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Venture Capital
FINANCE | Lending
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Investments

1660

Portfolio Exits

414

Funds

29

Partners & Customers

4

Service Providers

3

About Bessemer Venture Partners

Bessemer Venture Parters is a venture capital firm with offices in New York, Silicon Valley, Boston, Mumbai and Herzliya. Bessemer primarily invests in early stage opportunities but may also participate in late stage financings and occasionally make seed stage investments as well. Bessemer invests in the following areas: cleantech, data security, financial services, healthcare, online retail and SaaS. The firm typically makes investments in the range of $4 million and $10 million.

Bessemer Venture Partners Headquarter Location

889 Winslow St. Suite 500

Redwood City, California, 94063,

United States

650-853-7000

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The CB Insights tech market intelligence platform analyzes millions of data points on venture capital, startups, patents , partnerships and news mentions to help you see tomorrow's opportunities, today.

Expert Collections containing Bessemer Venture Partners

Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.

Find Bessemer Venture Partners in 17 Expert Collections, including Restaurant Tech.

R

Restaurant Tech

19 items

Hardware and software for restaurant management, bookings, staffing, mobile restaurant payments, inventory management, and more.

H

HR Tech

65 items

M

Mortgage Tech

7 items

S

Store management tech (In-store retail tech)

55 items

Startups aiming work with retailers to improve brick-and-mortar retail operations.

B

Banking

44 items

Based on CB Insights Research Brief: https://www.cbinsights.com/blog/industry-market-map-landscape/#retail banking

V

Vitamin & Supplement Startups

237 items

Bessemer Venture Partners Web Traffic

Rank
Page Views per User (PVPU)
Page Views per Million (PVPM)
Reach per Million (RPM)
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Bessemer Venture Partners Rank

Latest Bessemer Venture Partners News

Say goodbye to unicorns. The cloud centaurs are here.

May 15, 2022

May 15, 2022 Kent Bennett thinks the SaaS business model is the “greatest business model in the history of the planet.” As a partner at Bessemer Venture Partners, it’s fitting that he’s bullish on the cloud: Bennett was one of the main authors of Bessemer’s annual State of the Cloud report, which gives a bird's eye view of what’s happening in the cloud economy. In the report, Bessemer analyzed everything from the new ways SaaS companies are trying to monetize their software to what areas are still underserved by SaaS. The firm also developed a new SaaS milestone that it’s calling the “ centaur ,” for startups that reach over $100 million in annual recurring revenue. In a recent conversation with Protocol, Bennett discussed some of the latest trends in enterprise SaaS, from the rise of the small business cloud and the importance of cloud marketplaces to why annual recurring revenue is a much more important sign of a company’s health than valuation. This interview has been edited and condensed for clarity. Is there a market opportunity for more SaaS companies to service [small businesses]? Yes, totally. The big narrative that we watched take place over the last 20 years of SaaS investing is it started horizontal and it started enterprise. So at first, this crazy notion of your software is coming from the internet and you're going to put your data in the internet —in the early days, it was your customer data — only big companies, and innovative ones at that, would go for that [idea]. And then for a decade, SaaS was really a big company, horizontal idea. And it took on all these sort of classic software functions of HR software, customer software, all that kind of stuff. But over the past decade what we've seen is when you build a piece of software that is the core operating system for a very specific type of business, many, many good things happen. First of all, there are 1,000 features that are specific to somebody who runs a yoga studio, that you'll only build if you're only focused on yoga studios. And so over time building those 1,000 features, [customers] come to love you, they come to think your product is the thing that does everything they need, and you build some natural defensibility because anyone who wants to copy you has to spend the time to build those 1,000 features themselves. The second thing that happened, which is almost a more powerful thing, is that once you are the core operating system of this small business, this restaurant, this dental practice, whatever it is, you're in a better position to serve them with things beyond software than any of the legacy providers. A simple example is lending. Who's better at deciding what to lend to a restaurant: the software company that has every transaction that restaurant does every day, plus every transaction of every restaurant in the area and tens of thousands of other restaurants, or the bank down the street that asks them to fax their latest transaction record? And so of course these software companies just have much better information and ability to offer some of these integrated financial services. Is that part of what you would consider those “indirect monetization models” that the report talks about? That’s what it is. I would say beyond the sort of obvious bundled financial pieces, which are probably the most common indirect monetization plays we see, we’ve also seen some opportunities when businesses are transacting with other businesses. So imagine the suppliers they're purchasing from. You can build software that helps broker those transactions and can monetize it because you may lend against the transaction balances, or you may have advertising opportunities depending on the industry. So there's a couple other ways to get paid beyond just the embedded fintech. But that trend is still early in many industries, still nonexistent in some industries, and just getting started. One thing I found really interesting in the report was the prediction that the majority of the Cloud 100 will be selling through marketplaces. What are the benefits of selling through a marketplace on the buyer’s end and then on the seller’s end? It’s all about lowering the friction of the transaction. And it's going to depend widely on what the software is, what's the appropriate marketplace for it to sell on. But right now, we live in a world where, imagine if, instead of grocery stores, you had to have a direct relationship with a cereal provider and the milk provider and the strawberry provider. That's the software world. Most of this stuff is sold direct. And so, of course, it's going to go to consolidated marketplaces where a buyer can see all the vendors in one place, manage all their vendors in one panel and have some comfort around pricing. In some software categories, the price has been a little opaque and that slows down transactions. People selling software aren’t selling a used car where their goal is to get a better price on the next customer; they just want the transaction to go quickly and smoothly. And so I think for a lot of these companies, when the customers want it, they'll be happy to sell through a marketplace and just speed up the transaction. One of the terms people have typically used to mark success is the term “unicorn.” Why do you see a need for this new way of thinking about things [centaurs] as opposed to just going with unicorns? Unicorn was a perfect term when it was coined, like a decade or so ago. I think there were 14 or 15 private companies in the world that had a billion-dollar valuation. Most of them would have had revenue at that time, if they were in the SaaS world, of 100 billion, because at that time, SaaS companies were trading at 10 times revenue. Back then unicorns were centaurs for the most part. And what happened, unfortunately, is we held up this term unicorn and we created a strong incentive for an entrepreneur to declare their unicorn status as soon as possible because when you were a unicorn it made it easier for you to attract attention, for you to hire people, possibly for you to attract other investment from others who wanted to invest in unicorns. And so there were two ways to get there: One was to wait your time and grow a lot of revenue, and the other way was to just aggressively fundraise as hard as possible and try to basically pull your valuation forward. And so as a result, we saw something like several hundred unicorns created last year. Ten years ago, there were 14 in the world. Last year, there was 1.5 to two created every single day. And a lot of them, and frankly, we don't think are gonna stand the test of time. Some certainly will, some are great companies. But some of them took a short path to a puffed-up valuation. And it's a big contributor to the noise that we're all feeling right now. So for us, this is just like a return to basics: Let's measure SaaS companies by how productive they are and how much revenue they have. There are some regions of the world where public cloud spend is still relatively low maturity wise: The report was talking about Latin America and the Asia-Pacific region. Why is that? Some of it is just availability of the cloud product and focus on those markets. So in some of these categories that may remain horizontal, the U.S. has been a leader and these companies have focused domestically. In other countries and maybe categories, where the U.S. leader is not likely to be the local leader for whatever reason, I think entrepreneurs in other markets have been a few years behind in sort of recognizing the power of the cloud. If you were an entrepreneur in China five, six, seven years ago, you were much more likely to be caught up in the consumer wave and want to start a consumer company. But now, I think those entrepreneurs are seeing the cloud and seeing the opportunity there, and we're gonna see that wave. What do you make of some of the macro trends? I think about the supply chain crisis, labor shortages. How are you thinking about those things from an investment perspective and startups that may be trying to address some of those challenges? For us it's a huge opportunity for software. So we spend a ton of time focused on what we call B2B marketplaces, B2B procurement and supply chain software, because trillions and trillions of dollars of the global economy are still being mediated by fax machine and telephone. So there's just massive and obvious opportunities. A lot of these markets are slow tech adopters in complicated spaces and may frankly not have a budget for software. And so some of these indirect monetization models that we spoke about earlier are the key to unlocking many of these spaces. Because maybe you can't come in and charge some big software fee for something, but if you come in with a free piece of software that mediates supply chain or procurement, there's some ways to get paid indirectly. And so that will start to unlock some of the spaces, but the need is pretty obvious. X

Bessemer Venture Partners Investments

1,660 Investments

Bessemer Venture Partners has made 1,660 investments. Their latest investment was in Turquoise Health as part of their Series A on May 5, 2022.

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Bessemer Venture Partners Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

5/11/2022

Series A

Turquoise Health

$20M

No

6

5/6/2022

Series D

SENSORS Data

$200M

Yes

6

5/3/2022

Series C

Teleport

$110M

Yes

4

4/26/2022

Seed VC

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$99M

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10

4/26/2022

Series D

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$99M

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10

Date

5/11/2022

5/6/2022

5/3/2022

4/26/2022

4/26/2022

Round

Series A

Series D

Series C

Seed VC

Series D

Company

Turquoise Health

SENSORS Data

Teleport

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Amount

$20M

$200M

$110M

$99M

$99M

New?

No

Yes

Yes

Subscribe to see more

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Co-Investors

Sources

6

6

4

10

10

Bessemer Venture Partners Portfolio Exits

414 Portfolio Exits

Bessemer Venture Partners has 414 portfolio exits. Their latest portfolio exit was Hysolate on March 30, 2022.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

3/30/2022

Acquired

2

3/23/2022

Acquired

1

3/2/2022

Reverse Merger

$99M

4

1/12/2022

Acquired

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10

1/6/2022

Acquired

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10

Date

3/30/2022

3/23/2022

3/2/2022

1/12/2022

1/6/2022

Exit

Acquired

Acquired

Reverse Merger

Acquired

Acquired

Companies

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Valuation

$99M

Acquirer

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Sources

2

1

4

10

10

Bessemer Venture Partners Acquisitions

12 Acquisitions

Bessemer Venture Partners acquired 12 companies. Their latest acquisition was KorMex on March 27, 2019.

Date

Investment Stage

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Total Funding

Note

Sources

3/27/2019

$99M

Acq - Fin

2

6/6/2008

$99M

Acq - Fin

1

6/5/2008

$99M

Acq - Fin

1

3/26/2008

Other Venture Capital

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$99M

$99M

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10

2/29/2008

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$99M

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10

Date

3/27/2019

6/6/2008

6/5/2008

3/26/2008

2/29/2008

Investment Stage

Other Venture Capital

Companies

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Valuation

$99M

$99M

$99M

$99M

$99M

Total Funding

$99M

Note

Acq - Fin

Acq - Fin

Acq - Fin

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Sources

2

1

1

10

10

Bessemer Venture Partners Fund History

29 Fund Histories

Bessemer Venture Partners has 29 funds, including BVP India.

Closing Date

Fund

Fund Type

Status

Amount

Sources

11/30/2021

BVP India

$220M

2

2/26/2021

BVP Century II

$825M

1

2/26/2021

BVP XI

$2,475M

1

10/9/2019

Bessemer Venture Partners Growth Equity Fund

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$99M

10

10/9/2019

Bessemer Venture Partners Century Fund

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$99M

10

Closing Date

11/30/2021

2/26/2021

2/26/2021

10/9/2019

10/9/2019

Fund

BVP India

BVP Century II

BVP XI

Bessemer Venture Partners Growth Equity Fund

Bessemer Venture Partners Century Fund

Fund Type

Subscribe to see more

Subscribe to see more

Status

Subscribe to see more

Subscribe to see more

Amount

$220M

$825M

$2,475M

$99M

$99M

Sources

2

1

1

10

10

Bessemer Venture Partners Partners & Customers

4 Partners and customers

Bessemer Venture Partners has 4 strategic partners and customers. Bessemer Venture Partners recently partnered with NASDAQ on October 10, 2018.

Date

Type

Business Partner

Country

News Snippet

Sources

10/2/2018

Partner

United States

Bessemer Venture Partners Collaborates with Nasdaq to Launch Emerging Cloud Index

Bessemer Venture Partners partnered with Nasdaq , Inc. because of the exchange 's long-established history of creating indexes .

3

9/9/2016

Partner

United States

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10

9/7/2016

Partner

United States

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10

7/9/2016

Partner

United States

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10

Date

10/2/2018

9/9/2016

9/7/2016

7/9/2016

Type

Partner

Partner

Partner

Partner

Business Partner

Country

United States

United States

United States

United States

News Snippet

Bessemer Venture Partners Collaborates with Nasdaq to Launch Emerging Cloud Index

Bessemer Venture Partners partnered with Nasdaq , Inc. because of the exchange 's long-established history of creating indexes .

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Sources

3

10

10

10

Bessemer Venture Partners Service Providers

4 Service Providers

Bessemer Venture Partners has 4 service provider relationships

Service Provider

Associated Rounds

Provider Type

Service Type

Counsel

General Counsel

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Service Provider

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Associated Rounds

Provider Type

Counsel

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Service Type

General Counsel

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Partnership data by VentureSource

Bessemer Venture Partners Team

15 Team Members

Bessemer Venture Partners has 15 team members, including current Chief Financial Officer, Sandy Grippo.

Name

Work History

Title

Status

Sandy Grippo

J.P. Morgan Chase & Co.

Chief Financial Officer

Current

Hunter Powers

Chief Technology Officer

Current

Shannon Brayton

Chief Marketing Officer

Current

Ross Biestman

Chief Revenue Officer

Current

Robert C. Arditi

Founding Partner

Current

Name

Sandy Grippo

Hunter Powers

Shannon Brayton

Ross Biestman

Robert C. Arditi

Work History

J.P. Morgan Chase & Co.

Title

Chief Financial Officer

Chief Technology Officer

Chief Marketing Officer

Chief Revenue Officer

Founding Partner

Status

Current

Current

Current

Current

Current

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