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GGV Capital: Venture Investing and the Cloud (2012)

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Glenn Solomon's slidedeck from his "How to Get your Cloud Company Funded" session at Up 2012

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GGV Capital: Venture Investing and the Cloud (2012)

  1. 1. Venture Investing and the CloudLP Meeting Glenn Solomon - 20122012
  2. 2. Purpose of Today’s PresentationOver the next half hour you will…. ➜ Learn more about why VCs continue to like the cloud ➜ Get a sense for the models VCs like ➜ Gain some practical experience on how to approach VCs 2
  3. 3. AgendaCloud Computing: Why VCs Still Love the CloudWhat’s Disrupting The Cloud ➜Mobile’s Effect on the Cloud ➜Very Big Data ➜SMB: The Final FrontierGetting Funded: Dos and Don’ts 3
  4. 4. The Cloud Continues to Grow 4
  5. 5. Cloud Companies: Numerous and Specific 5
  6. 6. Strong Consolidation in Cloud 6
  7. 7. Cloud Companies Beat Market Expectations *Morgan Stanley 7
  8. 8. Still Lots To Do Priorities for Improving Cloud Apps % of Respondents Unimportant Of Little Importance Somewhat Important Important Very Important Ensuring security & compliance 11% 35% 48% Improving manageability 16% 45% 36% Deeper integration with on-premise apps 18% 48% 29% Deeper integration with other cloud apps 19% 50% 26% Providing mobile access 19% 42% 33% Performance monitoring/management 19% 43% 32% Improving data quality 23% 34% 39% Reducing SaaS siloes 19% 42% 31% Improving application governance 20% 39% 34% Reporting & analytics 19% 39% 33% Driving user adoption/productivity 25% 35% 31% *Appirio 8
  9. 9. AgendaCloud Computing: Why VCs Still Love the CloudWhat’s Disrupting The Cloud ➜ Mobile’s Effect on the Cloud ➜ Very Big Data ➜SMB: The Final FrontierGetting Funded: Dos and Don’ts 9
  10. 10. A Mobile-First, PC-Second World Q1 2011 Q1 2012 Q1 2011 Q1 2012 17% 39% 46% 29% +12% +7% Almost a third of American adults own Nearly half of all American adults tablets own smartphones *Morgan Stanley, Pell Research 10
  11. 11. Mobile’s Weakness: Storage Mobile users rely on the cloud to access and store data Mobile Data per Year 15.6 GB *T-Mobile Average Internal Storage Facebook Photos per Year 761 MB *Facebook, Pixable Average iTunes Music Library 16 GB 9 GB *TuneUp 11
  12. 12. Popular Mobile Apps that Rely on the Public Cloud 12
  13. 13. Opportunities in Mobile and the Cloud Mobile Security Sharing Data Across Mobile Platforms Crossing the Content Creation Gap 13
  14. 14. AgendaCloud Computing: Why VCs Still Love the CloudWhat’s Disrupting The Cloud ➜ Mobile’s Effect on the Cloud ➜ Very Big Data ➜SMB: The Final FrontierGetting Funded: Dos and Don’ts 14
  15. 15. Facebook: A Lesson in Big Data Every day Facebook processes… • 300M new photos • 2.5B new items shared + • 2.7B “Likes” • 70,000 queries (Friend Suggestions) More than 500TB of data *Facebook 15
  16. 16. Big Data Needs for the Cloud Storage • Need inexpensive, dense storage • High performance Computation • Efficient analysis over large data sets (Friend Suggestions) • Big Data Databases (NoSQL / NewSQL) Infrastructure • Performance at Scale • Security 16
  17. 17. Exciting Disruptors in Cloud / Big Data Infrastructure Storage Computation Infrastructure 17
  18. 18. Opportunities in Big Data and the Cloud Easy, Real-Time Analytics High Performance Multitenancy Cloud Security and Compliance 18
  19. 19. AgendaCloud Computing: Why VCs Still Love the CloudWhat’s Disrupting The Cloud ➜ Mobile’s Effect on the Cloud ➜ Very Big Data ➜ SMB: The Final FrontierGetting Funded: Dos and Don’ts 19
  20. 20. SMBs Flocking to the Cloud• SMBs adding services. 39% of SMBs projected to pay for 1+cloud services in three years; current 29%. SMBs with cloudservices will be using 3.3 services in three years; current 2 services.• Hybrid model. Within three years, 43% of workload will be on paidcloud services, 28% on-premise, 29% free / bundled.• SaaS and IaaS adoption. SMBs adopting SaaS and IaaS servicesare larger, more growth-oriented companies *Microsoft SMB Cloud Adoption Study 2011 / William Blair 20
  21. 21. Tech Sales 1.0 21
  22. 22. What SMBs Love: Tech Sales 2.0 22
  23. 23. Who’s Doing It Right 23
  24. 24. Succeeding in SMB Cloud Leverage Social Media Disrupt Traditional Markets Create Scalable Processes 24
  25. 25. AgendaCloud Computing: Why VCs Still Love the CloudWhat’s Disrupting The Cloud ➜ Mobile’s Effect on the Cloud ➜ Very Big Data ➜ SMB: The Final FrontierGetting Funded: Dos and Don’ts 25
  26. 26. Approaching a VC with your Cloud Company Study the landscape and differentiate Focus on big market with relevant team What is your flywheel? Scalability? Know your financial model VC partner – chemistry over terms DO Use buzzwords Try to do everything – focus is key DON’T Maximize valuation over chemistry Hide your vulnerabilities 26
  27. 27. Questions? 27

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