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
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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
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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
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The Cloud Continues to Grow
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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
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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%
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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
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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
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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
![Page 26: GGV Capital: Venture Investing and the Cloud (2012)](https://reader033.vdocuments.net/reader033/viewer/2022061115/54628b9db1af9fbc4d8b52e9/html5/thumbnails/26.jpg)
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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?