The Next Cloud Unicorns?

June 5, 2014
The coveted $1 billion market cap is a mark of achievement in both the public and private markets.  As publishers of the BVP Cloud Index, which tracks the top performing public cloud companies each week, we closely follow the (now) 23 public cloud companies that are trading at greater than $1 billion in market cap.  These “Cloud Unicorns”* capture our mindshare as well as competitive market share.  They are truly disruptive. 

Although Unicorns are rare, the number of Cloud Unicorns has more than doubled since January 2011 when there were only eleven. Among them, three were notable acquisitions: Taleo /Oracle, Successfactors / SAP and Ariba / SAP.  But even with that remarkable growth, we at BVP know that this is only the beginning.  The re-platforming of software to the cloud is a fundamental computing transformation that represents an enormous opportunity for both entrepreneurs and investors:  With only 2% of IT spending today going to the cloud, we predict enormous growth.  The number of Cloud Unicorns will multiply exponentially in years to come as cloud-based solutions become dominant. 

So, as we turn our attention from the publically traded cloud companies tracked in the BVP Cloud Index, and look towards what the future holds for the 300 privately held cloud companies captured by the Bessemer Cloudscape, it’s worth noting that that we can already identify several of the  “Next Cloud Unicorns” – the next generation of Cloud Unicorns commanding $1bn valuations in the private markets, or those that are reportedly quickly approaching this milestone and could likely achieve it in an M&A transaction. Drumroll, please, as we present the 16 private cloud companies that encompass the Next Cloud Unicorns! 
 

 
 
As you can see from our Cloudscape there are 284+ more hypergrowth cloud computing companies to watch.  They could be on this list someday soon!  Companies like Apptio, Cloudflare, Hootsuite, and InsideSales are among those frequently mentioned as future candidates for this list.  They just missed the cut this time, but we’ll be watching them closely! And of course, many others were hotly debated so we welcome your feedback (cloudvc@bvp.com) and embrace the debate!

* Special thanks and a shout out to Aileen Lee and her initial post on the Unicorn Club