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Internet media financing - Tie presentation feb 23
 

Internet media financing - Tie presentation feb 23

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Presentation to Vancouver TIE meeting. I moderated a panel on funding Internet Media at all stages of growth. I (Brent Holliday) was the moderator and the panel included Ziplocal's Olivier Vincent, W ...

Presentation to Vancouver TIE meeting. I moderated a panel on funding Internet Media at all stages of growth. I (Brent Holliday) was the moderator and the panel included Ziplocal's Olivier Vincent, W Media Partner's Boris Wertz and Hootsuite's Ryan Holmes.

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    Internet media financing - Tie presentation feb 23 Internet media financing - Tie presentation feb 23 Presentation Transcript

    • Internet Media FundingPresentation to TIE VancouverFebruary 23rd, 2011Prepared by:Brent Holliday, PartnerCapital West Partnersbrent@capwest.com
    • Internet Media FundingWhere would you be puttingyour money if you were aninvestor?Public markets don’t have anysocial media companies tochoose from yet... Page 1
    • Internet Media Funding North America Information Technology M&AAnnounced M&A values Average EV/LTM Revenueshow a nice rebound, but 2 1.9look at the Y axis... 1.8 1.7 1.6High growth Internet Media 1.5 LBOproperties are selling in the 7- 1.4 Strategic 1.310x trailing revenue in the past 1.24 months. 1.1 1 2008 2009 2010 North America Internet Media M&A Average EV/LTM Revenue 4.5 4 3.5 3 LBO 2.5 Strategic 2 1.5 1 2008 2009 2010 Page 2
    • Internet Media FundingVenture InvestingSilicon Valley VCs are moreoptimistic today about theirinvestments that at any timesince 2007 (Silicon Valley VCConfidence Index at 3.75 out of 5,January 2011) Quarterly VC Investment and Deal Volume Trend Q1 09 to Q4 10 730 715 735 678 687 613 612 $6.5 483 $6.1 $5.9 $5.9 $5.3 $5.5 $5.4 $3.9 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Funding ($B) # of Deals www.cbinsights.com Page 3
    • Internet Media FundingThe hottest sector in VC isInternet related... Internet VC Investment and Deal Volume Trend Last Five Quarters 272 224 233 233 221 $2,543 $1,618 $1,483 $1,265 $1,253 Q409 Q110 Q210 Q310 Q410 $ Funding # of Deals www.cbinsights.com Page 4
    • Internet Media FundingThe VCs are attracted tothe earliest stages,including Seed, typicallywhere angels play... Share of Internet VC by Series - Number of Deals Last Five Quarters 4% 6% 1% 4% 6% 7% 8% 6% 5% 5% 13% 18% 15% 17% 19% 23% 20% 27% 18% 28% 40% 42% 38% 38% 33% 11% 11% 12% 13% 13% Q409 Q110 Q210 Q310 Q410 Seed Series A Series B Series C Series D Series E + www.cbinsights.com Page 5
    • Internet Media FundingBut the biggest jump was inthe later stage InternetMedia deals... Internet Median Deal Size by Quarter ($ Million) $20.0 $19.0 $9.0 $7.0 $2.4 $0.6 Seed Series A Series B Series C Series D Series E + Q409 Q110 Q210 Q310 Q410 www.cbinsights.com Page 6
    • Internet Media FundingLater stage funds, akaPrivate Equity, have asupply problem... $160 $159.12 $485 $500 Global Private Equity – Capital Raised and Cumulative Overhang of Un-Invested Funds $450 $140 $400 $120 $111.67 $114.57 $350 $100 $300 $80 $250 $200 $60 $39.94 $150 $40 $29.17 $100 $20.33 $20 $7.97 $50 $2.56 $0 $0 2003 2004 2005 2006 2007 2008 2009 2010 $ in Billion As of 10/31/2010 Cumulative Overhang Under $100M $100M-$250M $250M-$500M $500M-$1B $1B-$5B $5B+ Source: PitchBook Page 7
    • Internet Media FundingSo they are pouring moremoney into more deals fromgrowth investing tobuyouts... Average Deal Value - IT Private Placements (closed) without Facebook 25.00 19.75 20.00 15.00 13.26 11.06 10.00 5.00 - Q2 2010 Q3 2010 Q4 2010 Page 8
    • Internet Media FundingRather than IPO today, thebiggest Internet mediacompanies are takingprivate equity...Presumably solvingeveryone’s immediateproblem:LiquidityCash for acquisitionsNo red tape Page 9
    • Internet Media FundingToday’s PanelWe will discuss the gamutof financing:Angel/Seed financing forInternet Media companiesVC financing for InternetMedia companiesPrivate Equity financing andbuyouts for Internet Mediacompanies Page 10
    • Internet Media FundingAgendaEach speaker introducestheir company and thestage and experience inInternet Media investingA few questions from BrentAudience asks questions Page 11
    • Mary Meeker (Kleiner, Perkins, Caufield and Byers) Slideshttp://www.slideshare.net/kleinerperkins/kpcb-top-10-mobile-trends-feb-2011 Page 12
    • Mary Meeker (Kleiner, Perkins, Caufield and Byers) Slideshttp://www.slideshare.net/kleinerperkins/kpcb-top-10-mobile-trends-feb-2011 Page 13
    • Mary Meeker (Kleiner, Perkins, Caufield and Byers) Slideshttp://www.slideshare.net/kleinerperkins/kpcb-top-10-mobile-trends-feb-2011 Page 14