1) The document discusses the rise of cloud computing and technology startups in Europe. Venture capital investment in European tech startups has been trending upwards, with record amounts raised in 2019. 2) Europe is producing more $1 billion outcome companies and has a strong pipeline of "unicorns" (privately held startups valued over $1 billion). Many European decacorn companies (valued over $10 billion) are choosing to keep their headquarters in Europe. 3) The cloud market is growing rapidly and is on track to become the majority of the overall software market within the next 5 years. European cloud companies have seen their total market capitalization increase nearly 14x from 2016-2020.

1. 10/28/20 • Confidential
State of Cloud 2020
The Rise of Europe
Dhruv Jain
Investor
@groovyydhruvy
Alex Ferrara
Partner
@alexferrara

2. Sir Henry Bessemer Circa 1872
The OG European Founder

3. $8b+ 122+ 15 200+
ASSETS INITIAL PUBLIC OFFERINGS INVESTING PARTNERS ACTIVE PORTFOLIO COMPANIES
SILICON VALLEY
& SAN FRANCISCO
NEW YORK
BOSTON
ISRAEL
INDIA
1911
YEAR FOUNDED
LONDON
A Global VC Fund Made Possible by a European Inventor

4. New faces
Tobias Lütke Karen Peacock Niklas Zennström Jean-Baptiste Rudelle

5. Innovation is now borderless
2000 2010 2020

6. COVID has accelerated a Virtual First World

7. Four reasons to be even more
excited about the European
tech scene

8. VC Investment in Europe is trending upwards
10.6 11.4
14.6 16.2
23.4
4.7 5.1
8.0
8.4
11.5
$0
$10
$20
$30
$40
Venture capital raised by region ($Bn)
EU-27 UK
Startups raised a record amount of VC in 2019
16.5
22.6
24.6
34.9
Source: European Startups Launch Report 2020
PitchBook-NVCA Venture Monitor Q2 2020
201820162015 2017 2019
15.3
$Bn

10. Europe is increasingly producing $1B+ outcomes
Note: Founded in Europe. Latest transactions only e.g. Markit, TeamViewer, Trivago
2014
5
37
2011 2015 2016 2017 20182013 201920122010
IPO M&A

11. Europe’s pipeline of unicorns has never been stronger
$5.0B+
$1.0-1.5B
$1.5B-5.0B

12. More European Decacorns Elect to Keep HQ in
Europe
Source: PCLN 2016 Annual Report, Capital IQ; Markcap as of 18 Aug. 2020
HQ
SWEDEN
$47B
market cap
SWEDEN
$72B
market cap
NETHERLANDS
v
$50B
market cap
NETHERLANDS
v$10B
market cap
GERMANY

13. 10/28/20 • Confidential
94%We’re living in a cloud-first world

14. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Cloud is eating software
Cloud will become majority of software market within 5 years
Software Cloud
Source: CapIQ; Bessemer Venture Partners analysis

15. 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Cloud is eating software
Software Cloud
Cloud will become majority of software market within 5 years
Source: CapIQ; Bessemer Venture Partners analysis;
Cloud CAGR – 20%, Software CAGR – 10%

16. $0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Public cloud: $1.7 trillion+
Total cloud market cap
65% CAGR
35% CAGR
$BMarketCap
45% CAGR25% CAGR
Oct
2020
$1.7T
$690B
Feb 5th
2019
$Bn

17. Deeper dive: European Cloud

18. $0
$10
$20
$30
$40
$50
$60
2016 2018 2020
$6.7B
total market cap
$32.9B
total market cap (4.9x)
$91.2B
total market cap (13.7x)
Source: CapIQ
Note: 2016 & 2018 data is for last trading day of year, 2020 data is as of 31 July 2020
Top 5 European founded public cloud companies
Up 14x 2016-2020
$Bn

19. Strong pipeline of 23 private cloud unicorns…
…including the first European cloud decacorn
Source: CB Insights
$1.0-1.5B $1.5-5.0B$1.5-5.0B$1.0-1.5B $5.0$5.0B+

20. 20
DEEP POOL OF
TECHNICAL TALENT
SEED FUND
DEVELOPMENT
NEXT GENERATION
EUROPEAN FOUNDERS
European Tech’s Virtuous Cycle

21. What are some predictions?

22. Prediction 1: Product led growth wins, regardless of location
Driver: Europe’s SMB and Mid market are a beachhead into the global enterprise
Support Live Chat Software
E-commerce Payments
Web Development CRM
Marketing Collaboration

23. Prediction 2: Privacy debt is the new technical debt
Jumbo
DATA DE-IDENTIFICATION &
ANONYMIZATION
CONSUMER PRIVACY
MANAGEMENT
PRIVACY WORKFLOW &
OPERATIONS
DATA CATALOGUING DATA SCANNING &
INVENTORY
Driver: GDPR, Cybersecurity Act & Open Data Directive, Cloud Federation &
Data Sovereignty

24. Prediction 3: We’re entering the age of “automation-at-scale”
Source: European Commission’s Coordinated Plan on AI
Driver: European Commission’s “digital first” agenda and priority on
automating repeat tasks and workflows
European Parliament Plenary 2019
INTEGRATED PLATFORM AS A SERVICE
RPA AND ADJACENCIES
SOFTWARE-DEFINED
MANAGEMENT
LOW CODE / NO CODE
APP DEVELOPMENT

25. Prediction 4: Sustainable innovation goes mainstream
RETAIL
CORPORATE RESPONSBILITY DEEP TECH
FOOD & AGRICULTURE
Source: Who Cares, Who Does Study, Kantar Worldpanel
Driver: Progressive European eco-consumers and governments demanding change

26. Prediction 5: Financial services become ubiquitous
Driver: Open banking regulation drives new opportunities for financial services in
Europe
BANKING-AS-A-SERVICE
& CARD ISSUANCE
PAYROLL
B2C & B2B LENDING IDENTITY / COMPLIANCE / FRAUD
TREASURY/BILL PAY
PAYDAY ADVANCE
AGGREGATION INSURANCE / WARRANTY
NEOBANK & BROKERAGE
FACTORING / INVOICING

27. 10/28/20 • Confidential
2020
BESSEMER’S 5
PREDICTIONS FOR
EUROPE
Privacy debt will be the new
technical debt
We’re entering the age of
“automation at scale”
Sustainable innovation goes
mainstream
Financial services becomes
ubiquitous
2
3
4
5
Product led growth wins,
regardless of location1

28. The forecast calls for a high chance of cloud
28
68
MON
Cloudy
64
TUE
Cloudy
63
WED
Cloudy
70
THUR
Cloudy
71
FRI
Cloudy

29. 10/28/20 • Confidential
State of Cloud 2020
The Rise of Europe
Dhruv Jain
Investor
@groovyydhruvy
Alex Ferrara
Partner
@alexferrara

30. Thank You
bvp.com/cloud
@BessemerVP

31. Disclaimer
The information contained herein regarding Bessemer Venture Partners and its affiliates (collectively “BVP”) is confidential and proprietary and
intended only for use by the recipient. The materials may not be reproduced, distributed or used for any other purposes without the express prior
written consent of BVP. The information contained herein is not complete, and does not contain certain material information about alternative
investments, including important disclosures and risk factors associated with an investment in these types of vehicles, and is subject to change
without notice. This document is not intended to be, nor should it be construed or used as, an offer to sell, or a solicitation of any offer to buy,
limited partner interests in any funds managed by BVP. Neither the Securities and Exchange Commission nor any state securities administrator has
approved or disapproved, passed on, or endorsed, the merits of these securities.
Investments in venture capital and alternative investments entail substantial risk and should not be intended as a complete investment program.
Opportunities for redemption and transferability of interests in alternative investments are restricted so investors may not have access to capital
when it is needed. There is no secondary market for interests in many alternative investments and none is expected to develop.
Opinions expressed are current opinions as of the date appearing in this material only and is subject to change. The information provided in these
materials is illustrative and no assurance can be provided that any of the future events referenced herein (including projected or estimated returns
or performance results) will occur on the terms contemplated herein or at all. Any statistical information contained herein has been supplied for
information purposes only and is not intended to be and does not constitute investment advice or an opinion regarding appropriateness of an
investment in any BVP fund. While the data contained herein has been prepared from information that BVP believes to be reliable, neither BVP
nor any third party has independently audited or verified the accuracy of such data, BVP disclaims any and all liability relating to such information,
and BVP makes no representation or warranty as to the accuracy or completeness of such data. Investment returns may vary materially from the
stated objectives. As with any investment vehicle, past performance cannot assure any level of future results.