Axeleo has, today, announced the initial closing of its first Axeleo Capital I accelerator fund, strengthening its capacity to provide startups with entrepreneurial, operational and financial support.
From big corporations executives to successful enterprises entrepreneurs with IPOs experience, our partners at Axeleo are the essence of the program. Partners have a mentor’s role, and we want them to connect with our best startups to create real chemistry. They are available quickly and answer a diversity of enterprise startups issues such as international expansion, sales pricing or critical recruitment management.
With that, we are excited to add four new titans from the enterprise technology sector as Axeleo partners.
Talend is an open source integration software vendor that sells its solutions to data-driven enterprises. Created by Bertrand Diard and Fabrice Bonan, the French big data firm got listed on the Nasdaq in July of last year. Vincent Pineau, partner at Axeleo, launched the US operations back in 2007 when he served as Talend’s US General Manager. For Axeleo, he explains some of the challenges he faced on that continent and how Talend became a great success. Here’s his story.
Open source evangelization was the key
I first met Bertrand and Fabrice (Talend’s founders) in 2006 during their first visit to the US. Talend had already started to draw attention in France where open source was creating a lot of buzzes. Developers were fast to rally to the “community spirit”, and companies were intrigued by the open source approach and related business models, considering it as a potentially viable alternative to technologies they were using.
And indeed, the open source market did surge: today, it is three times bigger than eight years ago. By 2020, the French open source market will represent 6 billion euros. This sector has already created nearly 50,000 jobs and plans to create 4,000 additional opportunities within three years.
I struck a deal with Talend’s founders at the end of 2016 and returned to the US with the mission to launch its US operations. The challenge did not come across as simple but still was very appealing to me. “All I had to do” was to develop the business of a French company overseas, in a field that I was new to (albeit adjacent to one that I came from, business intelligence) introducing an alternative to a well-established market. And in fact, the company was able to disrupt the market with a competitive value proposition, an innovative technology approach and an authentic open source philosophy.
Initially, a lot of evangelization of open source was required, specifically for the US market., While the number of software vendors betting on this distribution approach was growing slowly, open source was far from being broadly adopted by IT professionals – apart from rare exceptions like Linux or Java. Corporations were still struggling with the perceived lack of professionalism and other missing contractual terms that they considered mandatory like indemnification and escrow clauses. Despite the real interest that our solution represented, addressing some identified needs like the ease of use and/or speed of deployment, American companies remained skeptical about open source, focusing on (perceived) associated risks and questioning its real interest.
All of that being considered, to get a chance to open the US market to Talend, we had to adapt the business approach and our positioning. As indicated, more often than not, it required us to educate or even re-assure our prospects about the open source concepts.
Sales: from strategy to execution
Despite some of the specific needs of the market, Talend US grew very quickly and got about a hundred employees spread over three offices (South California, San Francisco, and New York) before the third anniversary of « Talend Inc. » Setting up the sales and marketing parts of the organization was a critical step that we managed fairly well. The commercial strategy was refined and evolved throughout the growth of the company but our “land and expand” strategy relied heavily on our ability to seed the market. The network of users and partners proved to be crucial, and leveraging my rolodex turned out to be very helpful to open the doors at the beginning.
Talend’s products subscribed to what was later labeled as “Open Core” – an open source core functionality, free of charge and a superset of “enterprise grade” extensions available for a fee as a subscription. The open source part called Talend Open Studio was first released in October of 2005 under the GPL license. The product was designed for developers who could benefit from an innovative and complete data integration solution. As developers downloaded and used Talend Open Studio, they were considered a qualified lead and the marketing and sales efforts focused on the companies they worked for. The objective was to establish a relationship by offering accompanying services: training, consulting, support before introducing « professional » extensions.
When signing up for a subscription, companies could get access to advanced functionalities geared towards teamwork – around collaboration, scalability, and governance – they also traded the open source license for a commercial one in which they got their necessary contractual clauses such as indemnification. For three years, the sales team remained inside (“inside sales”) – all introduction calls, presentations, demos and sales negotiations happened on the phone and the number of calls placed on any given day was a KPI that was closely monitored (with a target of 70+ calls per day). At inception, the virality (word-of-mouth) of the open source model also played a major role in Talend’s growth.
Keeping a pure inside sales model allowed us to limit the cost of sale and keep productivity at a high level: our sales team typical day was orchestrated around planning and making the calls, and we did not have to worry about time lost during lengthy -and costly- travel across the country. After a few years, we added a “Corporate Accounts” team to the sales organization. Corporate sales reps primarily dealt with big named accounts and were able to plan business trips during which they would meet several prospects and/or accounts. This evolutionary organization made it possible to start and grow the business in a very pragmatic way, keeping control of the costs of sales & marketing.
Gaining recognition from industry analysts such as Gartner and Forrester was also critical to support the corporate accounts business, and here I was very lucky to work closely with Talend’s head of marketing Yves de Montcheuil (also an Axeleo partner!) who did a tremendous job of opening these doors for Talend (among “a few” other contributions).
During the early years, we were always above the goals. Our approach to everything was very aggressive; we were always running around getting things done one after the other regardless of the topic. We were never satisfied with meeting the established objectives and often very fast to ‘up them’ a notch.
Simple advice: go global, act locally…
Go international but be prepared: the US today is a “must” considering the market share they represent. However, while one may expect very similar behavior from a country and culture so close to ours from the outside, professionals in North America will show an affinity, a sensitivity and sometimes an ethic that is subtly different from what we are used to in France. Nothing insurmountable for anyone who cares to listen and adapt where necessary, but it is not just a matter of speaking the language, or translating a sales pitch or the whole communication strategy from French to English. Surrounding yourself with people accustomed with business in the country will save you time. There are plenty of ways to get advice so as not to fall into the traps
In 2015, Talend’s historical founders, another of the early execs and Vincent have embarked on a new adventure, launching Influans, a platform that aims to change the situation in digital marketing by allowing brands to run campaigns with a return that is 30 times higher than the current standard. He wanted to be an Axeleo partner to help startups accelerating on the US market.
Major corporations face cyber attacks. According to Accenture, one-third of corporate attacks succeeded in 2016. Why are corporates so vulnerable to cyber attacks? They are facing trouble because they have inadequate security controls. Attack methods are becoming more and more intelligent, but companies are still using defense methods from the 90’s. For instance, many businesses are still working on external threats whereas internal core systems are the ones used to make successful attacks like email phishing (PrivatBank), intrusions through third-parties (Target) or even software vulnerability exploitation (US Democratic National Committee).
Luc & Emmanuel worked five years at l’ANSSI, the French national agency in charge of cyber defense matters. Their jobs? They were in charge of the security of nation critical systems. During a crisis, they oversaw the identification of the attack origin point and had to manage all the cyber defense to push back the criminals. There are one of the few who faced real-world highly skilled hackers. During these operations, the two founders were able to identify a standard attack scenario which was continuously used by attackers to compromise the most secured environments. : there were exploiting directory infrastructure flaws.
“One million Yahoo accounts stolen, $951 million embezzle from Bangladesh Bank, US presidential election influenced, etc. Let’s be honest; we are currently losing the fight against attackers. When we created Alsid, we had only thing in mind: create technologies able to stop modern threats.” said Emmanuel Gras, CEO & co-founder of Alsid
Alsid : from research to innovation in the cyber security sector
During two years, Luc and Emmanuel published innovative research in brightest French security conferences to warn the security industry about the risks of unsecured directory infrastructures. During their studies, they demonstrate the central role of directory infrastructures have in the security of nowadays companies. They also found out that most of business executives in charge of security (called Chief Information Security Officers) don’t have proper solutions to identify security weaknesses on their infrastructure which usually lead the complete compromise of their companies.
Present in more than 90% of corporations, directory infrastructures provides authentification services. Each time you start your computer, access to shared files, read emails or even control industrial systems, you are using directory infrastructure without knowing it. These systems are in charge of controlling what you can do and what you can’t on information systems. Unfortunately, if a hacker can control these systems, he has complete access to company assets. In this way, major attacks on directory infrastructure can paralyze a company for years. Facing this significant risk which didn’t have a proper defensive solution, Luc et Emmanuel founded Alsid with the aim of redefining the way companies protect themselves against modern cyber attacks.
Alsid (a new Axeleo company) developed a SaaS solution that allows corporates to monitor the security of their directory infrastructures in real-time and anticipate cyberattacks by alerting about issues before criminals can exploit them. The magic thing? Companies do not need to change their business foundation. Deployable in less than an hour, Alsid technology understands the information system of the enterprise, detects flaws and gives pieces of advice to prevent attacks. With their technology, Alsid is changing the way companies protect themselves by providing an innovative solution able to stop advanced threats.
For the past two years, taxi drivers unions are protesting against Uber in France, shutting down roads and blocking access to major airports. The cause: taxi industry claims an unfair competition, where taxi drivers are suffering. The reason is not only based on regulations or the taxi license price. Remember how the Californian startup has been created: the two co-founders were looking for taxis after landing in Paris to attend LeWeb conference. None was available, no app created, being obliged to pay only in cash at exorbitant rates. Uber opens a profitable gate: the digitalization of the transport sector, reshaping the general structure of the industry.
When strikes started in 2014, Benoît, Bertrand & Béchir created Marcel, an innovative VTC company in France (known as “rides with licensed chauffeurs company”). They wanted to offer a great value for their drivers, by improving the occupancy rate of their cars with a competitive pricing known in advance to the customer thanks to a program able to handle everything automatically.
Yuso has created a robust algorithm to improve fleet logistic
That’s how Yuso is getting on the stage: the startup offers a dispatch management software to handle all taxi/VTC fleet logistic thanks to a yield management pricing approach and innovative, dynamic dispatch.
The SaaS platform (or TaaS, Transport-as-a-Service) is easy to implement and integrates all process, from booking to dispatching. Customers can book the service on web or mobile, and the back office optimizes the demand to find the best drivers (thanks to the dispatching tool) and send the ride directly to the app of the chosen driver. The software updates automatically and in real-time drivers calendars with instant or advanced bookings based on mapping calculations. An API is available to plug different services such as online payment, or marketing automation (SMS / emails..).
“It’s very easy to see the impact of technology between G7 and Uber. For the same volume of rides, G7 are ten times bigger in term of people compared to Uber. Thanks to the technology, Uber is automating many processes from dispatch to supply management” explained Benoît.
Yuso wants to answer mobility issues
But Yuso doesn’t want to stop there: the two founders are bringing the platform to others markets like ambulances or last-mile logistics. After months of tests, the startup already has their first results: “the solution integration by taxi, VTC, ambulance and delivery fleets translates into an average increase of 25% in the occupancy rate of their vehicles, as well as facilitated access to these modes of transport. We can provide a more efficient and competitive service” said Benoît.
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Jenji redefines what an expense management system should look like, whereas the numerous competitors try to build a better Excel for expenses. No wonder Jenji is the fastest growing company in the quadrant!
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À l’heure du tout numérique, les librairies fourmillent toujours de livres pratiques, orientés business, enrichis de cas concrets et rédigés par des entrepreneurs aguerris. La vente de logiciels SaaS en B2B ne fait pas exception à cette règle. Voici ceux qui vous permettront de développer votre business !
Axeleo accueille un nouvel accéléré : Yogosha. La plateforme française de Bug Bounty, co-fondée par Yassir Kazar et Fabrice Epelboin en 2015, rallie le premier accélérateur labellisé French Tech. Elle bénéficiera de son programme d’accompagnement dans une phase d’amorçage, capitale pour sa future croissance. Également soutenue par le programme startup de Hewlett Packard Enterprise (HPE), la startup compte déjà une douzaine de clients de premier plan !
CEO de Pentalog, fondateur de Pentalabbs, “serial entrepreneur”, business angel, et partner chez Axeleo, Frédéric Lasnier a publié sur Frenchweb sa vision des relations startups / VCs.