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Salesforce is buying data visualization company Tableau for $15.7B in all-stock deal

On the heels of Google buying analytics startup Looker last week for $2.6 billion, Salesforce today announced a huge piece of news in a bid to step up its own work in data visualization and (more generally) tools to help enterprises make sense of the sea of data that they use and amass: Salesforce is buying Tableau for $15.7 billion in an all-stock deal.

The latter is publicly traded and this deal will involve shares of Tableau Class A and Class B common stock getting exchanged for 1.103 shares of Salesforce common stock, the company said, and so the $15.7 billion figure is the enterprise value of the transaction, based on the average price of Salesforce’s shares as of June 7, 2019.

This is a huge jump on Tableau’s last market cap: it was valued at $10.79 billion at close of trading Friday, according to figures on Google Finance. (Also: trading has halted on its stock in light of this news.)

The two boards have already approved the deal, Salesforce notes. The two companies’ management teams will be hosting a conference call at 8am Eastern and I’ll listen in to that as well to get more details.

This is a huge deal for Salesforce as it continues to diversify beyond CRM software and into deeper layers of analytics.

The company reportedly worked hard to — but ultimately missed out on — buying LinkedIn (which Microsoft picked up instead), and while there isn’t a whole lot in common between LinkedIn and Tableau, this deal will also help Salesforce extend its engagement (and data intelligence) for the customers that Salesforce already has — something that LinkedIn would have also helped it to do.

This also looks like a move designed to help bulk up against Google’s move to buy Looker, announced last week, although I’d argue that analytics is a big enough area that all major tech companies that are courting enterprises are getting their ducks in a row in terms of squaring up to stronger strategies (and products) in this area. It’s unclear whether (and if) the two deals were made in response to each other, although it seems that Salesforce has been eyeing up Tableau for years.

“We are bringing together the world’s #1 CRM with the #1 analytics platform. Tableau helps people see and understand data, and Salesforce helps people engage and understand customers. It’s truly the best of both worlds for our customers–bringing together two critical platforms that every customer needs to understand their world,” said Marc Benioff, chairman and co-CEO, Salesforce, in a statement. “I’m thrilled to welcome Adam and his team to Salesforce.”

Tableau has about 86,000 business customers, including Charles Schwab, Verizon (which owns TC), Schneider Electric, Southwest and Netflix. Salesforce said Tableau will operate independently and under its own brand post-acquisition. It will also remain headquartered in Seattle, Wash., headed by CEO Adam Selipsky along with others on the current leadership team.

Indeed, later during the call, Benioff let it drop that Seattle would become Salesforce’s official second headquarters with the closing of this deal.

That’s not to say, though, that the two will not be working together.

On the contrary, Salesforce is already talking up the possibilities of expanding what the company is already doing with its Einstein platform (launched back in 2016, Einstein is the home of all of Salesforce’s AI-based initiatives); and with “Customer 360,” which is the company’s product and take on omnichannel sales and marketing. The latter is an obvious and complementary product home, given that one huge aspect of Tableau’s service is to provide “big picture” insights.

“Joining forces with Salesforce will enhance our ability to help people everywhere see and understand data,” said Selipsky. “As part of the world’s #1 CRM company, Tableau’s intuitive and powerful analytics will enable millions more people to discover actionable insights across their entire organizations. I’m delighted that our companies share very similar cultures and a relentless focus on customer success. I look forward to working together in support of our customers and communities.”

“Salesforce’s incredible success has always been based on anticipating the needs of our customers and providing them the solutions they need to grow their businesses,” said Keith Block, co-CEO, Salesforce. “Data is the foundation of every digital transformation, and the addition of Tableau will accelerate our ability to deliver customer success by enabling a truly unified and powerful view across all of a customer’s data.”

Mailchimps Ben Chestnut on bootstrapping a startup to $700M in revenue

The well-known tech startup routine of coming up with an idea, raising money from venture capitalists and other outside investors in increasing rounds as valuations continue to rise, and then eventually going public — or getting acquired — has been around for as long as the myth of Silicon Valley itself. But the evolution of Mailchimp — a notable, bootstrapped outlier out of Atlanta, Ga., that provides email and other marketing services to smaller businesses — tells a very different story of tech startup success.

The company is now closing in on $700 million in annual revenues for 2019, and it seems that it has no intention of letting up, or selling out: No outside funding, no plans for an IPO and no to all the companies that have tried to acquire it (interested parties have included private equity firms as well as big tech players).

As Mailchimp has grown, it has been profitable from day one, a notable contrast not just to many other startups, but those specifically in the area of software-as-a-service for businesses. As a point of comparison, Slack, another provider of communications services to small businesses that is poised to go public, brought in around $130 million last quarter; it is not yet profitable.

This week, Mailchimp is unveiling what is probably its biggest product update since first starting to sell email services almost 20 years ago. It’s launching a new marketing platform that features social media management services, ad retargeting for Instagram and Facebook, domain sales, web development templates; and business intelligence.

There is still a lot of tech left for Mailchimp to tackle, and its model shows that you don’t always need outside funding to do it. The BI foray, as one example, marks an interesting move into artificial intelligence, and tapping the fact that the company is sitting on an intent and interest graph that spans some 4.5 billion people — the aggregation of all the emails that have been sent through Mailchimp’s platform. (Indeed, ‘small business’ for Mailchimp means ‘small number of employees’, but in our digital world, a small business might still be handling millions of customers.)

Adding in those new features will not come free: more pricing tiers, and higher pricing, will take effect from Wednesday for new users. You can read more about that here.

And adding in those new features also comes with another twist: it will catapult Mailchimp into a new arena of competition.

Today, some of the company’s notable competitors are the likes of SendGrid, Intercom and Drip. Tomorrow, that list could expand to include Marketo, Hubspot, InfusionSoft, Hootsuite and many more. While Mailchimp was an early mover and by the company’s own admission was coming into the market at a time when there was very little competition, it will be interesting to see if it can take some of the traction it has picked up to date and bring it to an adjacent — but still entirely new — product segment, and at a higher price, to boot.

I took the opportunity to speak with Mailchimp’s co-founder and CEO, Ben Chestnut — who started the company in Atlanta as a side project with two friends, Mark Armstrong and Dan Kurzius, in the trough of the first dot-com bust — on Mailchimp’s origins and plans for what comes next. The startup’s story is a firm example of how there is definitely more than one route to success in tech.


Ingrid Lunden: You’re launching a new marketing platform today, but I want to walk back a little first. This isn’t your first move away from email. We discovered back in March that you quietly acquired a Canadian e-commerce startup, LemonStand, just as you were parting ways with Shopify. (More on that acquisition here, and the Shopify changes here.)

Ben Chestnut: We wanted to have a tool to help small business marketers do their initial selling. The focus is not multiple products. Just one. We’re not interested in setting up full-blown e-commerce carts. This is about helping companies sell one product in an Instagram ad with a buy button, and we felt that the people at LemonStand could help us with that.

Salesforce is buying MapAnything, a startup that raised over $84 million

Salesforce announced today it’s buying another company built on its platform. This time it’s MapAnything, which, as the name implies, helps companies build location-based workflows, something that could come in handy for sales or service calls.

The companies did not reveal the selling price, and Salesforce didn’t have anything to add beyond a brief press release announcing the deal.

“The addition of MapAnything to Salesforce will help the world’s leading brands accurately plan: how many people they need, where to put them, how to make them as productive as possible, how to track what’s being done in real time and what they can learn to improve going forward,” Salesforce wrote in the statement announcing the deal.

It was a logical acquisition on many levels. In addition to being built on the Salesforce platform, the product was sold through the Salesforce AppExchange, and over the years MapAnything has been a Salesforce SI Partner, an ISV Premier Partner, according the company.

“Salesforce’s pending acquisition of MapAnything comes at a critical time for brands. Customer Experience is rapidly overtaking price as the leading reason companies win in the market. Leading companies like MillerCoors, Michelin, Unilever, Synchrony Financial and Mohawk Industries have all seen how location-enabled field sales and service professionals can focus on the right activities against the right customers, improving their productivity, and allowing them to provide value in every interaction,” company co-founder and CEO John Stewart wrote in a blog post announcing the deal.

MapAnything boasts 1,900 customers in total, and that is likely to grow substantially once it officially becomes part of the Salesforce family later this year.

MapAnything was founded in 2009, so it’s been around long enough to raise more than $84 million, according to Crunchbase. Last year, we covered the company’s $33.1 million Series B round, which was led by Columbus Nova.

At the time of the funding CEO John Stewart told me that his company’s products present location data more logically on a map instead of in a table. “Our Core product helps users (most often field-based sales or service workers) visualize their data on a map, interact with it to drive productivity, and then use geolocation services like our mobile app or complex routing to determine the right cadence to meet them,” Stewart told me last year.

It raised an additional $42.5 million last November. Investors included General Motors Ventures and (unsurprisingly) Salesforce Ventures.

On-demand trucking app Convoy raises $185M at $1B valuation

CapitalG, the growth equity arm of Alphabet, has led the $185 million round in Convoy, its first investment in the Seattle-based, tech-enabled trucking network.

The round brings Convoy’s total raised to $265 million and values the company at $1 billion. New investors T. Rowe Price and Lone Pine Capital participated in the financing alongside existing investors.

Convoy has long been backed by Greylock Partners, which led the startup’s Series A in 2015. Y Combinator is also a backer. In an unusual move last year, Y Combinator led a $62 million round in Convoy in what was the first time the accelerator deployed capital from its continuity fund into a late-stage company that was not a YC graduate.

Salesforce CEO Marc Benioff, Dropbox CEO Drew Houston, Bezos Expeditions and former Starbucks president Howard Behar are also Convoy investors.

Founded by a pair of former Amazonians, Dan Lewis and Grant Goodale, Convoy is trying to transform the $800 billion trucking industry, which is no easy feat. Dubbed the ‘Uber for trucks,’ Convoy’s app connects truckers with people who need freight moved. With the new funding, it’ll expand nationwide and move beyond just freight matching.

“Trucks run empty 40% of the time, and they often sit idle due to inefficient scheduling,” Convoy CEO Dan Lewis said in a statement. “This is a drag on the economy, the environment, and the bottom lines of shippers and carriers alike.”

According to GeekWire, Convoy is working on a new suite of tools to help truckers combine tasks so they waste less time. And it’s working to provide shippers access to tracking and pricing data through its platform.

As part of the deal, CapitalG partner David Lawee will join Convoy’s board of directors.

Early-stage venture capital firm Shasta Ventures has brought on three new faces to beef up its enterprise software and security portfolio amid a big push to “go deeper” into cybersecurity, per Shasta’s managing director Doug Pepper.

Balaji Yelamanchili (above left), the former general manager and executive vice president of Symantec’s enterprise security business unit, joins as a venture partner on the firm’s enterprise software team. He was previously a senior vice president at Oracle and Dell EMC. Pepper says Yelamanchili will be sourcing investments and may take board seats in “certain cases.”

The firm has also tapped Salesforce’s former chief information security officer Izak Mutlu (above center) as an executive-in-residence, a role in which he’ll advise Shasta portfolio companies. Mutlu spent 11 years at the cloud computing company managing IT security and compliance.

InterWest board partner Drew Harman, the final new hire, has joined as a board partner and will work closely with the chief executive officers of Shasta’s startups. Harman has worked in enterprise software for 25 years across a number of roles. He is currently on the boards of the cloud-based monetization platform Aria, enterprise content marketing startup NewsCred, customer retention software provider Totango and others.

“There’s no area today that’s more important than cybersecurity,” Pepper told TechCrunch. “The business of venture has gotten increasingly competitive and it demands more focus than ever before. We aren’t looking for generalists, we are looking for domain experts.”

Shasta’s security investments include email authentication service Valimail, which raised a $25 million Series B in May. Airspace Systems, a startup that built “kinetic capture” technologies that can identify offending unmanned aircrafts and take them down, raised a $20 million round with participation from Shasta in March. And four-year-old Stealth Security, a startup that defends companies from automated bot attacks, secured an $8 million investment from Shasta in February.

The Menlo Park-based firm filed to raise $300 million for its fifth flagship VC fund in 2016. A year later, it announced a specialty vehicle geared toward augmented and virtual reality app development. With more than $1 billion under management, the firm also backs consumer, IoT, robotics and space-tech companies across the U.S.

In the last year, Shasta has promoted Nikhil Basu Trivedi, Nitin Chopra and Jacob Mullins from associate to partner, as well as added two new associates, Natalie Sandman and Rachel Star.

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