VALUE & FINANCE INTHE INFORMATION AGEUNIT, SYSTEM & CAPITAL FORMATIONMAY / 2013Twenty years ago, in 1993, Peter Drucker co...
THE VALUE UNITTHE INFORMATION ASSET &ITS CHARACTERISTICSMAY / 2013
4IN AN ERA OF CONVERGENCE*, PREVIOUSLY DISPARATEFIELDS ARE COMBINING INTO & AROUND INFORMATIONTECHNOLOGY & SYSTEMSMAY / 20...
5IN THIS CONVERGENCE OF FIELDS, THE COMMON LINK ISINFORMATION & ITS FLOWS, SHARING TECHNOLOGY-ENABLED FEATURES AKIN TO LAN...
6INFORMATION CAN HAVE A VARIETY OF MEANINGS - GENERALLY(BUT NOT NECESSARILY) RELATED TO KNOWLEDGE*; OR IN THEMEDIA SENSE, ...
7IN ISOLATION, INFORMATION IS A DEPLETING ASSET THATREQUIRES RENEWAL, REINVENTION & REPLENISHMENTMAY / 2013(INFORMATION IS...
8ISSUES OF DEMAND, QUALITY & CONTEXT IMPACT ITSECONOMIC “LIFE” IN VARYING DEGREESMAY / 2013PROCESSES & TECHNOLOGY EXTEND O...
THE OPERATING SYSTEMSTRUCTURES THROUGH WHICHINFORMATION FLOWSMAY / 2013
10SYSTEMS & PLATFORMS (SEPARATE FROM THE VALUE UNIT)EXIST TO GATHER, PROCESS & DISTRIBUTE INFORMATIONMAY / 2013MEDIADATA M...
11TECHNOLOGY EVOLUTION HAS CREATED AN ENVIRONMENTOF DEFLATIONARY ECONOMICS FOR MANY OF THESEMAY / 2013MOORE’SLAWOPEN-SOURC...
12INFORMATION BUSINESSES STRIVE TO BUILD & PRESERVEVALUE - AGAINST THE NATURAL PULL OF DEFLATION & THEVALUE UNIT’S DEPLETI...
13THE BALANCE BETWEEN THE TWO OPPOSING DYNAMICSDETERMINES BUSINESS VALUE & OPPORTUNITY FORGROWTHMAY / 2013SECURITYBRANDPRE...
THE VALUE OF THE BUSINESSTHE SUM OF WHAT EXISTS &WHAT WILL BEMAY / 2013
15BROADLY, AN ENTERPRISE CONTAINS TWO VALUE ELEMENTS:THE CORE ASSET & ITS POSSIBILITIES, (OR A BUSINESS BASE& ITS OPTIONAL...
16IN THE DISCOUNTING OF FUTURE ECONOMICS (DCF), ATHEORETIC FUTURE VALUE (OR TERMINAL VALUE, OR EXIT)USUALLY COMPRISES THE ...
17 MAY / 2013THESE FUTURE POSSIBILITIES PRESUPPOSE CONTINUINGREINVENTION, RENEWAL & OUTGROWTH FROM THE CORE...COREOPTIONAL...
18THE UNIQUE TRAITS OF INFORMATION SYSTEMS FORM ABUSINESS BASE & OPTIONALITY THAT IS PARTICULAR TOTHESE TRAITS...MAY / 201...
FUNDING STRUCTURESMATCHING ASSET TYPESWITH CAPITAL SOLUTIONSMAY / 2013
20IN THE DESCRIBED CONTEXT, THE BALANCE OF A COREBUSINESS BASE & ITS OPTIONALITY WILL VARY ACCORDING TOSTAGES OF THE ENTER...
21... & THE MOST APPROPRIATE FUNDING TERM TO MATCH THETHEORETICAL DURATION OF THE UNDERLYING BUSINESS ASSETMAY / 2013SHORT...
22 MAY / 2013VENTURECAPITALBUYOUTEQUITYDEBTCAPITALEXITMID-STAGEREFINANCEINFORMATION&INFO SYSTEMSTRADITIONALMEDIA HARDWAREC...
23... WHICH IS ALSO REFLECTED IN A GROWING OVERLAPBETWEEN FUNDING SOURCES & FINANCING FORMS*...MAY / 2013VC /PRIVATEEQUITY...
24... INCREASINGLY A PART OF THE SAME INFORMATION &TECHNOLOGY DYNAMIC BEING FUNDED*...Principal PrincipalIssuerBuilderSell...
25... & DEFINED BY THE SAME ECONOMICS & BUSINESSFUNDAMENTALSMAY / 2013DEPLETINGASSETDEFLATIONARYECONOMICSSECURITYBRANDPRES...
WHERE ARE YOU INTHIS LANDSCAPE?WHERE ARE YOUHEADING?MAY / 2013
27 MAY / 2013COREOPTIONALITYDEPLETINGASSETDEFLATIONARYECONOMICSVALUE CAPTURECAPITALFORMATION
28www.coriseco.comCoRise Co., LLC535 Fifth Avenue, 4th floorNew York, NY 10036Telephone: (646) 532-6690email: info@coriseco...
Value & finance in the information age (May/2013)
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Value & finance in the information age (May/2013)

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Twenty years ago, in 1993, Peter Drucker commented on a coming era of information & knowledge work in his book, The Post-Capitalist Society. The implications of a post-capitalist economics, in which information & knowledge serve as core value units may not yet be understood, but we can look to some emerging trends in technology & its funding structures.

This presentation seeks to isolate & explain certain variables that impact valuation & finance in an ecosystem of bits rather than capital goods. An attempt is made to frame the subject in the context of markets & themes of sector convergence that shape the CoRise thesis. This presentation is not a comprehensive review of sector activities or a survey of competitors. Nor is it an analysis or set of recommendations for purposes of assessing any investment, public or private.

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Value & finance in the information age (May/2013)

  1. 1. VALUE & FINANCE INTHE INFORMATION AGEUNIT, SYSTEM & CAPITAL FORMATIONMAY / 2013Twenty years ago, in 1993, Peter Drucker commented on a coming era ofinformation & knowledge work in his book, The Post-Capitalist Society. Theimplications of a post-capitalist economics, in which information & knowledgeserve as core value units may not yet be understood, but we can look to someemerging trends in technology & its funding structures.This presentation seeks to isolate & explain certain variables that impact valuation& finance in an ecosystem of bits rather than capital goods. An attempt is made toframe the subject in the context of markets & themes of sector convergence thatshape the CoRise thesis. This presentation is not a comprehensive review of sectoractivities or a survey of competitors. Nor is it an analysis or set ofrecommendations for purposes of assessing any investment, public or private.
  2. 2. THE VALUE UNITTHE INFORMATION ASSET &ITS CHARACTERISTICSMAY / 2013
  3. 3. 4IN AN ERA OF CONVERGENCE*, PREVIOUSLY DISPARATEFIELDS ARE COMBINING INTO & AROUND INFORMATIONTECHNOLOGY & SYSTEMSMAY / 2013TRADITIONALMEDIA HARDWARECOMMERCEFINANCIALMARKETSINFRASTRUCTUREHEALTHCARE ,EDUCATION,OTHERS* See CoRise presentation onConvergence as a Long-Term Trend,March 2013INFORMATION&INFO SYSTEMS
  4. 4. 5IN THIS CONVERGENCE OF FIELDS, THE COMMON LINK ISINFORMATION & ITS FLOWS, SHARING TECHNOLOGY-ENABLED FEATURES AKIN TO LANGUAGEMAY / 2013ACCESSIBILITYTRANSFERABILITY DYNAMISMCOMMUNICATIONUNIVERSALITYREPLICABILITYIMMEDIACYAUTOMATION
  5. 5. 6INFORMATION CAN HAVE A VARIETY OF MEANINGS - GENERALLY(BUT NOT NECESSARILY) RELATED TO KNOWLEDGE*; OR IN THEMEDIA SENSE, CONTENT - NOW TYPICALLY MEASURED IN BITSMAY / 2013* In Peter Drucker’s meaning of an economy based onknowledge workDATANEWSRESEARCHSPECIALIZEDKNOWLEDGEENTERTAINMENTMEDICINEFINANCE /ACCOUNTINGLAWARTSCOMMERCEENGINEERINGMANUFACTURE**** Information systems are increasinglyconverting manufacture & other capital-intensivefields to service segments (of which 3D printing &open-source hardware have been visible symbols)
  6. 6. 7IN ISOLATION, INFORMATION IS A DEPLETING ASSET THATREQUIRES RENEWAL, REINVENTION & REPLENISHMENTMAY / 2013(INFORMATION IS VALUABLE ONLYWHEN IT IS OF INTEREST)REPLENISHMENTREINVENTIONRENEWALCULTURETIMESUPPLYRELEVANCEIPCORRECTION
  7. 7. 8ISSUES OF DEMAND, QUALITY & CONTEXT IMPACT ITSECONOMIC “LIFE” IN VARYING DEGREESMAY / 2013PROCESSES & TECHNOLOGY EXTEND OR SHORTENTHE LIFE OF INFORMATION, WHICH IS SOMETIMESMOMENTARYTHEORY DATARULESPROFILESTRENDS INTELLIGENCE
  8. 8. THE OPERATING SYSTEMSTRUCTURES THROUGH WHICHINFORMATION FLOWSMAY / 2013
  9. 9. 10SYSTEMS & PLATFORMS (SEPARATE FROM THE VALUE UNIT)EXIST TO GATHER, PROCESS & DISTRIBUTE INFORMATIONMAY / 2013MEDIADATA MINESINFLUENCERSMARKETSNETWORKSANALYSTS
  10. 10. 11TECHNOLOGY EVOLUTION HAS CREATED AN ENVIRONMENTOF DEFLATIONARY ECONOMICS FOR MANY OF THESEMAY / 2013MOORE’SLAWOPEN-SOURCESHAREDSTORAGELOWBARRIERSCUSTOMEREXPECTATIONSWEBDISTRIBUTION
  11. 11. 12INFORMATION BUSINESSES STRIVE TO BUILD & PRESERVEVALUE - AGAINST THE NATURAL PULL OF DEFLATION & THEVALUE UNIT’S DEPLETING NATUREMAY / 2013TECH UPKEEP &IMPROVEMENTSCALEECONOMIESFEATUREINTEGRATIONNETWORKEFFECTBRANDPRESENCESECURITY
  12. 12. 13THE BALANCE BETWEEN THE TWO OPPOSING DYNAMICSDETERMINES BUSINESS VALUE & OPPORTUNITY FORGROWTHMAY / 2013SECURITYBRANDPRESENCETECH UPKEEP &IMPROVEMENTFEATUREINTEGRATIONNETWORKEFFECTSCALEECONOMIESWEBDISTRIBUTIONSHAREDSTORAGEOPEN-SOURCELOWBARRIERSCUSTOMEREXPECTATIONSMOORE’SLAW
  13. 13. THE VALUE OF THE BUSINESSTHE SUM OF WHAT EXISTS &WHAT WILL BEMAY / 2013
  14. 14. 15BROADLY, AN ENTERPRISE CONTAINS TWO VALUE ELEMENTS:THE CORE ASSET & ITS POSSIBILITIES, (OR A BUSINESS BASE& ITS OPTIONALITY)MAY / 2013COREPOSSIBILITIES
  15. 15. 16IN THE DISCOUNTING OF FUTURE ECONOMICS (DCF), ATHEORETIC FUTURE VALUE (OR TERMINAL VALUE, OR EXIT)USUALLY COMPRISES THE BULK OF THE PRESENT OPPORTUNITYMAY / 2013COREPOSSIBILITIESPROFIT/LOSSPROFIT/LOSSPROFIT/LOSSTHIS IS BASED ON THE ASSUMPTION OFLONG LIFE (PERPETUITY) & A SERIES OFWILLING FUTURE BUYERSPRESENTVALUEFUTURE
  16. 16. 17 MAY / 2013THESE FUTURE POSSIBILITIES PRESUPPOSE CONTINUINGREINVENTION, RENEWAL & OUTGROWTH FROM THE CORE...COREOPTIONALITY
  17. 17. 18THE UNIQUE TRAITS OF INFORMATION SYSTEMS FORM ABUSINESS BASE & OPTIONALITY THAT IS PARTICULAR TOTHESE TRAITS...MAY / 2013DEPLETINGASSETDEFLATIONARYECONOMICSSECURITYBRANDPRESENCETECH UPKEEP &IMPROVEMENTFEATUREINTEGRATIONNETWORKEFFECTSCALEECONOMIESOPTION VALUECORE BUSINESSBASE... & SHOULD BE EVALUATED ACCORDINGLY
  18. 18. FUNDING STRUCTURESMATCHING ASSET TYPESWITH CAPITAL SOLUTIONSMAY / 2013
  19. 19. 20IN THE DESCRIBED CONTEXT, THE BALANCE OF A COREBUSINESS BASE & ITS OPTIONALITY WILL VARY ACCORDING TOSTAGES OF THE ENTERPRISE LIFECYCLE...MAY / 2013VOLATILITY STABILITYSPECIALIZATIONEARLY-STAGE /PURE OPTIONMID-STAGE /GROWTHLATE-STAGE /ASSETCOVERAGESCALEVENTUREGROWTHEQUITYBUYOUT /DEBT... TO DETERMINE THE MOST APPROPRIATEFUNDING FORM...
  20. 20. 21... & THE MOST APPROPRIATE FUNDING TERM TO MATCH THETHEORETICAL DURATION OF THE UNDERLYING BUSINESS ASSETMAY / 2013SHORT-TERM LONG-TERMTECHNOLOGY NETWORKINFORMATION SYSTEM PLATFORM
  21. 21. 22 MAY / 2013VENTURECAPITALBUYOUTEQUITYDEBTCAPITALEXITMID-STAGEREFINANCEINFORMATION&INFO SYSTEMSTRADITIONALMEDIA HARDWARECOMMERCEFINANCIALMARKETSINFRASTRUCTUREGROWTHEVOLUTIONREINVENTIONOPTION COREASSETCOVERAGEHEALTHCARE ,EDUCATION,OTHERSIN AN ERA OF CONVERGENCE & TRANSFORMATION, DISTINCTIONSBETWEEN BUSINESS STAGES & CATEGORIES ARE BLURRING...
  22. 22. 23... WHICH IS ALSO REFLECTED IN A GROWING OVERLAPBETWEEN FUNDING SOURCES & FINANCING FORMS*...MAY / 2013VC /PRIVATEEQUITYBANKS /FINANCECO’SHEDGEFUNDS /INDIVIDUALSSTRATEGICCAPITAL* See CoRise presentation onConvergence as a Long-Term Trend,March 2013, for specific examples
  23. 23. 24... INCREASINGLY A PART OF THE SAME INFORMATION &TECHNOLOGY DYNAMIC BEING FUNDED*...Principal PrincipalIssuerBuilderSellerBorrowerInvestorBuyerLenderConsumer $ $$$MARKETSMAY / 2013* See CoRise presentation onConvergence of Finance & Media,updated March 2013INFORMATIONINFORMATION INFORMATIONINFORMATIONINFORMATION INFORMATIONSERVICESANALYTICS RESEARCHRISK TRANSFERACCESSTOOLS
  24. 24. 25... & DEFINED BY THE SAME ECONOMICS & BUSINESSFUNDAMENTALSMAY / 2013DEPLETINGASSETDEFLATIONARYECONOMICSSECURITYBRANDPRESENCETECH UPKEEP &IMPROVEMENTFEATUREINTEGRATIONNETWORKEFFECTSCALEECONOMIESOPTION VALUECORE BUSINESSBASE
  25. 25. WHERE ARE YOU INTHIS LANDSCAPE?WHERE ARE YOUHEADING?MAY / 2013
  26. 26. 27 MAY / 2013COREOPTIONALITYDEPLETINGASSETDEFLATIONARYECONOMICSVALUE CAPTURECAPITALFORMATION
  27. 27. 28www.coriseco.comCoRise Co., LLC535 Fifth Avenue, 4th floorNew York, NY 10036Telephone: (646) 532-6690email: info@coriseco.comTO DISCUSS FURTHER:CONTACT INFORMATIONMAY / 2013

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