DRAUP BrainDesk Technology Spending Patterns of the Bn ... · G500 technology spenders, VC partners...

Technology Spending Patterns of the Bn dollar valued organizationsJULY 2017

2Source : DRAUP

Total Funded Start-ups analysed

~30,000Founded after 2003

FILTERED – USD Billion dollar plus valuation companies

Sources: DRAUP Platform (Engineering module, Start-up module, Fortune 500 module, Ecosystem module and Talent module )

Other Sources: a16z, Greylock Partners, Forbes , Wall Street Journal, New York Times

Private Unicorns

224*companies

DRAUP has built a list of 224 Unicorns. Analysing 16+ sectors and 30,000+ unique funded start-ups. These companies founded since 2003 were tagged in our platform with all the relevant details including funding investors, market etc..We shortlisted most promising 224 companies across sectors with highest private market valuation.

*Excluding 28 Unicorns which have IPO’ed & 34 Unicorns which got acquired since 2003

Research Tracks

DRAUP followed a rigorous and structured research approach to analyse 224 private companies with a valuation of greater than 1 Billion USD

Key Inputs

Methodology

With Digital stake-holders across G500 technology spenders, VC partners and start-up founders

30+ Primary Interviews 16+ Industry Verticals

120+ hours of research Spread across primary interview, secondary data collection, consolidation and analysis

20 Research ReportsValidated data from Bloomberg, Reuters, CrunchBase, a16z, WSJ and others

70+ Marquee InvestorsInvested in Unicorns including angels, institutional investors and Public market large funds

1050+ Investment RoundsRaised by Unicorns across various growth stages such as early stage, mid-stage and late stage

Largely dominated by e-commerce, enterprise software, travel-tech, fintech and social

Note: DRAUP has a database of 100,000+ start-ups as of May, 2017. The dataset is compiled using proprietary machine learning algorithms along with human curation to verify company information. The platform is updated in real time and analysed on a quarterly basis.

3Source : DRAUP

Objective

Key Questions Answered

Key Takeaway

§ Analyse landscape of Billon Dollar Valuation start-ups –Referred as Unicorns

§ Understand the technology spending patterns of Unicorns

§ What is the current Unicorn Landscape and how has it evolved ?

§ How much do the unicorns spend on technology and what are the typical spend areas?

§ How does the technology spending distributed across industries and geographies?

§ How does the spending change with scale and size of Unicorns?

§ How does Unicorns build technology capabilities as they scale?

§ Who are the decision makers in Unicorns and how are the responsibilities distributed?

§ Are unicorns a viable segment for technology service and solution providers to target?

Objective

Key Questions Answered

Objective

4Source : DRAUP

Global Unicorns Landscape01

Unicorn’s Technology Spend Analysis02

• Historical viewpoint on billion dollar valued companies

• Unicorns growth patterns during last 5 years

• Unicorns landscape : Geography foot print and top companies

• Top Industry Verticals where Unicorns are formed

• Top VCs and other Non traditional Investors who are leading investment in Unicorns

AGENDA

5

Source : DRAUP

History has shown that technological innovations have given birth to Unicorn companies. The phenomenon has reached its peak in the recent years

1960 1970 1980 1990 20102000 Present

Semiconductor

PersonalComputers

Networking

Internet

Social Networks

Microsoft fetched a 6X multiple when it went public in 1986, at a market cap of $778 million

The 1990s gave birth to Google, currently worth nearly 3x Facebook; and Amazon, worth ~ $160 billion

Cisco became the most valuable company during the heights of dot-com bubble with market cap ~ $500 billion

Facebook priced the third largest IPO in US history, in 2012, with a pre IPO valuation of $104 billion, raised $16 billion.

Intel raised $6.8 million through IPO in 1973, and reached a market cap ~ $1.7 billion in 1980

Source: DRAUP Engineering Module – Includes companies across major geographies such as US, Canada, Israel, Europe, China and India. Coverage may be limited in China and other south east APAC regions

6Source : DRAUP

Unicorns are no more mythical and rare companies now-They are plenty in the ecosystem and creating a massive impact

Note: List above is non-exhaustiveSource- DRAUP Start-up Module. Our proprietary algorithms track start-up activities such as VC funding, M&A, IPO, Leadership change etc. The list above is updated as of May, 2017

224Unicorns

RAISED REACHED

~724Billion USD

~128Billion USD

CREATEDMARKET VALUATIONINVESTMENTS JOBS

~350K

7Source : DRAUP

Unicorns have disrupted many traditional industries as a result of Global user base, Optimizations in technology product development and a change in customer mindset to adapt to new products

Source- WSJ, NASDAQ Listing, DRAUP Start-ups Module (Includes start-ups across major geographies such as US, Canada, Israel, Europe, China and India. Coverage may be limited in China and other south east APAC regions)

Uber Airbnb WhatsApp‘A competitor’ with just a team of 50 engineers disrupted the telecom industry in less than 4

years

500 MNGlobal Users

2013 2016

982 MN

Loss in SMS revenues

$7.5 Billion

2.6 XDelta

2013 2016Loss in SMS

revenues

$20 Billion

Airbnb has disrupted NYC lodging industry and NYC economy

NYC LODGING MARKET

2014-2015

Revenue loss for NYC lodging industry

Jobs lostinvolving hotel operations, room service etc.

Lost tax revenues annually for local, state and federal governments.

$2.1bn

2800

$226mn

US TAXI industry has been hammered by an “Uber Effect,” with stock price down by nearly

49%

NYC Taxi Medallions

0

10

20

30

40

50

60

$258 mnSeries C

Uber

Val

uatio

n ($

bn)

Medallions Stock price

UBER Valuation

$1.2 bnSeries D

$1.2 bn Series E

$1 bn Series F

Jul 2013Oct 2013Jan 2014Apr 2014Jul 2014Oct 2014Jan 2015Apr 2015Jul 2015

8Source : DRAUP

Unicorns have been increasing significantly with their number growing by 230% over last two years….

>77% of VC funds have been raised in last 3 years

2009 2010 2011 2012 2013 2014 2015 2016 2017Cumulative Unicorns

$16.1

$26.8 $31.3

$46.8

$79.0

$111.7

$125.6

22453 95443930 22318126YTD*

~14.7Billion USD

~128Billion USD

Cumulative Funding x

34 acquired & 28 IPO’ed

Highest Exits in Social & Enterprise Software

5 Exits

11 Exits

12 Exits

18 Exits

Source- DRAUP Start-up Module. The list above is updated as of May, 2017 Note: No inflation assumed (all values in 2017 USD). Funding details are updated with nearly 70% accuracy

9Source : DRAUP

…And they have not been restricted to a particular geography or industry

Geographies

~$62bn ~$11bn~$40.5bn ~$3bn

Investment by Verticals

Travel tech

~$26bnEcommerce/Marketplace

~$17bn ~$14bnEnterprise Software HealthcareFintech

~$7bn~$12bn

Who is Investing?

>15 Unicorns 10-15 Unicorns <5 Unicorns

SV Angel, Sequoia, Tiger Global, KPCB, Goldman Sachs, Tencent Holding

Accel Partners, IVP, NEA, Google Ventures Microsoft, Didi, Red point

TOP INVESTORS

Source- DRAUP Start-up Module. The list above is updated as of May, 2017 Note: Primary locations of analysis include North America, UK and India. Hence coverage may be restricted in other locations. Funding details are updated with nearly 70% accuracy

10Source : DRAUP

Israel

UK

14

23

Germany

Canada

South Korea

26

Singapore

26%

5%

3%

2%

4%

2%

1%

51%

Emerging across the global technology hubs; Brazil, Indonesia and Nigeria have joined the Unicorns club in 2017

USAChina

India

Sweden% Unicorns distributionby HQ location

1%

1%Russia

1%

1%

Brazil

Nigeria

1% Japan

1% Indonesia

X%

2242017Number of

Unicorns till date

• Fastest growing internet market• Hotspots like Bangalore and Shanghai have

mature start-up ecosystem

• Mature start-up ecosystem focussed on technology innovations in Bay Area

• Large enterprise drivers : Facebook, Google, Microsoft, Apple and Amazon have scaled R&D presence

• Large Financing options from institutional investors

• Israel and UK are top hotbeds for start-ups and universities with high focus on emerging technology focus such as Cyber Security and Big Data

France

1%

2%

*63% of the Unicorns which have been established in last 5 years are outside US

Source- DRAUP Start-up Module. The list above is updated as of May, 2017

Note: 1% represents maximum 2 Unicorns in a location; Unicorns such as Africa Internet Group in Nigeria, Gojek in Indonesia, Decolar in Brazil and Mercari in Japan are the only companies headquartered from respective locations

11Source : DRAUP

…And not limited to just being Unicorns- Scaling to Pentacorns and Decacorns

Source- DRAUP Start-up. The list above is updated as of May, 2017

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

Curr

ent V

alua

tion

($bn

)

~43%

$720.0 bn>$10bn $2bn - $10bn <2bn

ü 14 decacorns as of 2017 Facebook was the only one in 2013

ü 8 of these decacorns are headquartered in US. 5 from China and 1 from India

ü E-commerce and Enterprise Software have 3 decacorns each, while Travel-tech has 2

~23%

(14) (64) (143)~x% % of total valuation in the range(x) Number of unicorns in the range

~34%

12Source : DRAUP

Global Unicorns Landscape01

Unicorn’s Technology Spend Analysis02

§ Unicorn’s Technology spending analysis across following

dimensions

- Product development and Infrastructure spend

- Geography wise tech-spend distribution

- Emerging and traditional tech-spend areas by verticals

- Potential executive buyers in Unicorns

§ Challenges and collaboration opportunities with Unicorns

13Source : DRAUP

Methodology for calculating Unicorns technology spend

Methodology

Technology Spend Analysis of

Analysis Tracks

224 private Unicorns

Addressable market for Unicorns technology

spending?

What is the addressable spend across different target segments?

Objective

30+ Primary Interviews with CXOs and Technology

Experts from the Hi-tech, VC & start-up community

50+ IPO Unicorns analyzed across industry verticals

founded during past 5 years

Methodology

Breadth of Activities

Product Development (PD)

Spend

Infrastructure & Support (IS)

Spend

Source: DRAUP Methodology

14Source : DRAUP

DRAUP analysed technology spending of Unicorns across four key dimensions

Methodology

4 LENSES OF ANALYSIS

Potential buyers and Decision Makers

Industry Deep Dive3.

4.Geography Footprint

PD* & IS* activities 1.

2.

*Product Development & *Infrastructure & Support


15Source : DRAUP15

What is the technology spend and how it is distributed?Distribution of technology spend by product development & infrastructure support areas

ExecutiveIndustry Deep Dive

Geography Footprint

PD and IS activities

16

Source : DRAUPNote : 1) *Spending includes both employee compensation and related expenses, as well as allocated overhead on infrastructure, devices and tools2) Non-Tech spend are not included in AnalysisSource: DRAUP Methodology

Operating Cost breakup: For the analysis the technology spend has been categorised across three segment: Product Development and Infrastructure & Support

16

1Product Development (PD) spend*:• Distributed across product development lifecycle such as design, prototype, development, Q/A and support activities• Typical technology spend areas are AI, Design & Experience, Bigdata and Mobility• Also includes spend on scaling platforms, adding enterprise features, functionality and enhancing the ease of use of cloud-based services

2

3

Infrastructure Support (IS)Spend*: Majorly consists of Cloud infrastructure hosting, IT Procurement and digital IT spend on business function• IT Procurement: Leasing and hosting cost on Cloud enterprise servers, storage, personal hardware and software licensing• Also includes spending on digital marketing platforms such as CRM, analytics, customer support and sales enablement functions

Other Non-tech Spend:• Expenses incurred by other business functions including personnel-related costs for business functions like operations, marketing, sales etc.

Also include costs incurred for indirect advertising, market research, tradeshows, branding, marketing, promotional expense, and publicrelations.

• Cost incurred on BPO and General and Administrative expenses

Methodology

Not included in the analysis

17Source : DRAUP

DRAUP evaluated 50+ previous, current and exited Unicorn companies to arrive at technology spend analysis

Note: 1) Figures are average spend as percentage of operating cost; 2) Non-tech spend includes spending on marketing, sales, BPO and customer support operations;3) Non-tech spend are not included in the analysis; 4) Figures are rounded off , therefore might not add up to 100%Source: DRAUP Methodology

Insights

Majority of the operating cost comprises of Non-tech activities like marketing, BPO, delivery executives and customer support salaries

Majority of spend across both product development focused on user experience and cloud infra to process massive amount user generated dataset

Non-tech spending such as driver salaries, incentives, marketing, BPO work and managing partnership takes a large share of operating costs

Enterprise Software

E-Commerce

Social

TravelTech

FinTech

Consumer electronics

HealthTech

Industry vertical Product Development Infrastructure Support Other Non-tech Spend

Technology spend areas considered for the analysis

Technology spend is majorly on Product development. Infrastructure spend includes salaries, infrastructure hosting and depreciation cost

Infrastructure spend on hardware ,software technologies cost along with their maintenance cost takes large share of technology spend

Infrastructure spend includes depreciation of servers and equipment, security services and other tools, as well as amortization of acquired technology.

Technology spend is majorly on Product development such as digital payments. Infrastructure spend comprises of cloud platforms to process large transactions and active security requirement

30-35% 15-20% 35-40%

10-15% 15-20% 65-70%

25-30% 20-25% 35-40%

10-15% 20-25% 65-70%

35-40% 20-25% 25-30%

20-25% 25-30% 25-30%

10-15% 35-40% 35-40%

Methodology

18Source : DRAUP

Unicorns technology Spend reached USD 32 Billion in 2016; with Infrastructure Support spending contributing ~53%

Note* : Spending includes both employee compensation and related expenses, as well as allocated overhead on infrastructure, devices and toolsSource: DRAUP Methodology

Global UnicornsTechnology spend reached

USD ~32 Billionin 2016

USD

~17Billion

Product Development (PD)

Spend

USD

~15Billion

Infrastructure Support (IS)Spend*: Majorly consists of IT Procurement and Business functional digital IT spend

Infrastructure Support (IS)

Spend

Product Development (PD) spend* PDLC spend on product design, development, Q/A and support activities. Typical technologies are AI, Design & User Experience, Bigdata and Mobility


Geography Footprint


19

Source : DRAUP

~55% of technology spending is distributed across Mobile, Bigdata and cloud infrastructure

Product development - ~$15 bn

AI Design & Experience Mobile Data Engineering

Bigdata platforms to understand customer behaviour across multiple channels such as transactions, social, mobile and web

High focus on application developed for mobile operating systems from Apple, Android, and others• Mobile app design and development• API & Integration, mobile testing SDKs

and platforms• Mobile collaboration tools

User interface design for easy navigation though products and services:• Conversational UI• Adaptive and Reactive UI

AI technologies to feed right information into existing products and services:• Product Personalisation (AI, analytics

and mobile) • Intelligent Chatbots;• Voice recognition

10-15% 20-30%

• Platforms to measure device performance, server performance,

• Devops platforms to monitor infrastructure & support collaboration between dev and operations team

• Digital tech spend across Business functions such as Marketing automation, Sale Enablement and Customer Support solutions

Infrastructure Support - ~$17bn

Cloud Infrastructure Data Management Platform Security

Security solutions to measure vulnerabilities across network, endpoints, access, applications, and cloud. For example:• Biometrics and Identity Management• Monitoring web traffic for optimum

shopping experience

Data integration and analytics platform to scale existing products/services and ensure seamless connectivity across multiple channels such as smartphones, web and social for engaging customers across multiple touchpoints

Scaling cloud infrastructure through cloud platforms and services • Amazon Web Services;• Microsoft Azure;• Google Cloud Platform.

40-45% 10-15% 15-20%20-25%

10-20% 25-30%

Network and other digital spend

ExecutiveIndustry

Deep DiveGeography Footprint


Note:- Figures are derived basis analysis of 50 IPO companies and primary interview insights from digital stakeholdersSource: DRAUP Methodology

20Source : DRAUP

E-commerce and TravelTech verticals have high spend on Infrastructure Support in contrast to enterprise software and consumer electronics

Note:- Numbers are derived basis analysis of 50 IPO companies across verticals and primary interview insights from digital stakeholdersSource: DRAUP Methodology


Geography Footprint


0

10

20

30

40

50

60

70

80

90

100

0 10 20 30 40 50 60 70 80 90 100

Infra

stru

ctur

e sp

end

dist

ribut

ion

inde

x

Product development spend distribution index

Product development and Infrastructure spend (by Industry)

ü Enterprise Software, Bigdata and Social Unicorns have high

Product development spend

ü Large Product development spend is attributed to IP creation leveraging high end skills in design, development and data

science

2

ü E-Commerce, TravelTech & Health Tech upwards of 50% of

total technology spend on Infrastructure supportü Infrastructure spending is attributed to large number of

customer transactions and active security requirements

across multiple touchpoints

ü Product development spend is distributed across creating

personalised experience and improving usability (Analytics, ML)

1

Very Low MediumLow High Very HighVe

ry Lo

wM

ediu

mLo

wHi

ghVe

ry H

ighKEY INSIGHTS

A

E-Commerce

Hardware/Consumer ElectronicsBigData/Cyber Security

HealthTech

AdTech

TravelTech

SocialFinTech

Media &Entertainment Enterprise software

Note: Distribution index of technology spend across verticals.0 – Minimum spend100- Maximum spend

Min. Spend

Max. Spend

Min. Spend

Max. Spend

21

Source : DRAUP

Among the 100 companies studied as part of deep dive, Uber (Traveltech) and Palantir (Enterprise) have the widest spend areas

Note:- Numbers are derived basis analysis of 50 IPO companies across verticals and primary interview insights from digital stakeholders


ExecutiveIndustry

Deep Dive

Geography

Footprint

PD and IS

activities

0

10

20

30

40

50

60

70

80

90

100

0 10 20 30 40 50 60 70 80 90 100

Infr

astr

uctu

re S

pend

Dis

trib

utio

n In

dex

Product Engineering Spend Distribution Index

Very

Low

Med

ium

Low

Hig

hVe

ry H

igh

Enterprise Software/Big Data TravelTech Fintech

Product development and Infrastructure Spend (by company)

E-Commerce

Uber

GrabTaxi

Didi Chuxing

Lyft

Ola

BlaBlaCar

Lu.com

StripePayTm

Credit KarmaMozidoZenefits

China Internet Plus Holding

Flipkart

Coupang

ContextLogic

VANCLHouzzAvito.ru

HellofreshBlue ApronWeiying

Quikr InforDropBox

Slack

Cainiao-LogisticsDocuSign

MuleSoftPivotalGitHub

Palantir Technologies

ClouderaSocial Finance

Fanatics

Very Low MediumLow High Very High0 – Minimum spend

100- Maximum spend

B

22Source : DRAUP

CASE IN POINT: Airbnb developed capabilities through integration and acquisitions during growth stage; Since 2013 it has been investing in-house to develop core capability & also open sourcing its ecosystem to scale

Source: Airbnb blogs and Crunchbase

0

5

10

15

20

25

2009 2010 2011 2012 2013 2014 2015

Valu

atio

n ($

bn)

Airbnb

Building capabilities on 3rd Party Applications Acquiring capabilities Bringing capabilities

in-houseOpen-sourcing existing

capabilities to scale

Airbnb hosted on AWSstorage cloud

Backend server

infrastructure supported

by nginx

Integrated Braintree:

payment provider in US

Added search and discovery feature for 35k

listings of diverse properties

Developed an open source framework, AirMapView, which

supports multiple native map providers

Integrated Twilio to automate

mobile communication between

rental hosts and potential guests

Acquired LocalMind for local

recommendations and host

guides

Airbnb has been taking promising steps

for enterprise offering through its

business travel platform

Acquired Fondu for reviews

about places to eat and

drink

Acquired Nabewise as

neighbourhood discovery

platform.


Geography Footprint


23Source : DRAUP

CASE IN POINT: Unicorns have acquired many solutions to bring partner’s key capabilities in-house to scale…

Note: List above is non-exhaustiveSource- DRAUP Start-up Module. Our proprietary algorithms track start-up activities such as VC funding, M&A, IPO, leadership change from websites such as Crunchbase, WSJ, Bloomberg etc. The acquisition tracked here are from last 7 years. The list above is updated as of May, 2017 .

ExecutiveIndustry

Deep DiveGeography Footprint


8

14

15

19

23

Product Development

- Cloud Migration - In-app 3D content sharing and creation platform

- Photo-sharing company- Customized Storage for media content

- Cloud-first supply chain management platform

- Integrated predictive customer analytics for retailers and brands

- Machine Learning based background checks for identity verification

- Location-based Q&A platform for nearby places

- Full service villa rental company

-Human-powered search engine

- Digital Payments

- Database platform across Tier-1 cities for logistic and inventory distribution

-India’s largest Fashion aggregator

Infrastructure Support Total tech acquisitions

24Source : DRAUP

CASE IN POINT : ….and have high focus on building critical assets in-house

Source: DRAUP

Other Sources include Business Insider, VB Journal

Potential opportunity for solution providers to offer platform integration and cloud migration solutions as Unicorns invest in bringing R&D in-house

Uber has shifted from Google maps and brought its mapping services in-house in 2016. Its planning to create its own detailed maps for traffic

patterns, pickup location etc. for its autonomous car project

USD 0.5 BillionTo be spend on its global

mapping project

Cloudera plans to build out the necessary data centre infrastructure in-house for new cloud services that the company could then customize to

customers

USD 1 BillionTo be spend on building

cloud service

Dropbox is spending heavily on custom-build cloud infrastructure to

customize its cloud services in mobility, IoT security etc for users. It is

building its own hardware and software for the infrastructure, and plans

to reduce networking costs by ~50%

UndisclosedCustomized cloud storage

solutions


Geography Footprint


25Source : DRAUP25


Geography Footprint


What is the geography wise technology spend distribution ?Global hubs for new age engineering skills and technology focus in each location

26Source : DRAUP

27%

34%

35%

Unicorns Technology Spend by HQ

Europe

Asia 24%

62%

14%

Technology Spending of Unicorns is consolidated in

headquarter locations largely due to limited global engineering presence

~$ 32 bn USD

~85% of tech-spending is consolidated between Unicorns headquartered in North America and Asia


Geography Footprint


North America

Note:-. Coverage may be limited in China and Japan, Analysis till May, 2017Source: DRAUP Methodology

27

Source : DRAUP

Investment into new age skills such as AI, Bigdata and Security are common theme across global hotspots

Note:-. Remaining tech spend is distributed across Unicorns in other locations in US (New York, Seattle etc). Coverage may be limited in China and JapanSource: DRAUP Methodology

ExecutiveIndustry

Deep Dive

Geography

Footprint

PD and IS

activities

IsraelInfinidata and Conduit are enterprise software Unicorns.

Technology spend areas are cloud security and predictive

analytics for IT performance and monitoring solutions

IndiaUnicorns like Flipkart and Ola have high engineering focus on

improving customer experience /personalisation across web and

mobile channels leveraging data science and ML skills

SingaporeSingapore has 2 Unicorns: GrabTaxi and Garena. Grabtaxi has

technology spending across mapping, GPS and data driven

navigation for fleet management

XXSkill

Availability

YY Technology Spend

2016

X% Percentage New

age tech spend

HOT SKILLS: AIà Artificial Intelligence, SECà Security, MOBà Mobility, BD à Big Data

40%SEC BD AI 15% 30%MOB AI SEC

$1-2 bn40%

50%BD 20%AI 15%MOB 15%SEC

$ 0.1-0.3 bn50%

XX%

$1-2 bn60%

MOB BD 30%

Bay AreaHub for new age engineering in areas such as AI and Data

Science. Unicorns such as Uber, Airbnb, Dropbox have core

engineering teams leveraging AI/ML skills across product design,

development and customer experience

UKMajority of Unicorns are from Healthcare sector such as

BenevolentAI and Oxford Nanopore technologies have high

engineering spending in areas such as biomedical data analysis

and Cloud infrastructure management

ChinaB2C aggregators and marketplace players have high engineering

spend on data driven product engineering. High focus on AI and

Data Science to improve customer experience across multiple

online channels

50%AI BD 10%MOB 10%SEC

40%

40%BD AI MOB SEC

50%

40%AI 30% 20%MOB 10%SEC

$16-18 bn$ 0.5 - 1 bn

$ 4-5 bn

30% 30% 20% 10% BD

20% 20%20% 25%

Geography wise technology spending pattern of Unicorns

65%

Bay AreaUK

China

SingaporeIndiaIsrael

28Source : DRAUP

CASE IN POINT (Bay Area): The hubs of large Unicorns are restricted to Bay Area which they are leveraging for new age capabilities

Note: Numbers above are rounded off, therefore they might not add up to 100%Source: DRAUP Methodology


Geography Footprint


Technology spend in Bay Area

Big Data AI Design & Experience Security Mobile

31% 22% 15% 4% 28%

30% 21% 17% 4% 28%

37% 4% 18% 7% 35%

28% 15% 18% 8% 31%

30% 6%13% 31%20%

Uber is ranked as the 8th largest employer in San Francisco. This office has and Advanced Technologies group is comprised of Uber’s self-driving engineering team.

Stripe operates in 25 countries but has ~ 61% of engineering team in Bay area.

Engineering team scaled to 550+ from 40 in 2013. San Francisco team is working on multiple functions including Data Science, Security, mobile etc.

The San Francisco-based company, and is currently applying sophisticated machine learning to the problem of identifying what’s in all those images.

Since launching Magic Pocket last year, Dropbox has been storing and serving more than 90 percent of their users’ data on their own custom-built infrastructure

~ $400 Million

~ $220 Million

~ $170 Million

~ $80 Million

~ $50 Million

29Source : DRAUP

CASE IN POINT (Stripe) Stripe engineering capability is restricted to US, however it has adopted a globally distributed IT/Support structure in non HQ locations

Source: DRAUP Engineering Module


Geography Footprint


Key Highlights

#IT/ Support HC: 200 - 300

# IT/ Support Centers: 10USA : 30 - 503

UK: 25 - 35 1

Japan: 20 - 40 1

Ireland: 80 - 1001

France: 10 - 20 1

Singapore: 20 - 30 1

Canada: 20 - 402

Seattle: 30 - 501

San Francisco: 130 - 200 . 1

2

Region: Headcount

#EngineeringCentres

10

Region: Headcount

#IT Centres

Engineering Centre location Key Activities Headcount

USASan Francisco

• Development of Stripe API and Machine Learning. Development of Payment Infrastructure, adding features to the Stripe API, big data, security, and services.

130-200

USASeattle

• Development of software testing/ QA solutions 30-50

30Source : DRAUP30

What are the emerging and traditional spend priorities?Deep dive on traditional and emerging technology areas in E-commerce, TravelTech, Enterprise Software and Fintech Unicorns


Geography Footprint


31Source : DRAUP

Industry wise technology spending landscape: eCommerce vertical has the highest technology spend reaching ~$8 bn USD in 2016

Note: Numbers above are rounded off, therefore they might not add up to 100%Source: DRAUP Methodology


Geography Footprint


15

17

Overall

Infrastructure Support Spend

ProductDevelopment

Spend

~$32 Bn

3.50

1.47 1.38 1.23 1.21 1.10 1.23 0.820.18 0.39

4.50

1.651.10 1.11 1.09 0.92 0.95

0.710.63 0.36

eCommerce

TravelTech

Hardware

/Electronics

Enterprise S

oftware

Media & Entertainment

Fintech

BigData/Cyber S

ecurity

Social

Healthcare

Adtech

Product Development Infrastructure Support

8.0

2.7 2.22.0

3.12.2

2.1

0.81 0.68

1.53

x Total Technology spend for the vertical ($bn)

*All figures in $bn

~$ bn

~$ bn

32Source : DRAUP

Fintech: RPA, Blockchain and Robo Advisors are emerging spend areas


Geography Footprint


Mobile Payments Blockchain

Biometric Identity ManagementBiometric Identification through Iris Scanners, face & voice recognition and fingerprint identification

Blockchain to reduce infrastructure costs for cross-border payments, securities trading and regulatory compliance

RPA systems to scale business processes using rule-based decision trees for shorter transaction times for customers

Fraud detection using MLPattern recognition to identify potentially fraudulent transactions in real time

Alternative Credit ScoringCombining Quantitative customer data with qualitative concepts like -behaviour, willingness, ability, etc for credit scoring

Cloud MigrationHybrid cloud services to ensure both privacy and security compliance as well as to enable microservices such as P2P lending, mobile payments, blockchain etc.

Analytics Platforms to track transactionData pipeline tools which allows user to pull customer information in real time such as transactions, demographics etc

Mobile Wallets and Mobile based merchant payment solutions

Robo-AdvisorsUses machine learning to automatically move users’ money around based on the best rates available at any given time.

Peer-to-peer lendingPractice of lending money to individuals or businesses through online services that match lenders with borrowers

Traditional Spend Areas New Age Spend Areas

RPA


33Source : DRAUP

E-Commerce: Conversational UI, IoT Platforms and Beacons are emerging spend areas


Geography Footprint


Supply chain analytics Conversational Commerce

IoT platforms

Voice-activated AssistantsVoice based personalised shopping assistance, for customer retention and better consumer experience

Chatbots offers personalised shopping assistantConversational UI for customer support and m-commerce

Helps in tracking and monitoring the shipments in transit, in real time and enhance customer satisfaction by tracking delivery.

Data IntegrationBack end system to help keep track of inventory and order fulfilment

Cloud SecurityMonitoring web traffic for optimum shopping experience, investigate malicious behaviour and identify suspicious bot crawling activity

Predictive Analytics platformsDifferentiated customer experience via segmentation, targeting, journey mapping by measuring multiple customer touchpoints.

Big DataBig Data supports dynamic pricing & track customer journeyInsights on customer behaviour to offer personalized solutions

Optimising logistics across smaller stores, local drop off points via real time fleet analytics tools

Beacons TechnologyPush alerts and messages to customer regarding brand promotions, products offers and personalised notifications

Memory MirrorProvides 360-degree back and side views of new outfits, using few recorded body gestures



34

Source : DRAUP

TravelTech: In-vehicle analytics, self-driving and mobility management platform are emerging spend areas

ExecutiveIndustry

Deep Dive

Geography

Footprint

PD and IS

activities

Fleet Analytics In-vehicle customer Experience

Network Management Platforms

Autonomous car platforms Cloud platform for the operation optimization of autonomous

vehicle fleets

Mobile chatbots for ride booking, infotainment and in vehicle

customer support to drive better customer experience and

engagement

To ensure seamless connectivity across multiple channels such as

smartphones, web and social to remain actively engaged with fleet

and customers

Real Time MappingComputer vision for 3D maps and ML for dynamic route

suggestions. Predicting daily routes using core mobile applications

Hybrid Cloud ModelInvestment in multiple cloud data centre providers to ensure

continuous business operations

Real Time Monitoring PlatformsDetects anomaly in fleet operations by examining incoming metrics

and comparing to historical data

Fraud DetectionEnd point security solutions for real-time ID Check through facial

recognition to ensure safety of riders

GPS fleet tracking, details related to driver activity and

performance helping drivers achieve maximum performance

and efficiency

Beacons based vehicle monitoringProximity beacons and other forms of indoor location sensors

provides information about how people travel improving flow

as well as forecast

Head up displays(HUD)Empowers technicians and experts in other locations to assist

though photos or real time video



35Source : DRAUP

Enterprise Software: Chatbots, CRM automation and Cognitive services APIs are emerging spend areas



Geography Footprint


Big Data Chatbots for workforce communication

CRM automation tools

IoT PlatformsIntegration platform to collect customer interactions to across various devises such as mobile, web, smart -sensors and network-captured data

Messaging platforms like Slack have high engineering focus on internal chat bots for enterprises and developing chatbot frameworks

Intelligence chat bots and analytical platforms on top of legacy CRM solutions leveraging AI algorithms for data-driven decision making and business process transformation

User Interface DesignHigh spending on UX Designers for interaction design and visual design to help developers translate the concept to final products

Network PerformanceTools to measure device performance, server performance, log, audit, and status data from enterprise server deployments

Security & Risk ManagementSecurity solutions to measure vulnerabilities across network, endpoints, access, applications, and cloud

Hybrid CloudSpending on tools to enable users to seamlessly extend workload migration across multiple cloud platforms with zero downtime

Integrating enterprise data, customer and other stakeholders data across multiple channels such as social, mobile etc for data driven decision

Augmented realityEmerging use cases of AR such as streamlining the Configure, Price, Quote (CPQ) and Quote-To-Cash (QTC) operations

Cognitive Services APIsArtificial intelligence algorithms for vision, speech, language, and knowledge to build more personalised apps


36Source : DRAUP36


Geography Footprint


How is the decision making structured in Unicorns ?Executive analysis by scale & size of Unicorns. Analysis of diverse roles and responsibilities by different industry verticals

37Source : DRAUP

As Unicorns scale, decision makers become more distributed with diverse roles and ownership (1/2)



Geography Footprint


Size of the bubble indicates executive’s ownership and responsibilities at a particular level

Democratisation of decision making with Unicorn progression

VCsCo-foundersCXOs

CEO CTO

CFO VCsCo-foundersCXOs

SVPsVPs

Business OperationsCore Platform

Directors

VCsCo-foundersCXOs

SVPsVPs

Business Operations

Directors

Board Members

VP-Customer Exp.

SVP User Exp.VP Products

VP Client Engineering

Chief Brand OfficerCMO

VP Cloud StrategyVP –Emerging

Market StrategyVP Mobile

Chief Design Officer

Mid-size Unicorns(Revenue $0.1- 1Bn)

Large Unicorns(Revenue > $ 1Bn)

Small Unicorns(Revenue < $ 0.1Bn)

CXOs and VCs have critical decision making responsibilities across multiple products and business segments

Newer roles such as VPs, SVPs and Directors share decision making responsibilities across new products and redefined operations

New Age and diverse vertical specific rolesemerge as Unicorns scale. Scaled Unicorns have large number of decision makers across markets, products and business segments

38Source : DRAUPSource- DRAUP Executive Module: Coverage may be limited in China and other south east Asian countries

As Unicorns scale, decision makers become more distributed with diverse roles and ownership (2/2)


Geography Footprint


46%

29%25%

11000+Global

Executives(CXOs,

Cofounders,VPs,

Directors)

Multiple responsibilities limited to top C-level executives

Multiple stakeholders have shared responsibilities androles across products and business segments

Brad KeywellCo-Founder and CEO at Uptake Technologies

David WiesenCo-founder and Engineering Lead at Nextdoor.com

Shawn DavenportVP, Security at GitHub

Gilad LotanVP, Head of Data Science at BuzzFeed

Security

Data Science

Data Science

Core Products

Mary TrickChief Customer Officer at Infor

Stefaan van HooydonkChief learning officer at flipkart

Customer experience

Learning and Knowledge Management

Joop WijnChief Strategy and Risk Officer at Adyen

Strategy and Risk

Kevin ThompsonVP, Marketplace Engineering at Uber

Stefaan van HooydonkVP, Client Engineering at Credit Karma

Bozoma Saint JohnChief Brand officer at Uber

Marketplace Engineering

Client Engineering

Brand Management

Infrastructure management

Product management

Product strategy

Infrastructure Management

Emerging Markets Operations

Product management

0

20

40

60

80

100

120

140

11.9 2.7

1.7

1.0

0.8

0.8

0.7

0.6

0.5

0.4

0.4

0.3

0.3

0.2

0.2

0.2

0.2

0.2

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1Nu

mbe

r of e

xecu

tives

Revenue (Size of Unicorn)

39Source : DRAUP

Source- DRAUP Executive Module: Coverage may be limited in China and other south east Asian countries

Travel-tech & Ecommerce are go to sectors for executives with diverse roles across products, operations and emerging markets


Geography Footprint


Mid-size Unicorns(Revenue $0.1- 1Bn)Industries

E-commerce

TravelTech

Enterprise Software

FinTech

• VP of supply chain• Director of Online Marketing &

CRM• Vice President, Industry

Marketing• Director of Business Products

• Chief Research Officer• VP of Infrastructure & CISO• VP of User Experience• Director of Product & Design,

Mobile

• VP Customer Experience and Trust

• Director of Growth Engineering• Director, Head of Data Mining• Director, Business Analytics

Large Unicorns(Revenue > $ 1Bn)

• Chief revenue officer• Chief Learning officer• VP, Consumer Experience &

Product Catalog Engineering• Vice President - Mobile,

Electronics and Computers

• Chief creative officer• Chief Business Information

Officer• Chief Customer officer• VP, Cloud Strategy,

Architecture and DevOps

• Chief Brand officer• VP of Mobile• Senior Director of Product,

Maps• Vice President, Marketplace

Engineering

• Chief Strategy and Risk Officer

• VP, Business Development -Global Payments

• Global Digital Director• VP Global Strategic Sales

• Vice President Of Product Management, Data

• VP Revenue Strategy and Planning

• Vice President, Client Engineering

Small Unicorns(Revenue < $ 0.1Bn)

• Chief Marketing officer• VP - Business & Operations• CEO & Co-Founder

• SVP, Engineering and CTO• Senior Director, Digital

Marketing• Chief Product Officer

• Senior Vice President and COO

• Chief Financial Officer

• Director of Engineering –Infrastructure

• Vice President, Operations, Core Platform

xxAvg. Number of Executives per company

~150

~130

~120

~90

~110

~100

~90

~75

~70

~50

~35

~35

40Source : DRAUP

US headquartered Unicorns have hired majority of decision makers from traditional Hardware/Software companies during last 5 years

Note:- Executive Movement during last five years


Geography Footprint


• Charles Ng – Chief Data Scientist at Coupang• Previously Sr. Director, Retail Science andAnalytics at IBM

• Chris Bream – CTO at Tanium • Previously Director of product security at Facebook

• J. Nicholas Jitkoff – VP of Design at Dropbox.• Previously Principal Designer at Google

SAMPLE EXECUTIVE PROFILES

• US based Unicorns have been hiring decision markers from large enterprise/internet companies leveraging their expertise in engineering globalisation, outsourcing and vendor selection

• ~20% of the executives have been hired from traditional hardware and software enterprises such as IBM and Microsoft

• E-commerce Unicorns are top employers, leveraging skills in operation transformation for optimisation of inventory pricing, promotion and forecasting

0

5

10

15

20 Decision Makers hiring pattern (Analysis of executive hiring in Unicorns during last 5 years)

Previous Company

INSIGHTS • Cal Henderson - CTO at Slack. • Previously Director of Engineering at Yahoo

• Klaus Kaasgaard – VP of User Experience at SurveyMonkey• Previously VP of Experience Design, Small Business Group at

Intuit

• Ashish Suryavanshi – Director of Technical Program Management -Data & Analytics at Coupang

• Previously Principal PM Manager at Microsoft

Source- DRAUP Executive Module: Coverage may be limited in China and other south east Asian countries

41Source : DRAUPSource- DRAUP Executive Module: Coverage may be limited in China and other south east Asian countries

Note:- Executive Movement during last five years

Indian Unicorns have hired nearly 90% of the executives from peer Unicorns


Geography Footprint


SAMPLE EXECUTIVE PROFILES

0

5

10

15

INSIGHTS

Decision Makers hiring pattern (Analysis of executive hiring in Unicorns during last 5 years)

Previous Company

• Top Ecommerce firms such as Flipkart has seen large top-level exits due to Operational restructuring

• Indian Unicorns have limited executives hiring focus from MNC GICS centres in India

• Suresh Shenoy - VP Of Engineering at Ola. • Previously VP - Engineering and Technology, Supply

Platform at Flipkart

• Rajiv Mangla – Chief Technology Officer at Snapdeal• Previously VP Engineering, Digital Marketing at Adobe

• Suruchi Rikhi – Director of Engineering at Quikr• Previously Engineering Manager, Mobile at InMobi

• Rishi Gupta – Associate Vice President – Engineering at Snapdeal

• Previously Associate Vice President – Engineering at Paytm

• Ravi Vijayaraghavan – VP - Analytics and Decision Sciences at Flipkart

• Previously Chief Data Scientist and Global Head at [24]7, Inc

• Vikas Agrawal - Senior Vice President – Engineering at Paytm• Previously Founding Member and CTO at Fasionara.com

42Source : DRAUP

Recommendation to partner with Unicorns• Operational traits and challenges faced

by Unicorns• Strategies and best practises to identify

potential buying opportunities

43Source : DRAUP

Unicorns: What are the typical challenges?

Operations Traits

• Small existing development team, usually experienced in agile development

• Small existing infrastructure set-up

• Born digital first and spend is largely on open source, digital Platforms

Challenges:• Scaling up the workforce to match the hockey stick revenues growth

• Scaling up the infrastructure set-up & managing multiple cloud services

• Limited talent to focus on non core activities such as Devops, Support, testing/QA services etc.

• Lack of cloud specialists in their IT teams to help optimize the cloud for cost, governance, and security

• DevOps is a latent need across these companies, while the importance of Testing and Customer Support also came to the fore

Source : DRAUP Analysis and primary inputs from interviews with digital stakeholders and DRAUP’s existing customers

44Source : DRAUP

Sales Executives of Engineering Service Providers have to take proactive approach to explore partnership opportunities with Unicorns

Source: DRAUP analysis and recommendations

Be early and track proactively : Identify growth companies early and partner with younger Unicorns; Offer

integration services to scale their core product capabilities1

Explore digital partnerships : Establish more agility through spending in UI/UX, API management and apps

integration capabilities2

Focus on On-shore models : Most of the Unicorns does not have global engineering presence. SPs need to leverage

on-shore delivery models to work closely with the in-house engineering teams3

Digital Stakeholder connect: Establish deep connections with functional and business heads as compared to

restricting engagements with CIOs 4

Co-Invest: Instead of typical T&M and project based models co-invest with Unicorns in new engagement business

models such as revenue sharing, outcome based pricing, risk reward etc. 5

Contextualised Selling: Sell customized services by understanding the technology stack and dependencies of the

prospect through deep understanding of the pain points6

45Source : DRAUP

Multiple individual events occur in Unicorn’s ecosystem which can lead to potential partnership opportunities

Source: DRAUP analysis and recommendations

Proactive tracking of Changes or Events within an organization or the ecosystem which can lead to potential partnership opportunitySIGNALS

Potential eventPotential Buy

Signal

Mass LayoffsCentre carve outs and potential opportunity for SPs to sell end to end pre packaged digital

offerings

IPO filing/ Late stage

fundingExpanding product offerings in diverse areas to scale and mitigate risk from competitors

CEO ChangeOrganisational restructuring and strengthening existing capability through new investment

plans, new product ownership or new age technology development

Market ExpansionLarge customer support team requirement for localization of operations such as local

language support, new product development or new business unit setup

New R&D set-upScale existing products and new age skill requirement in areas such as UX design, AI and data

science

Shopify has set-up new R&D centre in

Toronto in May 2017 and have plans to

hire 2000 engineers In UX, product

engineering and support

Laid off ~400 employees from bay Area

to centralise the operations in Arizona.

Outsourced its insurance business

Plans to enter peer-to-peer payments in

India. Also plans to use UPI, a cross-bank

payment system to enable payments

between users

Cloudera plans to raise $200M from IPO

to scale and compete with AWS, IBM &

customize its cloud services for mobile

banking, IoT services etc.

Flipkart new CEO Kalyan Krishnamurthy

announced plans to expand into Tier-2

cities and invest in growing skills like NLP

& Image Science to personalize shopping

experience

Case Studies

46Source : DRAUP

Zinnov DRAUP platform connects multitude of events which occur in isolation to generate actionable insights

DRAUP Proprietary

LEADERSHIP CHANGE

M&A

MARKET EXPANSION

CUSTOMER FEEDBACK & EXPEREINCE

NEW PRODUCT LAUNCH

MASS HIRING

LEADERSHIP QUOTES

VC INVESTMENTZinnov DRAUP Platform

DRAUP platform tracks millions of independent events about organizations, stakeholders and ecosystem and find correlations and predict outcomes that may impact your organizations and roles

Leveraging Big Data, Machine learning and Consulting expertise to help you connect the dots

Signal Processing

47Source : DRAUP

DRAUP Signal Processing: Helping you connect the dots

DRAUP Proprietary

Signal Tracking Signal processing RecommendationsSignal Filtering

Track millions of signals happening around your organisation, stakeholders and ecosystem

Filter out most relevant signals relevant to your offerings

Analyse signals through ML and Big Data algorithms to find correlations and predict outcomes

Actionable recommendations and insights to sell to Unicorns

48

Source : DRAUP

Some of the ESPs have already taken a step ahead by collaborating with Unicorns in Niche technology areas….

Source- DRAUP Engineering Service Provider Module: Currently tracking outsourcing deals for Unicorns in Enterprise Software, Fintech, TravelTech and Ecommerce sectors

R&D Spenders Project DescriptionKey Vendors

Payment solutions integration• Integration between Intuit QuickBooks & Stripes Payment

• Integration of Stripe API

• Stripe Integration in GWT.

• Stripe Integration for WordPress

Avalara, 3E Solutions, Arosys

Technologies, Luxus

Worldwide

Android App testing and development• Development of Android app for shopping, Recharge, Bus ticket, Train Ticket, Flights

Ticket and movie Ticket booking and Hotels Booking

Mobile Application Q/A and testing• Testing the mobile apps of FlipKart. Perform Smoke, Sanity, Functional, Interrupt,

adhoc, & Usability testing on Mobile Application

Kellton Tech Solutions

Limited, Robosoft

TEKsystems

Wipro

Mapping and Customer Experience • Uber Map Improvement Group in India has partnered with Wipro in a BPO contract to

enhance its mapping assets, including to ensure faster pick-up times

Tata Technology Services

Electric Vehicle DesignTata-Tech has partnered with NextEV and Faraday-Future to develop and sell Battery

Electric and Hybrid Electric vehicles in wider markets of Europe, China and Japan

49

Source : DRAUP

…and are also moving closer to the innovation hotspots to proactively track potential partnership opportunities

Source- DRAUP Engineering Service Provider Module

Bay Area- The new innovation hotspot Service Providers are setting up innovation centers in the Bay Area

Partner with EV companies and Start-ups to

develop and sell their products in wider markets

of Europe, China and Japan

Electric Vehicles

To build vertical solutions focused on Industrial &

Manufacturing and Life Sciences & Healthcare

Internet of Things

Global frontier for building collaboration with

major technology players in the United States.

Engineering Services

Leverage its Lean Digital approach to harness

process-centric technologies, design thinking,

and deep domain expertise

Digital Transformation

Bay Area- The new innovation hotspot

50Source : DRAUP

Global Unicorns Landscape

SUMMARY

A brief history :• Companies with Billion dollar valuations have been created in each decade since 1960 (e.g. Intel, Cisco, Microsoft) which have driven the

technological transformations for the decade

• Over the last decade, there has been an exponential increase in the number of privately held Billion dollar valuation companies called as

“Unicorns”

• There were 26 Unicorns in 2009 , that number has swelled to 224 in 2017 ( And an additional 46 unicorns exited in that timeframe)

• Unicorns are getting created as start-ups are disrupting large global markets through technology and business model innovation

Unicorns are everywhere

• Unicorns are not just restricted to Bay Area, they have emerged across all global technology hotspots- Bangalore, Israel, Beijing, London etc. (Slide

12)

• 49% of the Unicorns are headquartered in US | 70% of the US based unicorns serve global markets presence.

• TravelTech, E-commerce/Marketplace and Enterprise Software are the verticals with most Unicorn presence. Approximately 70% of the

enterprise software Unicorns are based in Bay Area; China & India have a large presence of Unicorns in the Ecommerce and TravelTech industries

amidst their fast growing internet markets

• Some of the Unicorns have hyper-scaled to reach more than $10 bn in valuation (known as decacorns). There are 14 decacorns as of July 2017. In

contrast, Facebook was the only decacorn in 2013(Slide 13)

Raising funds from Non- Traditional Set of investors• Not just the traditional VCs or Angel investors but Public Market funds (MF and Hedge funds) have also jumped into investing in these unicorns

• Large investment firms like BlackRock and Fidelity Investments taken positions in firms like Uber and Pinterest. Aggregately more than 250 mutual

funds now hold positions with more than $10 billion in private market investments

51Source : DRAUP

SUMMARY

Technology Spend Analysis

Unicorns Spending on Technology§ Key differentiator and growth enabler for unicorns has been their superior product experience and robust technology infrastructure

§ Thus, product development and Infrastructure Support are major spend areas for all Unicorns. On an average, Unicorns spend 35% of their operating costs on

technology (Slide 19)

§ DRAUP’s analysis estimates that Unicorns spend on technology is $32 bn in 2016 growing exponentially at a rate of 133% YoY

§ Enterprise Software, Social and Fintech companies spend upwards of 40% of their operating costs on technology. In the B2C verticals, large technology

spending is attributed to high data intensity due to heavy active customer transactions, higher security requirements, product personalisation (AI, Mobile) to

improve product experience

§ Nearly 95% of the unicorn companies are leveraging cloud first delivery models. They are spending heavily on cloud hosting, infrastructure support &

maintenance activities (Slide 20)

§ Large Unicorns such as Uber, Infor and Palantir have been diversifying their technology investment in Non-Core activities such as Testing/QA automation,

Network management and Cloud security solutions either through acquisitions, partnerships or acqui-hires

§ Bay-Area and China have been central technology hotspots. ~70% of the spending is consolidated amongst Unicorns headquartered in these two geographies.

§ New Age engineering in Design, Data science and AI are amongst the core technology spend areas (Slide 29)

§ Unicorns in US and Asia have contrasting leadership hiring models. US based Unicorns have leveraged top level leadership from traditional hardware and

software giants (IBM, Microsoft and Amazon) (Slide 41). Where as Unicorns in emerging geographies have mostly hired laterally from peer Unicorns (Slide 42)

Challenges for Unicorns• Most of the Unicorns have small development teams focussed on core product activities. These companies face challenges in scaling up their existing workforce

and infrastructure set-up to address potential exponential growth

• Non-core product areas such as Dev-Ops, Customer Support and Q/A are the spaces where third party service providers are being leveraged by the Unicorns to

help them hyper scale

• DRAUP’s signal processing track Unicorns for activities such as mass hiring, leadership change, global expansion, acqui-hires etc. to identify partnership

signals and opportunities for solution and service providers

DRAUP BrainDesk Technology Spending Patterns of the Bn ... · G500 technology spenders, VC partners...

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