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.
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
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 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.
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)
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).
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
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
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
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 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.
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)
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).
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
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
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
The SaaS sector is undergoing a ‘reset’: on the public side, revenue multiples went down from 17x a year ago to 6x today. On the private side, funding is down 42% in Q3 with similar trends observed in the US and Europe. What does this mean for European and Israeli SaaS companies? In this presentation, we will dive deeper into:
- How should founders think about their company valuation?
- Are public markets overcorrected?
- How are the public market dynamics impacting the private funding market?
- Will we see a flurry of down round for the 120+ Cloud Unicorns created in Europe and Israel over the past few years?
- Which top 100 companies have been selected for the 2022 Accel Euroscape?
Kiwi SaaS Metrics That Matter 2023^LLJ r2.2.pdfssuser62db4d1
Slides from a presentation I gave at KiwiSaaS 2023 entitled Metrics That Matter in 2023. This presentation discusses the change in the financing environment, how companies can respond to it, and the key metrics that I think will matter in 2023 and 2024 to securing additional funding rounds.
The Accelerating Growth of Frictionless Commerce | A.T. KearneyKearney
Traditional payments are being replaced by new "frictionless" options that use customer-provided data to make a purchase without an explicit customer decision.
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
BCG’s 2018 global challengers—100 rapidly globalizing companies from emerging markets—are getting ahead of the competition by using digital technologies.
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.
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.
Fintech New York: Partnerships, Platforms and Open Innovationaccenture
We are in the midst of a major disruption in the financial services that will see increasing adoption and evolution of disruptive FinTech solutions. Read our report released at the Fintech Innovation Lab’s Fifth Annual Demo Day Event.
SaaS/subscription businesses are much more complex than traditional businesses, and SaaS performance cannot be measured in the same way as traditional businesses are measured. Based on a talk given at the SaaStr Annual Conference in San Francisco, this slide deck offers a comprehensive and detailed look at the key metrics that are needed to understand and optimize a SaaS business, and how these can be used to drive SaaS success. This presentation includes information on:
- An intro to SaaS metrics
- Unit economics
- LTV and churn: An in-depth look
- Variable pricing axes
- Months to recover CAC
- The primary unit of growth: Sales
- Understanding public SaaS companies
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.
The Science behind Viral Marketing is a look at the key factors that drive growth in viral marketing. (Hint, the most important factor is not the one everyone expects.) It also looks at what is needed to get virality to work, and how to create and optimize viral marketing campaigns or viral products.
One part of the presntation shows the key formulae behind viral marketing.
Suitable for marketers or for product designers.
Summary: Even in a time of high biopharma valuations, adopting an activist mentality adds rigor to capital allocation and strategic decision-making, improving not just returns to shareholders but long-term value creation. Therefore, biopharma management teams and boards of directors should proactively assess the “fitness” of their capital allocation strategies and their alignment with operational performance goals by taking an outsider’s view of the business even when times are good — and before a material stumble provides a compelling reason for an outsider to act. For more on this topic, go to http://www.ey.com/GL/en/Industries/Life-Sciences/EY-vital-signs-how-fit-is-your-capital-allocation-strategy.
Is customer centricity just another management fad? Globally, companies are investing more than USD 10 billion annually to drive customer centric transformations, yet four in five are left unsatisfied.
Inside Opendoor: what two years of transactions say about their prospectsMike DelPrete
A data-driven analysis of Opendoor, the real estate disruptor, looking at its business model and traction since launch. Based on actual MLS data in its launch markets.
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
"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.
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
The SaaS sector is undergoing a ‘reset’: on the public side, revenue multiples went down from 17x a year ago to 6x today. On the private side, funding is down 42% in Q3 with similar trends observed in the US and Europe. What does this mean for European and Israeli SaaS companies? In this presentation, we will dive deeper into:
- How should founders think about their company valuation?
- Are public markets overcorrected?
- How are the public market dynamics impacting the private funding market?
- Will we see a flurry of down round for the 120+ Cloud Unicorns created in Europe and Israel over the past few years?
- Which top 100 companies have been selected for the 2022 Accel Euroscape?
Kiwi SaaS Metrics That Matter 2023^LLJ r2.2.pdfssuser62db4d1
Slides from a presentation I gave at KiwiSaaS 2023 entitled Metrics That Matter in 2023. This presentation discusses the change in the financing environment, how companies can respond to it, and the key metrics that I think will matter in 2023 and 2024 to securing additional funding rounds.
The Accelerating Growth of Frictionless Commerce | A.T. KearneyKearney
Traditional payments are being replaced by new "frictionless" options that use customer-provided data to make a purchase without an explicit customer decision.
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
BCG’s 2018 global challengers—100 rapidly globalizing companies from emerging markets—are getting ahead of the competition by using digital technologies.
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.
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.
Fintech New York: Partnerships, Platforms and Open Innovationaccenture
We are in the midst of a major disruption in the financial services that will see increasing adoption and evolution of disruptive FinTech solutions. Read our report released at the Fintech Innovation Lab’s Fifth Annual Demo Day Event.
SaaS/subscription businesses are much more complex than traditional businesses, and SaaS performance cannot be measured in the same way as traditional businesses are measured. Based on a talk given at the SaaStr Annual Conference in San Francisco, this slide deck offers a comprehensive and detailed look at the key metrics that are needed to understand and optimize a SaaS business, and how these can be used to drive SaaS success. This presentation includes information on:
- An intro to SaaS metrics
- Unit economics
- LTV and churn: An in-depth look
- Variable pricing axes
- Months to recover CAC
- The primary unit of growth: Sales
- Understanding public SaaS companies
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.
The Science behind Viral Marketing is a look at the key factors that drive growth in viral marketing. (Hint, the most important factor is not the one everyone expects.) It also looks at what is needed to get virality to work, and how to create and optimize viral marketing campaigns or viral products.
One part of the presntation shows the key formulae behind viral marketing.
Suitable for marketers or for product designers.
Summary: Even in a time of high biopharma valuations, adopting an activist mentality adds rigor to capital allocation and strategic decision-making, improving not just returns to shareholders but long-term value creation. Therefore, biopharma management teams and boards of directors should proactively assess the “fitness” of their capital allocation strategies and their alignment with operational performance goals by taking an outsider’s view of the business even when times are good — and before a material stumble provides a compelling reason for an outsider to act. For more on this topic, go to http://www.ey.com/GL/en/Industries/Life-Sciences/EY-vital-signs-how-fit-is-your-capital-allocation-strategy.
Is customer centricity just another management fad? Globally, companies are investing more than USD 10 billion annually to drive customer centric transformations, yet four in five are left unsatisfied.
Inside Opendoor: what two years of transactions say about their prospectsMike DelPrete
A data-driven analysis of Opendoor, the real estate disruptor, looking at its business model and traction since launch. Based on actual MLS data in its launch markets.
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
"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.
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.
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.
Deep analysis of the Martech's leading 1461 companies. This reports offers insights on:
- How big is the market
- Where are the investments made
- Who are the top performing companies
- What happened to the Unicorns
And much more.
Rory O’Driscoll - The war is over and the cloud won. What comes next?SaaStock
The COVID recession has not impacted the 20-year love affair investors have had with SaaS. But as the era of "SaaS for X" draws to a close, where are the next opportunities for today's cloud startups? Rory O’Driscoll, partner at Scale Venture Partners and early investor in SaaS pioneers like Box, Docusign, and Bill.com, takes a data-driven look at the evolution of the SaaS market then looks ahead to the next generation of enterprise software: the Intelligent Connected World.
Impact of COVID-19 on Data Centers and Network InfrastructureAsian Century Equity
A presentation exploring what new norms are being defined, as today’s massive escalation of digital infrastructure development creates complex new realities. This deck, presented by Bill Barney, shares insights on how we must strategically respond to major challenges and seize new opportunities in this next tidal wave of digital transformation.
Bessemer Venture Partners has backed over 100 Cloud Computing companies, including over 1/4 of all cloud IPOs and 4 of 7 cloud IPOs last year alone. Byron Deeter leads BVP's cloud computing practice and recently presented an entirely updated version of BVP's famous 10 Laws at the SaaStr 2016 conference. For more BVP presentations, white papers, and content you can visit www.bvp.com/cloud
The Black Swan Event: Funding in the time of Coronavirus with Mark Sustersaastr
It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more. Or maybe you have a creative project to share with the world. Whatever it is, the way you tell your story online can make all the difference.
We are in the midst of an unprecedented flood of innovation. The convergence of technological mega-trends in mobile, social networking, cloud computing, and big Data is something we at Menlo Ventures call The Right Now Economy. Previously impossible, The Right Now Economy centers around the idea that information can now be accessed, analyzed, and acted upon almost instantaneously - anytime and anywhere. This mega-trend is disrupting established industry sectors and players, creating opportunities for emerging growth companies to displace previously unassailable incumbents.
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
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
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...
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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/
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
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
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.
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.
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
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Link to video recording: https://bnctechforum.ca/sessions/selling-digital-books-in-2024-insights-from-industry-leaders/
Presented by BookNet Canada on May 28, 2024, with support from the Department of Canadian Heritage.
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Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...Ramesh Iyer
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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.
Generating a custom Ruby SDK for your web service or Rails API using Smithyg2nightmarescribd
Have you ever wanted a Ruby client API to communicate with your web service? Smithy is a protocol-agnostic language for defining services and SDKs. Smithy Ruby is an implementation of Smithy that generates a Ruby SDK using a Smithy model. In this talk, we will explore Smithy and Smithy Ruby to learn how to generate custom feature-rich SDKs that can communicate with any web service, such as a Rails JSON API.
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Bessemer's State of the Cloud 2021
1. State of the
Cloud 2021
The New Normal
Byron Deeter
PARTNER
@bdeeter
Elliott Robinson
PARTNER
@TheValuesVC
Mary D’Onofrio
PARTNER
@mcadonofrio
Hansae Catlett
INVESTOR
@hansaecatlett
Janelle Teng
INVESTOR
@NextBigTeng
4. SCENARIO EXIT VALUE
Wipe out – failure to launch GTM and compete
against incumbents.
$0
Downside case – company fails to grow
meaningfully beyond a small set of customers.
$100M
Base case – company succeeds in capturing
meaningful market share.
$500M
Upside case – company becomes market leader. $1B
Just goes nuts – company becomes go-to solution
owning majority of market.
$5B+
Cloud Investment A - Scenario Planning
Global
pandemic?
5.
6. -40%
-30%
-20%
-10%
0%
10%
2-Jan 29-Jan 25-Feb 23-Mar
% Change
S&P 500 (^SPX)
NASDAQ Composite Index
(^IXIC)
Dow Jones Industrial Average
(^DJI)
2020
Major indices dropped more than
30% over the course of three weeks
12. Distance learning becomes the norm
of households with school
age children engaged in
distance learning
93%
13. Small and medium businesses evolve and adapt
The restaurant industry
is going through massive
digital transformation
14. Industries transition from offline to online
$10T
global construction
industry accelerates
shift to the cloud
15. We’ve seen two years’ worth of digital transformation in
two months. From remote teamwork and learning, to sales
and customer service, to critical cloud infrastructure and
security—we are working alongside customers every day
to help them adapt and stay open for business in a world
of remote everything.
“
– Satya Nadella, CEO of Microsoft
28. Snowflake massively surpassed VMware’s
record as largest software IPO in history
Company IPO Date Market Cap at Pricing
Snowflake Sep ‘20
VMware Aug ‘07
Zoom Apr ‘19
Dropbox Mar ‘17
ZoomInfo Jun ‘20
Datadog Sep ‘19
CrowdStrike Jun ‘19 $6.7B
$7.9B
$8.2B
$8.3B
$9.3B
$10.9B
$34.0B
$0B $5B $10B $15B $20B $25B $30B $35B $40B
29. 13.5x 13.6x 14.4x 15.1x
17.9x
21.5x 21.8x 22.2x
25.5x
34.8x
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
35.0x
40.0x
45.0x
Record breaking cloud M&A activity in 2020 with Slack
receiving the largest revenue multiple paid in history
Multiple
(EV/LTM
Revenue)
30. Changing of the guard: MT SAAS overtakes FAANG!
MT SAAS, EMCLOUD, FAANG, and Major Indexes Performance since 2020
-50%
0%
50%
100%
150%
200%
Jan-20 Apr-20 Jul-20 Oct-20 Jan-21
Percent Change
EMCLOUD SPX DJI RUT MT SAAS FAANG
EMCLOUD
Performance:
Approx. +130%
MT SAAS
Performance:
Approx. +180%
Russell 2000
Performance:
Approx. +35%
FAANG
Performance:
Approx. +60%
S&P
Performance:
Approx. +20%
Dow Jones
Performance:
Approx. +10%
31. COVID-19 more than doubled the rate of
digital transformation across
different vertical industries
34. What is driving
theincrease in
unicorns?
1. Cloud multiples are going up
2. Cloud companies are growing faster than ever
3. There is more demand than supply for cloud assets
35. 1.
What is driving
the increase in
unicorns?
Cloud multiples
are going up
1.
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
Jan-10
Jun-10
Nov-10
Apr-11
Sep-11
Feb-12
Jul-12
Dec-12
May-13
Oct-13
Mar-14
Aug-14
Jan-15
Jun-15
Nov-15
Apr-16
Sep-16
Feb-17
Jul-17
Dec-17
May-18
Oct-18
Mar-19
Aug-19
Jan-20
Jun-20
Nov-20
Average
PRIVATE
PUBLIC
EMCLOUD Multiples
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
37. PUBLIC PRIVATE
9x
8x
11x
13x
23x
2016 2017 2018 2019 2020
Average
150%
2016 to 2020
Cloud 100 Multiples
What is driving
the increase in
unicorns?
Cloud multiples
are going up
1.
39. $14B
$186B
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Capital Invested
1200%+
2010 to 2020
Capital Invested in Private Cloud Companies
What is driving
the increase in
unicorns?
There is more
demand than supply
for cloud assets
3.
41. y = ~0.8x
0%
50%
100%
150%
200%
0% 50% 100% 150% 200%
EMCLOUD Growth Endurance (2010-2020)
What
rationalizes
these increased
valuations?
PRIVATE
PUBLIC
GROWTH ENDURANCE
Current Year’s Growth Rate
Last Year’s Growth Rate
=
Expect public cloud company
growth rates this year to be
80% of what they were last year
45. What
rationalizes
these increased
valuations?
y = ~0.7x
0%
50%
100%
150%
200%
0% 50% 100% 150% 200%
Cloud 100 Growth Endurance 2016-2020
PUBLIC PRIVATE
GROWTH ENDURANCE
Current Year’s Growth Rate
Last Year’s Growth Rate
=
Expect private cloud company
growth rates this year to be
70% of what they were last year
47. The Good, Better, and Best of Growth Endurance
Implications for growth deceleration
0%
50%
100%
150%
200%
250%
300%
350%
1 2 3 4 5 6 7 8 9 10 11 12
Growth Rate
Years
$1MM ARR
BEST: 6 years
$100MM ARR
BETTER: 7 years
$100MM ARR GOOD: 12 years
$100MM ARR
48. Nail it before you
scale it!
In the New Normal, you really have to nail it
before you scale it
INITIATION
Founder Led Sales
TRANSITION
Sales Led Sales
EXECUTION
Scalable S&M
50. 1. Product-led growth
Attain market leadership by
prioritizing user needs as they grow
Karen Peacock, CEO of Intercom
“
Connecting the product team with customers was a
massive unlock for us and helped to scale us to the
upmarket company that we are. And the habit of
being product-first persists. It’s in our DNA.
“
51. $1B $2B $6B $17B $21B $41B
$97B
$211B
$687B
2012 2013 2014 2015 2016 2017 2018 2019 2020
Tremendous growth in market cap of public
product-led growth companies
52. 2. Usage-based pricing
Pick the usage-based value metric that is
predictable and communicates product value
“
Startups send notifications to customers on demo day, IPO day
and beyond. Providing a reliable product also means offering
pricing that reflects the value they receive as they grow.
“
Troy Goode, CEO and founder of Courier
53. 116%
120% 122%
130% 130%
136% 137%
162%
183%
10%
Public cloud mean
Usage-based mean
Companies employing usage-based pricing have best-in-class net
dollar retention, leading to a premium in valuations
Leverage usage-based pricing to grow
with your customers
54. 3. Cloud marketplaces
One of many early adopters to
see 10x YoY marketplace growth
Eugenio Pace, CEO and co-founder of Auth0
“
Cloud Marketplaces have been a real accelerant for
our business as they are helping us close larger
deals faster. We have grown the number of deals
through marketplace dramatically and are investing
more to double down in this exciting channel.
“
55. Digital channels provide promise and
cloud marketplaces are the natural option
50% $3B
of sales interactions will
happen through digital
channels by 2025
faster sales cycles
through cloud
marketplaces
predicted revenue
through cloud
marketplaces in 2021
80%
56. Aim for a GTM flywheel that creates
champions, not a static funnel
Champion
Captivate
Catalyze
Cultivate
Cycle of
creating
champions
57. Fire up the flywheel to drive momentum
Champion
Captivate
Catalyze
Cultivate
Cycle of
creating
champions
Established a diverse customer
advisory board and doubled the
number of champions
Grew alongside customers by
developing proprietary dashboards to
help them optimize usage and costs
Deployed a remote-first playbook for
strategic involvement and virtual
enablement trainings focused on
scalability and self-sufficiency
Provided dedicated support SWAT
teams during promotions and upgrades
Amplified individual user voices
through customer-led marketing
initiatives (#ThingsCustomersSay
series, Inaugural customer survey)
Renewed content marketing with a
focus on interactive, educational
pieces and thought leadership
Shortened time-to-value for
customers by 75 days even with a
fully-distributed workforce
Developed a culture of project
partnership with customer-centric
product innovation and cross-
functional collaboration
58. Results from Hyperscience’s flywheel
300% YoY ARR growth
10x increase in platform usage
140% overall account growth
170% net ARR retention
Peter Brodsky, CEO and Co-Founder of Hyperscience
59. 1. Unbundling of the Office
2. We’re bringing S-M-B back with SaaS
3. Diversity, equity, and inclusion software take their rightful place
4. Data and machine learning infrastructure accelerates to new heights
5. The rise of the “citizen” developer and creator
6. Fintech and crypto players are changing financial services forever
7. The vertical SaaS wave becomes a tsunami
2021
Predictions
60. Prediction 1: The unbundling of the Office
CALENDARS
PROJECT MANAGEMENT VIRTUAL OFFICE/TEAM ROOM
EMAILS/MESSAGING
EVENTS COLLABORATIONS
61. Prediction 2: We’re bringing S-M-B back with SaaS
SALES & MARKETING
VERTICAL
IT/OPS
CUSTOMER HR FINANCE/LEGAL
62. Prediction 3: Diversity, equity, and inclusion
software take their rightful place
DATA TRACKING/TALENT MANAGEMENT DEI CULTURE TRAINING & EDICATION
REPORTING RECRUITING
63. Prediction 4: Data and machine learning infrastructure
accelerates to new heights
AI/ML OPS DATA MONITORING
DATA
VISUALIZATION
DATA PIPELINE DATA MANAGEMENT/
GOVERNANCE
DATA ANALYTICS/SCIENCE
64. Prediction 5: The rise of the “citizen” developer
and creator
NO CODE/LOW-CODE APP-BUILDING TOOLS
CREATOR EMPOWEREMENT TOOLS
66. Prediction 7: The vertical SaaS wave becomes a
tsunami
AUTO REPAIR
SALON & SPA
FIELD SERVICES
EDUCATION
CONSTRUCTION
LEGAL
RESTAURANT
NETWORKING
BANKING DENTAL
USED CAR AUCTION
EARLY EDUCATION
REAL ESTATE
PUBLIC SECTOR HEALTHCARE
BARBERSHOP
REAL ESTATE AGENTS
67. State of the Cloud 2021
Top takeaways
1. Cloud companies have not just reset in the New Normal, but have thrived
(record-breaking market cap of $2 trillion)
2. Changing of the guard: MT SAAS has overtaken FAANG
4. 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
3. Cloud multiples are rising to new heights, with both public and private cloud
trading for over 20x
5. Good-better-best of growth endurance is 70%-75%-80%
6. GTM strategies have adapted to the New Normal; best practices include product-led
growth, usage-based pricing, and the adoption of cloud marketplaces
68. Even in the New Normal,
we’re living in a cloud first world.
Byron Deeter
PARTNER
@bdeeter
Elliott Robinson
PARTNER
@TheValuesVC
Mary D’Onofrio
PARTNER
@mcadonofrio
69. Go to bvp.com/cloud
State of the Cloud 2021
Get the full report
Book Giveaway!
1. Read State of the Cloud 2021
2. Share your favorite insight on
social and tag @BessemerVP
3. First 100 to sign up at the bottom
of the report will get a free copy
of Ask Your Developer!
The New Cloud Index
bvp.com/cloudindex
71. 71 / Confidential and Not for Distribution
Footnotes/sources
Slide 5: CapIQ. Performance measured from January 2020 until March 2020.
Slide 10: Statistics from EHRN.org
Slide 11: US Census
Slide 13: USC Farnham Research
Slide 16: Cap IQ, Feb 2020
Slide 17-19: Cap IQ, Feb 2021
Slide 20: Canalys; SEC Form 10-K Filings
Slide 21: BVP Nasdaq Emerging Cloud Index
Slide 22: BVP Nasdaq Emerging Cloud Index
Slide 23: WisdomTree WCLD
Slide 24: WisdomTree WCLD
Slide 25: BVP Nasdaq Emerging Cloud Index
Slide 27 - 28: CapIQ and Morgan Stanley Data pack
Slide 29: CapIQ, FAANG and MT SAAS equal-weighted to 1/1/2010. Performance measured since January 2020 until February 2021.
Slide 34-35: CapIQ, including all past and present cloud index companies since January 2010 until February 2021.
Slide 36: Forbes Cloud 100 data from 2016-2020.
Slide 37: Forbes Cloud 100 data from 2016-2020.
Slide 38: Pitchbook, includes capital invested in all privately-backed companies tagged with SaaS with deal announced between 1-Jan-2010 and
31-Dec-2020
Slide 40-41: CapIQ, includes all years’ growth endurance data for past and present cloud index companies since January 2010 until February 2021.
Slide 42-43: CapIQ, including company filings and reports from Barclays, Credit Suisse, JP Morgan, Canaccord
Slide 44-45: Forbes Cloud 100 data from 2016-2020
Slide 50: CapIQ; Bessemer Venture Partners analysis; logos displayed for year companies went public
Slide 52: SEC Form 10-K Filings for companies that went public in the last five years; Bessemer Venture Partners analysis
Slide 54: Gartner; Crowdstrike quarterly earnings call; Bessemer Venture Partners analysis