2019 is going to be the start of some big years to come for SaaS with the Nasdaq adding the BVP Nasdaq Emerging Cloud Index EMCLOUD. As someone smart once said “big things have small beginnings” which I think is a quote from the movie Prometheus, but I digress. The EMCLOUD index is a great example of something that started small with an idea from Bessemer in 2011 and is now something a little bigger, with plenty of room to grow.
Here is a link to the methodology behind EMCLOUD. It is taking Bessemer’s cloud index to the next level and getting ready for someone to create an ETF, which will finally make it easy to own Cloud/SaaS without having to buy each stock individually and manage it yourself.
While my take on a true SaaS index is a little different then Bessemer’s cloud index, the overlap is significant. Not to toot my own horn, but my true SaaS index over 2018 was up 40.04% while theirs was up 38.5%, so I beat them by a few points… but who’s counting.
Here is a link to Bessemer’s announcement of the partnership with Nasdaq. I don’t know how anyone missed this, but I certainly did. Why is this not being publicized broadly? It probably should be considering that the BVP Index was up 38.5% in 2018!
2019 is shaping up to be an exciting year in SaaS, and with this addition of the EMCLOUD index things will only begin to accelerate.
Your Over Enthusiastic SaaS Investor