In Bessemer’s State of the Cloud 2020 Report, we distill twenty years of data on the private and public cloud market trends, dive into the time tested tenets that early-stage cloud founders need to prioritize for growth, and of course, share our predictions that explain the emerging categories we’re eyeing to spot promising new companies.
Since the early 2000s, the industry has seen exponential growth, both in private and public spheres. Many companies have cloud strategies in place, but they are amidst their digital transformations. We believe the future of technology is forged in the cloud, and after two decades of growth it’s just the beginning.
In a time when founders and investors are faced with unprecedented market volatility, it is especially timely to step back and look at the long arc of technology, and the cloud computing revolution in particular.
Source: bvp.com/cloud
Bessemer Venture Partners (Byron Deeter, Elliott Robinson, Hansae Catlett, Mary D'Onofrio)
In State of the Cloud 2021, we explore the major milestones and changes within the cloud economy and original analysis on what’s driving today’s private cloud valuations. In addition, we share new frameworks and emerging strategies to help founders measure growth endurance and drive go-to-market momentum. Plus, we dive into our seven predictions for 2021.
Top takeaways
Cloud companies have not just reset in the New Normal, but have thrived with a record-breaking market capitalization of more than $2 trillion.
There’s been a changing of the guard afoot: MT SAAS has overtaken FAANG.
Cloud multiples are rising to new heights, with both public and private cloud trading over 20x.
Cloud growth rates and access to capital are at all-time highs, with the average Cloud 100 company growing 80% YoY and $186 billion going into private cloud companies in 2020 alone.
Good-better-best of growth endurance is 70%-75%-80%.
GTM strategies have adapted in the New Normal; best practices include product-led growth, usage-based pricing, and the adoption of cloud marketplaces.
As Bessemer officially launches its presence in London, Alex Ferrara and Dhruv Jain are releasing this report to reaffirm that Silicon Valley doesn’t have a monopoly on innovation and entrepreneurship is a borderless endeavor. In this report, they share the signals giving us confidence in Europe as a new technology leader, the macro trends driving the rise of the European cloud ecosystem, and the predictions we believe will be a driving force for our investments. To read the full report go to: https://www.bvp.com/atlas/the-rise-of-cloud-in-europe
Battery Ventures State of the OpenCloud Report 2022Battery Ventures
Battery Ventures' 2022 State of the OpenCloud report, compiled by General Partner Dharmesh Thakker and his team Danel Dayan, Jason Mendel and Patrick Hsu. The report analyzes the macro technology and economic trends impacting the cloud market, and provides advice for cloud-native entrepreneurs who are navigating these trends to build large, enduring businesses.
Both 2021 and 2022 have been hallmark years in all things Web3, crypto, and blockchain. The market has dramatically expanded - we’ve seen new highs and some sobering lows alongside extraordinary and constant innovation. Here at Vayner3, we’ve grown from a small group of passionate crypto- natives to an end-to-end Web3 consultancy with 25+ enterprise clients across CPG, Retail, Fashion, Automotive, and Tech. Recent events have certainly surfaced clear bad actors and put the space in the spotlight for the wrong reasons, but we remain optimistic about our Web3 future. This paper will help explain why.
Web3 is the next evolution of the internet, consumer behavior, and culture powered by blockchain technology. Our definition of Web3 includes new technologies - cryptocurrencies, NFTs, DeFi, and the “metaverse” - but it also includes an important cultural and behavioral layer. Over the last 2 years, we have seen a renaissance begin in digital art, fashion, sports, music, and identity. As consumers spend more and more of their time online - and younger generations grow with a more intertwined version of physical and digital realities - we expect today’s fundamentals of emerging Web3 technology and culture to grow exponentially with profound implications.
In this paper, we attempt to dissect the meta Web3 narrative, dive into the data, and identify true signal in a (very) noisy market. We look at what matters most to marketers and operators at large enterprise organizations considering Web3 tech, and we focus on the near-term future. We stay grounded in business and technological realities, and we fully acknowledge that macroeconomic forces and regulatory changes could play a major role in how 2023 unfolds. All things considered, we remain convinced: Web3 is going increasingly mainstream in 2023. Let’s build the future together.
Bessemer uncovers the year’s top trends and insights in the global cloud economy, including how the model is only getting better, and why being a Centaur is the new milestone to celebrate.
Read the full report: https://www.bvp.com/atlas/state-of-the-cloud-2022
China metaverse report by daxue consulting and ayo consultingDaxue Consulting
In 2021, the Chinese government set Metaverse technology development as an objective for the country’s economic growth. With government incentives and a strong interest from Chinese consumers, Chinese tech giants have aggressively invested in Metaverse technology and applications ever since. VR enhanced gaming is of course one of those applications, but those technologies apply far beyond the world of video games. From virtual try-ons in retail stores to marketing campaigns based on metahuman influencers, Chinese firms are already using tomorrow’s Metaverse technologies to create ever increasingly engaging consumer experiences.
In this report made in collaboration with AYO Consulting, you will find an analysis of China’s metaverse and the various applications of its technology in retail.
Download to learn:
- What Metaverse technologies companies can leverage to boost sales in China
- Which companies are developing those technologies in China
- How VR and AR enhance the shopping experience of Chinese consumers
- How is the legal environment shaping the NFT and cryptocurrency landscape in China
- How and why companies are using metahumans to conduct marketing campaigns in China
- What are the benefits of hosting virtual events, with some Chinese case studies
Key stats on the Metaverse in China:
- After the creation of the Metaverse Industry Committee in 2021, financing of Metaverse-related projects reached 5.7 billion US dollars in China the same year. In 2022, from January to March alone those investments jumped to 8.1 billion US dollars.
- Chinese giants are heavily investing in Metaverse-related technologies. Among them, Bytedance acquired the third largest worldwide VR set maker Pico for 5 billion RMB.
- As of 2021, Huawei was the first 5G patent holder in the world at 15.4% of all 5G-related patents.
- The AI core industry in China was worth 189 billion RMB, almost doubling over two years.
- The virtual idol market in China was worth 101 billion RMB in 2021 and is projected to triple by the year 2023.
In State of the Cloud 2021, we explore the major milestones and changes within the cloud economy and original analysis on what’s driving today’s private cloud valuations. In addition, we share new frameworks and emerging strategies to help founders measure growth endurance and drive go-to-market momentum. Plus, we dive into our seven predictions for 2021.
Top takeaways
Cloud companies have not just reset in the New Normal, but have thrived with a record-breaking market capitalization of more than $2 trillion.
There’s been a changing of the guard afoot: MT SAAS has overtaken FAANG.
Cloud multiples are rising to new heights, with both public and private cloud trading over 20x.
Cloud growth rates and access to capital are at all-time highs, with the average Cloud 100 company growing 80% YoY and $186 billion going into private cloud companies in 2020 alone.
Good-better-best of growth endurance is 70%-75%-80%.
GTM strategies have adapted in the New Normal; best practices include product-led growth, usage-based pricing, and the adoption of cloud marketplaces.
As Bessemer officially launches its presence in London, Alex Ferrara and Dhruv Jain are releasing this report to reaffirm that Silicon Valley doesn’t have a monopoly on innovation and entrepreneurship is a borderless endeavor. In this report, they share the signals giving us confidence in Europe as a new technology leader, the macro trends driving the rise of the European cloud ecosystem, and the predictions we believe will be a driving force for our investments. To read the full report go to: https://www.bvp.com/atlas/the-rise-of-cloud-in-europe
Battery Ventures State of the OpenCloud Report 2022Battery Ventures
Battery Ventures' 2022 State of the OpenCloud report, compiled by General Partner Dharmesh Thakker and his team Danel Dayan, Jason Mendel and Patrick Hsu. The report analyzes the macro technology and economic trends impacting the cloud market, and provides advice for cloud-native entrepreneurs who are navigating these trends to build large, enduring businesses.
Both 2021 and 2022 have been hallmark years in all things Web3, crypto, and blockchain. The market has dramatically expanded - we’ve seen new highs and some sobering lows alongside extraordinary and constant innovation. Here at Vayner3, we’ve grown from a small group of passionate crypto- natives to an end-to-end Web3 consultancy with 25+ enterprise clients across CPG, Retail, Fashion, Automotive, and Tech. Recent events have certainly surfaced clear bad actors and put the space in the spotlight for the wrong reasons, but we remain optimistic about our Web3 future. This paper will help explain why.
Web3 is the next evolution of the internet, consumer behavior, and culture powered by blockchain technology. Our definition of Web3 includes new technologies - cryptocurrencies, NFTs, DeFi, and the “metaverse” - but it also includes an important cultural and behavioral layer. Over the last 2 years, we have seen a renaissance begin in digital art, fashion, sports, music, and identity. As consumers spend more and more of their time online - and younger generations grow with a more intertwined version of physical and digital realities - we expect today’s fundamentals of emerging Web3 technology and culture to grow exponentially with profound implications.
In this paper, we attempt to dissect the meta Web3 narrative, dive into the data, and identify true signal in a (very) noisy market. We look at what matters most to marketers and operators at large enterprise organizations considering Web3 tech, and we focus on the near-term future. We stay grounded in business and technological realities, and we fully acknowledge that macroeconomic forces and regulatory changes could play a major role in how 2023 unfolds. All things considered, we remain convinced: Web3 is going increasingly mainstream in 2023. Let’s build the future together.
Bessemer uncovers the year’s top trends and insights in the global cloud economy, including how the model is only getting better, and why being a Centaur is the new milestone to celebrate.
Read the full report: https://www.bvp.com/atlas/state-of-the-cloud-2022
China metaverse report by daxue consulting and ayo consultingDaxue Consulting
In 2021, the Chinese government set Metaverse technology development as an objective for the country’s economic growth. With government incentives and a strong interest from Chinese consumers, Chinese tech giants have aggressively invested in Metaverse technology and applications ever since. VR enhanced gaming is of course one of those applications, but those technologies apply far beyond the world of video games. From virtual try-ons in retail stores to marketing campaigns based on metahuman influencers, Chinese firms are already using tomorrow’s Metaverse technologies to create ever increasingly engaging consumer experiences.
In this report made in collaboration with AYO Consulting, you will find an analysis of China’s metaverse and the various applications of its technology in retail.
Download to learn:
- What Metaverse technologies companies can leverage to boost sales in China
- Which companies are developing those technologies in China
- How VR and AR enhance the shopping experience of Chinese consumers
- How is the legal environment shaping the NFT and cryptocurrency landscape in China
- How and why companies are using metahumans to conduct marketing campaigns in China
- What are the benefits of hosting virtual events, with some Chinese case studies
Key stats on the Metaverse in China:
- After the creation of the Metaverse Industry Committee in 2021, financing of Metaverse-related projects reached 5.7 billion US dollars in China the same year. In 2022, from January to March alone those investments jumped to 8.1 billion US dollars.
- Chinese giants are heavily investing in Metaverse-related technologies. Among them, Bytedance acquired the third largest worldwide VR set maker Pico for 5 billion RMB.
- As of 2021, Huawei was the first 5G patent holder in the world at 15.4% of all 5G-related patents.
- The AI core industry in China was worth 189 billion RMB, almost doubling over two years.
- The virtual idol market in China was worth 101 billion RMB in 2021 and is projected to triple by the year 2023.
2023 Q2 Crypto Industry Report | CoinGeckoCoinGecko
After the exuberance of Q1, the crypto market took Q2 to consolidate the gains and increased slightly by 0.14%, from a total market cap of $1.238 trillion on March 31, 2023, to $1.240 trillion on June 30, 2023. April and May were relatively quiet months, particularly after Ethereum’s Shapella upgrade on April 12 as the market was absent of any strong overarching narrative. Prices of Bitcoin (BTC) and Ethereum (ETH) are now hovering around $30,000 and $1,900 respectively, with BTC climbing 6.9%, while ETH increased by 6.0% in Q2.
Our comprehensive 2023 Q2 Crypto Industry Report covers everything from the crypto market landscape to analyzing Bitcoin and Ethereum, deep diving into the decentralized finance (DeFi) and non-fungible token (NFT) ecosystems, and reviewing how centralized exchanges (CEX) and decentralized exchanges (DEX) have performed.
2020 has been a challenging year. Yet, amidst the various trials, widespread digital transformation has sparked several triumphs in SaaS. For instance, UiPath made history this summer when they became the first European Cloud Decacorn. Now we’re 10 months in, the question on everyone’s lips is what’s just happened and what’s coming next? In this keynote presentation, Philippe Botteri, Partner and Varun Purandare, VP at Accel will present original findings from Accel’s 2020 Euroscape. They'll explore the biggest trends in SaaS, deep dive into COVID's impacts on the ecosystem and share the region’s top 100 cloud companies.
GOLIN / DIGITAL & SOCIAL MEDIA EXCELLENCE / HONG KONGZaheer Nooruddin
Digital and Social Media Strategy Excellence at Golin Hong Kong - an integrated communications and marketing agency with a worldwide network. Contact: Zaheer Nooruddin, Head of Digital Innovation, Asia at znooruddin@golin.com
The Boston Consulting Group, MIT Sloan Management Review, and the United Nations Global Compact joined forces to provide an inside look at how companies are dealing with sustainability issues: http://on.bcg.com/1Ci1R8l.
McKinsey Global Institute's latest report shows how soaring flows of data and information now generate more economic value than the global goods trade. Here are the key charts and graphs that tell the story. For the full report, visit http://bit.ly/digiflows.
PwC: New IT Platform From Strategy Through ExecutionCA Technologies
Glenn Hobbs, PwC’s technology consulting director, shares how PwC’s new IT Platform can provide the framework to transform IT organizations so they can quickly incorporate the right technology and focus on collaboration and innovation to help solve the most-critical business problems.
For more information on DevOps solutions from CA Technologies, please visit: http://bit.ly/1wbjjqX
The value of digitally influenced spending in emerging markets will approach $4 trillion by 2022, amounting to about 50% of all retail spending in Asia, Latin America, and Africa. But the dynamics will vary widely between markets, requiring B2C companies to “de-average” their offerings in order to succeed.
Lifting the Barriers to Retail Innovation in ASEAN | A.T. KearneyKearney
Rising incomes and growing demand for consumer goods and services in ASEAN create rich opportunities for retailers in the region, which is especially significant as member nations join forces to become an economic powerhouse. Yet ASEAN retailers have been slow in terms of Innovation and as this market opens up, stepping up innovation is required to capitalize fully on the opportunities.
The enterprise software industry is being transformed by substantial investor capital, Cloud 2.0, artificial intelligence, data protection, preferred platforms, and a talent shortage, leading stakeholders of all kinds to make big changes, and big choices.
Numa era de mudanças organizacionais e perturbações globais sem precedentes, o relatório Global Marketing Trends 2022 apresenta as principais tendências de marketing, fruto dos desafios de negócio que enfrentamos
Actualizamos el estudio Consumer Pulse, de Bain & Company, en el que monitoreamos los principales cambios y las tendencias en los hábitos de los consumidores en América del Sur durante la pandemia, especialmente en Colombia.
Bessemer Venture Partners' is proud to share The State of the Cloud for 2017.
As the definitive guide to the biggest trends in the cloud industry, this year’s “State of the Cloud Report” includes:
1. A Look Back at 2016
- 2016 was a marquee year for a number of reasons. First, we all remember the rocky start in February where the Cloud Market dropped 35%
- Subsequently, rebounded back to normal levels and ended the year up +15%.
- The dip in the market had two main outcomes: First, it led to unprecedented amounts of M&A (4x more than any other year and 40% of the total cloud market cap of $300B) – and second, it led to the fewest number of cloud tech IPOs since the financial crisis.
- A combination of these factors has led to the highest quality backlog of private cloud companies in history. The top 100 private Cloud companies alone represent over $100B of private enterprise value.
2. We provide a deeper look into the three top questions every private cloud CEO should be discussing with his/her executive team
- How fast should I be growing?
- How much should I burn?
- How do I scale?
3. Bessemer’s 7 Predictions for 2017
- The year of human assisted AI
- APIs will serve as the backbone for a majority of software infrastructure
- Architect for infinite scale without infinite spend
- Mobile unlocks non-desk worker productivity
- NPS everything
- Diverse teams win
- The screenless software movement
Although a majority of executives say sustainability is necessary to be competitive, most companies still aren't profiting from their sustainability efforts. BCG and MIT Sloan Management Review present the results of their 2013 sustainability survey, including a look at companies that "walk the talk" when it comes to sustainability issues.
Digital 2022: Essential Pinterest Stats for Q1 2022 v01DataReportal
This presentation contains DataReportal’s update on Pinterest adoption and use around the world in January 2022, including the number of Pinterest users by country, and insights into Pinterest’s audience demographics (i.e. Pinterest users by age and gender). Find similar reports for other top social platforms – and loads more great insights – at https://datareportal.com/social-media-platforms
What goes into building an enduring cloud business? Bessemer investors Byron Deeter, Kristina Sheen, and Anna Khan reveal the G.R.I.T. framework and ways for cloud founders to develop new levels of operational rigor. In this presentation, Bessemer unveils insights into the cloud industry, Good, Better, Best frameworks for SaaS startups, and the 2019 technology trends and predictions Bessemer is most excited about.
Follow the Bessemer Cloud Team on Twitter:
@bdeeter
@kshenster
@annarchyy
About Bessemer Venture Partners:
Bessemer Venture Partners was born from innovations in steel that literally forged modern building and manufacturing. Today, we work with people who want to create revolutions of their own. We've been fortunate to be a part of over 120 IPOs in the last 50 years, including Shopify, Yelp, LinkedIn, Skype, LifeLock, Twilio, SendGrid, DocuSign, Wix, Box, and MindBody.
www.bvp.com
@BessemerVP
Unlocking the data possibilities of Big Data presentation shared at the Big Data / Internet of Things Conference Board Conference June 25-26, 2015
http://www.pwc.com/us/en/analytics/big-data.jhtml
Employee Inspiration: How to Create Energy That Drives Better Customer OutcomesQualtrics
Engagement has become the new holy grail for satisfied employees and a key issue for business leaders. But what does it mean to be engaged? Bain & Company is redefining the employee experience with a system for building inspiration through productive team discussions, candid frequent feedback and an outer loop for addressing systemic issues. Inspired employees should be everyone’s priority to fuel customer loyalty and organic, sustainable growth. We will share the results from our latest study, describe the mechanisms required and the behaviors to aspire towards – all key ingredients of a customer centered Employee Inspiration system.
About Bessemer Venture Partners:
Bessemer Venture Partners was born from innovations in steel that literally forged modern building and manufacturing. Today, we work with people who want to create revolutions of their own. We've been fortunate to be a part of over 120 IPOs in the last 50 years, including Shopify, Yelp, LinkedIn, Skype, LifeLock, Twilio, SendGrid, DocuSign, Wix, Box, and MindBody.
If we thought the pandemic years were an era of dramatic cultural and digital transformation, think again. 2023 is the year of the “multiverse,” where technological and macro changes continue accelerating at stunning rates leaving SaaS builders, founders, and investors breathless.
On one side of the cloud economy, founders and CEOs are weathering some of the most challenging storms since 2000 and the ‘08 Recession. Rising interest rates have evaporated the cheap equity of recent years forcing startups to reduce burn and drive towards efficient growth. The Silicon Valley Bank crisis drove even more uncertainty into an already fragile environment. But amidst the anxiety and turmoil, the tech ecosystem has witnessed something potentially as world-changing as electricity: a string of AI advancements that may prove to define technology and society for generations to come.
The Large Language Model revolution is one of the most significant developments in computing history. We believe artificial intelligence will not only multiply software and human capabilities, but also completely transform and expand the cloud economy in the process.
In The State of the Cloud, Bessemer provides a founder’s guide on navigating the financing ecosystem for what will likely be the next 18-24 months. We also explore Bessemer’s view on the cloud economy and the AI imperatives that SaaS leaders must enact today or else be left behind.
Read the full report: https://www.bvp.com/atlas/state-of-the-cloud-2023
2023 Q2 Crypto Industry Report | CoinGeckoCoinGecko
After the exuberance of Q1, the crypto market took Q2 to consolidate the gains and increased slightly by 0.14%, from a total market cap of $1.238 trillion on March 31, 2023, to $1.240 trillion on June 30, 2023. April and May were relatively quiet months, particularly after Ethereum’s Shapella upgrade on April 12 as the market was absent of any strong overarching narrative. Prices of Bitcoin (BTC) and Ethereum (ETH) are now hovering around $30,000 and $1,900 respectively, with BTC climbing 6.9%, while ETH increased by 6.0% in Q2.
Our comprehensive 2023 Q2 Crypto Industry Report covers everything from the crypto market landscape to analyzing Bitcoin and Ethereum, deep diving into the decentralized finance (DeFi) and non-fungible token (NFT) ecosystems, and reviewing how centralized exchanges (CEX) and decentralized exchanges (DEX) have performed.
2020 has been a challenging year. Yet, amidst the various trials, widespread digital transformation has sparked several triumphs in SaaS. For instance, UiPath made history this summer when they became the first European Cloud Decacorn. Now we’re 10 months in, the question on everyone’s lips is what’s just happened and what’s coming next? In this keynote presentation, Philippe Botteri, Partner and Varun Purandare, VP at Accel will present original findings from Accel’s 2020 Euroscape. They'll explore the biggest trends in SaaS, deep dive into COVID's impacts on the ecosystem and share the region’s top 100 cloud companies.
GOLIN / DIGITAL & SOCIAL MEDIA EXCELLENCE / HONG KONGZaheer Nooruddin
Digital and Social Media Strategy Excellence at Golin Hong Kong - an integrated communications and marketing agency with a worldwide network. Contact: Zaheer Nooruddin, Head of Digital Innovation, Asia at znooruddin@golin.com
The Boston Consulting Group, MIT Sloan Management Review, and the United Nations Global Compact joined forces to provide an inside look at how companies are dealing with sustainability issues: http://on.bcg.com/1Ci1R8l.
McKinsey Global Institute's latest report shows how soaring flows of data and information now generate more economic value than the global goods trade. Here are the key charts and graphs that tell the story. For the full report, visit http://bit.ly/digiflows.
PwC: New IT Platform From Strategy Through ExecutionCA Technologies
Glenn Hobbs, PwC’s technology consulting director, shares how PwC’s new IT Platform can provide the framework to transform IT organizations so they can quickly incorporate the right technology and focus on collaboration and innovation to help solve the most-critical business problems.
For more information on DevOps solutions from CA Technologies, please visit: http://bit.ly/1wbjjqX
The value of digitally influenced spending in emerging markets will approach $4 trillion by 2022, amounting to about 50% of all retail spending in Asia, Latin America, and Africa. But the dynamics will vary widely between markets, requiring B2C companies to “de-average” their offerings in order to succeed.
Lifting the Barriers to Retail Innovation in ASEAN | A.T. KearneyKearney
Rising incomes and growing demand for consumer goods and services in ASEAN create rich opportunities for retailers in the region, which is especially significant as member nations join forces to become an economic powerhouse. Yet ASEAN retailers have been slow in terms of Innovation and as this market opens up, stepping up innovation is required to capitalize fully on the opportunities.
The enterprise software industry is being transformed by substantial investor capital, Cloud 2.0, artificial intelligence, data protection, preferred platforms, and a talent shortage, leading stakeholders of all kinds to make big changes, and big choices.
Numa era de mudanças organizacionais e perturbações globais sem precedentes, o relatório Global Marketing Trends 2022 apresenta as principais tendências de marketing, fruto dos desafios de negócio que enfrentamos
Actualizamos el estudio Consumer Pulse, de Bain & Company, en el que monitoreamos los principales cambios y las tendencias en los hábitos de los consumidores en América del Sur durante la pandemia, especialmente en Colombia.
Bessemer Venture Partners' is proud to share The State of the Cloud for 2017.
As the definitive guide to the biggest trends in the cloud industry, this year’s “State of the Cloud Report” includes:
1. A Look Back at 2016
- 2016 was a marquee year for a number of reasons. First, we all remember the rocky start in February where the Cloud Market dropped 35%
- Subsequently, rebounded back to normal levels and ended the year up +15%.
- The dip in the market had two main outcomes: First, it led to unprecedented amounts of M&A (4x more than any other year and 40% of the total cloud market cap of $300B) – and second, it led to the fewest number of cloud tech IPOs since the financial crisis.
- A combination of these factors has led to the highest quality backlog of private cloud companies in history. The top 100 private Cloud companies alone represent over $100B of private enterprise value.
2. We provide a deeper look into the three top questions every private cloud CEO should be discussing with his/her executive team
- How fast should I be growing?
- How much should I burn?
- How do I scale?
3. Bessemer’s 7 Predictions for 2017
- The year of human assisted AI
- APIs will serve as the backbone for a majority of software infrastructure
- Architect for infinite scale without infinite spend
- Mobile unlocks non-desk worker productivity
- NPS everything
- Diverse teams win
- The screenless software movement
Although a majority of executives say sustainability is necessary to be competitive, most companies still aren't profiting from their sustainability efforts. BCG and MIT Sloan Management Review present the results of their 2013 sustainability survey, including a look at companies that "walk the talk" when it comes to sustainability issues.
Digital 2022: Essential Pinterest Stats for Q1 2022 v01DataReportal
This presentation contains DataReportal’s update on Pinterest adoption and use around the world in January 2022, including the number of Pinterest users by country, and insights into Pinterest’s audience demographics (i.e. Pinterest users by age and gender). Find similar reports for other top social platforms – and loads more great insights – at https://datareportal.com/social-media-platforms
What goes into building an enduring cloud business? Bessemer investors Byron Deeter, Kristina Sheen, and Anna Khan reveal the G.R.I.T. framework and ways for cloud founders to develop new levels of operational rigor. In this presentation, Bessemer unveils insights into the cloud industry, Good, Better, Best frameworks for SaaS startups, and the 2019 technology trends and predictions Bessemer is most excited about.
Follow the Bessemer Cloud Team on Twitter:
@bdeeter
@kshenster
@annarchyy
About Bessemer Venture Partners:
Bessemer Venture Partners was born from innovations in steel that literally forged modern building and manufacturing. Today, we work with people who want to create revolutions of their own. We've been fortunate to be a part of over 120 IPOs in the last 50 years, including Shopify, Yelp, LinkedIn, Skype, LifeLock, Twilio, SendGrid, DocuSign, Wix, Box, and MindBody.
www.bvp.com
@BessemerVP
Unlocking the data possibilities of Big Data presentation shared at the Big Data / Internet of Things Conference Board Conference June 25-26, 2015
http://www.pwc.com/us/en/analytics/big-data.jhtml
Employee Inspiration: How to Create Energy That Drives Better Customer OutcomesQualtrics
Engagement has become the new holy grail for satisfied employees and a key issue for business leaders. But what does it mean to be engaged? Bain & Company is redefining the employee experience with a system for building inspiration through productive team discussions, candid frequent feedback and an outer loop for addressing systemic issues. Inspired employees should be everyone’s priority to fuel customer loyalty and organic, sustainable growth. We will share the results from our latest study, describe the mechanisms required and the behaviors to aspire towards – all key ingredients of a customer centered Employee Inspiration system.
About Bessemer Venture Partners:
Bessemer Venture Partners was born from innovations in steel that literally forged modern building and manufacturing. Today, we work with people who want to create revolutions of their own. We've been fortunate to be a part of over 120 IPOs in the last 50 years, including Shopify, Yelp, LinkedIn, Skype, LifeLock, Twilio, SendGrid, DocuSign, Wix, Box, and MindBody.
If we thought the pandemic years were an era of dramatic cultural and digital transformation, think again. 2023 is the year of the “multiverse,” where technological and macro changes continue accelerating at stunning rates leaving SaaS builders, founders, and investors breathless.
On one side of the cloud economy, founders and CEOs are weathering some of the most challenging storms since 2000 and the ‘08 Recession. Rising interest rates have evaporated the cheap equity of recent years forcing startups to reduce burn and drive towards efficient growth. The Silicon Valley Bank crisis drove even more uncertainty into an already fragile environment. But amidst the anxiety and turmoil, the tech ecosystem has witnessed something potentially as world-changing as electricity: a string of AI advancements that may prove to define technology and society for generations to come.
The Large Language Model revolution is one of the most significant developments in computing history. We believe artificial intelligence will not only multiply software and human capabilities, but also completely transform and expand the cloud economy in the process.
In The State of the Cloud, Bessemer provides a founder’s guide on navigating the financing ecosystem for what will likely be the next 18-24 months. We also explore Bessemer’s view on the cloud economy and the AI imperatives that SaaS leaders must enact today or else be left behind.
Read the full report: https://www.bvp.com/atlas/state-of-the-cloud-2023
The cloud economy has entered the multiverse as a gloomy financing climate welcomes the biggest tech platform shift of our lifetimes. We share insights for SaaS founders as they navigate today’s difficult macro climate and seek new horizons in the dawn of the AI era.
https://www.bvp.com/atlas/state-of-the-cloud-2023
State of the Cloud 2021: The Age of Cloud Unicorns with Bessemer Venture Part...saastr
Unicorn birth rate is at an all-time high and the cloud economy is officially entering the age of decacorns. Bessemer Venture Partners shares the industry trends that led to the creation of these massive private cloud companies. Releasing vital insights for founders with big ambitions, Byron Deeter, Elliott Robinson, and Mary D'Onofrio share the insights from benchmark data and key frameworks that power the fastest-growing businesses in technology.
Cloud Computing Asia Pacific Congress 2010Cindy Chow
Cloud APAC will bring together 500+ active buyers and serves as the most efficient and effective platform to drive growth and innovation in the cloud computing landscape in Asia Pacific Market
"State of the Cloud" Report -- Bessemer Venture Partners (June 2015)Ian Gertler
Cloud computing continues to gain momentum and according to this state of the cloud report from Bessemer Venture Partners, the total market cap for the 42 public cloud companies indexed will pass $500 billion by 2020.
In 2008, LinkedIn grew into the industry’s very first cloud unicorn, and after a little more than a decade, we’ve seen the unicorn birthrate accelerate beyond our wildest dreams. Of the 800+ private companies in the world that are now valued at more than $1 billion, we hit a new milestone this year: 150 of today’s unicorns are part of the cloud economy.
At SaaStr Annual 2021, Byron Deeter, Mary D’Onofrio, and Elliott Robinson share a state of the cloud economy, tactical lessons and case studies for early-stage founders, private market analysis, alongside key predictions and trends driving innovation around the globe.
Cloud Adoption: Benchmark, Trends & Best Practices Jenna Starmer
Whether you are just starting your journey to the cloud, still weighing the benefits, or already knees-deep in several cloud databases or applications, you’re probably wondering if other organizations are asking the same questions or facing the same challenges that you are. What was the tipping point in the decision to move to the cloud? What has been the strategic value? And what are some common challenges you can expect to face along the way?
In partnership with TechValidate, an independent third-party surveyor, Datavail conducted a cloud adoption industry benchmark survey with hundreds of companies to better understand what the cloud landscape looks like for organizations of all sizes.
We’ve all been hearing about how robust the market for data center space is, but a presentation by an investment banker who has his finger on the pulse on the market day in and day out gave me a new appreciation for how great the opportunity really is.
Herb May is a partner and managing director with DH Capital, an investment bank founded 15 years ago in New York that is focused on the Internet infrastructure space. His company has been involved in close to 100 deals, representing almost $20 billion in value. Most of DH Capital’s work is as a mergers and acquisitions advisor, but raising capital is a growing percentage of its business. The point is, the company understands the financials behind data centers and colocation companies inside and out.
Big Communications Event, Keynote Communications TrackRon Batra
Focus on Key Technology Trends at BCE, Austin, TX. How Open Source, Big Data, Containers, IOT and Microservices are a catalyst of change, creating a virtuous cycle.
Leadership Session: Cloud Adoption and the Future of Financial Services (FSV2...Amazon Web Services
Financial institutions are harnessing AWS capabilities to transform their existing businesses and bring innovative new solutions to market. In this session, Frank Fallon, VP of Worldwide Financial Services at AWS, reports on the shifts that the public cloud is enabling across the industry, such as the explosion of new digital channels, core systems modernization, and the integration of ML technologies at scale. Frank is joined by technology leaders of leading financial institutions who share their organizations' respective journeys with AWS to become more nimble, innovative, efficient, and responsive to the needs of their customers.
This report finds that companies continue to look to the public cloud for more and more of their IT workload. Nearly 8 of 10 surveyed stated they intend on operating a hybrid cloud. The top concern with this rapid progression to multiple clouds is the ability to manage IT and cloud costs. However, most of those surveyed admitted they don’t do a good job of tracking or managing costs.
At Bessemer, we surveyed 405 cloud companies as a status check for the private cloud computing industry, tracking their financial performance, artificial intelligence (AI) adoption, leadership priorities, and biggest challenges.
We aimed to answer the question: Where does the cloud industry stand in 2023, the year where pressures to drive profitable growth intensified and AI eclipsed every business conversation and captivated the world?
According to Bessemer Partner Byron Deeter, the global cloud industry is stronger than ever. “How do you think AI is delivered? Tens of thousands of GPUs working together in the cloud,” said Byron. “Our 2023 Cloud 100 applicants have never been stronger — proof that AI is the next horizon of cloud.”
While our Cloud 100 Benchmarks act as an industry yardstick for best-in-class private cloud performance, this survey widens the aperture by more than 4x to assess performance of private cloud companies of every stage and scale.
In 35 charts, we visualize the quantitative and qualitative trends moving the private cloud industry across 23 countries and 114 cities.
Five cloud industry insights for 2023
The top five cloud companies voted most likely to IPO next are Stripe, Databricks, Canva, Klavyio, and Snyk.
San Francisco is the cloud industry epicenter in terms of headquarters and hiring: 52% of cloud companies reside in California, with 21% of companies headquartered in San Francisco.
AI has already taken over SaaS: By the end of the year, 86% of cloud companies surveyed will have an AI-driven feature.
Cloud leaders ranked setting competitive differentiation in the product and go-to-market strategy as the biggest challenge facing their companies. Driving profitable growth was ranked as the leading objective whereas fundraising was ranked one of the lowest priorities for 2023.
Cloud companies are still well funded: A majority of surveyed cloud companies have raised over $100 million or more in total funding. More than half of the surveyed companies have less than $50 million on the balance sheet, whereas almost a third have $100 million or more. Of the cloud companies that have raised $1 billion or more, over 70% have more than $300 million on the balance sheet.
Read the full report: https://www.bvp.com/atlas/data-trends-visualizing-the-global-cloud-industry-in-2023
Battery's annual State of the OpenCloud report, which highlights mega-trends—including cloud computing and the rise of open-source technology—that are upending today’s enterprise-IT market.
101 guide to building your communication strategy_VF_BessemerVenturePartners_...Bessemer Venture Partners
Four key exercises Alex Constantinople leverages when coaching leaders to develop a company narrative that resonates with investors, customers, and employees.
Read the full guide on Atlas: https://www.bvp.com/atlas/how-to-build-your-brand-communications-strategy
After studying over 100 venture-backed healthcare companies, we present the definitive benchmarks for what growing a health tech business should look like at every stage.
Read the full article here: https://www.bvp.com/atlas/how-to-scale-a-health-tech-business-to-100-million-arr-and-beyond
Generative artificial intelligence (AI) models are reinventing communication, content creation, and information access. In this roadmap, presented at Bessemer's annual Seed Summit, Partner Talia Goldberg explores the technological advancements driving AI solutions and how these changes are opening up new promising area of investment.
Learn more about Generative AI:
https://www.bvp.com/atlas/is-ai-gener...
https://www.bvp.com/atlas/roadmap-the...
https://www.bvp.com/atlas/entering-th...
Subscribe for venture insights: https://bessemervp.team/subscribe
About Bessemer Venture Partners —
We help entrepreneurs lay strong foundations to build and forge long-standing companies. With more than 135 IPOs and 200 portfolio companies in the enterprise, consumer and healthcare spaces, Bessemer supports founders and CEOs from their early days through every stage of growth. Our global portfolio includes Pinterest, Shopify, Twilio, Yelp, LinkedIn, PagerDuty, DocuSign, Wix, Fiverr and Toast, and has more than $20 billion of assets under management.
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As internet and mobile access become ubiquitous in India, the country’s eCommerce market is on the cusp of a trillion dollar digital opportunity.
Read the full article here: https://www.bvp.com/atlas/internet-marketplaces-in-india
After studying the performance of 50 top healthcare technology businesses, Bessemer Venture Partners reveals the fundamental trends and benchmarks leaders need to know about healthcare SaaS and tech-enabled services.
Read the full article here: https://www.bvp.com/atlas/benchmarks-for-growing-health-tech-businesses
Definitions for the seven performance indicators you should use to measure the strength of your health tech business.
Read the full article here: https://www.bvp.com/atlas/the-abcs-of-health-tech-key-metrics-to-know-and-grow-your-business/
Cloud innovation has been a global endeavor for more than two decades, transforming entire industries—now, India is an emerging global leader driving technological innovation and noteworthy entrepreneurship.
Founders may wonder why Bessemer’s growth-stage investors are penning an early-stage playbook. Well, while we typically start looking at companies when they hit $10 milion of ARR, or thereabouts, we know that becoming a strong Series B+ company begins during the earliest innings of finding product-market fit and building go-to-market strategy.
As part of the Scaling Series in our Startup Growth Guide, we’ll break down the steps required for a company to go from $1 to $10 million of annual recurring revenue (ARR)—and what these cloud businesses’ operational metrics look like.
Read more here: https://www.bvp.com/atlas/scaling-from-1-to-10-million-arr
From Bessemer Venture Partners, Partner Mary D'Onofrio releases the definitive benchmarking report on how cloud companies grow operationally efficient businesses and scale to $100 million in ARR (and beyond).
In Bessemer’s 2018 State of the Cloud, leading SaaS and cloud investors Byron Deeter, Kristina Shen, and Anna Khan explain the ups-and-downs of the cloud market, a new valuation framework for startups, and emerging predictions for 2018.
In this report, you’ll also learn:
- Cloud market trends and factors that led to a 4x growth in venture funding
- A framework for valuation across Series A and B financing
Bessemer’s annual recurring revenue to growth multiple (ARRG)
- Eight new predictions for 2018
In 2015, cloud markets outperformed NASDAQ by 2x demonstrating how cloud computing continues to be an influential technology sector. In Bessemer’s 2016 State of the Cloud, leading SaaS and cloud investors Byron Deeter and Kristina Shen highlight market trends, metrics and benchmarks every SaaS founder should track, and the top predictions for 2016.
In this report, you’ll also learn:
- Key trends of the Cloud Index from 2015
- The five metrics of cloud finance
- Predictions for 2016
Elevating Tactical DDD Patterns Through Object CalisthenicsDorra BARTAGUIZ
After immersing yourself in the blue book and its red counterpart, attending DDD-focused conferences, and applying tactical patterns, you're left with a crucial question: How do I ensure my design is effective? Tactical patterns within Domain-Driven Design (DDD) serve as guiding principles for creating clear and manageable domain models. However, achieving success with these patterns requires additional guidance. Interestingly, we've observed that a set of constraints initially designed for training purposes remarkably aligns with effective pattern implementation, offering a more ‘mechanical’ approach. Let's explore together how Object Calisthenics can elevate the design of your tactical DDD patterns, offering concrete help for those venturing into DDD for the first time!
Dev Dives: Train smarter, not harder – active learning and UiPath LLMs for do...UiPathCommunity
💥 Speed, accuracy, and scaling – discover the superpowers of GenAI in action with UiPath Document Understanding and Communications Mining™:
See how to accelerate model training and optimize model performance with active learning
Learn about the latest enhancements to out-of-the-box document processing – with little to no training required
Get an exclusive demo of the new family of UiPath LLMs – GenAI models specialized for processing different types of documents and messages
This is a hands-on session specifically designed for automation developers and AI enthusiasts seeking to enhance their knowledge in leveraging the latest intelligent document processing capabilities offered by UiPath.
Speakers:
👨🏫 Andras Palfi, Senior Product Manager, UiPath
👩🏫 Lenka Dulovicova, Product Program Manager, UiPath
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...Ramesh Iyer
In today's fast-changing business world, Companies that adapt and embrace new ideas often need help to keep up with the competition. However, fostering a culture of innovation takes much work. It takes vision, leadership and willingness to take risks in the right proportion. Sachin Dev Duggal, co-founder of Builder.ai, has perfected the art of this balance, creating a company culture where creativity and growth are nurtured at each stage.
Epistemic Interaction - tuning interfaces to provide information for AI supportAlan Dix
Paper presented at SYNERGY workshop at AVI 2024, Genoa, Italy. 3rd June 2024
https://alandix.com/academic/papers/synergy2024-epistemic/
As machine learning integrates deeper into human-computer interactions, the concept of epistemic interaction emerges, aiming to refine these interactions to enhance system adaptability. This approach encourages minor, intentional adjustments in user behaviour to enrich the data available for system learning. This paper introduces epistemic interaction within the context of human-system communication, illustrating how deliberate interaction design can improve system understanding and adaptation. Through concrete examples, we demonstrate the potential of epistemic interaction to significantly advance human-computer interaction by leveraging intuitive human communication strategies to inform system design and functionality, offering a novel pathway for enriching user-system engagements.
Key Trends Shaping the Future of Infrastructure.pdfCheryl Hung
Keynote at DIGIT West Expo, Glasgow on 29 May 2024.
Cheryl Hung, ochery.com
Sr Director, Infrastructure Ecosystem, Arm.
The key trends across hardware, cloud and open-source; exploring how these areas are likely to mature and develop over the short and long-term, and then considering how organisations can position themselves to adapt and thrive.
Encryption in Microsoft 365 - ExpertsLive Netherlands 2024Albert Hoitingh
In this session I delve into the encryption technology used in Microsoft 365 and Microsoft Purview. Including the concepts of Customer Key and Double Key Encryption.
Kubernetes & AI - Beauty and the Beast !?! @KCD Istanbul 2024Tobias Schneck
As AI technology is pushing into IT I was wondering myself, as an “infrastructure container kubernetes guy”, how get this fancy AI technology get managed from an infrastructure operational view? Is it possible to apply our lovely cloud native principals as well? What benefit’s both technologies could bring to each other?
Let me take this questions and provide you a short journey through existing deployment models and use cases for AI software. On practical examples, we discuss what cloud/on-premise strategy we may need for applying it to our own infrastructure to get it to work from an enterprise perspective. I want to give an overview about infrastructure requirements and technologies, what could be beneficial or limiting your AI use cases in an enterprise environment. An interactive Demo will give you some insides, what approaches I got already working for real.
Neuro-symbolic is not enough, we need neuro-*semantic*Frank van Harmelen
Neuro-symbolic (NeSy) AI is on the rise. However, simply machine learning on just any symbolic structure is not sufficient to really harvest the gains of NeSy. These will only be gained when the symbolic structures have an actual semantics. I give an operational definition of semantics as “predictable inference”.
All of this illustrated with link prediction over knowledge graphs, but the argument is general.
UiPath Test Automation using UiPath Test Suite series, part 3DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 3. In this session, we will cover desktop automation along with UI automation.
Topics covered:
UI automation Introduction,
UI automation Sample
Desktop automation flow
Pradeep Chinnala, Senior Consultant Automation Developer @WonderBotz and UiPath MVP
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
Essentials of Automations: Optimizing FME Workflows with ParametersSafe Software
Are you looking to streamline your workflows and boost your projects’ efficiency? Do you find yourself searching for ways to add flexibility and control over your FME workflows? If so, you’re in the right place.
Join us for an insightful dive into the world of FME parameters, a critical element in optimizing workflow efficiency. This webinar marks the beginning of our three-part “Essentials of Automation” series. This first webinar is designed to equip you with the knowledge and skills to utilize parameters effectively: enhancing the flexibility, maintainability, and user control of your FME projects.
Here’s what you’ll gain:
- Essentials of FME Parameters: Understand the pivotal role of parameters, including Reader/Writer, Transformer, User, and FME Flow categories. Discover how they are the key to unlocking automation and optimization within your workflows.
- Practical Applications in FME Form: Delve into key user parameter types including choice, connections, and file URLs. Allow users to control how a workflow runs, making your workflows more reusable. Learn to import values and deliver the best user experience for your workflows while enhancing accuracy.
- Optimization Strategies in FME Flow: Explore the creation and strategic deployment of parameters in FME Flow, including the use of deployment and geometry parameters, to maximize workflow efficiency.
- Pro Tips for Success: Gain insights on parameterizing connections and leveraging new features like Conditional Visibility for clarity and simplicity.
We’ll wrap up with a glimpse into future webinars, followed by a Q&A session to address your specific questions surrounding this topic.
Don’t miss this opportunity to elevate your FME expertise and drive your projects to new heights of efficiency.
7. Exponential cloud growth 2000-2020
# of Private Cloud Unicorns | # of Private Cloud Companies
Top private cloud companies
2000
0 | 10’s
8. Exponential cloud growth 2000-2020
0 | 10’s 1 | 100’s
2000
2010
Top private cloud companies
# of Private Cloud Unicorns | # of Private Cloud Companies
9. Exponential cloud growth 2000-2020
0 | 10’s 1 | 100’s 86 | 1000’s
2000 2010
2020
Top private cloud companies
# of Private Cloud Unicorns | # of Private Cloud Companies
*Data as of February 2020
10. 2008 2015 2020
$13.89B
total market
cap
$114.98B
total market cap (8.2x)
$616.1B
total market cap (44x)
$175B
$150B
$125B
$100B
$75B
$50B
$25B
$0B
Top 5 public cloud companies
Up 44x 2008-2020
11. Public Cloud Landscape 2000
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
$40 $400 $4,000 $40,000
Revenue ($M)
FCFMargin
Source: CapIQ; Bessemer Venture Partners analysis
Note: Zero “majority-cloud” public companies. For these charts, public companies are included beginning in the year when cloud/SaaS revenues
are estimated to have comprised >50% of total revenue.
55. In the cloud economy, scale wins.1
2
3
4
5
6
7
8
9
10
Growth at optimal cost.
Invest behind the cloud sales
and marketing learning curve.
Product as a competitive advantage.
Master the 5 C’s of cloud finance.
Discover your secret KPI(s).
Customer success is company success.
Impact through engagement or insights.
Tone starts at the top.
Map your fuel stops.
(Bonus) Run the “Public Playbook.”
1
3
9
56. LAW 1:
In the cloud
economy, scale wins
“Reaching scale not only
means you’ve captured a
large slice of the market,
but also that you’ve set
the pace of innovation for
the rest of the industry.”
61
Tobias Lütke
CEO & co-founder
57. In the cloud economy, scale wins
Video conferencing
64% 26% 10%
market share market share market share
59. The Second Act sparks a virtuous cycle for
market leadership and expands your TAM
$0
$25
$50
$75
$100
$125
$150
$175
$200
2012 2013 2014 2015
Subscription Solutions Payment Solutions
$23.7M
$50.3M
$105.0M
$205.2M
+95%
+109%
+112%
60. A successful “Second Act” drives scale
Payroll, CapitalPoint of Sale
Voice, Video
& Chat
Email
CORE TAM/PRODUCT “SECOND ACT”
Secrets Provisioning
Networking
61. LAW 3:
Invest behind the cloud
sales and marketing
learning curve
"Be cautious with
investments as you test and
iterate. Fail fast. Be
aggressive and scale your
go-to-market when
something is really working.”
66
Tooey
Courtemanche
CEO & co-founder
62. The sales and marketing learning curve
Initiation
Founder Led Sales
Transition
Sales Led Sales
Execution
Scalable S&M
NAIL IT before
you SCALE IT!
63. LAW 9:
Tone starts at the top
“It’s important for leaders
to address talent and
culture like any company
would address churn
or competitive
differentiation.”
68
Jennifer Tejada
CEO
64. Law 9: Tone starts at the top
69
Volunteer days
20% Project at Google
Diversity in leadership positions
and hiring best practices
Conduct 360 feedback
(Founder/CEO included)
Report on employee
engagement metrics
Define your culture and
core values early
State your company’s mission and vision clearly
1 2 3
INITIATIVE
EXAMPLES
SOFTWARE TO
HELP
DIVERSITY +
INCLUSION
FOUNDER / CEO BEST
PRACTICES:
67. Prediction 1: The future of work will be remote
CULTURE
KNOWLEDGE SHARING
ONBOARDING & MANAGEMENT
GLOBAL HR & PAYROLL
68. Prediction 2: Privacy debt will be the new
technical debt
Jumbo
DATA DE-IDENTIFICATION &
ANONYMIZATION
CONSUMER PRIVACY
MANAGEMENT
PRIVACY WORKFLOW &
OPERATIONS
DATA CATALOGUING &
GOVERNANCE
DATA SCANNING &
INVENTORY
69. Prediction 3: The cloud industry will continue to
proliferate around the globe
71. Prediction 5: The API universe will drive
innovation across all industries
Shipping
Banking
Payments
Email
SSO
Communications
Storage Notifications
Customer
Engagement
Enterprise
Search
Spreadsheets
Media
Messaging
Payments
Monetization
Fraud
Prevention
Payroll
Streaming
Infrastructure
Background
Checks
Location
Healthcare
Logistics
Security
Ecommerce
Dev Documents
Web hosting
Contextual
Data
Video hosting
streaming
72. Prediction 6: We’re entering the age of
“automation-at-scale”
INTEGRATED PLATFORM AS A SERVICE
RPA AND ADJACENCIES
SOFTWARE-DEFINED
MANAGEMENT
LOW CODE / NO CODE
APP DEVELOPMENT
73. 4/21/20 • Confidential
2020
BESSEMER’S 6
PREDICTIONS
The future of work will be
remote
Privacy debt will be the new
technical debt
The cloud industry will continue
to proliferate around the globe
The API universe will drive
innovation across all industries
B2B transactions will move online
We’re entering the age of
“automation-at-scale”
1
2
3
4
5
6
74. Go to bvp.com/cloud
Cloud Giants
Interviews with top CEOs
State of the Cloud 2020
Get the full report
75. The forecast calls for a high chance of cloud
80
68
MON
Cloudy
64
TUE
Cloudy
63
WED
Cloudy
70
THUR
Cloudy
71
FRI
Cloudy
77. Table of contents
Topics
The 6 C’s of cloud finance
Bessemer frameworks and Good, Better, Best
Recommended reading
78. The 6 C’s of Cloud Finance
The 6 metrics you should use to track and to measure your cloud business
CashConversion
Score
0.0x
6
CARR
%Growth
1
CAC Payback
Months
2
CLTV
3
Churn
%
4
CASHFLOW
%Margin
5
79. Committed Annual Recurring Revenue (CARR)
What is CARR?
The subscription, recurring revenue that your cloud business earns. CARR
includes contracted but not yet live ARR, nets out churned and
projected churned ARR, and is normalized to a 1Y period, hence “annual”.
Why does CARR Matter?
YoY growth of CARR tracks business health and benchmarks progress.
CARR is also a leading indicator of revenue. CARR multiples are used to
value cloud businesses in the private markets
Calculating CARR
New Logo ARR (incl. signed but not live ARR)
+ Upsell ARR (incl. signed but not live ARR)
- Churned ARR (incl. projected churned)
- Downsell ARR (incl. projected downsell)
Committed Monthly Recurring Revenue (CMRR)
CMRR = CARR / 12
Benchmark the growth of your cloud business
GOOD 50-100%
CARR
%Growth
BETTER
BEST
100-200%
200%+
1
SeriesA/B
50%
50-100%
100%+
SeriesC+
80. Customer Acquisition Cost (CAC) Payback
What is CAC?
Total sales, marketing, customer success, etc.
costs to acquire a customer. Generally calculated
quarterly
What is CAC Payback?
The time it takes to recover CAC, generally on a
gross profit basis
Why does CAC Payback Matter?
Only after the CAC payback period are customers
profitable to your business; therefore, the shorter
the better
Calculating CAC Payback
Prior Period S&M Expense
/ [(Quarterly Net New MRR) * Gross Margin]
Understand how effective your S&M organization is
GOOD 12
CACPayback
Months
BETTER
BEST
6-12
<6
2
SMB
18
9-18
<9
Mid-Market
24
12-24
<12
Enterprise
81. Customer Lifetime Value (CLTV) / CAC
What is CLTV?
Margin-affected value of a customer to a business over the course of
its relationship
Why does CLTV / CAC Matter?
It is the relationship between acquisition cost and customer value –
over 1x means the customer is net profitable to a business. The higher
the CLTV / CAC, the more valuable a customer is
Calculating CLTV
Customer Lifetime = 1 / (1 – Customer Retention Rate)
Customer Lifetime Value = Customer Lifetime * Average Revenue per
Customer * Profit Gross Margin
Calculating CLTV / CAC
Customer Lifetime Value / Customer Acquisition Cost
Constraining acquisition cost by the value of your customers
GOOD 3x
CLTV/CAC
BETTER
BEST
3-5x
5x+
3
82. Churn
What is Dollar Churn?
The dollars that churned or downsell customers represented
e
Why does Dollar Churn Matter?
Only net new ARR provides growth. Churned / downsell ARR needs
to be replaced before growth starts; therefore, it is difficult to grow
with high churn numbers
What is Negative Dollar Churn (Net Retention)?
Customers pay you even more money than they did when they
initially contracted. This includes expansion or upsell ARR
Calculating Negative Dollar Churn (Net Retention)
(Starting CARR + Upsell CARR – Downsell CARR – Churned CARR)
/ Starting CARR
Calculating Gross Dollar Churn
(- Downsell CARR - Churned CARR) / Starting CARR
Understand the stickiness of your platform
GOOD
Churn
%
BETTER
BEST
4
SMB Mid-Market Enterprise
Net
Gross
Net
Gross
Net
Gross
10-20%
20-30%
0-10%
20%
NetNeg10%
15%
0-10%
15-20%
NetNeg10%-0%
10-20%
NetNeg10-20%
10-15%
NetNeg
<15%
NetNeg10%+
<10%
NetNeg20%+
<10%
83. Cash Flow
What is Free Cash Flow (FCF)?
Cash generated after operating and capital expenditures, which adds back non-
cash expenses like stock-based compensation
Why does FCF Matter?
When positive, FCF dollars are the reinvestable dollars that you can put back into
your business or return to shareholders; when negative, your runway is limited by
the amount of FCF you burn every year
Calculating FCF
(Earnings before interest and tax * (1 – tax rate))
+ Depreciation & Amortization
- Change in Net Working Capital
- Capital Expenditures
+ Non-Cash Charges
Calculating FCF Margin
FCF / Revenue
Spending rationally relative to scale
GOOD -50-0%
CASHFLOW
%Margin
BETTER
BEST
Breakeven
CF+
5
84. Cash Conversion Score (CCS)
What is Cash Conversion Score (CCS)?
The ratio of CARR to capital raised to date (debt + equity) minus the
cash on the balance sheet
Why does CCS Matter?
It measures the return on invested capital into a business, showing
how well invested dollars convert into CARR, on which a cloud
business will generate a multiple. It is thereby correlated to the IRR
that investors will earn by investing in your cloud business. It is also a
high-level metric to measure the efficiency of a business; it is
impossible to have a high CCS without a scalable S&M org and
product / market fit
Calculating CCS
CARR / (Capital Raised to Date – Cash)
Understanding return on invested capital in your cloud business
GOOD 0.25-0.5x
CCS
0.0x
BETTER
BEST
0.5-1x
1x+
6
85. The 6 C’s of Cloud Finance
The 6 metrics you should use to track and to measure your cloud business
GOOD
BETTER
BEST
0.25-0.5x
CCS
0.0x
0.5-1x
1x+
6
50-100%
CARR
%Growth
SeriesA/B
100-200%
200%+
1
CACPayback
Months
Enterprise
2
24
12-24
<12
3x
CLTV
3-5x
5x+
3
Churn
%
Enterprise
4
NetNegative
10%
NetNegative
10-20%
NetNegative
20%+
-50-0%
CASHFLOW
%Margin
Breakeven
CF+
5
86. Recommended reading from Bessemer
Roadmaps
• The 10 laws of cloud
• The developer laws
• A cloud for every industry
• B2B Marketplaces
• Data Privacy Engineering
• Remote Work
States of the Cloud
• State of the Cloud 2019
• State of the Cloud 2019: Europa
• State of the Cloud 2018
• State of the Cloud 2017
• State of the Cloud 2016
• State of the Cloud 2015
Insights
• Cash conversion score
• How fast should a cloud company grow?
• Five accounting metrics for cloud companies
• An inside look at our investment process for Twilio
• Byron Deeter on investing in 14 different billion-dollar cloud
companies
External reports:
• Goldman Software Sector Update
• 2019 Keybanc Capital Markets SaaS Survey
• Wisdom Tree Cloud Computing Fund