- @VCSerge on Executive-in-Residence Program @NorwestVP-- Two Recent Case Studies http://t.co/K2WBfYefvL @AdaptivePlans @Badgeville - posted 2 days ago
- @PertinoNetworks Hires New VP of Engineering as It Moves Towards General Availability http://t.co/EbcWBhC9qV - posted 2 days ago
- @VCSerge on Executive-in-Residence Program @NorwestVP-- Two Recent Case Studies http://t.co/K2WBfYefvL @AdaptivepPans @Badgeville - posted 2 days ago
- Gartner Names @capillarytech a 'Cool Vendor' http://t.co/fj2McPVLYb - posted 2 days ago
- RT @CareCloud: RT @venturebeat: @CareCloud CEO says Doctors scared they will lose money due to new technology http://t.co/OEKLVjsDqV - posted 3 days ago
- RT @VentureBeat: Performance management biz Adaptive Planning nets $45M http://t.co/mzPQuS8M0Z by @seanludwig - posted 3 days ago
- Catch NVP's @babbottnvp as a judge at this afternoon's Grand Rounds Innovation Showdown at #HealthBeat: http://t.co/rYIn9dYV0H - posted 3 days ago
- NVP's @promodhaque will be on the "VC and Growth Equity Landscape in Health IT" panel today at #HealthBeat: http://t.co/rYIn9dYV0H - posted 4 days ago
- The @ApigeeInstitute Launches to Help the Global 2000 Succeed in the App Economy http://t.co/WJvv3bjDcp - posted 1 week ago
- Congrats to NVP’s @mattdhoward named as one of “The 19 Best Enterprise Tech Venture Capitalists” by @BusinessInsider http://t.co/GrQxVzlHcH - posted 1 week ago
- Can you train your brain? @Lumosity, BrainHQ say yes | Fox News http://t.co/pjRQfJ7I2C via @foxnews - posted 1 week ago
- Five minutes with: Krish Ramakrishnan, CEO, @BlueJeansNet http://t.co/bpxWWi6HYH - posted 1 week ago
- RT @Quirky: Did you catch our founder @BenKaufman on TV this morning? Video here: http://t.co/L5I4LvZwD0 #CNBCdisruptors - posted 1 week ago
- Join @promodhaque and @babbottnvp at the health event of the year: #HealthBeat 2013, May 20-21, San Francisco, CA http://t.co/3dT29mFG7Y - posted 1 week ago
- .@FreeShippingCom Introduces a New Member Benefit: 5% Cash Back on Online Purchases http://t.co/LCZcSdCWaG - posted 2 weeks ago
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- The Early eCommerce Marketplace Pioneers — The eBay Class of 2000-2005
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The Rise of SMB SaaS & Adaptive Planning
Historically, we saw venture investing trending toward technology opportunities catering to either large enterprises or consumers. Many VC’s avoided investing in technology companies focused on small and medium-sized businesses (SMB). The conventional wisdom was that this sector suffered from three hurdles, which made it very difficult to build long-lasting and profitable businesses:
- Customer acquisition and retention costs are low compared to lifetime value.
- Sales and marketing costs are high
- Price points are low
- Churn is high
- Service requirements are high compared to lifetime value.
- Consumer technologies can be scaled more virally compared to business technologies.
Approaches to building companies catering to SMB’s have changed, and these hurdles no longer apply. Therefore, it is an ideal time to invest in technologies that serve this market because of the following developments:
- Targeting and reaching new prospects and clients has become much easier given the emergence of data, search targeting capabilities and social platforms.
- Servicing customers is more economical given improvements in communications. These include ubiquitous chat technologies, self-serve technologies, and multimedia (e.g. video, collaborative tools, etc.).
- The emergence of cloud makes maintenance much cheaper and easier.
- Customer acquisition tactics have moved from “push” to “pull.” End users are now driving the adoption of new technologies within corporations, and companies like Box and Salesforce.com are perfect examples of this. These companies, as well as many other successful companies we’re seeing, are built on the power of consumer pull and the “consumerization of software distribution.”
The combination of these trends and the company’s impressive track record led to our investment today in Adaptive Planning, the leader in cloud-based corporate performance management (CPM). The partnership came about when former NVP EIR John Herr (Adaptive Planning CEO) approached us to invest. Though our existing relationship opened the door, what sealed the deal is the success that Adaptive Planning is experiencing.
The company has more customers (over 1,200) and more partners (over 200) than all the other cloud CPM providers combined, and it is the #1-rated brand in midmarket CPM according to Merrill Research. Adaptive Planning also ranks #1 in customer satisfaction among leading CPM vendors, according to Gartner and BPM surveys.
Moreover, Adaptive Planning’s target market is large and hungry for a technology offering that can provide a complete and simplified solution in contrast to the existing enterprise software options currently available. The team has developed a robust product that has been well accepted in the marketplace—and today’s investment will help Adaptive Planning expand and grow its sales team to accommodate the demand for its solutions.
I worked closely with CEO John Herr for many years at eBay and I’m excited to partner with him again to help cultivate the company’s leadership position in this attractive and rapidly growing market.