, Bay Partners and Bessemer Venture Partners Launch Global Program to Fund Companies Building Business Applications on the Platform

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

MENLO PARK and SAN FRANCISCO, CA - October 1, 2007 - Bay Partners, a Silicon Valley-based early stage venture capital firm with over $1B under management, and [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's 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.'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 platform."

The new program focuses on early stage funding for companies that have built business applications on the platform. 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, 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, "Under the traditional software model, entrepreneurs and startups have had to deal with the burden of infrastructure before they can begin developing their ideas. 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 Given Bay Partners' strong track record in Software-as-a-Service investing, and the great partner 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 venture program formalizes a productive informal relationship that and Bay Partners have already had for some months. In the new program, will now work closely with Bay and Bessemer in an advisory capacity. As Bay and Bessemer select promising applications and businesses built on the platform, 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. will provide design review, packaging and distribution best practices, and certification consultation for companies building applications on the platform and delivering them through the AppExchange. Bay, Bessemer and will meet regularly to review applications and companies that meet the criteria to become candidates for this program.

The 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 Platform and the AppExchange 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 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 Web Services API for programmatic access, mash-ups, and integration with other applications and data, and Visualforce for a framework to build any user interface. reinvents the traditional development, deployment and distribution of any business application with Platform-as-a-Service. Developers, customers and partners can use to easily create a new generation of on-demand applications and deploy them worldwide as a service. allows applications to be easily shared, exchanged and installed with a few simple clicks via's AppExchange marketplace (, enabling all the innovation that 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

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 or send an email to

About Salesforce

Salesforce, the global CRM leader, empowers companies to connect with their customers in a whole new way. For more information about Salesforce (NYSE: CRM), visit:

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