Yeah. Hello
everyone, Thank you so much for joining
us for the sixth annual cloud 100.
My name is Alex Kale, managing partner
at Salesforce Ventures. And we're so excited
to have you here today as we celebrate 2021
cloud 100
Over the past 18 months, we've
experienced one of the most challenging periods
in recent memory, but also
one that has seen unprecedented innovation.
And I'm Elliot Robinson
Partner. Bessemer. Venture Partners
has indeed been a banner year across
the entire venture capital and start up ecosystem.
In the first half of 2021 alone,
species from around the world have invested a total
of $288 billion,
which is an all time record for our industry
entrepreneurship is gaining momentum around
the globe as more than half of
the venture capital dollars raise went to
start ups based outside of the United
States,
powered by cloud technology itself.
We're seeing generational shifts and
both established and emerging markets
when it comes to opportunities for cross border collaboration,
communication and the ability
to scale world class remote teams from
just about anywhere.
But today
We're all here to celebrate a unique subset
of the venture-backed community. The top
100 privately held cloud
companies,
We've got this very simple two step plan, step
one build one of the world's most valuable companies
and step to do the most good we can do.
And I feel like that is such a huge, not
just opportunity, but incredible responsibility.
In a moment of crisis, you can't
control what's going on out there,
but what you can do is determine
your response and you act decisively
and you act correctly with the right plan,
you can come out of the crisis better
off than had you not acted at all.
We have to adapt and innovate
at all times. If we're gonna stay current
and, and part of the creative economy,
we have an opportunity ahead of us
to create systemic changes
to help any entrepreneur, no
matter what your background is and
run a great business
As your leader, you you do your best to try
to motivate um you know, you have 53 different
people on the team from different walks of life,
different religions, different socioeconomic backgrounds
and you just try to find what makes each person
tick. Everybody's motivated by different things.
And as a leader, you have to find out what
each person um you know, really is in it for
what are the durable soft power
skills that we need all americans to have
so that we can have a nimble economy that can
survive the next big pivot, which I hope isn't
a pandemic, but is some other industrial
change we haven't seen yet.
Welcome to cloud 100
mm Yeah,
with two of the largest cloud portfolios,
Salesforce Ventures and Bessemer Venture Partners
have parted with Forbes the top
publication in venture capital.
Together, we recognize the leaders
and business is shaping the future
of the cloud economy. The global pandemic
has changed the way the world works and
we're not going back to the way things were
customer and employee expectations
have changed
and companies have digitally transformed
at a faster pace than ever before.
For many founders all over the world,
these challenging times have brought a renewed sense
of purpose, which we've been so grateful
to be a part of
times of adversity are often the greatest
moments of transformation and opportunity.
Many of the changes that were instigated
by the pandemic are becoming permanent
societal norms.
We've seen a shift to remote and hybrid
work, an increased focus on
automation,
personalization and convenience and
entrepreneurship is on the rise.
This is the new normal and we're so
excited for the role that the cloud ecosystem
will play in driving that transformation
all of you watching today,
the people that are leading, building
and fueling the cloud economy are
the real trendsetters in the new future of
work and your collective efforts,
you are the ones that define best in class
culture
and the never ending innovation that helps industries
thrive.
The tech sector continues to drive value
and wealth creation in the broader global
economy
and the cloud represents a source of economic
opportunity across almost every
industry you can think of.
Since January Cloud 100
companies grew their employee ranks by a net
average of 26%.
That translates to a total of more than 17,000
new hires.
And it's probably no surprise to learn
that after the fintech sector raised a record
$33.7 billion two
alone. Fin tech companies on the
cloud 100 lists also created
the greatest number of new jobs this
year. Today compared to 2020 U.
S. Workers are feeling more confident than ever to
try for new opportunities.
Economists say this signals
a healthy labor market as people gravitate
to jobs more suited to their skills,
interests and personal lives
and as employees seek values driven,
supportive and flexible organizations,
great leaders are responding in kind.
For example, Guild education co
founded by Ceo Rachel Carlson
recently opened a daycare center for their employees
By better catering to working parents.
Gildas maintained a 96%
retention rate amongst parents during the pandemic
and set an example for great leadership
In today's environment being values
driven and values led matters more
than ever. 80% of workers also
say they want business leaders to speak
up on social and political issues
and think companies can do more when
it comes to diversity equity
and inclusion.
But it's not about furthering diversity
theater or promoting empty
pledges in public statements,
it's about turning your values into
tangible, measurable actions
that dr exponential impact
and generate superior business outcomes.
All of this is exemplified through the culture
and products that you build,
how you treat your customers and employees
and ultimately who um power
to be the leaders within your organization.
Plus is the cloud economy taps
further into talent pools from
all over the globe. Companies need to
rethink and retool their
human resources technology stack.
For example, companies like papaya
Global helps businesses navigate the complexity
of a rapidly evolving remote workforce
to more effectively manage international taxes,
payroll and benefits across
one unified platform.
How we work has undergone a paradigm
shift in businesses of all
shapes and sizes are reimagining
the tools that are needed to ensure
the work from anywhere. World is a sustainable,
long lasting solutions
that could be driving additional team collaboration
with solutions such as miro and lou
securing remote devices with titanium
or leveraging tools that
enable better sales and service such
as gone outreach in high
spot. And
thanks to the rise of low code and no
code solutions are capacity
at work continues to expand.
Anyone can collaborate on building beautiful
designs with Canada and sigma
and in a few clicks. Zepeda,
Mercado and monday dot com can
turn routines into automated processes
helping people do their jobs more efficient.
We also saw the promise of the work
from anywhere movement come to life
as vertical software giants such as pro core
service titan and toast
demonstrate that the power of the cloud is
not only found in what we think of as the more
traditional enterprise software environments,
but also for all professionals from
construction to plumbing,
landscaping, restaurants
and beyond.
When we compare this year's cloud 100
list of previous years, we've never
seen so much dramatic change.
Companies from the Cloud 100 continued to
achieve fantastic success
via both large acquisitions and
record breaking Ipo's.
As you may recall Snowflake, which
earned the number one spot in the 2020 cloud
100 rankings, went public just
moments after Forbes revealed the list
making it not only the largest cloud
I. P. O in history, but the largest
I. P. O in the entire history of software.
And since last year's event, we've seen
more than 19 cloud 100 honorees
also graduate from this prestigious
list, including companies as you, I
path confluence pro core off
zero digital ocean game
site and many more.
And speaking of publicly traded cloud companies,
top Ceos who grew this market
into what it is today, served as judges
and helped us determine this year's list.
Thank you
To the many cloud giants and leaders who
have given their time and support to participate
as their 2021 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 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.
We really couldn't run this event without you
now. What were you buying for an industry update
this time last year we saw historic
rates of digital transformation as
companies rapidly transition to the cloud
as a necessity.
After all,
it's even harder to work with a legacy
on premise software
if no one's on premise,
but we continue to see these trends and they further
accelerate because one thing is clear,
cloud is not a fad, it's a
business imperative.
Your employees and customers demanded an
increasingly cloud is a necessity to
survive and to compete
in our digital ecosystem.
Even further accelerated by the global pandemic.
Our digital economy is going through
this historic period of re platform.
Cloud continues to be the growth
driver of the tech economy.
And it's no coincidence that the companies
with the largest market caps in the world,
Microsoft amazon, google alphabet
and even alibaba are not only
worldwide tech giants, but they have
multibillion dollar cloud business units
within them.
Now for years, investors have talked about
the fang stocks, the internet
revolution with the emergence of facebook,
apple amazon netflix and google
as the flag bearers of the new economy.
But as the trends of internet and mobile mature,
there's a changing of the guard underway
at Bessemer Venture Partners, we coined
a new basket of high performing stocks called
Mount SAS, consisting of Microsoft,
twilio, salesforce, amazon adobe
and Shopify.
Last year,
Mount Sas outperformed fang by
over 100%.
What Mount SAS illustrates
is the power of the cloud and how it will
continue to drive technology and innovation
forward, simply put cloud
computing is increasingly consuming software,
hardware and services and
it is therefore the most exciting
mega trend in technology,
making one of the most compelling themes impacting
global GDP over these coming
years. Last year,
Cloud 100
We made two predictions.
First. We predicted that the public
cloud markets would surpass $2 trillion
dollars in total market capitalization.
Well, we've blown through
that number
over the past months, the total market
cap of public cloud companies has added
another $1.3 trillion
of market cap on top of the
already impressive one trillion,
Hitting 2.3 trillion
in total market cap
And growing 130%
over that time.
The public cloud markets have never
grown this fast in all of our cloud
index history.
Our second prediction
had to do with valuations
in 2020
87% of the cloud 100 was
already made up of unicorns.
Well,
We're excited to announce that in 2021,
we've crossed another milestone.
Every single company on
the cloud 100 has a billion
dollar plus valuation.
We've even seen a few emerging deck acorns
continue to emerge onto this list.
This community continues to astound
us When we created the first
list six years ago,
this milestone seemed inconceivable.
And yet today we've had to leave dozens
of unicorns off the list because
there are just too many in this amazing cloud
community. Now there are thousands of
amazing cloud companies worthy of potential inclusion.
And now over 150 of them
are cloud unicorns.
Yet our judges could only pick the 100.
This compounding power of the cloud
is a model and a thing to witness.
Especially considering that 15
years ago there was zero public
and private cloud unicorns on the index.
Private cloud valuations are getting bigger
and bigger
as the market's appetite for the cloud continues
to grow Over the past six
years, the average cloud 100 valuation
has grown by a tremendous 5.2
x From one billion in 2016
to 5.2 billion in 2021.
And when we compare last year's average cloud
evaluation, which stood at 27
billion, that number has doubled again
over this time period.
Together the cumulative value
of the cloud 120 21
totals an impressive 518
billion, Again almost
a complete doubling in just
a year with a 94% increase.
Yeah, the benchmarks and date around
these companies are equally eye popping
and far too extensive to share with you all
here today. But if you want to
see the deeper analysis and get into
the cloud 100 benchmarks directly, you
can read it all in our report at
PVP dot com slash
cloud 100.
As we reflect on how far the cloud economies
come and where it's headed,
It's amazing to see that today's cloud 100,
the definitive ranking of private cloud
companies
has a cumulative value worth more than
what the public cloud markets in total
were valued at just a few years ago.
So for the investors and founders alike
building a cloud business today has
never been more valuable
and very different from just a few years ago,
we're seeing more and more of these exciting
cloud business is being built outside
the traditional Silicon Valley zip codes. Indeed,
cloud globalization is a macro trend
and the pandemic has further accelerated this
trend. As an example
in the first half of this year, venture
funding to start ups in europe Totalled an
unprecedented $59 billion 20
countries across the globe.
I've seen firsthand
how innovation really has no boundaries.
Companies such as stripe and intercom
originating in Ireland content
fel in Germany sneak in Israel
and culture ramp in Australia have
proven that the cloud ecosystem is thriving
everywhere. We're also seeing
more companies take a remote first approach
to building their teams.
Hop Inn is a great example.
Initially based in the UK, the
company now has over 600
employees across the world as it catapulted
onto the stage
and with technical talent all over the world,
we continue to see mega giants rising
out of asia, pacific India and
other international markets. Cloud globalization
will continue to fuel innovative startups
from all over the world. As Byron mentioned
just a minute ago, the cloud will have a sizable
impact on global GDP
in the next few years. But the footprint
of the private cloud market now rivals some
of the world's biggest economies.
This year's cloud 100 companies have
a greater cumulative total value
than the individual gross domestic product
of 87% of countries on
the planet.
The cloud universe is expanding in terms of geography,
as well as industries that they serve.
Cloud 100. honorees spend more than
10 different sub sectors, including vertical
software and enterprise automation, collaboration
productivity
and several more
On the list. This year we've seen the most
powerful growth in fintech startups
totaling accumulative $146
billion dollars in total evaluation
edition, Which makes up more than a quarter
of the cloud 100's cumulative value
In second place data infrastructure
businesses making up an impressive 63
billion. When we look at
these two leading subcategories and how they've
grown in cumulative valuation over the
past three years alone,
it reflects this market upward trajectory.
Cloud 100 data infrastructure companies have
grown 70
And the fintech companies have ballooned an
impressive 461
as financial services infrastructure is being
rebuilt and redesigned for this modern world.
We've seen this similar transformation happened
within the cloud data stack as amazing
startups like data bricks and five tran data
robot big eyed and fire bolt
are offering better and easier to use infrastructure
for accessing, analyzing furthering
this use of data.
The reason why cloud companies continue to grow
in value is because they continue to deliver
larger portions of the tech stack to
their customers.
For example, vertical software
and Fintech are increasingly converging
as leaders such as service titan pro
corn toast, shift entire businesses
into the cloud and they embed these fintech
solutions
essentially vertical SAS giants now process
payments and payroll more efficiently
and provide more capital and credit
on better terms for their customers
than many of the traditional banks themselves.
In parallel, we've seen e commerce
penetration and payment volumes accelerate
massively during the pandemic.
In 2020, for example, we saw
10 years worth of growth in E- Commerce penetration
in a matter of only three months as
consumers shifted their behaviors online
and this momentum has sustained this year.
This has led to a new crop of companies
they're embedding financial services and payments
directly into their applications is
software and Fintech come together
Interestingly, we've seen this impact
come through in the B2B payment landscape
as well,
with companies like wal X,
Melillo and razorpay leading the
way we believe
that cloud will become a majority of all
software very shortly
and help us all reimagine entire
industries such as healthcare, automation,
gaming and entertainment.
We continue to see how the cloud is forging
infrastructure of tomorrow's digital economy
and driving innovation for the future
generations.
Congratulations,
congratulations,
congratulations. Now
on to what we've all been waiting for
2021's cloud 100