Salesforce
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1. Salesforce doubles down on verticals, launches Manufacturing and Consumer Goods Clouds
Salesforce unveiled two new business units today as part of its strategy to build specialized solutions for specific industries.
For example, with its Manufacturing Cloud, Salesforce says it has built a way for sales agreements to link up with a company’s ERP and forecasting software, allowing for improved demand prediction.
2. Samsung’s Galaxy Tab S6 combines creative flexibility with great design
Darrell Etherington says the new Galaxy Tab S6 (with pricing starting at $649.99) expands the definition of what a tablet can be.
3. Facebook rolls out new video tools, plus Instagram and IGTV scheduling feature
The highlights include better ways to prep for and simulcast live broadcasts, ways to take better advantage of Watch Party events, new metrics to track video performance and a much-anticipated option to schedule Instagram/IGTV content for up to six months in advance.
4. Hear how to build a billion-dollar SaaS company at TechCrunch Disrupt
This year we’ll welcome three people to the Extra Crunch stage who know first-hand what it takes to join the billion-dollar club: Battery Ventures partner Neeraj Agrawal, HelloSign COO Whitney Bouck and Harness CEO Jyoti Bansal.

5. Beekeeper raises $45M Series B to become the ‘Slack for non-desk employees’
Beekeeper has built a mobile-first communications platform for employers who need to communicate with blue-collar and service-oriented workers.
6. How to get people to open your emails
We tackle the obvious stuff that can help with low open rates, as well as bigger challenges: Let’s say 60% of your audience opens your email — how can you get the remaining 40% to open and read it too? (Extra Crunch membership required.)
7. This week’s TechCrunch podcasts
The Equity team has some thoughts on the latest WeWork drama, and how it shows that valuations are essentially meaningless. And on Original Content, we review the Netflix documentary series “The Family.”
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As legacy industries make the migration to cloud-based digital solutions to run and grow their businesses, Salesforce is hoping that it will get a cut of the action when it comes to their IT investments. The CRM giant has been doubling down on building specialised solutions for individual industry verticals, and today, it is unveiling new business units dedicated to not one but two of them: manufacturing and consumer goods.
The Manufacturing Cloud and Consumer Goods Cloud, as the two new products are called, are the latest in a list of other vertical-specific products the company has created. Other verticals targeted to date include finance, healthcare, media, nonprofits and retail.
The idea behind Salesforce’s strategy to build industry-specific solutions is that while the CRM and sales processes that go into manufacturing and consumer goods do have some aspects in common with other industries, both also have relatively specific requirements, too, around how sales are agreed and clients are managed.
In the case of manufacturing and consumer goods, both are capital-intensive businesses where those working on the physical products might be very removed from those working on sales (not just in terms of job functions, but in terms of the software that’s used to manage each operation), or those who are in the field who are helping to distribute those goods to the people ultimately selling them.
“In the manufacturing industry, changing customer and market demands can have a devastating effect on the bottom line, so being able to understand what is happening on the ground is imperative for success,” said Cindy Bolt, SVP and GM, Salesforce Manufacturing, in a statement. “Manufacturing Cloud bridges the gap between sales and operations teams while ensuring more predictive and transparent business, so they can build deeper and more trusted relationships with their customers.”
In both the cases of manufacturing and consumer goods, Salesforce is not creating these services out of thin air: the company had already been touting solutions for both sectors as part of its bigger push into specific industries. Past acquisitions of companies like Steelbrick — a specialist in quote-to-cash solutions, a cornerstone of how manufacturing sales are made — are likely to have played a contributing role in how the new clouds were built.
With the Manufacturing Cloud, Salesforce says that it has included a feature for sales agreements that link up with a company’s ERP and forecasting software to be able to better predict demand from individual customers as well as the wider market. The services are also coming with more analytical insights by way of Einstein Analytics, and more functionality to work with channel partners. Third parties working with Salesforce on joint solutions using Marketing Cloud include Acumen Solutions, Deloitte and Rootstock.
The Consumer Goods Cloud has some parallel with the Manufacturing Cloud, in that both are targeting businesses that are by their nature and by legacy very rooted in physical goods and are therefore not easily “disrupted” by digital innovation. Indeed, despite all that we hear about the might of Amazon and e-commerce, a full 95% of products are still sold in physical stores. That system has a lot of drawbacks, not least of them being challenges with consumer goods brands having accurate control over how products are distributed and ultimately sold.
“Retail execution remains one of the most important pieces of a consumer goods brands strategy, but so much opportunity is wasted if the field rep doesn’t have the data and technology needed to make smart decisions,” said John Strain, GM and SVP, Retail and Consumer Goods at Salesforce, in a statement. “Consumer Goods Cloud provides these field reps with the tools they need to be successful on the ground while helping build both business opportunities and stronger relationships with their retail partners.”
The company, citing research from PwC, claims that of the $200 billion that’s spent in the U.S. by consumer goods companies each year on merchandising, marketing and sales efforts for in-store sales, some $100 billion of that spend is never used in the way it was originally intended. (That’s one reason so many consumer goods companies have jumped into social media: it’s a way of connecting better and more directly, at least with the customers.)
That represents a huge area to tackle for a company likes Salesforce, and the Consumer Goods Cloud is the start of that effort. The product covers software that addresses areas optimising visits to stores, improving relationships with retailers, using Einstein insights for analytics and ordering software. Partners in the effort include Accenture and PwC.
Another important thing to note here is that Salesforce’s move into the area comes as a competitive strike: Not only are there companies out there that have built products specifically for these markets — Sysco for consumer goods, and Atlatl Software for manufacturing, for example — but Salesforce has to contend with general rivals such as Microsoft and SAP also targeting the same potential customers.
As of last quarter, Sales Cloud now accounts for more than one-quarter of Salesforce’s revenues, but today’s news underscores how “sales” is becoming a more complex and nuanced topic for the company as its business continues to grow, and as cloud-based digital processes become ever more ubiquitous across all sectors beyond simply knowledge workers. As Salesforce builds out more solutions to meet every kind of enterprise’s needs, it’s likely there will be more vertical-specific tools making their way to the platform.
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Sales efficiency is the best way to understand the economics of a business. To me, it answers the question as to whether a business can ever scale. The harsh truth is, if it can’t scale, investors won’t be interested.
Sales efficiency is more simple to measure than other related concepts like CAC (customer acquisition cost) or LTV (lifetime value). Here’s why:
These activities generate different CAC; trying to strip out only the new CAC can be tricky. Sales efficiency, on the other hand, looks at all net new ARR (annual recurring revenue), which includes new customer ARR as well as expansion ARR.
Enterprise businesses should focus on unit economics of sales early. When a business scales, it rarely buys you better economics — usually it just means more losses.
At Storm Ventures we use a concept we call finding ‘go-to-market fit’ (GTM fit).
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Yesterday at TechCrunch’s Enterprise event in San Francisco, we sat down with three venture capitalists who spend a lot of their time thinking about enterprise startups. We wanted to ask what trends they are seeing, what concerns they might have about the state of the market and, of course, how startups might persuade them to write out a check.
We covered a lot of ground with the investors — Jason Green of Emergence Capital, Rebecca Lynn of Canvas Ventures and Maha Ibrahim of Canaan Partners — who told us, among other things, that startups shouldn’t expect a big M&A event right now, that there’s no first-mover advantage in the enterprise realm and why grit may be the quality that ends up keeping a startup afloat.
Jason Green: When we started Emergence 15 years ago, we saw maybe a few hundred startups a year, and we funded about five or six. Today, we see over 1,000 a year; we probably do deep diligence on 25.
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Salesforce chairman, co-founder and CEO Marc Benioff took a lot of big chances when he launched the company 20 years ago. For starters, his was one of the earliest enterprise SaaS companies, but he wasn’t just developing a company on top of a new platform, he was building one from scratch with social responsibility built-in.
Fast-forward 20 years and that company is wildly successful. In its most recent earnings report, it announced a $4 billion quarter, putting it on a $16 billion run rate, and making it by far the most successful SaaS company ever.
But at the heart of the company’s DNA is a charitable streak, and it’s not something they bolted on after getting successful. Even before the company had a working product, in the earliest planning documents, Salesforce wanted to be a different kind of company. Early on, it designed the 1-1-1 philanthropic model that set aside 1% of Salesforce’s equity, and 1% of its product and 1% of its employees’ time to the community. As the company has grown, that model has serious financial teeth now, and other startups over the years have also adopted the same approach using Salesforce as a model.
In our coverage of Dreamforce, the company’s enormous annual customer conference, in 2016, Benioff outlined his personal philosophy around giving back:
You are at work, and you have great leadership skills. You can isolate yourselves and say I’m going to put those skills to use in a box at work, or you can say I’m going to have an integrated life. The way I look at the world, I’m going to put those skills to work to make the world a better place.
This year Benioff is coming to TechCrunch Disrupt in San Francisco to discuss with TechCrunch editors how to build a highly successful business, while giving back to the community and the society your business is part of. In fact, he has a book coming out in mid-October called Trailblazer: The Power of Business as the Greatest Platform for Change, in which he writes about how businesses can be a positive social force.
Benioff has received numerous awards over the years for his entrepreneurial and charitable spirit, including Innovator of the Decade from Forbes, one of the World’s 25 Greatest Leaders from Fortune, one of the 10 Best-Performing CEOs from Harvard Business Review, GLAAD, the Billie Jean King Leadership Initiative for his work on equality and the Variety Magazine EmPOWerment Award.
It’s worth noting that in 2018, a group of 618 Salesforce employees presented Benioff with a petition protesting the company’s contract with the Customs and Border Patrol (CBP). Benioff in public comments stated that the tools were being used in recruitment and management, and not helping to separate families at the border. While Salesforce did not cancel the contract, at the time, co-CEO Keith Block stated that the company would donate $1 million to organizations helping separated families, as well as match any internal employee contributions through its charitable arm, Salesforce.org.
Disrupt SF runs October 2 to October 4 at the Moscone Center in the heart of San Francisco. Tickets are available here.
Did you know Extra Crunch annual members get 20% off all TechCrunch event tickets? Head over here to get your annual pass, and then email extracrunch@techcrunch.com to get your 20% discount. Please note that it can take up to 24 hours to issue the discount code.
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The Slovenian founders behind PredictLeads, another recent Y Combinator graduate, applied to the prestigious accelerator five times before they were admitted.
Their business, which helps venture capital firms and sales teams identify high-growth companies, i.e. potential investments and potential customers, had come a long way since it was founded in 2016. And earlier this year — finally — YC gave them the green light to complete its three-month accelerator program.
“We almost ran out of money in 2017 and then I took a loan from my mother because the bank wouldn’t give me the loan at that point,” PredictLeads chief executive officer Roq Xever tells TechCrunch. “But by then, the data was getting much better and we were able to make higher-value sells and that got us to profitability.”
You read that right. Unlike most of today’s tech startups, PredictLeads is profitable, though, only out of pure necessity: “We didn’t know we would ever get into YC to raise the money we needed, so we structured the company to make more money than we spent.”
Xever leads the small PredictLeads team alongside marketing chief Miha Stanovnik and chief technology officer Matic Perovsek. Xever tells TechCrunch it wasn’t until they realized the opportunity to sell their product to VCs that YC became interested. Today, PredictLeads has eight venture firms as customers, the names of which they were not able to disclose.
The tool helps investors track companies they’ve considered in the past. PredictLeads notifies users if certain companies start getting traction so they can reevaluate the deal and helps investors become aware of startups they may not have otherwise heard of.
More and more venture capital firms are turning to third-party tools to help them make sense of and leverage data in the investment and company-tracking process, leading to the birth of new data-focused companies. Social Capital co-founder Chamath Palihapitiya is spinning out a company from his venture capital fund-turned-family-office, TechCrunch learned earlier this year. The new entity, temporarily dubbed CaaS (short for capital-as-a-service) Technologies, will focus on providing data-driven insights to VC firms, for example.
Startups have also realized the importance of data. Narrator, another recent YC graduate, is betting big on this trend. The startup wants to become the operating system for data science by providing companies software that claims to fulfill the same service as a data team for the price of an analyst.
PredictLeads, for its part, collects data from websites, press releases, news articles, blogs and career sites, then uses supervised machine learning to extract and structure the data. The startup tracks 20 million public and private companies.
Now that it’s a graduate of YC, the team is in the process of moving its headquarters to the U.S. Either New York or San Francisco, says Xever, who’s currently navigating the difficult visa application process.
The startup is today raising a $1.5 million seed financing at a $10 million valuation. They plan to use the capital to expand their service to cater to quant funds, build a Salesforce app to better support sales teams and, of course, expand their small team.
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The first day of work at a new job can be very stressful. The unfamiliar surroundings and onslaught of new material can cause new hires some degree of discomfort. But sometimes the atmosphere at the new company can be welcoming and can help counteract the stress.
Different companies have their own traditions to help make this transition period more comfortable and memorable for new hires. Some of these traditions include:
Usually, only employees can experience these traditions. But there’s one new-hire tradition that has become extremely popular and often highly publicized: the “welcome kit”.
Welcome kits usually contain a hodgepodge of items that employees will need on the job (pens, notebooks, books, etc.) and things to make employees feel welcome (clothing, stickers, water bottles, or more unusual items — often with the company name or logo on them).
To get a sense of how different companies handle their kits, we talked to four successful startups about their welcome kits in the article below, followed by our look at a dozen more:
This article is based on the personal welcome kit collection of Vladimir Polo, founder of AcademyOcean. AcademyOcean is a tool for interactive onboarding and training (and Vladimir Polo is a fan of welcome kits).
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Another day, another Salesforce acquisition. Just days after closing the hefty $15.7 billion Tableau deal, the company opened its wallet again, this time announcing it has bought field service software company ClickSoftware for a tidy $1.35 billion.
This one could help beef up the company’s field service offering, which falls under the Service Cloud umbrella. In its June earnings report, the company reported that Service Cloud crossed the $1 billion revenue threshold for the first time. This acquisition is designed to keep those numbers growing.
“Our acquisition of ClickSoftware will not only accelerate the growth of Service Cloud, but drive further innovation with Field Service Lightning to better meet the needs of our customers,” Bill Patterson, EVP and GM of Salesforce Service Cloud said in a statement announcing the deal.
ClickSoftware is actually older than Salesforce having been founded in 1997. The company went public in 2000, and remained listed until it went private again in 2015 in a deal with private equity company Francisco Partners, which bought it for $438 million. Francisco did alright for itself, holding on to the company for four years before more than doubling its money.
The deal is expected to close in the fall and is subject to the normal regulatory approval process.
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In an amazingly quick turnaround for a deal of this scope, Salesforce announced today that it has closed the $15.7 billion Tableau deal announced in June. The deal is by far the biggest acquisition in Salesforce history, a company known for being highly acquisitive.
A deal of this size usually faces a high level of regulatory scrutiny and can take six months or longer to close, but this one breezed through the process and closed in less than two months.
With Tableau and MuleSoft (a company it bought last year for $6.5 billion) in the fold, Salesforce has a much broader view of the enterprise than it could as a pure cloud company. It has access to data wherever it lives, whether on premises or in the cloud, and with Tableau, it enables customers to bring that data to life by visualizing it.
This was a prospect that excited Salesforce chairman Marc Benioff. “Tableau will make Salesforce Customer 360, including Salesforce’s analytics capabilities, stronger than ever, enabling our customers to accelerate innovation and make smarter decisions across every part of their business,” Benioff said in a statement.
As with any large acquisition involving two enormous organizations, combining them could prove challenging, and the real test of this deal, once the dust has settled, will be how smoothly that transition happens and how well the companies can work together and become a single entity under the Salesforce umbrella.
In theory, having Tableau gives Salesforce another broad path into larger and more expansive enterprise sales, but the success of the deal will really hinge on how well it folds Tableau into the Salesforce sales machine.
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Before Tableau was the $15.7 billion key to Salesforce’s problems, it was a couple of founders arguing with a couple of venture capitalists over lunch about why its Series A valuation should be higher than $12 million pre-money.
Salesforce has generally been one to signify corporate strategy shifts through their acquisitions, so you can understand why the entire tech industry took notice when the cloud CRM giant announced its priciest acquisition ever last month.
The deal to acquire the Seattle-based data visualization powerhouse Tableau was substantial enough that Salesforce CEO Marc Benioff publicly announced it was turning Seattle into its second HQ. Tableau’s acquisition doesn’t just mean big things for Salesforce. With the deal taking place just days after Google announced it was paying $2.6 billion for Looker, the acquisition showcases just how intense the cloud wars are getting for the enterprise tech companies out to win it all.
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. [Have feedback? Shoot me an email at lucas@techcrunch.com]
Scott Sandell, a general partner at NEA (New Enterprise Associates) who has now been at the firm for 25 years, was one of those investors arguing with two of Tableau’s co-founders, Chris Stolte and Christian Chabot. Desperate to close the 2004 deal over their lunch meeting, he went on to agree to the Tableau founders’ demands of a higher $20 million valuation, though Sandell tells me it still feels like he got a pretty good deal.
NEA went on to invest further in subsequent rounds and went on to hold over 38% of the company at the time of its IPO in 2013 according to public financial docs.
I had a long chat with Sandell, who also invested in Salesforce, about the importance of the Tableau deal, his rise from associate to general partner at NEA, who he sees as the biggest challenger to Salesforce, and why he thinks scooter companies are “the worst business in the known universe.”
The interview has been edited for length and clarity.
Lucas Matney: You’ve been at this investing thing for quite a while, but taking a trip down memory lane, how did you get into VC in the first place?
Scott Sandell: The way I got into venture capital is a little bit of a circuitous route. I had an opportunity to get into venture capital coming out of Stanford Business School in 1992, but it wasn’t quite the right fit. And so I had an interest, but I didn’t have the right opportunity.
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