THE NEXT GENERATION OF WEB OPERATIONS

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4 OCTOBER 2022

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We are excited to announce our investment in Dataweaver’s A$5m Series A round, a game-changing CX and DevOps platform offering the ‘ultimate SaaS experience’ for enterprise customers in Australia and the US.

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PROBLEM AND SOLUTION

Many enterprise customers migrating from MarTech systems like Sitecore are faced with operational complexity, high costs and time constraints. These systems are used by many legacy ISV platforms can be analogised to ‘SAP in manufacturing’ – they are faced with high overhead costs and customers are deeply embedded in different legacy versions, thus looking to migrate to the cloud. Yet migration poses three key problems:

1. Cloud Cost Paradox – the public cloud infrastructure opportunity increases the scale of complexity

2. Transitioning from Big Data to BigOps – the complexity of implementing experience platforms stops people from benefitting from data insights

3. The Composable Enterprise – how do users add new tools, manage legacy system and risk without breaking things?

Dataweavers solves this problem by automating the entire lifecycle of complex applications and infrastructure management. By using clever script, they have built pattern tools to enable customers a seamless migration to the cloud at a low cost. As the fastest turn-key Sitecore Azure PaaS & DevOps platform, the results speak for themselves:

· Reduces cost to operate on Azure by >50%

· 3x performance of complex application performance

· Simplifies the process to secure and operate complex applications

· Significantly reduces operating risk

· Enables organisations to build an agile ongoing operation

· Cloud automation, orchestration and governance of code, application and infrastructure stack

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HOW DOES IT WORK FOR A CUSTOMER

Dataweavers’ automation platform modernises complex applications and optimises operations in the public cloud. By converting complex applications and infrastructure into minimal code, Dataweavers frees up capacity for digital teams to focus on more important value-additive customer experience activities. Their platform offers streamlined products that are standardised, operationalised, repeatable and scalable.

Dataweavers operates a subscription Platform-as-a-Service model with sticky recurring managed services revenues and 36-month standard contract lengths. New products & SKUs can be created by extending software IP to other platforms.

The product offers an end-to-end customer delivery from platform customisation, configuration, cost reviews to product deployment. Dataweavers’ platform has been highly beneficial to users including CIOs, CMOs, CXT, Developers and Partners.

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INVESTMENT THESIS

FOR US, IT IS ALWAYS FOUNDERS FIRST – STRONG, ENTHUSIASTIC, AND WELL-EXECUTED TO DATE

Ben Shapiro (CEO) is a serial entrepreneur and has an extensive background in IT consultancy and agency experience. He is also the CEO of Rightscale Group and previously held senior roles at Dentsu, OBS, Fujitsu and Avanade.

To complement, Anthony Hook (CTO) comes from the partner side and was previously employed by Sitecore in numerous strategic and product roles. Customers have described him as ‘brilliant’, which we can confirm ourselves!

The founding team’s expertise affirms our vision to partner with Australia’s best founders. This gives us a lot of comfort around their ability to understand the customers’ real need and build a strong product team. The combination of entrepreneurial, strategic and operational experience is the key driver behind Dataweavers’ rapid growth and success.

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UNIQUE COMPETITIVE ADVANTAGE – STANDARDISED, OPERATIONALISED, REPEATABLE AND SCALABLE

There are few direct competitors with similar offerings, and Dataweavers possesses some key advantages to distinguish themselves from the pack.

Dataweavers provides more code-based automation and application management than other providers, simplifying infrastructure PaaS migration. This enables teams to focus on digital experience platform work, saving them valuable time and resources on migration.

Dataweavers also specialises in Sitecore migration, and has high-rated Auto Scaling and Analytics Cloud PaaS. It can plug into various integrated product suites and MarTech stacks to ensure enterprise customers avoid adverse impacts.

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MASSIVE MARKET SIZE AND GROWTH OPPORTUNITY

The Azure Public Cloud Market share is estimated at $30bn (~20% total market share) at a 30% CAGR. The Digital Experience Platform market is estimated to be worth $10bn at a 20% CAGR, offering huge market potential to expand Dataweavers’ features to new customers. Sitecore hosts a large customer base of 6,000 customers, providing a large customer funnel.

Dataweavers targets rapidly growing enterprise markets to target digital transformation of existing technology stacks. Having achieved product market fit, Dataweavers is seeking to address the digital experience platform market to diversify its customer base. Their software can be extended to other MarTech platforms for new products and SKUs. The combination of a rapidly growing market, organic customer acquisition and strong partner leads presents significant market penetration and upsell opportunities in the digital transformation space.

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IN SUMMARY

Dataweavers offers an unrivalled WebOps platform for enterprise customers, with strong client retention and rapid expansion in the AU and US market. The team’s expertise, coupled with digital experience adoption by customers, delivers high growth opportunities

and long-lasting value. The team has an ambitious product roadmap to further expand across Product, Partners and Geographies segments.

With its strong execution to date and a unique value proposition, Dataweavers will serve as an essential platform for enterprise customers transitioning in the digital experience age.

We are excited to see what Dataweavers will achieve and are thrilled to be a part of this journey.