Perspectives

Are You in a Cloud-Friendly Industry?

December 4, 2014

benefits industry cloud strategy clear certain industries friendly answer question set scoring using framework ranks based eight factors speed adoption slow Top rise analysis stand cloud-friendly healthcare education traction focused fast-growing companies facets massive concentrated Veeva Systems Veev Emergence portfolio company recently successful IPO Doximity CareCloud PracticeFusion getting Athena Health years helps stay current strongly regulatory Within universities school districts shown willingness try solutions particularly designed non-desk workers leverage big data seen range make inroads including Coursera Edmodo Schoology Emergence's Hat Civitas Learning next tier includes retail utilities transportation real estate construction insurance score high several dimensions sector looks promising due mobile workforce visual elements value anticipate major shifts software used drive coming sectors face hurdles relating fragmentation cyclicality Page Textura PlanGrid Drivewyze GuideWire show potential Finally banking government likely among slowest move technology great given spending take number overcome privacy concerns migration costs starting see early progress Addepar nCino however sub-sectors financial services benefit revenue expansion cost savings offered time makes increase success arrive reviewed material public TXTR Dealer Track TRAK RP ATHN Fleetmatics FLTX addition growth metrics meetings hundreds private Impact Dynamic Environment deployment dramatically reduces complexity delivering updates revisions world on-premise new regulations often mean company-wide upgrades every desktop laptop burdensome process professionals platforms enable rapid auditable features functionality required comply changes Dissatisfaction Incumbents Unhappy executives grumbling existing good news Users incumbent grown accustomed changing workflow accommodate one-size-fits-all system customers taste vertical solution specifically realize lack horizontal offering Concentration efficient sales marketing processes highly fewer 50 represent 80 concentrating energy limited customer acquisition CAC especially attractive word mouth recommendations improving efficiency Work Force Capital increasing industry-specific mobile-first verticals percentages first applications smartphones tablets Google Glass ability access analyze tremendous amounts valuable Retailers rely sourcing staffing pricing decisions firms integrate sophisticated models nearly everything architectures uniquely sifting large datasets Additionally capture proprietary streams adding end user behavior Progressive's Snapshot service example mining creating points SaaS Platform Alignment leaders built Salesforce.com Amazon's AWS market young focus specific rather building underlying infrastructure Little tend immune cycles better candidates primary reasons seasonal annual forms difficult build recurring businesses hallmark Second moving requires initial investment hard cycle Visually Dependent manufacturing heavily representations making best images powerful cameras devices updated location pushed parties via suited showcase transforming collaboration around blueprints core tenets hosted off-site consumers regulators concerned security breaches structure fact largest budgets run house leading extensive precautions institute highest level enough comfort Shifting model transition complicated expensive lead errors lost switching reduce appetite change generation ultimately case start back-office reduction enhancement substantial continue emerge performing markets investors appreciate comes able Gone days dismissed niche plays Today future post originally appeared TechCrunch October 26 2013

2013 Emergence Award: Rene Lacerte, Founder and CEO of Bill.com

December 4, 2014

Last night honored portfolio companies Emergence Capital Annual CEO Forum afternoon dinner company CEOs text toast Rene Lacerte founder Bill.com Every year celebrate end want thank tireless efforts recognize achieved significant milestones mission build industry leading SaaS job think coming almost guaranteed meet famous software entrepreneurs disrupted billion dollar markets years sat next Lars Dalgaard Aaron Levie first time sitting Peter Gassner David Sacks fact likely become entrepreneur billionaire audience addition Award give something called big successful sale IPO working tail executing making customers happy often without public recognition know success come sudden stroke genius comes hard work planning evangelizing fundraising countless tough decisions go 8 10 grueling 2-3 met wife Joyce friend mine MIT watched develop management skills watching raise kids invested convinced small business owners always thinking cash paid large customer bill due tool understand ebbs flows paying network trusted financial payments partners earned trust lead thousands additional Today 12 000 growing 100 past reputation insanely transferring rate payers payees now exceeds 200 businesses experience service free relying future began feel momentum shifted Instead pushing try product market pulling five largest banks agreed offer recently announced 38 million financing led Scale Ventures heavily oversubscribed several participating successes happen overnight team right processes ensure protected fraud learn explain businessmen women faced dark days stand Rene's leadership critical survival fall 2008 Sequoia shut venture proposed steepest cuts entire extend runway lost father supported suffered loss parents strong oak tree carried heavy weight never wavered positive say creative thinker gifted executive hires People immediately integrity authenticity love life family sets apart genuinely listens seeks opinions others found single characteristic correlated great ideas assume constantly talking gathering makes relationship VCs proud investors congratulations

Our Ambitions for Emergence

November 18, 2014

article published Medium Read original Ten years ago founded firm believed future enterprise cloud willing bet entire firm's strategy Today paid handsomely backed iconic successful companies last decade including Salesforce.com SuccessFactors Yammer Veeva Box among others enthusiastic next mobile opportunities Despite success date satisfied achieved goal continue add talent team Emergence excited recent promotions additions press release ambition quite simply important partner beyond consider working Capital Leaders invest COURAGE convictions follow conviction behind visionary entrepreneurs equally great ambitions equivocate falter going gets tough count FOCUS matters means finding unique point differentiation CUSTOMERS executing 10X better competition say live built around EXPERTISE building believe best TEAMS win today's market place requires world class leadership investing heavily growth development CEOs executive know looks network broadest deepest area endeavor earn TRUST space serve needs first come Values Purpose Matter greatest compliment people good guys won love winning integrity fairness set life purposes fueled passion intensity together humble enough primary drivers lifeblood business grateful humbled opportunity amazing changing making lives creating jobs wealth fulfilling human potential nothing dignifying gratifying helping reach join merry band brothers sisters generation

The 2014 Enterprise Mobile Forum

November 17, 2014

Last week Emergence Capital hosted second annual Enterprise Mobile Forum Bluxome Street Winery San Francisco 100 CEOs entrepreneurs representing aspects landscape attended event General Partner Kevin Spain kicked sharing vision represents democratization technology 20 years nearly innovation focused desk workers However represent global workforce now address needs 80 opportunity billion revenue finished talk three keys success companies 1 Platform leverage 2 Go-to-market expertise 3 orientation listen Kevin's keynote podcast view presentation Following opening remarks Shira Ovide Wall Journal interviewed Aaron Levie founder CEO Box shared thoughts horizontal vertical opportunities build new businesses cloud commented important underestimate difficulty building access Ryan Sutton-Gee co-founder COO PlanGrid spoke apps field discussed vast untapped market non-desk currently loop traditional systems word-of-mouth best source business customer service critical David Barrett Expensify talked Serena Saitto Senior Reporter Bloomberg journey starting major inflection point used camera focus feature iPhone enabled users photograph receipts grown app store word mouth Slack's Stewart Butterfield blending Web Ari Levy CNBC Digital noted use Slack binary either group uses nobody thoughtful blend desktop key early traction lunch Ian Shakil Augmedix Robert Scoble wearables work particularly doctors Google Glass helps engage patients instead computers Semil Shah investor author led panel Gibbon Shyp Sara Mauskopf Postmates on-demand services see shift moving consumers day wrapped Obrand former Chief Officer Yammer insights strategies selling sales team value freemium models want thank speakers spent learning look forward reviewing progress next fall rd meantime continue updating please let know great emerge coming months Investment

Introducing Eversight: Industry Cloud for CPG and Retail

October 7, 2014

recent investment Eversight Industry Cloud consumer packaged goods CPG's retailers optimize promotional spending Big data remains pipedream companies promise studying real customer behavior alluring reality assembling infrastructure tools talent staff sustained capability face budget projects immediate payback industries leverage comes mission critical domain-specific questions unique default rates credit cards reimbursement healthcare cart abandonment eCommerce enables solution industry-specific requirements seeing strong adoption vertical analytic solutions delivered service Together Veeva Systems coined term describe serving need Clouds particularly powerful enable insights found deep specialized analysis focused important challenges trusted third-party help uncover enabling collaboration across channel partners Enlisting allows everyone share costs without compromising independent views opportunity exists today products manufacturers work better meet needs large budgets CPG brands fighting multi-front war win hearts minds consumers partnering every market find right incentives drive volume profits promotions CPGs almost twice marketing sad truth managed effectively Actual fragmented dozens regions retail requires approach founders David Moran Jamie Rapperport perfect team serve identify spent first 10 000 hours career McKinsey learning respond leading struggle understand value served Global VP Sales Anheuser-Busch Inbev led Revenue Management efforts largest brewer planet learned succeed understanding specific constraints domain brings additional experience along entrepreneurial leadership Silicon Valley startup DNA acumen company business development founded Vendavo venture-backed leader price optimization purchased Francisco long list successful startups including VXtreme WebTV Lotus others test response different retailer channels geographies Collecting scale complexity impossible years ago leveraging partner jointly explore offers ensuring integrity proprietary strategies met excited see ingredients thesis expertise world class shared big-data architecture clear vision coordinate accomplish joint objective building national happy support

Why We Invested in SteelBrick

August 7, 2014

Recently kick strategy session SteelBrick new Series investment Emergence walked away feeling totally energized working amazing team build next generation SaaS leader enable Selling made Simple want take moment share excited Founder Max Rudman CEO Godard Abel entire great fit press release financing First product solves real pain point market elegant repeatable fashion Configure Price Quoting CPQ solutions become standard practice leading sales organizations similar CRM Marketing Automation became must bootstrapped business 150 happy customers leveraging Salesforce.com platform outside capital power scrappy product-oriented intensely focused customer success came loud clear conversations delighted Second Matt Gorniak Founding BigMachines pioneered space successfully sold Oracle never achieved ultimate goal building public independent company discovered true solution built Salesforce decided join bring band back together achieve dream Third thinking big start understand takes incredibly thoughtful people wants recruit culture part mission create place work hundreds hopefully thousands investor simply better proven important emerging category relevent domain expertise opportunity partner earliest days world class maximize potential honor change

Our Investment in Xapo: Another Transaction for the Blockchain

July 8, 2014

Today Emergence Capital thrilled announce investment Xapo early leader emerging bitcoin ecosystem CEO Wences Casares decades experience building successful global finance companies partners known fifteen years think better navigate exciting new platform personal level tracking startups nearly first canvased came across less 100 mostly focused wallets exchanges merchant services now working updated version landscape 1 000 plan publish next weeks time spend entrepreneurs obsessed become financial instrument protocol allows efficient secure fixing storing transfer value currency thinking use cases real estate tickets email addresses started see consumer elements particularly excited B2B opportunities around security identity analytics others 10 ago invested Salesforce.com became defining company SaaS world announcing partner going help define developments decade

Industry Cloud Forum: June 3, 2014

June 10, 2014

Industry Cloud Forum Recap June 3 2014 Last week Emergence hosted City Club San Francisco companies building business solutions focused specific verticals first event kind thrilled gather together 100 CEOs leading across dozen sectors received number requests Rising opening presentation Gordon Ritter Capital Learning Leaders keynotes Peter Gassner Veeva Marcus Ryu Guidewire Dan Yates Opower heard great feedback panels covering go-to-market strategies platforms attendees commented shared similar opportunities challenges others room spite completely different industries Brian Donahoo Appfolio Charles Thornburgh Civitas Hess Advent Software Santi Subotovsky Leveraging Adam Gross Heroku Salesforce Ariel Kelman AWS Chris Yeh Box Jason Green hope gatherings please share improve format content excited continue Best General Partner Principal Alison Wagonfeld Operating

The Five Hallmarks of an Industry Cloud Company

May 6, 2014

last six months seen dramatic uptick number start-ups self identify industry cloud company rapid rise vertically-focused companies reminds early days enterprise SaaS horizontally-focused followed wake Salesforce.com CRM success rebranding Veeva System's 4 billion IPO late year chair board nearly represent emerging approach building focus go deep Given new interest sector thought helpful five hallmarks Talent Trifecta Unlike horizontal scale effectively powerful blend technical sales acumen require third skill set executive team domain expertise Successful co-founder senior extensive experience specific vertical President Matt Wallach previously ran Seibel's Life Science division serves perfect complement CEO Peter Gassner's product technology Data key advantage model ability create customer value user entry behavioral analysis potential makes far likely turn meaningful insights customers come consistent use pattern similar terminology compare across functional areas marketing finance etc example Opower works utilities collect energy usage help individual modify consumption company's four interconnected lines leverage representing 37 U.S residences generate reports alerts drive modifications thereby helping interface optimize infrastructure demand response programs Referral Revenues compelling elements buyers know run businesses ways attend conferences travel circles worked together point result build reputation within launch resulting high percentage reference selling fact acquisition costs often 50 lower solutions become de facto standard Real Page leading software estate property management rental course corollary true little margin error rolling concentration means news travels fast poorly designed ineffective teams Massive Market Share solution ground cover geography business sizes leader achieves 5 10 percent However achieve greater penetration winner-takes-all environment Doximity offers secure social platform physicians health care professionals engage years 40 signed making primary network important group Another Bloomberg financial services 30 electronic trading platforms Layer Cake Strategy Traditionally focused perceived niche plays tended offer single application built top existing breed several layers automation content analytics refer multi-layered Guidewire insurance range products insurers underwriting policy billing claims common achieving core suite adding functionality intelligence mobile broader line mentioned grow larger era preceding client-server period Landscape Based criteria Emergence identified 200 part first cut continue update click enlarge Seven industries spawned dozen healthcare education verticals highest particularly cloud-friendly due size opportunity regulatory transportation legal starting break couple leaders every month includes 14 public went markets understand appreciate efficiency dollar invested index beginning 2013 performed 20 better Looking ahead excited wave breakout Systems highlight anticipate explode coming ever-increasing amount sensor available advances consumer industry-focused invaluable partner decade inevitably see consolidation shares pay 2 fierce competition ventures jockey dominance ultimately 5-10 large tremendous tomorrow

Software is Evolving Out of the Tar Pits of Consolidation

August 6, 2013

piece originally published Venture Beat 8 3 2013 Massive consolidation software industry seemed inescapable trend reversing rapid development best-of-breed companies leverage advantages cloud Software-as-a-Service SaaS leads richer ecosystem focus trumps scale independent grow thrive consuming nearly entire client-server providers dominant business turned attention Within last year big incumbents made multiple billion-dollar acquisitions including SuccessFactors Ariba Eloqua Taleo Right Now include pioneers market leaders grew startups public flurry recent large wonder era footnote annals witnessing continued giants keep getting bigger gobbling prey enough satisfy voracious appetites driver behind simple Customers drowning costs huge integration projects needed link together stovepipe applications five 10 times cost largest saw grand opportunity buy adjacent integrate sell suite limited choice happy someone supporting mission critical throat choke avoid uncertainty project burden buying power concentrated departments buyers king makers wined dined sales executives biggest vendors controlled access CIOs hefty forces small match reach better breed Today prevailing winds changed Luckily evolution i.e favors brains brawn nothing smarter intelligence finally gives highly affordable on-demand always-updated limits landscape shifting bloated dinosaurs flourishing smaller nimbler diverse species nature earlier challenges almost obsolete longer hurdle open architectures makes integrating disparate manageable Modern make APIs readily available encouraging across web work done serves Lightweight integration-as-a-service SnapLogic MuleSoft Jitterbit others offer standard connectors serve common requirements category Marketo Cornerstone Demand Intacct integrations leading Pre-packaged suites single vendor less compelling assemble picking choosing best-in-category fit processes patchwork environment becomes competitive advantage flexible optimized unique size configuration customer instance Knowland Group high growth provider analytics hospitality based Washington DC built financial specific needs company connected Intacct's management accounting systems set top-tier point solutions Adaptive Planning budgeting Sererra's fixed assets collections ADP's human resources system TPro's credit card processing application changes dynamics purchasing department function buys allows outsell giant specializing particular buyer process Online marketing techniques allow target distinct roles without force effective dramatically cheaper in-person meetings calls distributed starting see emergence logical compromise functionality offerings lack significant dominate Newly powerful Salesforce.com joined frenzy spending billions dollars Radian6 Buddy Media ExactTarget effort build partnering Oracle clouds However focused continuing directors giving onerous tasks infrastructure seeking flexibility best tools every job always desired new resembles real world live barren Dinosaur Age dynamic encourages characteristic survival learned fly entrenched mammoths selling opportunities visible Investors eager fund entrepreneurs innovative low routes truly evolved developing wings fins Brian Jacobs founder general partner Capital Partners Silicon Valley firm enterprise businesses currently sits boards Hightail Bill.com InsideView Janrain Donuts