What if you could get the inside scoop on the key drivers that leading venture capital firms look for when funding a cloud startup? Join us to learn the tips and techniques used to attract VC funding for your company, including Force.com ISV success stories. This session is primarily for C-level, business development, and entrepreneurs

1. Startup Funding
From Kickstarter to Venture Capital
Brian Jacobs
Emergence Capital Partners
@brian_emcap

2. Safe harbor
Safe harbor statement under the Private Securities Litigation Reform Act of 1995:
This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if
any of the assumptions proves incorrect, the results of salesforce.com, inc. could differ materially from the results expressed or implied by the forward-
looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of
product or service availability, subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of
management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and
customer contracts or use of our services.
The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our
service, new products and services, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth,
interruptions or delays in our Web hosting, breach of our security measures, the outcome of intellectual property and other litigation, risks associated with
possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and
motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling non-
salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial
results of salesforce.com, inc. is included in our annual report on Form 10-Q for the most recent fiscal quarter ended July 31, 2012. This documents and
others containing important disclosures are available on the SEC Filings section of the Investor Information section of our Web site.
Any unreleased services or features referenced in this or other presentations, press releases or public statements are not currently available and may
not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently
available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.

3. Our Mission
To unleash the power of SaaS and
Technology-Enabled Services (“TES”)
to business users around the world
3

4. You’ve built an awesome app.
Is it time to raise venture capital?

6. VC Math
Typical Pipeline for 10 investments
1200 companies review materials
500 face-to-face meetings " "40%
50 due diligence (4-8 weeks) " x 10%
2000 reference calls
About 2 years of time
10 Investments " x 20%
! < 1.0%

7. VC Math
Typical Results – 10 Investments
"Investment "Total Value
3 Total Loss "$3 million "$ 0" We are wrong
3 Return of Investment (1x) " 3 "$ 3 million
" 60% of the time!
3 Sell for profit (4x) " 3 "$ 12 million
1 Home run (10x) " 1 "$ 10 million
"
Total "$10 million "$25 million

8. What are we looking for? Hypergrowth

9. VCs love Math
Typical VC Questions:
How will you generate revenue? Subscriptions, advertising, transactions, open source, freemium?
What is your average price?
How many customers do you need to reach $100 million in revenue?
How many customers are there in the US? Worldwide?
What is your distribution model? Field sales, telesales, channels, freemium/viral?
How much does it cost to sell a new customer? (Time and manpower)
What is your dollar-weighted churn? Logo churn?
What are the unit economics?
We want to calculate (1) how big is your market size and (2) how much
money you will need to grow really fast.

10. How much do you need?
Bootstrap
SuperAngels Venture Capital
Incubators
Angel Funds
Seed Funds
Megafunds
Angels
Accelerators
$50,000 $500,000 $5 million $50 million
Note: Log scale

11. Bootstrapping
+ Pros - Cons
Maintain 100% control Go slow approach
Maintain 100% ownership Impossible with some business models
Macho points at meetups No expense account
Successful examples:
Best for: getting started, consulting companies, development shops, smaller opportunities, maintaining control

12. New options for bootstrappers
PaaS
AppStores
Incubators
Crowdfunding
Maximize your ownership by doing everything possible to prove
your business model before selling a piece of your company

13. PaaS Case Study
• Force.com ISV: Pharmaceutical CRM
• Startup to 1st customer: 180 days
• Angel Funding: $3 mm
• VC Funding: $4 mm
• $100+ mm revenue in 5 years

14. Angels
+ Pros - Cons
Maintain control (>50%) Fundraising process (4-7 months)
Cool rich guys Limited help
May invite you to pool parties May not provide follow-on capital
They take awesome vacations, but
don’t invite you
Successful examples:
Best for: small capital req’ts, preparing for VC route

15. Venture Capital
+ Pros - Cons
Fastest growth possible Long fundraising process (6-9 months)
Lots of professional help Selling ownership to grow (30-80%)
Successful examples
Best for: top 1% of startups, the largest opportunities, need to grow very fast

16. Founder Math
"Ownership at IPO "Current Net Worth* "
Bill Gates " 45% " $61 billion
Jeff Bezos "41% "$18 billion
Sergey Brin "16% "$17 billion
Mark Zuckerberg "18% "$15 billion
Marc Benioff "28% "$1.9 billion
Reid Hoffman "19% "$1.5 billion
* Forbes 400 list, 2012

17. Should I get Venture Capital? Pop Quiz
 Customers are begging for my product.
 If I hired twice as many employees, my business would grow to pay for them all within 6 months.
 I can grow my company +100% for 5 years in a row.
 I like hiring salesmen.
 My wife encourages me to work 120 hour weeks.
 I drink more than 15 cups of coffee per day.
 I would sell 1/2 of my company if that’s what it takes to beat my competitor.
 I like math
If you checked ✔ 4 or more boxes, please see me after the session.

18. Emergence Capital
• We are 100% focused on SaaS and technology-enabled
services targeting business users.
• Track record of building global industry leaders
• Leveraging a small, highly networked team
• World class SaaS expertise

19. Brian Jacobs
General Partner, Emergence Capital
@brian_emcap

20. A Few Reminders. . .
Why Work With a PDO Partner Success Experts
Innovation Theater and Lounge
1:1 Success Clinics
Innovation Theater and Lounge
Need to relax? Have a massage!
Check out the Partner Hub
540 Howard Street
Survey (Session Record) Cloud Crawl (Thursday Night)
Follow us on Twitter @partnerforce

21. Partner Hub – Speaker Debrief
Why Work With a PDO
Partner
Success
Clinics
Welcome Desk
Speaker
Debrief
Area

23. Venture Capital 1000000
600000
is not for 100000
everyone
500000
10000 400000
1000 300000
Note: Log Scale
100 200000
10 100000
1 0
Bootstrapped Angel
Bootstrapped Angel VC
VC IPO
IPO