Salesforce.com, Bay Partners and Bessemer Venture Partners Launch Global Program to Fund Companies Building Business Applications on the Force.com Platform
MENLO PARK and SAN FRANCISCO, CA - October 1, 2007
Bay Partners and Bessemer Venture Partners to dedicate at least $25M from latest funds to help
companies embracing platform-as-a-service accelerate business growth
Partners, a Silicon Valley-based early stage venture capital firm with over $1B under management,
and salesforce.com [NYSE: CRM], the market and technology leader in on-demand business services,
today announced the official launch of a new program to fund companies building business
applications on salesforce.com's Force.com platform. Bessemer Venture Partners will also
participate in the program in collaboration with Bay Partners, and independently evaluate
investments. The program will target investments of at least $500,000 each, totaling approximately
$25M over the next 3 years to assist startups and young companies embracing Platform-as-a-Service.
"We have long believed that Software-as-a-Service is fundamentally changing the entire
enterprise software landscape and creating new opportunities to create venture-scale businesses,"
said Neil Sadaranganey, Partner at Bay Partners. "Platform-as-a-Service accelerates this evolution.
Wherever there are killer platforms, there exist huge opportunities for killer apps built on those
platforms. Salesforce.com's AppExchange has had an incredible impact on the business success of
several of our portfolio companies such as Eloqua and Xactly, and we expect the same for
applications and companies built on the Force.com platform."
The new program focuses on early stage funding for companies that have built business
applications on the Force.com platform. Force.com delivers Platform-as-a-Service, a new way to
create and deploy business applications that allow companies and developers to focus on what their
applications do, rather than the software and infrastructure to run them. By replacing the
complexity of software platforms with Force.com, and adding investment and business expertise from
the venture firms, developers will be able to turn ideas into business impact more quickly.
Bay and Bessemer's new program helps these startups transform great on-demand applications into
great on-demand companies.
"We share a common vision with Bay Partners and Bessemer Venture Partners that
Platform-as-a-Service has fundamentally changed the landscape for business applications," said Marc
Benioff, chairman and CEO, salesforce.com. "Under the traditional software model, entrepreneurs and
startups have had to deal with the burden of infrastructure before they can begin developing their
ideas. Force.com and the AppExchange provide an application development and global distribution
model to quickly bring any idea to market."
"We were pleased to be invited to join this innovative program created by Bay Partners and
salesforce.com. Given Bay Partners' strong track record in Software-as-a-Service investing, and the
great partner salesforce.com has been to many of our SaaS companies, we look forward to working
more closely with both, and particularly contributing our international expertise," said Byron
Deeter, Partner at Bessemer Venture Partners.
The Force.com venture program formalizes a productive informal relationship that
salesforce.com and Bay Partners have already had for some months. In the new program,
salesforce.com will now work closely with Bay and Bessemer in an advisory capacity. As Bay and
Bessemer select promising applications and businesses built on the Force.com platform,
salesforce.com will provide background and be available to assist in due diligence . To ensure that
the hundreds of applications on the AppExchange meet high standards of quality, partners go through
a rigorous set of qualitative and quantitative tests that measure their performance based on
industry-standard security criteria. Salesforce.com will provide design review, packaging and
distribution best practices, and certification consultation for companies building applications on
the Force.com platform and delivering them through the AppExchange. Bay, Bessemer and
salesforce.com will meet regularly to review Force.com applications and companies that meet the
criteria to become candidates for this program.
The Force.com venture program is being led by Neil Sadaranganey and Salil Deshpande from Bay
Partners and Byron Deeter and Philippe Botteri from Bessemer Venture Partners. Companies interested
in learning more about the program can send inquires to email@example.com.
Force.com Platform and the AppExchange
Force.com Platform-as-a-Service provides the building blocks necessary to build any kind of
business app, simple or sophisticated - and automatically deploy them as a service to small teams
or entire enterprises. The multi-tenant Force.com platform encompasses a complete feature set for
the creation of business applications such as the ability to create any database on demand, a
workflow engine for managing collaboration between users, the Apex code programming language for
building complex logic, the Force.com Web Services API for programmatic access, mash-ups, and
integration with other applications and data, and Visualforce for a framework to build any user
Force.com reinvents the traditional development, deployment and distribution of any business
application with Platform-as-a-Service. Developers, customers and partners can use Force.com to
easily create a new generation of on-demand applications and deploy them worldwide as a
service. Force.com allows applications to be easily shared, exchanged and installed with a
few simple clicks via salesforce.com's AppExchange marketplace
(http://www.salesforce.com/appexchange), enabling all the innovation that Force.com unleashes to be
easily distributed to the entire on-demand community.
About Bay Partners
Bay Partners is a Silicon Valley-based early stage venture capital firm that has been
building successful technology companies since 1976, and has funded more than 350 startups. Notable
successes from Bay's portfolio include Brocade, Concord Communications, Exodus, Sonicwall,
Placeware, Informatica, Weblogic, Digital Island and NetScaler. Bay is currently investing its
eleventh venture fund and has over $1 billion under management. Bay has become a leading SaaS
venture capital firm with notable current investments such as Eloqua, Xactly, Cornerstone on Demand
and eProject. Bay invests in early stage companies either through the seed track
($250K-$750K) in bold out-of-the-box capital-efficient ideas or through the more typical early
stage track ($1M-$7M) in early product development stages of companies. For more information,
please visit baypartners.com.
About Bessemer Venture Partners
Bessemer Venture Partners is a global investment group with offices in Silicon Valley,
Boston, New York, Mumbai and Shanghai. As the oldest venture capital practice in the United
States, Bessemer has helped to pioneer the software industry over the last several decades with
investments in leading companies such as Veritas, Parametric, Keynote Systems, VeriSign, and
Skype. Bessemer currently has one of the largest software portfolios in the venture capital
industry with over twenty five active software investments, including industry leaders such as
Bladelogic (Nasdaq: BLOG), BroadSoft, Endeca, Netsmart Technologies, Portrait Software
(London: PST), SWSoft, Tripwire, and Vertica. Bessemer's software practice is now primarily
focused on Software as a Service and has been among the most active investors in this emerging
market, with investments including Postini (recently acquired by Google), Perimeter eSecurity,
LinkedIn, Cornerstone OnDemand, Select Minds, and T3Ci. For more information, please visit
www.bvp.com or send an email to firstname.lastname@example.org.
Salesforce, the Customer Success Platform and world's #1 CRM, empowers companies to connect with their customers in a whole new way. For more information about Salesforce (NYSE: CRM), visit: www.salesforce.com.
Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase Salesforce applications should make their purchase decisions based upon features that are currently available. Salesforce has headquarters in San Francisco, with offices in Europe and Asia, and trades on the New York Stock Exchange under the ticker symbol “CRM.” For more information please visit http://www.salesforce.com, or call 1-800-NO-SOFTWARE.