Emergence Capital June Highlights (Plus, we’re hiring!)

July 5, 2017 Joseph Floyd

As we celebrate America’s birthday, fireworks continue to light up the enterprise fundraising market. In particular, startups focused on HR and talent acquisition lead the way in June. Emergence portfolio company Textio raised $20MM for their augmented writing platform that helps companies hire better fit employees faster. Also in talent acquisition, Yello ($31MM) and Entelo ($20MM) scored additional capital to continue building nextgen ATS platforms. If the ATS space wasn’t already crowded enough with Greenhouse and Lever, Google recently announced that it was releasing its own ATS product, Google Hire. Also in the HR space, culture management and employee engagement continued to heat up as CultureAmp raised another $20MM and Laszlo Bock, Former Senior VP of People Ops at Google, is rumored to have raised a huge round of financing for his new startup targeting the same space.

Outside of the trend in HR startups, we saw a number of notable enterprise financings. Sumo Logic raised a $75MM Series F to continue building their cloud log management platform. In the cloud infrastructure world, Cloudflare roped in another $100MM to build an apps platform on top of their cloud CDN. Finally, Element AI raised an eye-popping $102MM in Series A financing to build out an AI platform/community for startups in Montreal.

Enterprise public markets saw plenty of activity in June. Vista Equity continued their cloud buying spree by acquiring Xactly for $536MM as well as Emergence portfolio company Lithium, a community and social media management platform. Red Hat, open source creator of Linux, had a strong beat across all metrics and the stock traded up 10%. Oracle strengthened its position in the cloud with a surprisingly strong quarter, beating their revenue target by $500MM as they posted a nearly $11B revenue quarter. Adobe beat earnings estimates while surpassing $1B in cloud recurring revenue in the quarter led by their marketing cloud suite. Lastly, while not an enterprise IPO, Blue Apron went public and quickly fell below the already reduced IPO price. Is this a sign of weakness in the IPO market or just a case of one company stumbling?

Finally, the most surprising enterprise news in June was Amazon buying Whole Foods for $13.7B. This type of acquisition follows a clear trend for Amazon. First, Amazon leverages online distribution to disrupt the print market, and then Amazon buys a physical print company in the Washington Post. Second, Amazon launches Amazon Fresh to create an online supermarket and then Amazon buy Whole Foods. What’s next? Does Amazon follow the dominance of their cloud Amazon Web Services business by buying out HP’s server business?

***Emergence is hiring a new Associate to join our Investment Team. Among other responsibilities, our Associates drive the sourcing process, allowing them to work closely with every investor on our team and work with every company in which we invest. Associates also help support our diligence efforts and drive the development of new investment themes. We are looking for professionals with 2–4 years of experience in tech operating roles or strategy consulting. Please refer our job description to people in your network that you think could be a fit. We value inclusion at Emergence, and we do not discriminate on the basis of race, religion, color, national origin, gender, sexual orientation, age, marital status, veteran status, or disability status.***

For full monthly highlights and Emergence commentary, check out the video or listen to the podcast.

The Industry Cloud Playbook

Industry cloud is a core investment thesis for Emergence, and we have been fortunate to invest in many industry cloud leaders including Civitas Learning, Doximity and several others. We’ve put together a collection of videos featuring speeches, fireside chats and panels with leaders and entrepreneurs building the leading industry cloud applications. Here, you can learn about fundraising strategies for industry cloud, data and machine learning in focused domains, product and pricing strategies and also hear Founder stories and their journeys. Here’s one of Scott Dorsey, Founder of ExactTarget and Charles Thornburg, Founder and of CEO Civitas Learning. You can also listen to the podcast here.

For more, visit our full Industry Cloud Playbook.

René Lacerte, CEO/Founder of Bill.com on Hiring Great Talent and Building a Healthy Culture

Rene Lacerte sits down with Brian Jacobs, General Partner at Emergence Capital to talk about how the idea for Bill.com came about, tips on hiring executives and the role of fitness and health within their company culture. Watch the video or listen to the podcast.

Roy Raanani on How A.I. and Speech Recognition Can Help Sales Teams Close Deals

Roy Raanani is the CEO & Founder of Chorus.ai, a platform that provides conversation intelligence for sales teams by using AI to record, transcribe and analyze meetings in real-time. Check out his interview or listen to the podcast with Gordon Ritter, General Partner at Emergence Capital to hear about his journey as an entrepreneur and his vision for how AI and speech recognition can help sales teams close deals.

Enterprise Funding Roundup Powered by Crunchbase

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Thanks and stay SaaSy!

Emergence Capital June Highlights (Plus, we’re hiring!) was originally published in Emergence Playbook on Medium, where people are continuing the conversation by highlighting and responding to this story.

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