As SaaS stocks set new records, Atlassian’s earnings show there’s still room to grow

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

SaaS stocks had a good run in late 2019. TechCrunch covered their ascent, a recovery from early-year doldrums and a summer slowdown. In 2020 so far, SaaS and cloud stocks have surged to all-time highs. The latest records are only a hair higher than what the same companies saw in July of last year, but they represent a return to form all the same.

Given that public SaaS companies have now managed to crest their prior highs and have been rewarded for doing so with several days of flat trading, you might think that there isn’t much room left for them to rise. Not so, at least according to Atlassian . The well-known software company reported earnings after-hours yesterday and the market quickly pushed its shares up by more than 10%.

Why? It’s worth understanding, because if we know why Atlassian is suddenly worth lots more, we’ll better grok what investors — public and private — are hunting for in SaaS companies and how much more room they may have to rise.


By Alex Wilhelm

BigID announces $50M Series C investment as privacy takes center stage

It turns out GDPR was just the tip of the privacy iceberg. With California’s privacy law coming on line January 1st and dozens more in various stages of development, it’s clear that governments are taking privacy seriously, which means companies have to as well. New York-startup BigID, which has been developing a privacy platform for the last several years, finds itself in a good position to help. Today, the company announced a $50 million Series C.

The round was led by Bessemer Venture Partners with help from SAP.io Fund, Comcast Ventures, Boldstart Ventures, Scale Venture Partners and ClearSky. New investor Salesforce Ventures also participated. Today’s investment brings the total raised to over $96 million, according to Crunchbase.

In addition to the funding, the company is also announcing the formation of a platform of sorts, which will offer a set of privacy services for customers. It includes data discovery, classification and correlation. “We’ve separated the product into some constituent parts. While it’s still sold as a broad-based solution, it’s much more of a platform now in the sense that there’s a core set of capabilities that we heard over and over that customers want,” CEO and co-founder Dimitri Sirota told TechCrunch.

He says that these capabilities really enables customers to see connections in the data across a set of disparate data sources. “There are a lot of products that do the request part, but there’s nobody that’s able to look across your entire data landscape, the hundreds of petabytes, and pick out the data in Salesforce, Workday, AWS, mainframe, and all these places you could have data on [an individual], and show how it’s all tied together,” Sirota explained.

It’s interesting to see the mix of strategic investors and traditional venture capitalists who are investing in the company. The strategics in particular see the privacy landscape as well as anyone, and Sirota says it’s a case of privacy mattering more than ever and his company providing the means to navigate the changing landscape. “Consumers care about privacy, which means legislators care about it, which ultimately means companies have to care about it,” he said. He added, “Strategics, whether they are companies that collect personal data or those that sell to those companies, therefore have an interest in BigID .”

The company has been growing fast and raising money quickly to help it scale to meet demand. Starting in January 2018, it raised $14 million. Just six months later, it raised another $30 million and you can tack on today’s $50 million. Sirota says having money in the bank and seeing these investments helps give enterprise customers confidence that the company is in this for the long haul.

Sirota wouldn’t give an exact valuation, only saying that while the company is not a unicorn, the valuation was a “robust number.” He says the plan now it to keep expanding the platform, and there will be announcements coming soon around partnerships, customers and new capabilities.

Sirota will be appearing at TechCrunch Sessions: Enterprise on September 5th at 11 am on the panel, Cracking the Code: From Startup to Scaleup in Enterprise Software.


By Ron Miller

Announcing the agenda for TC Sessions: Enterprise | San Francisco, September 5

TechCrunch Sessions is back! On September 5, we’re taking on the ferociously competitive field of enterprise software, and thrilled to announce our packed agenda, overflowing with some of the biggest names and most exciting startups in the enterprise industry. And you’re in luck, because $249 early-bird tickets are still on sale — make sure you book yours so you can enjoy all the agenda has to offer.

Throughout the day, you can expect to hear from industry experts and partake in discussions about the potential of new technologies like quantum computing and AI, how to deal with the onslaught of security threats, investing in early-stage startups and plenty more

We’ll be joined by some of the biggest names and the smartest and most prescient people in the industry, including Bill McDermott at SAP, Scott Farquhar at Atlassian, Julie Larson-Green at Qualtrics, Wendy Nather at Duo Security, Aaron Levie at Box and Andrew Ng at Landing AI.

Our agenda showcases some of the powerhouses in the space, but also plenty of smaller teams that are building and debunking fundamental technologies in the industry. We still have a few tricks up our sleeves and will be adding some new names to the agenda over the next month, so keep your eyes open. In the meantime, check out these agenda highlights:

AGENDA

Investing with an Eye to the Future
Jason Green (Emergence Capital), Maha Ibrahim (Canaan Partners) and Rebecca Lynn (Canvas Ventures)
9:35 AM – 10:00 AM

In an ever-changing technological landscape, it’s not easy for VCs to know what’s coming next and how to place their bets. Yet, it’s the job of investors to peer around the corner and find the next big thing, whether that’s in AI, serverless, blockchain, edge computing or other emerging technologies. Our panel will look at the challenges of enterprise investing, what they look for in enterprise startups and how they decide where to put their money.


Talking Shop
Scott Farquhar (Atlassian)
10:00 AM – 10:20 AM

With tools like Jira, Bitbucket and Confluence, few companies influence how developers work as much as Atlassian. The company’s co-founder and co-CEO Scott Farquhar will join us to talk about growing his company, how it is bringing its tools to enterprises and what the future of software development in and for the enterprise will look like.


Q&A with Investors 
10:20 AM – 10:50 AM

Your chance to ask questions of some of the greatest investors in enterprise.


Innovation Break: Deliver Innovation to the Enterprise
DJ Paoni (
SAP), Sanjay Poonen (VMware) and Shruti Tournatory (Sapphire Ventures)
10:20 AM – 10:40 AM

For startups, the appeal of enterprise clients is not surprising — signing even one or two customers can make an entire business, and it can take just a few hundred to build a $1 billion unicorn company. But while corporate counterparts increasingly look to the startup community for partnership opportunities, making the jump to enterprise sales is far more complicated than scaling up the strategy startups already use to sell to SMBs or consumers. Hear from leaders who have experienced successes and pitfalls through the process as they address how startups can adapt their strategy with the needs of the enterprise in mind. Sponsored by SAP.


Coming Soon!
10:40 AM – 11:00 AM


Box’s Enterprise Journey
Aaron Levie (Box)
11:15 AM – 11:35 AM

Box started life as a consumer file-storage company and transformed early on into a successful enterprise SaaS company, focused on content management in the cloud. Levie will talk about what it’s like to travel the entire startup journey — and what the future holds for data platforms.


Bringing the Cloud to the Enterprise
George Brady (Capital One), Byron Deeter (Bessemer Venture Partners) and a speaker to be announced
11:35 AM – 12:00 PM

Cloud computing may now seem like the default, but that’s far from true for most enterprises, which often still have tons of legacy software that runs in their own data centers. What does it mean to be all-in on the cloud, which is what Capital One recently accomplished. We’ll talk about how companies can make the move to the cloud easier, what not to do and how to develop a cloud strategy with an eye to the future.


Keeping the Enterprise Secure
Martin Casado (Andreessen Horowitz), Wendy Nather (Duo Security) and a speaker to be announced
1:00 PM – 1:25 PM

Enterprises face a litany of threats from both inside and outside the firewall. Now more than ever, companies — especially startups — have to put security first. From preventing data from leaking to keeping bad actors out of your network, enterprises have it tough. How can you secure the enterprise without slowing growth? We’ll discuss the role of a modern CSO and how to move fast… without breaking things.


Keeping an Enterprise Behemoth on Course
Bill McDermott (SAP)

1:25 PM – 1:45 PM

With over $166 billion is market cap, Germany-based SAP is one of the most valuable tech companies in the world today. Bill McDermott took the leadership in 2014, becoming the first American to hold this position. Since then, he has quickly grown the company, in part thanks to a number of $1 billion-plus acquisitions. We’ll talk to him about his approach to these acquisitions, his strategy for growing the company in a quickly changing market and the state of enterprise software in general.


How Kubernetes Changed Everything
Brendan Burns (Microsoft), Tim Hockin (Google Cloud), Craig McLuckie (VMware)
and Aparna Sinha (Google)
1:45 PM – 2:15 PM

You can’t go to an enterprise conference and not talk about Kubernetes, the incredibly popular open-source container orchestration project that was incubated at Google. For this panel, we brought together three of the founding members of the Kubernetes team and the current director of product management for the project at Google to talk about the past, present and future of the project and how it has changed how enterprises think about moving to the cloud and developing software.


Innovation Break: Data: Who Owns It
(SAP)

2:15 PM – 2:35 PM

Enterprises have historically competed by being closed entities, keeping a closed architecture and innovating internally. When applying this closed approach to the hottest new commodity, data, it simply does not work anymore. But as enterprises, startups and public institutions open themselves up, how open is too open? Hear from leaders who explore data ownership and the questions that need to be answered before the data floodgates are opened. Sponsored by SAP.


AI Stakes its Place in the Enterprise
Bindu Reddy (Reality Engines), Jocelyn Goldfein (Zetta Venture Partners)
and a speaker to be announced
2:35 PM – 3:00 PM

AI is becoming table stakes for enterprise software as companies increasingly build AI into their tools to help process data faster or make more efficient use of resources. Our panel will talk about the growing role of AI in enterprise for companies big and small.


Q&A with Founders
3:00 PM – 3:30 PM

Your chance to ask questions of some of the greatest startup minds in enterprise technology.


The Trials and Tribulations of Experience Management
Julie Larson-Green (Qualtrics), Peter Reinhardt (Segment) and a speaker to be announced
3:15 PM – 3:40 PM

As companies gather more data about their customers, it should theoretically improve the customer experience, buy myriad challenges face companies as they try to pull together information from a variety of vendors across disparate systems, both in the cloud and on prem. How do you pull together a coherent picture of your customers, while respecting their privacy and overcoming the technical challenges? We’ll ask a team of experts to find out.


Innovation Break: Identifying Overhyped Technology Trends
James Allworth (
Cloudflare), George Mathew (Kespry) and Max Wessel (SAP)
3:40 PM – 4:00 PM

For innovation-focused businesses, deciding which technology trends are worth immediate investment, which trends are worth keeping on the radar and which are simply buzzworthy can be a challenging gray area to navigate and may ultimately make or break the future of a business. Hear from these innovation juggernauts as they provide their divergent perspectives on today’s hottest trends, including Blockchain, 5G, AI, VR and more. Sponsored by SAP.


Fireside Chat
Andrew Ng (Landing AI)
4:00 PM – 4:20 PM

Few technologists have been more central to the development of AI in the enterprise than Andrew Ng . With Landing AI and the backing of many top venture firms, Ng has the foundation to develop and launch the AI companies he thinks will be winners. We will talk about where Ng expects to see AI’s biggest impacts across the enterprise.


The Quantum Enterprise
Jim Clarke (Intel), Jay Gambetta (IBM)
and Krysta Svore (Microsoft)
4:20 PM – 4:45 PM

While we’re still a few years away from having quantum computers that will fulfill the full promise of this technology, many companies are already starting to experiment with what’s available today. We’ll talk about what startups and enterprises should know about quantum computing today to prepare for tomorrow.


Overcoming the Data Glut
Benoit Dageville (Snowflake), Ali Ghodsi (Databricks) and a speaker to be announced
4:45 PM – 5:10 PM

There is certainly no shortage of data in the enterprise these days. The question is how do you process it and put it in shape to understand it and make better decisions? Our panel will discuss the challenges of data management and visualization in a shifting technological landscape where the term “big data” doesn’t begin to do the growing volume justice.


Early-bird tickets are on sale now for just $249. That’s a $100 savings before prices go up — book yours today.

Students, save big with our super discounted $75 ticket when you book here.

Are you a startup? Book a demo table package for just $2,000 (includes 4 tickets) — book here.


By Frederic Lardinois

The Exit: an AI startup’s McPivot

Five years ago, Dynamic Yield was courting an investment from The New York Times as it looked to shift how publishers paywalled their content. Last month, Chicago-based fast food king McDonald’s bought the Israeli company for $300 million, a source told TechCrunch, with the purpose of rethinking how people order drive-thru chicken nuggets.

The pivot from courting the grey lady to the golden arches isn’t as drastic as it sounds. In a lot of ways, it’s the result of the company learning to say “no” to certain customers. At least, that’s what Bessemer’s Adam Fisher tells us.

The Exit is a new series at TechCrunch. It’s an exit interview of sorts with a VC who was in the right place at the right time but made the right call on an investment that paid off. 

Fisher

Fisher was Dynamic Yield founder Liad Agmon’s first call when he started looking for funds from institutional investors. Bessemer bankrolled the bulk of a $1.7 million funding round which valued the startup at $5 million pre-money back in 2013. The firm ended up putting about $15 million into Dynamic Yield, which raised ~$85 million in total from backers including Marker Capital, Union Tech Ventures, Baidu and The New York Times.

Fisher and I chatted at length about the company’s challenging rise and how Israel’s tech scene is still being underestimated. Fisher has 11 years at Bessemer under his belt and 14 exits including Wix, Intucell, Ravello and Leaba.

The interview has been edited for length and clarity. 


Saying “No”

Lucas Matney: So, right off the bat, how exactly did this tool initially built for publishers end up becoming something that McDonalds wanted?

Adam Fisher: I mean, the story of Dynamic Yield is unique. Liad, the founder and CEO, he was an entrepreneur in residence in our Herzliya office back in 2011. I’d identified him earlier from his previous company, and I just said, ‘Well, that’s the kind of guy I’d love to work with.’ I didn’t like his previous company, but there was something about his charisma, his technology background, his youth, which I just felt like “Wow, he’s going to do something interesting.” And so when he sold his previous company, coincidentally to another Chicago based company called Sears, I invited him and I think he found it very flattering, so he joined us as an EIR.


By Lucas Matney

Scytale grabs $5M Series A for application-to-application identity management

Scytale, a startup that wants to bring identity and access management to application-to-application activities, announced a $5 million Series A round today.

The round was led by Bessemer Venture Partners, a return investor which led the company’s previous $3 million round in 2018. Bain Capital Ventures, TechOperators and Work-Bench are also participating in this round.

The company wants to bring the same kind of authentication that individuals are used to having with a tool like Okta to applications and services in a cloud native environment. “What we’re focusing on is trying to bring to market, a capability for large enterprises going through this transition to cloud native computing to evolve the existing methods of application to application authentication, so that it’s much more flexible and scalable,” Sunil James, company CEO told TechCrunch.

To help with this, the company has developed the open source, cloud native project, Spiffe, that is managed by the Cloud Native Computing Foundation (CNCF). The project is designed to provide identity and access management for application-to-application communication in an open source framework.

The idea is that as companies transition to a containerized, cloud native approach to application delivery, there needs to a smooth automated way for applications and services to prove they are legitimate very quickly in much the same way individuals provide a username and password to access a website. This could be, for example, as applications pass through API gateways, or as automation drives the use of multiple applications in a workflow.

Webscale companies like Google and Netflix have developed mechanisms to make this work in-house, but it’s been out of reach of most large enterprise companies. Scytale wants to bring this capability to authenticate services and applications to any company.

In addition to the funding announcement, the company also announced Scytale Enterprise, a tool that provides a commercial layer on top of the open source tools that the company has developed. The enterprise version helps companies, who might not have the personnel to deal with the open source version on their own by providing training, consulting and support services.

Bain Capital Venture’s Enrique Salem sees a startup solving a big problem for companies who are moving to cloud native environments and need this kind of authentication.”In an increasingly complex and fragmented enterprise IT environment, Scytale has not only built Spiffe’s amazing open-source community but has also delivered a commercial offering to address hybrid cloud authentication challenges faced by Fortune 500 identity and access management engineering teams,” Salem said in a statement.

The company, which is based in the Bay area, launched in 2017 and currently has 24 employees.


By Ron Miller

PagerDuty raises $90M to wake up more engineers in the middle of the night

PagerDuty, the popular service that helps businesses monitor their tech stacks, manage incidents and alert engineers when things go sideways, today announced that it has raised a $90 million Series D round at a valuation of $1.3 billion. With this, PagerDuty, which was founded in 2009, has now raised well over $170 million.

The round was led by T. Rowe Price Associates and Wellington Management . Accel, Andreessen Horowitz and Bessemer Venture Partners. Given the leads in this round, chances are that PagerDuty is gearing up for an IPO.

“This capital infusion allows us to continue our investments in innovation that leverages artificial intelligence and machine learning, enabling us to help our customers transform their companies and delight their customers,” said Jennifer Tejada, CEO at PagerDuty in today’s announcement. “From a business standpoint, we can strengthen our investment in and development of our people, our most valuable asset, as we scale our operations globally. We’re well positioned to make the lives of digital workers better by elevating work to the outcomes that matter.”

Currently PagerDuty users include the likes of GE, Capital One, IBM, Spotify and virtually every other software company you’ve ever heard of. In total, over 10,500 enterprises now use the service. While it’s best known for its alerting capabilities, PagerDuty has expanded well beyond that over the years, though it’s still a core part of its service. Earlier this year, for example, the company announced its new AIOps services that aim to help businesses reduce the amount of noisy and unnecessary alerts. I’m sure there’s a lot of engineers who are quite happy about that (and now sleep better).


By Frederic Lardinois