December Newsletter Goodbye 2015!

December 17, 2015

This has been a great year for Cervin. Across our two institutional funds, we have made 22 investments, of which four companies have exited. Our core strategy of leading seed stage investments with exceptional founding teams across the enterprise stack is proving to be successful.

We are also confident that this coming year is going to be even better for our segment of venture capital. A recent report from Cambridge Associates debunks some of the myths about the VC industry. It highlights that the dynamism of technology markets has broken venture’s concentration “curse.” The majority of gains in the top 100 venture investments are no longer concentrated in the top ten investments in a given year. The strong aggregate performance of the other 90 investments demonstrates the value of the broader venture capital industry.

Our model is based on investing early, taking greater risks with larger equity stakes, staying deeply involved, and becoming true partners for our entrepreneurs. We believe that our core strategy as a micro-VC fund allows us to deliver outsized returns for our investors.

FINANCING AND PORTFOLIO UPDATE

SNAPLOGIC RAISES $37.5M TO EXPAND INTERNATIONALLY

Congrats to our portfolio company, SnapLogic on closing $37.5 million in financing with Microsoft and Silver Lake Waterman, the growth capital arm of Silver Lake.

SnapLogic provides integration services for enterprises looking to build or strengthen their cloud and data architecture, allowing businesses to connect data faster and more efficiently.

“SnapLogic was first to see that a fresh, new approach to connect data, apps and the Internet of Things was needed for the modern enterprise,” said Gaurav Dhillon, founder and CEO of SnapLogic. “Our vision and our mission is to connect anything, anytime, anywhere. This new round of funding allows us to continue to build on our momentum and capitalize on the $500 billion cloud, big data and Internet of Things market opportunity.”

ZEPHYR GAINS MOMENTUM WITH ATLASSIAN IPO, WINS RED HERRING AWARD

Atlassian had a very successful IPO this past week with the market valuing the company at over $5 billion. We are very glad that Zephyr, our portfolio company, is a significant player in the Atlassian ecosystem. Zephyr continues to innovate rapidly and has become the fastest growing provider of on-demand test management software. It supports various Atlassian products including the newly released 7.0 versions of JIRA. As the top grossing test management solution in the Atlassian marketplace, recent product announcements demonstrate Zephyr’s commitment to helping agile project teams integrate Zephyr’s solutions to Atlassian’s products for complete traceability across requirements, test cases and defects. More than one million users rely on Zephyr’s products to streamline their test planning, execution, and quality reporting processes.

And a big congratulations to Zephyr on winning the Red Herring Top 100 Global, 2015 award! Widely recognized as one of the industry’s top prizes, the Red Herring Top 100 Global Awards highlight the most exciting private technology startups from Asia, Europe and the Americas.

PUNCHH PARTNERS WITH TGIF UK

Our portfolio company Punchh, a restaurant-focused mobile CRM and data driven customer analytics agency has partnered with TGI Fridays UK to create an original loyalty program application for the restaurant chain. TGI Fridays UK will now be able to allow guests to engage in an array of individualized customer experiences such as birthday rewards, mobile games and other special prizes.

“This new mobile loyalty program will allow TGI Fridays UK to better understand and connect with their guests on a more personal level,” said Vic Mahadevan, CEO of Punchh. “Due to the importance and popularity of technology and smartphones, it is crucial for brands to interact with their fans on the devices that they’re using 24/7.”

Company Spotlight: PayStand

PayStand is helping to transform the way businesses pay each other and get paid. Despite enormous changes in dozens of industries wrought by the advent of new technologies, business payments are still dominated by decades-old processes and systems like paper checks, wire transfers and conventional credit cards, which add unnecessary costs and delays for businesses of all types. In a world where the Internet and cloud technology have made everything such as commerce to content available globally, instantly and at virtually no cost, the current methods for business payments are increasingly arcane and require better approaches.

PayStand’s Payments platform, delivered as SaaS, enables businesses to easily accept payments online using a variety of methods including eChecks and eCash (via block-chain) along with conventional credit cards. PayStand’s unique technology supports all payment methods in a single system that integrates easily with a company’s existing website, invoicing and accounting systems. PayStand’s eCheck technology makes payments via bank transfers (ACH) as easy and secure as credit cards, at a fraction of the cost. PayStand’s customers include SMBs, enterprises, and software and business processing platforms, including an ERP SaaS provider with over 300,000 SMB customers.

As we say goodbye to 2015, we want you to know how grateful we are for the continued support from our partners and advisers. We are so fortunate to be working with some of the most innovative companies in enterprise technology.

Happy Holidays and a Happy New Year!