(upbeat music)
- Hello, everyone.
Thank you so much for joining us
for the fifth annual Cloud 100.
My name is Matt Garratt,
Managing Partner of Salesforce Ventures.
And we're so excited to have you join us today virtually
to celebrate the 2020 Cloud 100.
Thank you for being here with us today.
- And I'm Elliot Robinson,
Partner at Bessemer Venture Partners.
Bessemer ans Salesforce ventures
have two of the largest cloud portfolios
in the entire VC industry. And for the fifth year in a row,
we're excited to partner with our friends at Forbes,
a leader in technology and venture capital journalism.
Together, we celebrate the industry success
and recognize the leaders
who are shaping the cloud first world we're living in today.
(air whooshing)
- The cloud has really enabled democratization.
- I spent incredible amount of time thinking about this
crossing the chasm problem.
- I can't imagine trying to lead an organization
through the amount of constant chaos
that we're going through right now.
- I love the pressure of it.
How I handle a certain situation, a certain decision
may influence whether we win or lose.
- You have peaks and you have valleys.
And there was no rule in life that says that
every valley must be followed by a peak.
- And you learn to be able to be nimble and to pivot.
- All of a sudden you realize,
you're not gonna go to New York.
You're not gonna ring the bell.
- There's a lot of advantages to being public.
- It doesn't matter how great your product is.
You need to have an organization to match it.
- That's when you go from customer success driving renewal
to customer success accelerating expansion.
- You're seen as a trusted advisor where you're helping them
do their job better.
- It feels like the current wave of rising entrepreneurs
are a bit different.
- We have incredible opportunity
to deliver some change in the world.
- I don't think we talk enough about the impact
of the developed platforms that we're all building.
- Whatever stage I get to, I'm not gonna be successful
unless I'm bringing other people with me.
- You are going to experience all kinds of issues.
I think honestly true we are cooperate value.
- One of the things I am most focused on
is delivering value to customers.
Tell them what you're going to do, do it,
and show them that you did it.
- Welcome to Cloud 100.
(upbeat music)
(air whooshing)
- In just a few moments,
Forbes will reveal the 2020 Cloud 100 list,
the best of the best in cloud.
And we'll be joined by forward thinking leaders
and marquee cloud CEOs, such as Eric Yuan of Zoom,
Frank Slootman of Snowflake
and Jenn Tejada of PagerDuty
alongside all star athletes,
Stephen Curry and Baron Davis
for some really amazing conversations.
A lot has happened since we last celebrated the Cloud 100.
We are in an unprecedented time
in midst of several crises at once.
A health crisis, an economic crisis
and a crisis of racial injustice.
Organizations around the world have been forced
to reimagine their businesses and how they operate
and succeed today in the new normal.
Transitions that we thought would take decades
are happening right now, faster than ever before.
This is a very powerful moment for technology
to be a force for good.
And we've seen Cloud 100 companies
in the Cloud 100 community help to usher in
this new phase of innovation and growth.
For example, when nearly the entire restaurant
and hospitality industry had to shut down
due to shelter and place orders,
Toast, built new solutions to manage online ordering
contactless delivery and other solutions
to help during these uncertain times.
nCino's SBA lending solution helped dozens of banks
efficiently provide financing
to thousands of small and midsize businesses
through the paycheck protection program.
And how can you not mention Zoom?
Zoom has demonstrated the true power of the cloud
by facilitating remote work,
virtual schooling and government organizing,
and even helped us all
during some of the life's most precious and sacred moments.
Whether that's a birthday celebration, funerals
or even virtual weddings.
It's clear that we are truly living in a cloud-first world.
Just like we've seen in prior years,
companies from the Cloud 100 continue to achieve
fantastic success in both large acquisitions
and incredibly successful IPOs,
including nCino's 2.8 billion IPO,
Plaid's 5.3 billion sale to Visa.
And Salesforce's strategic acquisition of Vlocity
for over a billion dollars.
And of course a congrats to Snowflake,
our first graduate from the 2020 list.
Congratulations to all of these Cloud 100 graduates.
- And speaking of the publicly traded cloud companies,
we are lucky to have the very CEOs who built this market
and grew it to what it is today
serving as our Cloud 100 judges.
They help us determine who made this year's list.
We wanna give a special shout out and a big thank you
to the CEOs and cloud giants
who have given their time and support
to participate as our Cloud 100 2020 judges.
- And of course we want to recognize
the generosity and support of our event partners
for helping us bring these amazing speakers to you
live at home today.
So on behalf of Salesforce Ventures,
Forbes and Bessemer Venture Partners,
I'd like to give a big thanks to our sponsors.
And we pass it over to my friend,
Byron Deeter, Partner at Bessemer Venture Partners
to give us a state of the cloud industry today.
Take it away Byron.
- So before we discuss where the cloud industry is headed,
let's first appreciate this journey we've all been on.
Just 10 years ago, the entire market capitalization
of the public cloud industry totaled just under 40 billion.
Five years later, that scaled up six X,
but still totaled just over 200 billion.
Fast forward to the start of this year,
and the public market hit a milestone that we'd predicted
and all been waiting for.
On February 5th 2020,
we surpassed the $1 trillion market capitalization level
for the entire cloud industry.
This mind you is on top of the cloud businesses
sitting within the hybrid vendors like Microsoft, Google,
and Amazon as well.
But little did we know what was just around the corner.
Just a few days
after hitting that trillion dollar milestone,
COVID-19 tore through global communities and economies.
In March, we saw the major industries each drop
more than 30% over the course of just three weeks
and the BVP Nasdaq Emerging Cloud Index
tumbled along with it.
But then some powerful things in technology
started happening.
As the world was forced to leave their offices
and stores and schools, they turned to cloud technologies.
Solutions like Zoom have given us the connectivity
and the ability to communicate with our colleagues,
friends and family,
but the same needs existed in the physical world
with products.
As storefronts were forced to close all over the globe,
owners suddenly opened online storefronts to survive.
In one month alone, between mid-March and mid-April,
hundreds of thousands of business owners turn to Shopify
to open their first online stores.
There are now more than 1 million Shopify stores today,
and the usage continues to grow as business owners
around the world go global.
Businesses also found themselves urgently needing
to move global call centers to work-from-home formats.
And healthcare providers suddenly needed to accelerate
their tele-health operations.
Providers like Epic, Zocdoc and Doximity
stood up HIPAA compliant,
virtual appointments powered by Twilio video
in a matter of weeks.
And although the global health crisis remains,
cloud companies like these and all of you
are working harder than ever to keep the economy moving
to get through this.
And this is reflected in the cloud growth
and adoption and financials.
Companies like Zoom and Twilio and Shopify
have grown significantly in the last month
in response to this demand.
And in aggregate public cloud markets have pulled away
from all the major indices
and the Bessemer BVP NASDAQ Emerging Cloud Index
powered well past a trillion and a half dollars this summer.
But you know that the compounding power of cloud
has been building for 20 years.
And this is now the most powerful force
in all of technology.
We know where the industry's headed.
Cloud is the dark blue on this chart.
And you see it gaining pace as a percentage of all software.
Cloud will become a majority of all software globally
within the next few years.
And the vast majority of all software
over 75% within this decade.
Today, we focus on the most selective slice
of these private cloud companies.
The 100 world-leading, industry-defining
private cloud companies of the Cloud 100.
So now my partner Ell,
is gonna give you some more perspective
on what it to make the Cloud 100 lists.
- Today's event is not just a recognition
of where the industry is headed,
but a celebration of the new guard of cloud industry leaders
and what they've accomplished thus far.
We'd like to take a moment to highlight
why it's such a significant achievement
for any company to make the Cloud 100.
Let's dive in.
Private cloud valuations are getting bigger and bigger
as the market's appetite for cloud companies
continues to grow.
Over the past five years, the average Cloud 100 valuation
has grown by a tremendous 2.5 X,
from 1 billion in 2016 to 2.7 billion in 2020.
In addition, the number of unicorns has increased each year.
There were 36 unicorns on the Cloud 100 list in 2016,
growing to 60 by 2019.
And this year alone,
we have 87 companies worth more than $1 billion
that made the Cloud 100 list.
In total, Cloud 100 companies have created
an astonishing $450 billion worth of M&A
and public market cap value.
Now that the IPO window has reopened,
we expect to see some major cloud IPOs
take place before the end of the year.
As we saw recently with nCino, Snowflake
and many other Cloud 100 honorees.
Lastly of note, Cloud 100 honorees
span 12 different sub-sectors from vertical software,
enterprise automation, data infrastructure,
security and many more.
Interestingly, however, the number of developer platforms
along with collaboration and productivity solutions
saw a 50% increase in representation year over year.
- And let me end our state of the cloud update
with two final predictions.
Given the accelerated growth of the cloud industry,
we expect by the end of next year,
that we together will be celebrating
the public cloud markets,
hitting the $2 trillion market cap mark.
With that in mind,
we predict that for next year's Cloud 100 list,
it will likely take a $1 billion valuation
just to join the Cloud 100 ranks.
So for all of you ambitious cloud CEOs out there,
you can consider that your target.
And we look forward to welcoming you in these ranks
in the future years.
We also want to say a big congratulations from all of us.
- To all of our cloud founders and CEOs
who made the 2020 list.
- Congratulations on all of your success.
Now onto what we've all been waiting for,
2020s Cloud 100.