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GSV Capital is the first publicly traded security giving growth equity investors access to the world's most dynamic, VC-backed private companies.

More about GSV Capital
NASDAQ: GSVC
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Why We Like

$8.6 million NAV|3.8% of GSVC

Founded

2004

Capital Raised

$104 million

Investors

GSV Capital along with DFJ, Goldman Sachs, NEA, SVB and others.

GSV Investment Theme

  • Cloud/Big Data
  • Marketplaces
  • Sustainability
  • Education

Overview

SugarCRM is an affordable and easy-to-use customer relationship management (CRM) platform, designed to help businesses communicate with prospects, share sales information, close deals, and keep customers happy. Thousands of successful companies use Sugar every day to manage sales, marketing, and support. SugarCRM offers a commercial subscription product and can run in the cloud or on site.

4Ps
Why We Like It: The Four Ps

Why We Like SugarCRM

CRM software is a large and rapidly-growing segment of the enterprise software market. SugarCRM can build a large and profitable business by capturing a modest portion of the overall market by offering a differentiated solution that enables customers and their IT solutions providers to customize CRM solutions utilizing an open source platform.

People

SugarCRM has an experienced management team led by CEO Larry Augustin, the founder of open source pioneer VA Linux. The Company was founded in 2004 by John Roberts, Clint Oram, and Jacob Taylor and today has grown into a firm with a sizable client base.

Product

SugarCRM’s product suite is differentiated from competing solutions because it is based on an open source approach and supported by a community of over 30,000 open source developers. Sugar’s application is accessible via computer, tablet, or mobile phone and can be integrated with Facebook, Twitter, LinkedIn, etc. Customers and developers have complete access to the Company’s open source platform, making Sugar an extremely flexible CRM solution. As businesses grow, and as business and social networks evolve, Sugar can easily be modified, extended, and integrated to meet changing customer needs quickly and effectively.

Potential

SugarCRM has the potential to expand its market share in the CRM space because of the ease with which companies can develop, customize, and extend their CRM applications using the Company’s solutions. The size and growth rate of the CRM software market represent a significant opportunity for SugarCRM to build a large and profitable business.

Megatrends

Internet
Knowledge
Convergence
Brands

How Big Can This Be?

The CRM market was estimated at over $12 billion in 2011 and is expected to grow to $48 billion by 2020. SugarCRM can become a large company by capturing even a small percentage of the overall CRM market.

Predictability

SugarCRM’s business model is based primarily on subscription pricing and software-as-a-service (SaaS) delivery, but the Company offers licenses for on-site deployment as well. The Company’s subscription business model is characterized by a high degree of recurring revenue, which offers a high degree of predictability.

Risks

The most significant risks facing SugarCRM are a highly competitive market and the challenges of managing rapid growth, particularly in hiring and operations.

GSVC percentage figures are based upon the fair value of each holding as of the quarter ended September 30, 2016, or the cost basis of the holding (exclusive of transaction costs) if the investment closed subsequent to September 30, 2016. In either case, these values are divided by the fair value of total portfolio investments of GSV Capital as of September 30, 2016.

GSV stands forGlobal Silicon Valley
Learn more at GSV.com