The document is about Emergence Capital Partners, a leading early stage venture capital firm focused on software-as-a-service and cloud-based technology companies. It discusses Emergence's investment focus and track record of building market leaders, including early investments in Salesforce.com, SuccessFactors, Yammer, and EchoSign. The document also provides an overview of Emergence's investment team and stages of company growth.

1. Brian Jacobs
Founder & General Partner,
Emergence Capital Partners
October 17, 2013
Emergence Confidential

2. Emergence Capital Partners

Leading early stage Silicon Valley VC in SaaS and cloud-based services



100% focused on technology-enabled services for business users, including
software-as-a-service “SaaS,” cloud computing, mobile and information services.
The Emergence Effect: SaaS revenue acceleration
Building market leaders






First investment: Salesforce.com (market cap today: $30 Billion)
SuccessFactors- IPO in 2007, acquired by SAP for $3.4 billion
Yammer – acquired by Microsoft for $1.2 billion
EchoSign – purchased by Adobe
Veeva – IPO (VEEV) Yesterday!
And Box, Lithium, InsideView, Hightail, Intacct, ServiceMax, Doximity,
Insightly and many more
for
2

3. Overview
Emergence Capital
Investment Team – 100% Focused on Business Cloud / SaaS
Jason Green
Brian Jacobs
Gordon Ritter
Kevin Spain
Founder, General Partner
Founder, General Partner
Founder, General Partner
General Partner
Sean Jacobsohn
Venture Partner
Alison Wagonfeld
Operating Partner
Everett Cox
Venture Partner
Santi Subotovsky
Principal
www.emcap.com
Joe Floyd
Senior Associate
3

4. The Emergence Effect
Building Market Leaders
4

5. Phases of Growth
Seed
Management
Founders
Product
Concept/wireframes
Sales
Pre-revenue
Series A
Series B
Founders
Founders
+ engineering team
+ engineering team + partial executive
teams
Product in GA
Early revenue
Beta customers
Growth
Founders
+ full management,
+ engineering team
+ sales. CS team
Version 2.0+
Product/Market fit
Product suite or
platform
Small sales
organization
Large sales
organization
Repeatable sales
process
Channels
Strong market
awareness
Strong end-user
adoption
Customer
Traction
Customer input
Beta customers
Paying customers
Capital
Requirements
$25k to $2 million
$1-5 million
$5-20 million
$15+ million 5

6. Sales Traction That Gets Us Excited

Insanely positive customer
references





2-3x growth in last 12 months
High renewal rates


Significant Annual Contract

Efficient customer acquisition
Solving an important need
Beyond pilots and trials
Smart buyers who evaluated
the competitors
Rapid bookings growth


Upsells and expansion
Pricing power
Values (ACV)

$100k+ for enterprise

$50k+ for mid-market

$25k+ for SMB

First year paid up front



ACV/CAC < 1.0
Channel partners
Freemium with viral spread
6

7. Questions?
www.emcap.com
7