This document summarizes the journey of Marketo, a SaaS marketing automation company, from its founding in 2006 through its acquisition by Adobe in 2018 for $4.75 billion. It discusses the challenges Marketo faced early on in selling to CMOs and operating in the nascent SaaS space. It then outlines how Marketo focused on building a strong product and domain expertise, launched with a minimum viable product focused on Google Adwords, and steadily grew revenue over time through focus on customers and vision rather than competitors. The document notes key hires and accomplishments like Marketo's IPO and acquisitions that showed the company success over its 12-year journey from startup to SaaS category leader.

1. Key Lessons From a $5B
SaaS Category Leader
Doug Pepper, Managing Director
Shasta Ventures

2. The Dream
TIME
Founding

3. The Reality
TIME
Founding

4. ?
The Marketo Journey
Founding
IPO
($500M)
Acquired by Vista
($1.8B)
Acquired by Adobe
($4.75B)
2006 2013 2016 2018
?
?

5. Challenges &
Key Actions

6. Funding for Marketo in 2006
 Marketing SoftwareX
 Selling to CMOsX
 SaaS!!X

7. • Digital Marketing
• Email Usage
• Google Adwords
• SaaS
• No Capex
• Simple UI
• Domain ExpertiseWhy
Now?
Increasing
Problem
Ability to
Solve the
Problem
Market
Research
75 CMOs
Pick a “Why Now” Category

8. With Dream Team
Phil
Fernandez
Jon
Miller
Dave
Morandi
 Domain expertise
 Product first approach
 Cohesive team

9. MVP

10. • Google Adwords-only
• Challenging to work with Google API
• No budget for this functionality
• Full marketing automation and lead
management
• Best-in-class product
• Company behind plan for next
financing
MVP
Full Product
Abandoned 100
customers &
$1M ARR

11. Team Change

12. FIRST VP OF SALES
BILL BINCH
Took company from $0M
ARR to $250M ARR

13. Left at
the Altar

14. Living in a Land of Giants
Key Competitor Acquirer
2012
2012
2013
2013
2013

15. How We Won
Focus: OUR customers and OUR vision
Never saw a competitive product demo
Focused on customer requests
Knew we’d won when Eloqua launched self described

16. Patience is
a Virtue

17. $0 $3
$18
$45
$86
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Projection / Forecast Revenue Actual Revenue
Marketo Original Projections vs. Actual ($M)
$0 $1 $2
$5
$14
$32
$58
$96
$150
$200

18. The Journey Doesn’t End at IPO
IPO
May 2013
Peak
June 2014
Trough
Jan 2016
Acquired
June 2016
$13.00
$40.00
$12.86
$35.25

19. Thank you