Emergence Capital May Highlights

June 2, 2017 Joseph Floyd

If February 2016 was the darkest days for enterprise cloud, then May 2017 might be the brightest. SaaS bellwether Salesforce announced earnings that beat the street’s expectations reporting nearly $10B in ARR. Veeva Systems continued the strong enterprise momentum with a beat and raise that lifted the stock 10% to all-time highs at nearly $10B in market capitalization (disclosure: Emergence is an investor and on the board). Finally, Box closed out the SaaS earnings season with a strong beat and raise yesterday, and the stock is trading up 5% today (disclosure: Emergence is an investor).

May 2017 also saw plenty of enterprise deal making. Vista Equity continued it’s SaaS M&A spree by taking Xactly private for $564MM. AI companies remain hot targets for enterprise buyers as evidenced by MindMeld’s $125MM acquisition by Cisco. Finally, Jive Software was taken private for $462MM.

On the financing front, May continued the strong momentum for SaaS IPO’s. Following the success of Okta, Yext and Cloudera last month, Appian went public last week at $12/share and is trading up 50%. Pre-public enterprise financing was also very strong in May with enterprise leaders like Gainsight ($50MM), DemandBase ($65MM), Smartsheet ($52MM) and G2 Crowd ($30MM) adding to their balance sheet. Cloud security was another hot area with Tanium and Crowdstrike both raising $100MM rounds.

Finally, it’s safe to say that Cloud Computing has emerged as the winner. No seriously, a horse named Cloud Computing won the Preakness, the second leg of horse racing’s triple crown, over favored Classic Empire.

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

Updates From Emergence Capital

  • Sunil Rajaraman, SVP of Marketing at Replicon and Emergence Partner Joe Floyd chat about Sunil’s path from Founder at Scripted.com to his current role as SVP Marketing at late stage company Replicon. Check out the video or listen to the podcast for Sunil’s tips on content marketing and scaling demand generation as you move upmarket.

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Thanks and Stay SaaSy!

Emergence Capital May Highlights 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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