio R² = 0.5181 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x * *
  36. 36. Future of OpenCloud This presentation includes proprietary information of Battery Ventures
  37. 37. Cloud Unleashes Innovation => Markets May Be Much Larger than Anticipated 36 This presentation includes proprietary information of Battery Ventures Source: Company filings. 1M+Long Term 2018 138K+ $165B2019 2014 $45B Customers Addressable Market Opportunity
  38. 38. 0.0% 2.5% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Software Continues to Grow as a Percentage of GDP 37 This presentation includes proprietary information of Battery Ventures Source: Credit Suisse, Bureau of Economic Analysis. SoftwareSpendasa%ofUSGDP
  39. 39. $0 $7T 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 We’re Still In the Early Innings for OpenCloud 38 This presentation includes proprietary information of Battery Ventures TODAY Assumed 2017-2050 CAGR Global Software Revenue ~5% $1 Trillion ~5 * * * * * * * * * * * * * * * * Source: Battery Ventures; Forrester; Gartner; the Yankee Group; BEA.gov; Input Research. *Denotes a past or current Battery company. For a full list of all Battery investments, please click here. GlobalSoftwareSpend(US$)
  40. 40. The Battery Team 39 This presentation includes proprietary information of Battery Ventures Download slides here: https://www.battery.com/powered/ Dharmesh Thakker dharmesh@battery.com @Dthakker02 Dan Nguyen-Huu dan@battery.com @dannguyenhuu Danel Dayan ddayan@battery.com @DanelDayan

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