Top Reasons how Salesforce became Silicon Valley’s Best Tech Investor
Recently, the global CRM leader, Salesforce, reported a $2.17 billion annual gain from the investment it made in other tech companies. CEO Marc Benioff is not only the best when it comes to making those billion-dollar investments in Cloud companies like Slack and Tableau, but his continuous efforts have made Salesforce shift to a major Silicon Valley venture capital.
Today, we are here to disclose the top reasons how Salesforce became Silicon Valley’s best tech investor. So, let’s dive straight into the blog;
2020: The Year for Salesforce
Smart Investments: In the year 2020, two of Salesforce’s portfolio companies Snowflake and nCino became a hit. These companies helped Salesforce produce a combined $1.7 billion in investment gains. According to Salesforce’s fourth-quarter report on Feb 25, This investment accounts for 78% of Salesforce’s total increase for the fiscal year that ended in January.
Investment in Video Chat Company, Zoom: Also, Salesforce sold all of its 2.8 million Zoom shares last year. It has invested $100 million in the Video Chat company and has tripled its money.
A massive 100% increase in Investments: For the Fiscal year 2021, Salesforce earnings were about $4.38 per share. Salesforce investments were valued at $ 3.91 billion as of January, making it hike up by 100% from the previous year.
Benioff & Bret Taylor Together: Explosion of Investment Ideas
Salesforce Ventures and lead corporate development company wide head John Samorjai mentioned that Salesforce’s pitch is now compelling as competition for deals has not been greater than this.
Samorjai says, “How we’re able to get into the best deals is really leveraging the strength of Salesforce and the tools we have.”
Also, Samorjai said that he has roughly doubled the size of his investment team to 15 people now to keep up with the growing startups across the globe. Salesforce’s best investment ideas have come from Benioff and Bret Taylor, who love to talk to customers.
Benioff & Bret Taylor Together: Explosion of Investment Ideas
Samorjai says that “we are stage agnostic.” In 2020, Salesforce participated in the $7.5 million for AdmitHub, an education-tech startup. Also, it invested $13.5 million Series B for Angaza.
Above all, Salesforce invested $100 million in security vendor Tanium at a $9 billion valuation, and in February, it backed data analytics company Databricks at a $28 billion valuation.
Besides, in recent years, late-stage growth investments have proven to be the fastest way of generating revenue. For your information, Salesforce’s $250 million investment in Snowflake’s IPO became $529 million just after one day of trading.
Also, Its $100 million purchase of Zoom shares almost doubled within just three days of purchase in 2019. In 2020, Salesforce’s 12% stake counted in the company’s IPO. And, nCino was the first investment made by Salesforce in 2014, and it is continuing to grow over the next few years.
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