Rory O’Driscoll, Partner, Scale Venture Partners, @rodriscoll
Two major market shifts that have emerged over the past year that taken together suggest that we need to rethink the bullish approach to burn and valuation. First, a significant rise in the cost of burn required to generate a dollar of revenue growth. Second, a decline in the value attributed to that growth by the capital markets.
The facts have changed, not just in capital markets, but in the markets where businesses buy and sell, and a change in strategy is required. Trimming the burn and having a high bar for spending the marginal dollar is the right choice for many in 2016.
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Stacey Bishop, Partner, Scale Venture Partners, @staceycurry
u00a02016 will see the prevalence of machine learning horizontally applied across enterprise applications.u00a0Machine learning isnu2019t a new concept. Finance, government and pharmaceuticals have long seen the value of using big data to make smarter business decisions. We now see it gaining traction in marketing, sales and HR.
u00a0Why now? Because of a proliferation of data being created, the amount of power able to process that data, and open access through API’s.
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Andy Vitus, Partner, Scale Venture Partners, @avitus
The increasing complexity of software will ultimately require expansive automation. Software has evolved from linear design to much more complex systems driven by: moving from one server to multi-server to multi-datacenter; expanding from single programming language to multiple programming languages; moving from a simple 3 tier stack to a distributed micro-services architecture; deploying servers to deploying servers, mobile and IOT.”
Cack Wilhelm, Principal, Scale Venture Partners, @cackf
u00a0APIs are at the core of most Web 2.0 and tech-forward businesses today, enabling transparent, always-on, real-time, multi-device communication. APIs are even moving offline with the rise of the Internet of Things. As APIs become a) more prominent, and b) more prolific, the landscape will evolve in 2016. Business-side attention will emerge as stake-holders realize that APIs can enable broader adoption, data-driven partnerships, additional revenue streams, or enrichments to product.
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Ariel Tseitlin, Partner, Scale Venture Partners, @atseitlin
In 2016, expect to see more investments that minimize exposure after a data breach. Post-breach detection has already attracted significant investor funding and high valuations. And the market is consolidating: Microsoft bought Addallom; Splunku2019s acquired Caspida and Blue Coat Systemsu2019 took up with Elastica. The market is still ripe for innovation though.
We need better tools that provide guidance on what do instantly after a breach has taken place. Everything from the physical response to process to how and when to notify customers depending on regulatory compliance.”
Alexander Niehenke, Principal, Scale Venture Partners, @aniehenke
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