 Hi, this is Dave Vellante and this is the Cube. We're here at the HackReduce event where we bring you the best guest that we can find We extract the signal from the noise. We're here with Jeff Fagnan who's a partner at Atlas Venture Jeff Thanks for coming back on the Cube. My pleasure. It's great to be here. What an event so HackReduce. Wow the governor was here He said he didn't get big data then he told us what big data was he gets big data, doesn't he? Oh, yeah, he gets big data every day You know that and he gets jobs and that's what this is going to create a job. Yeah Speaking of jobs, you've got three companies in the pipeline that you funded data zoo Veracode and bit 9 they they probably created what three four five hundred jobs this year Yeah, that's right about five hundred jobs between the three of them this year All three of them are doing very well They're looking to be sustainable companies for the Boston ecosystem and they're hiring really talented people It's really gratified. Yeah, so let's talk about each of them So so data zoo Analytics company, you know talk about them a little bit, right? So if you think about data zoo think about all the money that's going from offline advertising spend TV Print and it's coming online Data Zeus helps big companies Procter and Gamble American Express for Kellogg's, you know visa makes sense of how much money comes online How do you measure that that's coming online? Multi-channel attribution. Do you want to do TV? Do you want to do web? Do you want to do mobile? Do you want to do video and they're absolutely killing it growing over a hundred percent year-on-year? fantastic management team IPO 2013 2014 yes, and then you got Veracode Bob Brennan's run of Veracode now great guy We've had him on before those security for the cloud really interesting model talk about that a little bit Yeah, so Veracode's whole premise is if you think about software it's too insecure today It's too susceptible to attacks and so every piece of software that's deployed out there whether it's internally developed or whether it's purchased It should be vericoded. We're making a verb out of it. If you haven't vericoded it You shouldn't deploy it that we take any piece of software will tell you where the security vulnerabilities are down to the axle line of code And another company growing a hundred percent year-on-year big big customers deploying it and us as society We should feel good that big companies are you know deploying it because secured the big issue today Well, I'm bit nine another one right? Yeah, definitely a bit nine If you think about the malware and you think about the next generation of tax that are happening and this is not just companies this is nation-state It's really cyber warfare and bit nine is the blueprint for next-generation infrastructure Endpoint and that endpoint could be your laptop your desktop your cell phone and Servers and it's protecting really the crown jewels of an enterprise. I think right now You know about a hundred out of the fortune 500 or deploying bit nine and just going up from there Now all three companies Jeff are IPO candidates. Is that right knock on wood? Yes. No, like we're focused on building Big sustainable companies in New England We don't want to sell these we want these to be for jewels in New England And we want that he's to survive for the next 10 or 20 years. Well the IPO mark is back I mean I mistakenly thought the Facebook was really going to be the catalyst and that was a big dud I mean it relative terms it didn't draft like we wanted to but then work day comes along You saw service now Fantastic, so you got to love the the work day action talk about that a little bit So I think what the street wants the street wants like For castable revenue and if you think about sass products Sass gives you recurrent revenue and it's a cash annuity And if you have growth and you have sticky customers and you have customer entanglement the streak and value that And I think that's been a problem if you've looked at Facebook group on Zynga And some of these other things that have crashed and when you look on the flip side and you see Demand where work day in a spunk you see a difference and I really think right now the street is craving Quality substrate and quality substrate right now sass Enterprise sticky products that are making a lot of money and all three of these companies definitely qualify for that Yeah, and you know folks. It's like an ATM I mean essentially you're talking about printing money down the road very predictable You can understand what what what the book to bill is and they really forecast your business, right? You're right I mean, that's the whole thing with sass with sass companies. All you have to really understand is growth rate Lifetime value of a customer churn rate and how much it costs to acquire a customer once you got that it's math And math is what the street wants any other ingredient to of course is the customers love it because you're not the install software You're not to maintain the software, you know, why why I mean it's the CRM model a Salesforce model really brought to all these other industries I'm a bit surprised that it's taken so long. Are you or why why is that? I mean behavior changes very slowly and if you think about it, we're sitting in a room today We have a thousand node cluster in the sky that all these 200 data scientists are going to connect to That's a new precedent, right? I mean that's people come in here all the time. We're like where the servers and you're like They're up there guys. They're up there All right, Jeff. Hey, thanks for spending some time. It's great to see you as always a pleasure. Great seeing you guys Thank you very much. Congratulations on the launch. All right. Take care. All right. Keep it right there This is Dave Vellante. This is the cube right back