Just who and what is a Bessemer Cloud Index. Bessemer invests in Start-Ups and their index has tracked the evolution/revolution of cloud companies for 13 years. So - how they doing?
Overall Index Performance:
S&P 500 +161.4%
Dow Jones +122.9
Through a meticulous, thoughtful and exhausting 12 minute deep dive exploration of the results noted above - it has become obvious, even to myself, that the Bessemer Cloud Index (EMCLOUD) has taken the other key averages to the proverbial woodshed.
EMCLOUD is Red Hot…
Your Index Ain’t Doodley Sqat
EMCLOUD - EMCLOUD Thats the Play
Crushing Indexes Every Day
Ok… so Bessemer provides us with a pretty good overview of those Cloud companies that are knocking it out of the park - and, more to the point, since we are High Growth Investors (HGIs) Doesn’t it make since to latch on to - or at least consider what is what and which is which among the players. Look at it this way: Bessemer is just like one of those recruiting services that evaluates and ranks high school players and a great many Universities have Athletic Departments that subscribe to those services and their player rankings. The good news here is that Bessemer is among the best ranking services for Cloud companies. SWEET!
So lets just move along.
Bessemer ranks the Cloud Players across a number of metrics that High Growth Investing Sharpies (HGIS) like us can use to determine who we want to recruit for our portfolio rosters - and its absolutely free!
Special Note 1: Brother Ears figured this out a lot sooner than most and his discussion board is all over this stuff. You can find his top notch Cloud investing board here:
So the purpose of this particular post is to rank the TOP 15 High Flying Revenue Growers by the BVP Efficiency Score. This score is a way to determine something or other and seems pretty important to Bessemer. Here is how they describe it:
“Bessemer Efficiency Score is a measure of capital efficiency that tracks net new ARR against net burn for a given period. This metric showcases the incremental ARR dollars added for every dollar of burn, effectively measuring a company’s spending habits.”
Now what I take this to mean - is that if the members of the company board all decided to go out and buy matching Mercedes Recreational Vans (these are really cool by the way) with company funds - it would somehow show up here. Anyway - I want to add the Efficiency score to my current portfolio roster.
Note: In Efficiency Scores evidently higher is better.
BILL: 185.4…rank on index 2
SentinelOne: 118.2…rank on index 3
DDOG: 104.9…rank on index 5
MNDY: 91.8…rank on index 7
ZS: 83.9…rank on index 9
NET: 50.1…rank on index 24
Special Note 2: For anyone keeping score please note that so far NET - is not only the slowest High Revenue Growth grower but now also the worst of the portfolio for Efficiency Score. Maybe their board members are rolling the dice in Monte Carlo - or something like that.
All the Best,