20 Years of Betting Big on the Cloud: Cloudinary is Bessemer’s 100th Cloud Investment

December 16, 2015
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The Cloud has reached new heights

 

After 20 years of investing in “The Cloud”, today we announced the 100th cloud company to join our portfolio with our investment in Cloudinary.  Cloudinary provides image and video management in the cloud  for nearly 2,500 major retailers, ecommerce sites, media companies and Internet stalwarts. It’s end-to-end platform simplifies the complex and time-consuming process of managing the images and video used on their customers’ websites and mobile apps.  Cloudinary wins high praise from customers like Under Armour, Gawker, Grubhub and Sony as it enables them to focus on their core business.  We have high hopes for this company led by experienced and disciplined founders, and are excited to welcome them to our cloud portfolio.

These days, betting big on cloud computing might seem a little obvious.  But, the dominance of the cloud was not always a forgone conclusion.  Many have doubted the legitimacy of the cloud, including the likes of Larry Ellison, who called the cloud “water vapor” and “nonsense” before Oracle acquired cloud-based RightNow Technologies for $1.5 billion in 2011. Now, after a decade of fighting on-premise hardware, cloud computing has won and is making way for the next big disruption in 2016: enterprise mobile.   

As an early champion of the cloud, we’ve enjoyed a front row seat to the revolution.  Today Bessemer has the largest cloud portfolio in the industry with 100 significant cloud investments to date.  

  • One of every four public cloud companies is BVP-Funded (representing 1/3 of the public cloud market cap)
  • Of the seven cloud companies to go public in 2015, four were BVP funded:  Box, Mindbody, Instructure and Shopify
  • To date, 28 BVP-funded companies have either gone public or been acquired delivering an average return of 6.7x on our investment. (Our top cloud exit in 1998 generated a 54x return, but we hope the best is still ahead!)

We have been fortunate to work closely with many of the most visionary cloud entrepreneurs and we have learned from their successes.  (People like Adam Miller of Cornerstone on Demand, Jeff Wiener of LinkedIn, Aaron Levie of Box, Tobi Lutke of Shopify, and Avishai Abrahami of Wix, to name a few.) Today, as we add Cloudinary to our portfolio, we can add Itai Lahan, Tal Lev-Ami and Nadav Soferman to that list of great cloud company founders.  We are excited to welcome you to the BVP-Funded family and eager to learn from you on your path to success.