In addition, it has been our experience that large family offices seeking to commit significant capital to the private equity asset class have found our awards publications helpful in identifying both established and rising investor talent. The individuals selected for the Top 25 Software Investors of are those who have demonstrated deep software sector expertise, high corporate strategic acumen, exceptional investment judgement, and consistent professional performance over a sustained period of time.
Former entrepreneur Alan Cline first joined leading software, data and technology-enabled investment-focused firm Vista Equity Partners in Alan was formerly general partner at Accretive, an innovative venture capital firm with a focus on high growth technology-enabled service companies. Prior to joining Vista Equity, Alan co-founded and served as general manager of internet-based movie ticketing business Fandango.
Alan received his bachelor of science in system engineering with distinction from the University of Virginia and his MBA from Stanford University. Software-focused investment professional Eli Weiss has been with middle market-focused private equity firm Genstar Capital since , when he joined the team as senior associate. Prolific investor Brian Chang has been with premier private equity firm Warburg Pincus since Before moving to Warburg Pincus, Brian was an investment banking analyst at Merrill Lynch in their media and telecommunications investment banking group.
Brian received his bachelor of science in electrical engineering with distinction as well as his MBA from Stanford University, where he was named an Arjay Miller Scholar. In his tenure as Managing Partner, he has been responsible for guiding investment strategy, serving on the board of directors for active portfolio companies and helping to oversee the firm.
Prior to Summit Partners, Scott worked on the investment team at private equity firm J. Whitney and in corporate finance at Alex. Scott holds a bachelor of science in industrial engineering as well as an MBA from Stanford University. Corporate technologist turned investor Greg Goldfarb joined leading growth equity investment firm Summit Partners in In his role as Managing Director, he works closely with companies across the technology sector with a particular focus on big data and analytics, enterprise applications, cloud computing, internet and electronic marketplace businesses, and mobility and security.
Software and internet investment specialist Rajeev Dham joined growth-stage technology venture capital firm Sapphire Ventures as a Managing Director in Rajeev divides his investment focus between SaaS businesses and innovative companies in the healthcare and financial technology sectors. During his tenure with Sapphire, he has played a role in over 20 investments and has sat on dozens of boards, including Catchpoint, Livongo, LeanData, Pendo, Outreach and Reltio.
Rajeev joined Sapphire Ventures from technology-focused private equity firm Silver Lake, where he specialized in middle-market and growth equity investments for the internet and software sectors. Before moving to private equity, he spent time in the investment banking division at Goldman Sachs. In addition to his investment activities, David plays a key role in recruiting, training and professional development at Bain Capital.
David Phillips joined leveraged buyout and growth equity-focused private investment firm Providence Equity in Software investor Brain Decker has been with technology-focused global private equity firm Francisco Partners since As a Partner, Brian focuses on investments within the infrastructure software and security sectors, with a current investment portfolio that includes BeyondTrust, K2, Perforce, Quest, Sandvine, Sectigo, SmartBear and Sonicwall.
He holds a master in engineering in electrical engineering from Cornell University as well as a bachelor of science with distinction in computer engineering from the University of Waterloo. London-based technology investor Jean-Baptiste Brian currently serves as a Partner at Hg, a middle market buyout-focused private equity firm operating primarily in Europe. He joined Hg in to work on technology-sector investments with a particular focus on SME and enterprise software.
He started his career at Morgan Stanley. Corporate development specialist turned technology investor Stephen Bailey joined multinational private equity and alternative asset management firm The Carlyle Group in Based in Washington, D. Earlier in his career, Dave was an executive vice president for corporate strategy and business development at McAfee, a general partner at Partech International and a vice president in corporate development for Portal Software.
Former corporate development technician John Brennan is a Managing Director and investment committee member at Sumeru Equity Partners, a middle market technology-focused private equity firm. Prior to Adobe, John was senior vice president of SMB segment operations with Hewlett-Packard and principal and associate partner of the electronics and high-tech practice at Accenture Strategic Services.
Technology investment banker turned investor Kapil Venkatachalam has been with technology-focused public, private and venture capital firm TCV since As a General Partner, Kapil focuses mainly on software and tech-enabled services investments, with security, analytics and vertical software being particular areas of interest. Before transitioning to the buy-side, Kapil was with Goldman Sachs, where he served as both a software investment banker and in the office of the CIO working on strategic application and infrastructure technology projects.
Kapil received his master of engineering management and master of science in electrical engineering from Dartmouth College, where he was a William F. May Fellow; he obtained his bachelor of engineering, electronics and telecommunications from the University of Madras in India. Former consultant and strategist J. Treadwell has been with middle market software, data and analytics-focused private equity firm STG Partners since It wouldn't be out of the question for the stock to continue making its way back to prior heights in due course.
Alteryx has made a transition from perpetual licenses to subscriptions, but new accounting rules give Alteryx's financial results another quirk that can mislead investors. Until now, Alteryx has primarily been deployed on-premises, not in the cloud, with lots of service performance obligations.
One can see how, as the company gets larger, that will start affecting revenue, as more and more contracts transition to the ratable portion of the contract. When that happens, revenue can decelerate or even decrease, just because of that accounting quirk. Furthermore, Alteryx has been moving more customers to shorter-duration but less discounted terms.
A one-year contract will recognize much less revenue up front than a three-year contract, even if the annualized revenue is higher for the one-year contract. Yet Alteryx's stock dipped after its recent earnings report, as it lowered its revenue guidance for the year. However, that was basically entirely due to its salesforce's focus on going after shorter-duration deals, which actually have a higher annual contract value than longer-term but more-discounted deals.
Notably, management didn't change its outlook for ARR, which is much more important in light of Alteryx's strange accounting. Alteryx is also working to transition its offerings from on-premises to the cloud, so there is some uncertainty around that transition as well. Yet the stock is so far below its highs, it's probably incorporating difficulties into the price. Given its discounted stock, it's another bargain-priced software stock with a positive future to be had in the market today.
Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Average returns of all recommendations since inception. Cost basis and return based on previous market day close. Investing Best Accounts. Stock Market Basics. Stock Market. There is a financial website that makes these calculations, and many others. They report that Coupa is at Software executives and many in the financial community argue that Generally Accepted Accounting Principles GAAP used in reporting revenues, tell an incomplete store for digital firms.
GAAP, they argue, makes perfect sense for companies that deliver physical goods to customers. Commonly used non-GAAP financial measures include earnings before earnings before interest, taxes, depreciation, and amortization EBITDA , free cash flows, core earnings, and funds from operations. Non-GAAP earnings can, however, be misleading.
One can view high debt as something that a high growth company will find easier and easier to deal with as they grow. For a growing company selling in the software as a service model, the revenues build year after year because these are multiyear contracts. This is like the experience many people who buy houses have; it gets easier to afford the mortgage payments as the owner gets raises but their payments stay the same.
In addition to non-GAAP methods of calculating profit and loss, companies also frequently provide other metrics to the financial community as core success metrics. For Coupa, a key success measure they share with investors is the growth in spend under management.
It is understandable that a company might be hesitant to do business with an enterprise software company losing large amounts of money quarter after quarter and year after year. However, those that understand the Rule of 40 understand that some of these companies are not nearly as risky as they appear. This is a BETA experience. You may opt-out by clicking here. More From Forbes.
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