ggv capital: venture investing and the cloud (2012)
DESCRIPTION
Glenn Solomon's slidedeck from his "How to Get your Cloud Company Funded" session at Up 2012TRANSCRIPT
LP Meeting 2012Venture Investing and the Cloud Glenn Solomon - 2012
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Purpose of Today’s Presentation
Over the next half hour you will….
➜ Learn more about why VCs continue to like the cloud➜ Get a sense for the models VCs like➜ Gain some practical experience on how to approach VCs
3
Agenda
Cloud Computing: Why VCs Still Love the CloudWhat’s Disrupting The Cloud
➜Mobile’s Effect on the Cloud➜Very Big Data➜SMB: The Final Frontier
Getting Funded: Dos and Don’ts
4
The Cloud Continues to Grow
5
Cloud Companies: Numerous and Specific
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Strong Consolidation in Cloud
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Cloud Companies Beat Market Expectations
*Morgan Stanley
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Still Lots To Do
Driving user adoption/productivityReporting & analytics
Improving application governanceReducing SaaS siloes
Improving data qualityPerformance monitoring/management
Providing mobile accessDeeper integration with other cloud appsDeeper integration with on-premise apps
Improving manageabilityEnsuring security & compliance
25%19%20%19%
23%19%19%
19%18%
16%11%
35%39%39%42%
34%43%42%
50%48%
45%35%
31%33%34%31%
39%32%33%
26%29%
36%48%
Priorities for Improving Cloud Apps% of Respondents
Unimportant Of Little Importance Somewhat Important Important Very Important
*Appirio
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Agenda
Cloud Computing: Why VCs Still Love the CloudWhat’s Disrupting The Cloud
➜ Mobile’s Effect on the Cloud➜ Very Big Data➜SMB: The Final Frontier
Getting Funded: Dos and Don’ts
10
A Mobile-First, PC-Second WorldQ1 2011
Q1 2011 Q1 2012
+12% +7%
Nearly half of all American adults own smartphones
Almost a third of American adults own tablets
Q1 2012
*Morgan Stanley, Pell Research
39% 46%17%29%
Mobile’s Weakness: Storage
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Mobile Data per Year
Facebook Photos per Year
761 MB
*Facebook, Pixable
Average iTunes Music Library 16 GB
9 GB
Mobile users rely on the cloud to access and store data
Average Internal Storage
15.6 GB
*TuneUp
*T-Mobile
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Popular Mobile Apps that Rely on the Public Cloud
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Opportunities in Mobile and the Cloud
Mobile Security
Sharing Data Across Mobile Platforms
Crossing the Content Creation Gap
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Agenda
Cloud Computing: Why VCs Still Love the CloudWhat’s Disrupting The Cloud
➜ Mobile’s Effect on the Cloud➜ Very Big Data➜SMB: The Final Frontier
Getting Funded: Dos and Don’ts
15
Facebook: A Lesson in Big Data
• 300M new photos• 2.5B new items shared• 2.7B “Likes”• 70,000 queries (Friend Suggestions)
Every day Facebook processes…
More than 500TB of data
+
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Big Data Needs for the Cloud
Storage • Need inexpensive, dense storage• High performance
Computation• Efficient analysis over large data sets (Friend Suggestions)• Big Data Databases (NoSQL / NewSQL)
Infrastructure• Performance at Scale• Security
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Exciting Disruptors in Cloud / Big Data Infrastructure
Storage Computation Infrastructure
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Opportunities in Big Data and the Cloud
Easy, Real-Time Analytics
High Performance Multitenancy
Cloud Security and Compliance
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Agenda
Cloud Computing: Why VCs Still Love the CloudWhat’s Disrupting The Cloud
➜ Mobile’s Effect on the Cloud➜ Very Big Data➜ SMB: The Final Frontier
Getting Funded: Dos and Don’ts
20
SMBs Flocking to the Cloud
• SMBs adding services. 39% of SMBs projected to pay for 1+
cloud services in three years; current 29%. SMBs with cloud
services will be using 3.3 services in three years; current 2 services.
• Hybrid model. Within three years, 43% of workload will be on paid
cloud services, 28% on-premise, 29% free / bundled.
• SaaS and IaaS adoption. SMBs adopting SaaS and IaaS services
are larger, more growth-oriented companies
*Microsoft SMB Cloud Adoption Study 2011 / William Blair
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Tech Sales 1.0
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What SMBs Love: Tech Sales 2.0
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Who’s Doing It Right
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Succeeding in SMB Cloud
Leverage Social Media
Disrupt Traditional Markets
Create Scalable Processes
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Agenda
Cloud Computing: Why VCs Still Love the CloudWhat’s Disrupting The Cloud
➜ Mobile’s Effect on the Cloud➜ Very Big Data➜ SMB: The Final Frontier
Getting Funded: Dos and Don’ts
26
Study the landscape and differentiate
Focus on big market with relevant team
What is your flywheel? Scalability?
Know your financial model
VC partner – chemistry over terms
Use buzzwords
Try to do everything – focus is key
Maximize valuation over chemistry
Hide your vulnerabilities
DO
DON’T
Approaching a VC with your Cloud Company
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Questions?