2013 Whats Happening In Digital-- Including NYC
 

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2013 Whats Happening In Digital-- Including NYC Presentation Transcript

  • 1. What’s Happening in Digital…Including NYC November 13, 2013
  • 2. Agenda I. Setting the Stage II. Key Digital Sector Trends III. Digital NY IV. Quick Gridley Commercial © 2013 Gridley & Company LLC 2
  • 3. I. Setting the Stage
  • 4. Broad Market Glance YTD 2013 Market Index Performance 60% Key Themes in Internet/Digital Media Performance of Internet Bellwethers +30.5% YTD YTD Since 2008 44.6% 284.5% 65.2% 41.4% 4.5% 60.5% 84.5% 20% 47.9% 42.0% 40% NA 0% +23.6% YTD (20%) Strong Market Despite Headwinds • High unemployment: 7.2% in September (40%) • Fiscal ceiling uncertainty / government shutdown (60%) • Record amount of cash on corporate balance sheets Jan-08 Sep-08 Jun-09 Feb-10 Nov-10 Jul-11 Apr-12 Jan-13 Sep-13 Source: PriceWaterhouse Coopers; National Venture Capital Association (2013); Capital IQ. © 2013 Gridley & Company LLC 4
  • 5. M&A and VC Volume Appear to Be In Line with Prior Years M&A and Venture Funding Volume Since 1995 ($ in billions) $45.0 $200.0 $40.0 $180.0 VC $35.0 $160.0 M&A $140.0 $120.0 $25.0 $100.0 $20.0 $80.0 $15.0 $60.0 $10.0 $40.0 $5.0 $20.0 $0.0 $0.0 Source: PriceWaterhouse Coopers; National Venture Capital Association (2013); Capital IQ. As of November 8, 2013. © 2013 Gridley & Company LLC 5 M&A Volume Venture Funding $30.0
  • 6. Billion Dollar Valuations with Little to No Revenue -Are We in a Bubble? “Big companies are scarcely growing, and interest rates remain near zero, boosting zeal for investment opportunities in companies with high-growth potential.” -WSJ 10/27/13 “The price tag… is determined by the market, which right now is starting to look like the housing bubble of the mid-2000s. -NYT 10/31/13 Billion Dollar Valuations ($ millions) M&A Private Placement IPO $13,600 $4,000 $1,000 Tumblr Waze $0 $13 $0 $3,400 $966 Instagram LTM Revenue $1,100 $3,800 $1,160 Snapchat $0 $0 Source: Capital IQ, TechCrunch, Wall Street Journal article dated 10/27/2013 © 2013 Gridley & Company LLC Pinterest 6 Uber $125 Rocketfuel $107 $1,062 Twitter $82 RetailMeNot $145
  • 7. Performance for Digital Media Related IPOs have been Strong This Year 2013 YTD Internet IPOs ($ in millions, except per share figures) Pricing Date Company Market Cap Performance Current @ IPO Since IPO Market Cap 02/14/13 Xoom Corporation $509.4 03/04/13 Professional Diversity Network LLC50.4 03/21/13 Marin Software Incorporated 05/16/13 Marketo, Inc. 05/16/13 Tableau Software, Inc. 05/22/13 $1,102.1 7.8x NM NM (38.1%) 33.2 3.1x NM NM 432.8 (23.6%) 366.3 3.3x NM NM 465.2 161.5% 1,384.6 12.6x NM NM 1,088.0 107.9% 3,852.6 16.3x NM NM ChannelAdvisor Corporation 286.6 158.8% 849.2 10.0x NM NM 06/26/13 Tremor Video, Inc. 494.2 (52.8%) 502.9 4.7x NM NM 07/18/13 RetailMeNot, Inc. 1,662.2 9.7x 24.7x 38.7x 08/06/13 YuMe, Inc. 286.2 (30.4%) 255.7 1.9x NM NM 08/08/13 Cvent, Inc. 812.0 53.0% 1,317.3 11.5x 111.1x NM 09/17/13 Benefitfocus, Inc. 644.3 74.6% 1,182.3 11.1x NM NM 09/19/13 Rocket Fuel Inc. 942.3 30.6% 1,538.6 6.8x NM NM 10/30/13 Criteo SA 1,714.2 10.9% 1,901.2 NA NA 0.0x 11/07/13 Twitter, Inc. Mean Median 14,162.1 72.7% 45.9% 49.9% 24,456.9 37.9x 10.5x 9.7x NM 67.9x 67.9x NM 19.4x 19.4x 1,054.3 71.3% 2013E Rev. 2013E EBITDA 2013E P/E Multiples Multiples Multiples 46.8% Source: Capital IQ. Prices as of November 8, 2013. © 2013 Gridley & Company LLC 7
  • 8. However, The IPO Market Appears To Be Rational Relative to 1999 • Market much more selective vs. 1999 in terms of business model and growth characteristics 1999 2013 YTD # of IPOs 368 32 Mean first-day return 87% 26% 4 years 13 years # that doubled in price on first day 114 1 % with <$50 million LTM Revenue (2005 dollars) 84% 22% % that were unprofitable LTM 86% 66% Median ratio of market value to sales, at IPO 26.5x 5.6x Median age of company Source: Wall Street Journal article dated 10/27/2013 © 2013 Gridley & Company LLC 8
  • 9. Consumer Monetization Models Today Are More Easily Understood… Revenue Jumps When Revenue Models are “Turned On” Valuation tied to User Adoption ($ in Millions) (Monthly Active Users, in Millions) 150 $317 100 Facebook acquisition of Instagram $150 $106 30 10 $52 © 2013 Gridley & Company LLC 9 Aug-13 Jun-13 Apr-13 Feb-13 Dec-12 Oct-12 Aug-12 138 Jun-12 68 Apr-12 30 Feb-12 40 2012 Dec-11 12 2011 Oct-11 2 2010 Aug-11 2007 Jun-11 2006 Feb-11 2005 Dec-10 # Users: 5 1 Apr-11 $28 $6
  • 10. …And Higher Growth Profiles in Digital Marketing are Coming to Market Public Comp Universe at End of 2012 ’12-’13 Revenue Growth Average : 24.5% Millennial Media Inc. 38.5% ValueClick, Inc. Constant Contact, Inc. Bankrate, Inc. QuinStreet, Inc. Median: 2013E Revenue Multiple Average : 24.2% 21.0% 17.2% 10.6% -15.0% 21.0% 3.2x 3.9x 3.9x 2.3x 2.9x 0.6x 0.5x 2.5x YuMe, Inc. 4.1x 4.1x Marin Software Inc. 1.0x 1.0x 2.3x 2.0x * Criteo 2013E revenue growth is based on 2013 1H run rate © 2013 Gridley & Company LLC 117.0% 4.9x Marketo, Inc. 2.8x 10 Twitter, Inc. 102.2% Criteo SA* Tremor Video, Inc. Median: 2013E Revenue Multiple 62.0% Rocket Fuel Inc. 76.1% 4.8x ExactTarget, Inc. ReachLocal, Inc. 2012 Revenue Multiple New Public Comps in 2013 ’13-’14 Revenue Growth 71.6% 61.5% 33.3% 28.9% 19.3% 61.5% NM 2.6x 12.3x 1.6x 3.1x 1.1x 2.9x
  • 11. Key Themes in Strategic M&A and Funding Market • Consolidation still quiet in fragmented sectors such as Adtech ‒ Complicated cap structures with multiple layers of institutional capital ‒ Investors with different time horizons and priorities on same deals ‒ Lots of strategics holding on to cash • M&A as a recruiting tool is here to stay – didn’t exist five years ago ‒ Yahoo, Google, Twitter, Facebook all compete with hiring talent ‒ Still primarily a B2C concept, few examples of enterprise software companies employing this tactic ‒ From banker’s perspective, no company is too small • VC/PE investors reluctant to triage their portfolios, believe all will be home runs © 2013 Gridley & Company LLC 11
  • 12. Key 2013 Digital M&A and Private Financings Notable M&A Target Acquirer Jun. 2013 May 2013 Aug. 2013 Notable Private Financings Company $1.1BN Jul. 2013 $1.1BN Aug. 2013 $405MM Apr. 2013 Oct. 2013 $350MM Sep. 2013 Jul. 2013 Aug. 2013 Feb. 2013 Feb. 2013 $361MM $250MM $225MM $225MM Feb. 2013 $316MM Jun. 2013 Aug. 2013 $750MM $261MM $206MM $200MM Feb. 2013 $180MM Jan. 2013 $68MM $155MM May 2013 $125MM © 2013 Gridley & Company LLC $75MM Jun. 2013 12 $60MM
  • 13. Digital Leaders Are Known to Overpay into Platform Shifts Desktop Chews into Traditional Media Internet Becomes Scalable Transaction Medium Consumers Move to Social Channels Mobile Overtakes Desktop for Consuming Content Sale Price $1,561 $1,433 $745 $966 LTM Rev. Multiple NA 8.25x 18.63x(1) NA Sale Price $850 $3,727 $400 $350 LTM Rev. Multiple NA NA NA NA $5,000 $410 $1,100 $1,000 NA NA 73.33x(2) NA Sale Price LTM Rev. Multiple (1) BuddyMedia rumored LTM revenue is $40 MM (2) Tumblr’s rumored LTM revenue is $15 MM based on 2013 Q1 run rate 13
  • 14. Internet Leaders Have and Will Continue to Make Transformational Business Moves Through M&A Search solutions provider Online CD and video retailer Online seller-bid auction Pay-per-click advertising Online audio entertainment Digital transactions platform Ad exchange Mobile operating system Online shoe and apparel retailer VOIP and IM client Job search engine Online video-sharing website Online daily deals Online payment system Web hosting Handset manufacturing division Online baby product retailer Digital commerce services provider Microblog and social network Smartphone navigation app Social book cataloguing Digital payments processer Internet radio Social media marketing © 2013 Gridley & Company LLC 14
  • 15. eBay Has Systematically Built A Multi-Channel Commerce Capability Through M&A eBay made a series of acquisitions, most notably of PayPal, GSI Commerce, Red Laser, Zong, and Milo, that enabled eBay to become a front-runner in the race to become the next generation in-store leader Discover Pay Nearby Retailer Store locator and locationbased deals Used, online In-store scanner Card-in-cloud Online retail Virtual goods Better Merchandising At Home Local Retailers / SMB Nearby Used, online Online retail Online social retail © 2013 Gridley & Company LLC 15 Any product
  • 16. Growth and Scale are Primary Factors in Valuations Today 2013E Revenue Growth Rate vs. 2013E Revenue Multiple 140% Legend Adtech 120% Enterprise $225MM 2013E Revenue Growth Consumer Internet 100% $124MM $615MM 80% $345MM $243MM 60% $269MM $204MM $10.4BN 40% $894MM 20% $532MM $77MM $175MM 0% 0.0x $5.2BN 5.0x 10.0x 15.0x 2013E Revenue Multiple © 2013 Gridley & Company LLC 16 20.0x 25.0x
  • 17. II. Key Digital Sector Trends
  • 18. Summary of 2013 Deal Trends M&A VC/PE Funding • Ad Tech Consolidation has been needed in Adtech for five years, still very fragmented • Chatter around merger discussions up; remains to be seen if there is action Continue to see large scale deals as mobile applications, complimented by tech/team and tuck in deals • Mobile • Content deal market remains quiet overall Many VCs have moved away from Adtech, those that remain are very selective ‒ • Clear path to IPO ‒ New data models that create unique value Aggressive VC market across the spectrum Yahoo has built a large mobile team through ~20 acquisitions in past year • • ‒ Content ‒ • Few buyers in the market for digital content assets No material change in behavior in past 3 years Renewed excitement for vertically focused publishers ‒ Multiple $15mm+ capital raises • Relatively harder to secure earlier stage funding vs. other digital segments • Social LOTS of tech & team, smaller deals • • Continued premiums paid for perceived market leaders $50 million is the new $20 million and $20 million is the new $10 million • High valuations paid for experienced teams in uncrowded markets • Continued investor interest in new commerce models • • eCommerce Social moving deeper into the enterprise, opening up the buyer universe Most M&A focused on B2B as software companies like IBM and Netsuite expand retail capabilities into digital © 2013 Gridley & Company LLC 18 ‒ Rent the Runway, Birchbox, etc
  • 19. Sector AdTech Mobile Content Social eCommerce © 2013 Gridley & Company LLC 19
  • 20. Key Trends in Adtech • Recent IPOs have brought new life into the Adtech community ‒ Creating urgency to get scale ‒ Establishing clarity around value for high growth advertising stories • Noise level on Privacy/Cookie debate up; although still very exploratory in terms of going forward models • Category leaders getting funding, but otherwise hard market for new capital ‒ Understanding and executing on data is actually very hard! • Convergence of marketing and advertising technologies not leading to considerable strategic activity yet © 2013 Gridley & Company LLC 20
  • 21. The CMO’s Dilemma – Multiple, Disconnected Channels Capabilities within Digital Channels Continue to Expand Display Mobile • Advertising • Marketing • LBS • Networks Social • DSPs • Direct Sold • Word of mouth • Various capabilities (e.g. retargeting) • Paid CMO • Campaigns • Owned • Earned Video • Pre vs. post roll • Networks • Direct Sold © 2013 Gridley & Company LLC Email Search • Google vs. others • Bid optimization solutions 21 • Mass branding • One-to-one (rules based)
  • 22. The Buy-side Value Chain – Race to Build Value Through Use of Data • Strategic value is moving to the middle of the value chain as the value of data becomes better understood Value Chain DSP/Network Social Publishing Self Serv. Adserving LBS Email Execution Planning Creative Attribution Analytics Modeling Optimization Scoring Data Mgmt Warehouse Normalize Segment Database CRM Workflow/Mgmt © 2013 Gridley & Company LLC MRM 22 Ops MAM
  • 23. Sector AdTech Mobile Content Social eCommerce © 2013 Gridley & Company LLC 23
  • 24. Mobile Is the Most Important Broad Theme in 2013 Driven by A Rapid Shift in Consumer Behavior 3.0 Global Installed Base (Billions) Desktops+Notebooks Smartphones+Tablets 2.5 Q2:13E: Projected Inflection Point Smartphones + Tablet Installed Base > Total PCs Installed Base 2.0 1.5 1.0 0.5 0.0 2009 2010 2011 2012E 2013E 2014E 2015E Note: Notebook PCs include Netbooks. Assumes the following lifecycles: Desktop PCs – 5 years: Notebook PCs – 4 years; Smartphones – 2 years; Tablets – 2.5 years. Source: Morgan Stanley Research, 2012. © 2013 Gridley & Company LLC 24
  • 25. Key Trends in Mobile • 2013 is the year of mobile from many perspectives ‒ Positive mobile consumption trends, quickly overtaking desktop ‒ Internet bellwethers have executed multiple large scale M&A deals ‒ Scaled consumer adoption of vertical specific application such as Uber and Waze • Facebook and Twitter are educating the broader market on value of mobile marketing • Mobile driving much of the innovation in the payments sector today ‒ Exciting opportunity in the convergence between marketing and payments © 2013 Gridley & Company LLC 25
  • 26. POS – A Major Battleground in Mobile Market Research / Data Analytics Account Marketing Digital Commerce Consumer Payments eReceipts © 2013 Gridley & Company LLC 26
  • 27. Massive Strategic Opportunity with Mobile + Local Higher Banner Ad CTR for Local Businesses Rise of Localized Mobile Marketing Local vs. National Mobile Ad Spend ($ in billions) CTR Lift 48% $9.9 CTR Lift 40% $8.1 $5.8 $6.0 CTR Lift 26% $4.5 $4.3 $3.1 $2.7 $1.7 CTR Lift 5% 41% $0.7 $1.0 <1 Mile 2011 1 to 2 Miles 2 to 5 Miles 5 to 10 Miles $2.1 $1.2 $3.6 $2.9 $2.2 $1.5 2012 2013 National Sources: BIA Kelsey, “From National to Local: Mobile Advertising Zeroes In,” Jan. 2013; BI Intelligence; Balihoo, “Micro Study: National Brand Use of Digital in Local Marketing,” Oct. 30, 2012. 27 $4.1 2014 2015 Local 2016 58%
  • 28. Sector AdTech Mobile Content Social eCommerce © 2013 Gridley & Company LLC 28
  • 29. Change in Content Consumption Behavior Has Been a Driving Factor in Digital Content Landscape Browsing and Consuming Behavior Since the 1950’s… Gridley Has Been Observing These Trends in Content For Several Years… New Content Consumption Model • The Network • Science • Curation • Incentives • Location • Converse • Opine • Review • Rank Tweet • Play “Like” • Watch Tag • Read Check-in Revenue Acclaim Loyalty Intelligence © 2013 Gridley & Company LLC 29
  • 30. Key Trends in Content • Healthy valuations in content enablement (e.g. Wordpress) and big vertical niche properties (e.g. Houzz) • Ongoing pressure from traditional ad models has forced some innovation in consumer acquisition/retention, revenue models, integration/coordination across channels ‒ Deeper integration into social channels ‒ New advertising formats such as native advertising ‒ Better mobile consumption experiences ‒ More integrated use of user generated content • Most traditional media companies still on the sidelines from an M&A perspective • Few good public comparable market for digital content businesses © 2013 Gridley & Company LLC 30
  • 31. Sector AdTech Mobile Content Social eCommerce © 2013 Gridley & Company LLC 31
  • 32. Key Trends in Social • Platform shift to social has created a lot of success stories and exposed a few vulnerabilities ‒ Positive: Consumer monetization models, value of network effects ‒ Negative: Can a sustainable business be built in social media management? eCommerce on social doesn’t work, long-term ability to create a “platform” around users in question • Fickle users drive consumer businesses, creating new opportunities and risks • Social creating positive impact across the digital ecosystem ‒ Content, commerce and mobile big beneficiaries © 2013 Gridley & Company LLC 32
  • 33. As the Channel Matured, Social Has Started to Have Broad Reaching Implications Social Will Increasingly Play a Role Across the Digital Ecosystem Mobile Commerce • Mobile only social solutions are gaining mass adoption, bypassing desktop entirely • Developing models that tie social connectivity into the path to purchase • Solving consumer discovery challenges via social curation Content Adv/Mkt. • Considerable inventory controlled by social platforms opening up this year • Maturing models around advertising in user generated content • Social remains a key strategic channel for CMOs © 2013 Gridley & Company LLC 33
  • 34. Sector AdTech Mobile Content Social eCommerce © 2013 Gridley & Company LLC 34
  • 35. eCommerce has Very Strong Growth Dynamics Digital is “10 – 50 – 100” Forecast: US Online Retail Sales 2012 to 2017 10% • ~10% total retail sales are eCommerce sales 50% eBusinesses are Shifting Spending to Commerce-Related Technologies • Development of “omnichannel” experiences open opportunities in mobile and marketing • 50% total retail sales are estimated to be influenced by digital ‒ Showrooming, research, planning 100% • Digital has an impact on 100% of the modern shopping experience Source: Kantar Retail “Digital Power 2013” report Source: Forrester Reports dated March 13, 2013 and July 25, 2013 © 2013 Gridley & Company LLC 35
  • 36. Key Trends in eCommerce • eCommerce tech platforms are complex and expensive • eCommerce business models are in experimental phase ‒ Flash sales, subscription commerce, social commerce, in-store all developing ‒ Started to see scaleable + sustainable models emerge this year • Content + Commerce did not pane out across demographics • Online/Offline convergence still early, but viewed as strategically important • eCommerce is a CEO level strategic focus © 2013 Gridley & Company LLC 36
  • 37. III. Digital New York
  • 38. Gridley’s Guide to Digital NY • Unique and comprehensive report for investors, buyers and entrepreneurs looking for one place to quickly get up to speed on New York’s exciting, explosive digital ecosystem • We decided to put together this report published originally in Oct. 2011 after people kept asking us about all of the “digital momentum” in NY. There was a feeling that lots was going on, but people didn’t really understand just what “it” was and how extensive “it” was. We aim to answer those questions here • Digital New York report is updated on a quarterly basis and sent to 1,500+ senior executives and investors • For an “easy to use” website that lays out the information in this report (and more) in a fun, creative way, visit www.gridleyco.com or www.gridleydigitalny.com © 2013 Gridley & Company LLC 38
  • 39. NY’s Emergence as a Tech Hub - $7.2BN Raised Since 2006 • New York City has become a true digital media innovation center NY Tech Investment Over Time $1,384 $1,141 $922 $791 $688 $608 $453 2007 2008 2009 2010 2011 2012 2013YTD (1) Source: PriceWaterhouse Coopers “MoneyTree Report 2013”, Media & Entertainment and Software investments; Capital IQ. (1) Gridley estimate. Includes Internet-related companies based in the New York Metropolitan area. Companies in our database either have raised at least $5 million of outside capital or are prominent enough in the Digital NY scene to merit inclusion. © 2013 Gridley & Company LLC 39
  • 40. A Word About the New York Scene in 2013 • Largest financing and largest venture-backed exit ever for New Yorkbased startups ‒ In April, raised $250 million at a ~$1.0 billion valuation ‒ In May, purchased for $1.1 billion • New York is the only hub to grow its share of the VC financing market over the past 5 years ‒ Now second in deal volume behind Silicon Valley for over two years ‒ $7.2 billion invested in Digital NY companies since 2006 • New York now a hub for seed and angel investing ‒ 34% of deals in 2012 were seed stage ‒ Angel investors like David Tisch’s Box Group, NY Angels, and Chris Dixon have given legs to the early stage community © 2013 Gridley & Company LLC 40
  • 41. NY Ecosystem Has Very Different Roots and Growth Opportunities Than Silicon Valley Internet Services Wall Street Operational Efficiencies Leadership Talent Engineering Talent Data Services Advertising Key Customers Fashion © 2013 Gridley & Company LLC Creative Talent Strategic Acquirers Strategic Partnerships Business Development 41 Media
  • 42. The Past Six Years Have Shaped Much of NY’s Digital Media and Technology Landscape • Notable events in NY since 2007: Development of brand names across broad set of verticals / / Closes deal and announces HQ move to NY in September ($3.1 billion) / July ($680 million) 2007 April 2007 January 2007 is founded September 2007 Raises series A round December 2007 November 2007 Raises series A round announces spin-offs of: announces acquisition of For $183 million 2009 Acquire s May 2013 American wireless business for $134 billion March 2011 June 2013 August 2008 Acquires For $125 million Raises series A round Raises Series A round Raises series A round for $1.1 billion 2011 September October 2007 Raises Series B round in tech VC funding and deal quantity January opens a Googleplex in New York City June Mayor Bloomberg 2008 starts up city-funded business incubator programs ($275 million) announces acquisition of leads Raises series A round December 2009 September announces acquisition of July 2013 2010 for $745 million June 2011 Acquires Mayor Bloomberg April 2013 for $22 billion comes to New York offers $100 million and September land to develop a top 2013 engineering school to encourage tech for $30 billion development, to bring Raises series D Raises series B New York City to the round round forefront of innovation. $250 $100 million announces million acquisition of Announces acquisition of 42
  • 43. Major Disruption is Happening Across All Sectors Advertising / Marketing eCommerce Content 43 Finance
  • 44. NY Area Private Digital Companies by Sector Digital Content Digital Marketing eCommerce Mobile Social SpotOn Electric Sheep Note: More companies illustrated on the following sector breakdown pages 44
  • 45. NY Area Private Digital Companies by Equity Raised (243) $5M-$10M 67 $10M-$20M 63 $20M-$30M 37 $30M-$50M 41 $30-$50 $50M-$100M 22 $50-$100 >$100M Sources: Capital IQ and TechCrunch, October 2013 45 13
  • 46. “The All-Stars” - VC/PE Firms with at Least 5 NY Area Digital Investments “The Locals” 30 “The Satellites” Seed Early Stage Growth Source: Capital IQ, TechCrunch, public filings, and press releases 46 9 “The Outsiders” 13
  • 47. Public Companies with a NY Area Presence by Industry (51) Data eCommerce Digital Media 9 Marketing 14 6 47 10 Traditional Media 12
  • 48. Key Digital NY Private Financings & IPOs Notable Fundraises Financing Size IPOs Company IPO Size Apr. 2013 $250MM Jul. 2012 $120MM $166MM Dec. 2007 Current Company Market Cap Apr. 2007 Apr. 2011 $138MM Aug. 2009 $78MM $100MM Sep. 2013 $2,534MM $143MM $610MM $217MM $422MM $234MM $34MM $73MM $60MM Apr. 2010 May 2012 $150MM May 2009 $100MM $150MM Oct. 2013 $77MM $75MM May 2012 $22MM May 2013 Nov. 2011 $85MM Aug. 2011 Sep. 2011 Jan. 2013 Aug. 2012 Jan. 2010 $84MM $75MM $91MM Jul. 2012 $68MM © 2013 Gridley & Company LLC 48 Acquired
  • 49. Private Digital NY Sale Transactions >$100 million Since January 2010 (Disclosed deals / rumored pricing available) Date Acquirer/Target Source: Capital IQ, TechCrunch, public filings, and press releases. *rumored value © 2013 Gridley & Company LLC 49 Transaction Value ($MM)
  • 50. V. Quick Gridley Commercial
  • 51. Gridley Overview Gridley & Company LLC, a New York-based boutique investment bank, provides advisory services to companies in the Information Services industry Gridley & Company LLC Leading Boutique • Sharp focus provides clients with valuable strategic insights and perspectives • Specialize in Internet Services, Digital Media & Marketing Services, Data Services, Financial Technology, and SaaS & Outsourcing Services • Founded in 2001 • Headquartered in New York, NY Strong Reputation • Strong industry reputation on assignments led by senior bankers • Experienced, bulge-bracket trained M&A bankers – The “A” Team Trusted Advisor • Thoughtful ideas – not just logical combinations • Deliver value to buyers, sellers, and investors alike • Broad industry network developed over 25+ years with industry leaders, emerging growth companies, and senior investors © 2013 Gridley & Company LLC 51
  • 52. 12+ Years of Strategic Thought Leadership Quarterly Publications Industry Guides Frequent Industry Speaker • Highly respected newsletter about industry trends and corporate finance / M&A activity • January Conference • In-depth review of the digital NY ecosystem, including recent startups and the firms investing in them © 2013 Gridley & Company LLC Annual Gridley Hosted Events • Summer Networking Event & Golf Outing 52
  • 53. Host of Leading Annual Industry Conference for 13 years • Bellwether event focused on our targeted industries • Approximately 500 senior-level executives from over 300 companies • Differentiated audience and participants vs. other conferences • Highly personalized with Gridley arranged “1-on-1”s for clients, presenters, sponsors • Presentations by approximately 40 private companies and industry panels addressing timely topics January 14, 2014 The Westin New York Grand Central (Invitation Only) © 2013 Gridley & Company LLC 53
  • 54. Event History – Track Record of Finding Highly Successful Companies Early • 218 private companies have presented since 2004 • Over 70% have completed liquidity transactions Selected Past Conference Presenters © 2013 Gridley & Company LLC 54
  • 55. Selected Recent Gridley Transactions Gridley clients include industry leaders and premier emerging growth companies © 2013 Gridley & Company LLC 55
  • 56. Selected Recent Gridley Transactions cont. © 2013 Gridley & Company LLC 56
  • 57. QUESTIONS? Linda Gridley President & CEO 212-400-9710 linda.gridley@gridleyco.com Pratik Patel Managing Director 212-400-9712 pratik.patel@gridleyco.com Gridley & Company LLC 10 East 53rd Street, 24th Floor New York, NY 10022 212.400.9720 tel 212.400.9717 fax Twitter: @gridleyco www.gridleyco.com