Emergence Capital's Kevin Spain reports on Mobile Trends in 2015.

1. MOBILE ENTERPRISE
TRENDS
2015
Kevin Spain Ÿ September 8, 2015

2. § Mobile represents the next major technology
platform shift for businesses. Like the SaaS
platform shift, mobile will create tremendous
opportunities for enterprise-focused entrepreneurs.
§ We estimate that mobile enterprise will ultimately
represent an annual revenue opportunity for
entrepreneurs of at least $100 billion.
§ This report will review the current state of the
enterprise mobile market and will share our
predictions as to where this market is headed.
OVERVIEW

3. WHY MOBILE
MATTERS TO
ENTERPRISES

4. WHAT IS DRIVING GROWTH IN
MOBILE ENTERPRISE?
3
MORE MONEY FOR MOBILE
Enterprise spending on mobility-related technologies is expected
to more than double over the next five years.
1
WORKERS LOVE IT
Nearly half of workers state that their mobile device is very or
somewhat important for their work.
2
BYOD TAKES HOLD
Businesses are increasingly allowing workers to use their own
mobile devices for work. 74% of organizations have or plan to
have bring-your-own-device (BYOD) policies in place.
4
THERE’S AN APP FOR THAT
As mobile budgets grow, entrepreneurs are focusing more on
building mobile applications for business. As a result, there are
more apps available to solve a wide range of business challenges.
4
DYNAMICS
DRIVING
MOBILE
ENTERPRISE
GROWTH
SOURCE: Tech Pro Research, Pew Research Center, IDC

5. WHERE ARE
WE TODAY?

6. Native or web-based
mobile applications that
are: (a) used by
businesses and (b)
valuable to users in large
part because of their
mobile functionality.
These applications may
also have a desktop
interface.
MOBILE ECOSYSTEM:
APPLICATIONS & ENABLERS
APPLICATIONS ENABLERS
Technology solutions
that help mobile
application developers
do their jobs more
effectively.
&

7. § Emergence publishes a landscape of mobile
enterprise application companies annually
• Our 2015 mobile enterprise landscape includes 313
companies, up from 258 companies in 2014 and 95
companies in 2013.
• The landscape is segmented by key application categories,
both functional and industry-related.
§ The landscape is segmented by key application
categories, both functional and industry-related.
MOBILE ENTERPRISE
APPLICATIONS

8. H
O
R
I
Z
O
N
T
A
L
V
E
R
T
I
C
A
L BANKING GOVERNMENT
OTHER VERTICALSEDUCATION HEALTHCARE REAL ESTATE/CONSTRUCT.
RESTAURANTS
ACCOUNTING, FINANCE, ITSALES, MARKETING & SERVICE
PAYMENTS
HOSPITALITY
CONTENT COMMUNICATION TASK MANAGEMENT &
CALENDAR
MOBILE FORMS
EVENTS & CONTACTS
OrderAhead
HR & RECRUITNG BI & ANALYTICS
ACQUIRED
RETAIL
TRANSPORTATION
MANUFACTURING
MOBILE ENTERPRISE APPLICATIONS
LANDSCAPE 2015
KURADO
PRODUCTIVITY

9. § The number of mobile enterprise application
companies has grown by 20% in the last year
§ While this isn’t a high growth rate, it is similar to the early days
of SaaS when entrepreneurs were learning to capitalize on a
new platform and the pace of company creation was modest.
§ Industry-focused apps are playing a prominent role
§ Approximately 1/3 of the companies on the landscape focus on
specific industries. This is different from the early days of SaaS
when nearly all companies were cross-industry.
§ Early M&A has centered around productivity apps
• Microsoft has played a prominent role having acquired three
productivity-focused mobile enterprise companies to date
(6Wunderkinder, Sunrise, and Acompli).
MOBILE ENTERPRISE APPS:
LANDSCAPE TRENDS

10. WHERE ARE
WE TODAY?
EARLY STAGE MOBILE APP FUNDING HAS BEEN
INCREASING EVERY YEAR SINCE 2010, GIVING RISE TO
A HANDFUL OF LATER STAGE APPS WITH MASSIVE
GROWTH ROUNDS
SOURCE: Emergence analysis based on Crunchbase data
*”Early Stage” is defined as companies that have raised less than $50M total funding; “Late Stage” is defined as companies that have
raised more than $50M.
Dropbox $600,000,000
Box $544,000,000
Square $480,500,000
Slack $338,450,000
Evernote $181,250,000
ServiceMax $120,000,000
Doximity $81,800,000
Airstrip Technologies $65,000,000
LATE STAGE MOBILE APPS
FUNDING* TO-DATE
20
34
55
97
99
0
20
40
60
80
100
120
$-­‐
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
2010
2011
2012
2013
2014
#ofdeals
TotalAmountRaised(USD)
EARLY STAGE MOBILE APP FUNDING*
(2010-2014)

11. WHERE ARE
WE TODAY?
MOBILE ENTERPRISE APPS – TOTAL FUNDING BY CATEGORY
H
O
R
I
Z
O
N
T
A
L
V
E
R
T
I
C
A
L
OrderAhead
18 companies
$108M
38 companies
$216M
23 companies
$94M
10 companies
$54M
15 companies
$656M
19 companies
$1,407M
35 companies
$300M
32 companies
$90M
MANUFACTURING
4 companies
$30M
10 companies
$51M
7 companies
$49M
10 companies
$140M
10 companies
$92M
TRANSPORTATION
6 companies
$20M
HOSPITALITY
1 company
$9M
BANKING
3 companies
$8M
GOVERNMENT
CONTENT
43 companies
$622M
COMMUNICATION TASK MANAGEMENT
& CALENDAR
15 companies
$98M
MOBILE FORMS
7 companies
$25M
EVENTS & CONTACTS
12 companies
$75M
PRODUCTIVITY
ACCOUNTING, FINANCE, ITSALES, MARKETING & SERVICE
PAYMENTSHR & RECRUITING BI & ANALYTICS
OTHER VERTICALSEDUCATION HEALTHCARE REAL ESTATE/CONSTRUCT.
RESTAURANTS
RETAIL

12. § Early stage funding is taking off
§ Annual dollars invested in early stage mobile enterprise app
companies has grown at a CAGR of 38% over the last 5 years.
§ Several late stage breakout companies are
emerging
§ Beyond well-known names such as Box, Square, and Slack,
other companies such as Doximity and ServiceMax are
approaching “unicorn” status.
§ Several landscape categories have been
particularly appealing to investors
• Productivity app companies have been the largest recipients
of capital. Payments, healthcare, and sales/marketing have
also seen meaningful investor interest.
MOBILE ENTERPRISE APPS:
FUNDING TRENDS

13. § Emergence publishes a landscape of mobile
enterprise enabler companies annually
• Our first landscape was published this year and includes
220 companies.
§ The landscape is segmented by problems that
application developers are aiming to solve
§ Sometimes an enabler might help its customers solve
multiple problems. In this case, we show the enabler in
what we feel is its “primary” problem solving area.
MOBILE ENTERPRISE
ENABLERS

14. WHERE ARE
WE TODAY?
APPURL
Turnpike
Tapku
Babble-on
WireKit
API LAYER
DEVELOPMENT
USER ACQUISITION ENGAGEMENT MONETIZATION
MOBILE ENABLER LANDSCAPE 2015
APP DISCOVERY
APP LANDING PAGES
APP STORE OPTIMIZATION
APP STORE DATA & RESEARCH
A/B TESTING
ANALYTICS
NOTIFICATIONS
MOBILE MARKETING AUTOMATION
MARKETING ATTRIBUTION
MONETIZATION
DEEP LINKING
DEMO TOOLS
PAYMENT EMAIL
LOCALIZATION MOCKUP/PROTOTYPING
TELEPHONY
APP TESTING
FEEDBACK & SUPPORT
APP BUILDER
DEV PLATFORM
ACQUIRED

15. § Judging by the number of companies in each landscape
category, user engagement and development efficiency
are key pain points in mobile
§ Over half of the companies on the landscape are focused in these
two areas.
§ Acquisition activity has been heaviest in analytics
§ Many mobile analytics companies continue to emerge, which may
suggest app developers’ analytics needs are still evolving.
§ The user acquisition and monetization categories are
surprisingly uncrowded
• These are clearly areas of interest for app developers. Big problem
plus minimal competition could be opportunity for entrepreneurs.
MOBILE ENTERPRISE ENABLERS:
LANDSCAPE TRENDS

16. EARLY STAGE MOBILE ENABLERS SAW A STEP
FUNCTION INCREASE IN FUNDING FROM 2013 TO
2014, JUST ONE YEAR BEHIND MOBILE APPS
13
31
36
38
48
0
10
20
30
40
50
60
$-­‐
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
2010
2011
2012
2013
2014
#ofdeals
TotalAmountRaised(USD)
EARLY STAGE MOBILE ENABLER FUNDING*
(2010-2014)
SOURCE: Emergence analysis based on Crunchbase data
*”Early Stage” is defined as companies that have raised less than $50M total funding; “Late Stage” is defined as companies that have
raised more than $50M.
Stripe $190,000,000
Twilio $99,000,000
Optimizely $87,000,000
Xamarin $82,000,000
Applause $80,800,000
Zendesk $79,000,000
Appcelerator $78,100,000
Mixpanel $76,500,000
Quixey $74,200,000
Tapjoy $51,000,000
LATE STAGE MOBILE ENABLER
FUNDING TO-DATE*

17. PAYMENT
APP DISCOVERY
APP LANDING PAGES
ANALYTICS
APP STORE OPTIMIZATION
NOTIFICATIONS
MOBILE MARKETING
AUTOMATION
MARKETING ATTRIBUTION
MONETIZATION
DEEP LINKING
DEMO TOOLS
USER ACQUISITION ENGAGEMENT
FEEDBACK & SUPPORT
MONETIZATION
APP STORE DATA & RESEARCH
API LAYER
EMAILTELEPHONY
DEVELOPMENT
DEV PLATFORM
LOCALIZATION MOCKUP/PROTOTYPING
APP BUILDER
APP TESTING
32 companies
$395M
2 companies
$190M
5 companies
$237M
6 companies
$73M
8 companies
$192M
10 companies
$82M
16 companies
$152M
10 companies
$94M
10 companies
$96M
A/B TESTING
8 companies
$101M
11 companies
$100M
4 companies
$72M
11 companies
$111M
5 companies
$82M
11 companies
$80M
18 companies
$121M
17 companies
$91M
12 companies
$29M
4 companies
$1M
8 companies
$1M
13 companies
$107M
MOBILE ENABLERS 2015 – TOTAL FUNDING BY CATEGORY

18. § Early stage funding of mobile enterprise enablers is
accelerating
§ Dollars raised by enablers in 2014 nearly doubled from 2013.
§ Many of the later-stage enablers service both mobile
and web developers
§ This is unsurprising as many app companies have both mobile and
web-based interfaces to their applications. Additionally, many
leading enablers that started as web-only have added good mobile
capabilities to their offerings.
§ Analytics, deep linking, and telephony categories have
received the most funding
• Payments and development platforms have also seen heavy
investment.
MOBILE ENTERPRISE ENABLERS:
FUNDING TRENDS

19. WHAT’S NEXT?
PREDICTIONS & OPPORTUNITIES

20. Continued growth of “horizontal” mobile
apps, many focused on productivity
improvements.
WE PREDICT THREE AREAS OF
GROWTH FOR MOBILE ENTERPRISE
Expanding use of mobile apps for
non-desk workers, with a focus on
key verticals such as healthcare,
construction, and field service.
1
2
DESK
EXTENSION
DESKLESS
ENTERPRISE 3 GLOBAL
MOBILE
Adoption of mobile enterprise
applications in emerging markets
that are inherently mobile-first.
These applications will be some
of the first business apps used in
these markets.

21. PREDICTION:
GROWTH OF DESK EXTENSION APPS1
KEYS TO SUCCESS
EXAMPLE COMPANIES
§ Leveraging and blending mobile and
web, as the workers that use these
apps are deskbound at times and
mobile at others.
§ Utilizing mobile native access to
email, calendar, and contacts to
make integration with key data
sources easier, while enhancing
virality.
Continued adoption
of “horizontal” mobile
apps, many focused on
productivity
improvements. Nearly
all of the top 20 most
downloaded apps on our
landscape are
productivity-oriented.
*TOTAL
RAISED:
$3.7
BILLION
SOURCE: AppAnnie, Emergence analysis

22. PREDICTION:
GROWTH OF DESKLESS ENTERPRISE APPS2
KEYS TO SUCCESS
EXAMPLE COMPANIES
§ Deep domain expertise in an industry
that is dominated by deskless
workers.
§ Extraordinary focus on simple user
experience; Apps for deskless
workers must be easy to use in the
field.
§ Robust offline functionality so that
the app is functional when online
access isn’t possible.
Expanding use of
mobile apps for non-
desk workers, with a
focus on key verticals
such as healthcare,
construction, and field
service. Non-desk
workers represent 80%
of the global workforce.
*TOTAL
RAISED:
$855
MILLION

23. PREDICTION:
GROWTH OF ENTERPRISE APP USAGE IN
EMERGING ECONOMIES
3
Adoption of mobile
enterprise applications in
emerging markets that
are inherently mobile-
first. These applications
will be some of the first
business apps used in
these markets.
50% ASIA
PACIFIC
10% LATIN
AMERICA
10% MIDDLE EAST
+ AFRICA
% OF MOBILE ENABLED WORKERS IN 2020
SOURCE: Citrix, IDC, Emergence analysis

24. MOBILE ENTERPRISE
OPPORTUNITY: $100+ BILLION
X
3.0 BILLION
GLOBAL
WORKERS
$40+
PER WORKER
PER YEAR
*CLOUD
REVENUE
IN 2005:
<$500 MILLION
*MOBILE
ENTERPRISE
REVENUE TODAY:
<$500 MILLION
$100+ BILLION ANNUAL REVENUE
OPPORTUNITY
SOURCE: Emergence analysis

25. § Enterprises are shifting more IT budget to mobile
initiatives
§ In response, a growing number of entrepreneurs are
developing mobile enterprise applications that help
both desk workers and non-desk workers become
more productive
§ Growth in funding for mobile enterprise applications
and mobile enablers is growing rapidly
§ We are in the early innings of the mobile platform
shift in enterprise. Ultimately, the opportunity in
mobile enterprise applications is over $100 billion
annually.
SUMMARY

26. ABOUT EMERGENCE CAPITAL
@emergencecap
Emergence Capital Partners, based in San Mateo, Calif., is the leading venture capital
firm focused on early and growth-stage enterprise cloud companies. Its mission is to
invest in the cloud visionaries who are building the most important business applications.
The firm's investments include companies such as Salesforce.com (CRM), SuccessFactors
(acquired by SAP), Veeva Systems (VEEV), Yammer (acquired by Microsoft), and Box.
Emergence Capital has $910 million under management. More information on Emergence
Capital can be found at http://www.emcap.com.
Published by Kevin Spain, General Partner, Emergence Capital, @kevinspain
kspain@emcap.com
ABOUT EMERGENCE CAPITAL