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Elastic Acquires Endgame For $234 Million

Elastic -- a publicly traded company that builds custom search solutions for enterprises -- has announced it's acquiring cyber-security startup Endgame in an all-stock deal worth $234 million. The acquisition is subject to customary adjustments. Endgame has raised $111 million in total funding according to Crunchbase data. The $234 million acquisition price is a near 50% discount to a previous $465 million valuation (Pitchbook data).

Endgame's backers include Kleiner Perkins, Bessemer Venture Partners, Columbia Capital, Edgemore Capital, Savano Capital Partners and Paladin Capital Group. The Arlington, Virgina-based security startup's customers include the U.S. military and some Fortune 500 companies.


Elastic says the addition of Endgame will further advance its ability to offer a comprehensive security solution that's integrated with its own security information and event management (SIEM) products. "....By joining forces with Elastic, we will be able to take ou…

The Salesforce Mafia

image: Salesforce

You may know the PayPal Mafia, the group of ex PayPal founders and employees who have gone on to make big strides in the tech world. Elon Musk launched SpaceX and has led Tesla from a small startup to one with $21.4 billion revenue in 2018, Max Levchin launched Affirm which recently nabbed $300 million in funding at a $2.9 billion valuation, Peter Thiel launched Palantir which may go public soon and recently landed an $880 million contract with the US Army, Reid Hoffman launched LinkedIn which sold to Microsoft for $26 billion, and many more.

It turns out the many success stories spurned out of PayPal has been replicated in some places, one notable one being Salesforce, the cloud software company led by former Oracle executive Marc Benioff and a co-CEO Keith Block. Salesforce alumni have launched successful companies like Veeva Systems, Okta, Zuora, Rocket Fuel, G2 Crowd, and Duetto. Veeva Systems, Okta, and Zuora have IPOed in the billions and currently trade at a combined market cap of more than $30 billion (as of writing) on the stock market.

Below are short profiles of some noteworthy companies launched by Salesforce alumni.

Okta:

Okta co-founder and CEO Todd McKinnon
Photograph by Stuart Isett/Fortune Brainstorm Tech

Okta is a cloud software (the same field Salesforce operates in) company focused on securing user authentication into apps. The company's service has more than 5,500 pre-built integrations and is used by more than 5,600 organizations including Slack, Twilio, JetBlue, Adobe, DocuSign, ServiceNow, Workday, Box, Medallia, and Funding Circle.

The company raised $229 million-- according to Crunchbase data -- in funding prior to its IPO in April 2017. Its backers include Khosla Ventures, Sequoia Capital, Greylock Partners, and Andreessen Horowitz. The company currently trades at an over $10 billion market cap (as of writing) on the Nasdaq Stock Exchange.

Zuora:

Zuora founder and CEO Tien Tzuo
image: Zuora

Zuora provides a cloud-based subscription management platform aimed at recurring subscription business models. In other words, it enables organizations with subscription based revenue models manage their subscriptions easily. The company's customers include Box, HBO Nordics, Symantec, Autodesk, LinkedIn's Lynda.com, SurveyMoneky, Intuit, Zillow, Ford, Kaplan, CarGurus, Trulia, AT&T, The Seattle Times, and Mulesoft.

Zuora raised some $243 million prior to going public according to Crunchbase data. The company currently trades at a $2 billion market cap (as of writing) on the New York Stock Exchange (NYSE).

Veeva Systems:

Veeva Systems CEO Peter Gassner

image: Veeva Systems


Veeva Systems is a San Francisco headquartered company that sells cloud-based software for the life sciences industry. The company has more than 650 customers, ranging from emerging biotechs to large pharmaceutical companies. They include GlaxoSmithKline, Abbott Laboratories, AstraZeneca, Bayer, Biogen, Cardinal Health, Ablynx, and United Therapeutics.

The company expects revenue of between $1.02 billion - $1.03 billion in fiscal 2020 and currently trades at a near $19 billion market cap (as of writing). Quite impressive is that Veeva raised just $7 million in funding prior to its IPO, according to Crunchbase data.

G2 Crowd:

(Left-Right) G2 Crowd founders Godard Abel and Tom Handorf

image: G2 Crowd

G2 Crowd is a P2P (peer-to-peer) business software review platform valued at $500 million after a $55 million round raised in October last year. The company has raised $100 million in total -- according to Crunchbase data -- from investors including Accel, LinkedIn, Emergence, IVP (Institutional Venture Partners), and Pritzker Group Venture Capital.

image: Salesforce

These four companies know their origins. They're all focused on software for the enterprise just like Salesforce. Salesforce itself has really thrived as a cloud software company with $13.3 billion revenue in fiscal 2019. Just recently, the company acquired MapAnything, a location-based software startup built on the Salesforce platform that had raised some $84 million in funding according to Crunchbase data.

The company also recently invested $100 million in videoconferencing company Zoom at its IPO price. Zoom later soared more than 72% to a near $16 billion market cap on its first day of trading.



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