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CoMeet Berlin 28.09.2017

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Mark Miller “Financial and M&A Trends in Emerging Technologies”

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CoMeet Berlin 28.09.2017

  1. 1. “Financing and M&A Trends in Emerging Technologies” CoMeet by CODETE Kunztschule Berlin Friday, 29th September2017 Member of the international M&A network
  2. 2. “Financing and M&A Trends in Emerging technologies” | CatCap GmbH Member of Globalscope 53 Members 42 Countries 5 Continents 500 Professionals Strong Sector Expertise with Industry Experts 25 Transactions in 2016 250 Transactions over the past 15 Years Mergers & Acquisitions 6 Partners and 26 Employees Offices in Hamburg and Munich Munich (Berlin in Q1 2018) Profile 2 CatCap is a Globally Active Corporate Finance Boutique
  3. 3. “Financing and M&A Trends in Emerging technologies” | CatCap GmbH Selected CatCap References 3 Deal Size: Undisclosed Advised: AUVESY Mandate: Sell-Side Nationality: Transaction parameter Deal Size: Undisclosed Advised: Webfactory Mandate: Sell-Side Nationality: Transaction parameter Deal Size: Undisclosed Advised: Wassermann AG Mandate: Sell-Side Nationality: Transaction parameter
  4. 4. “Financing and M&A Trends in Emerging technologies” | CatCap GmbH 4 Trends in Technology Artificial Intelligence (AI)Internet of Things (IoT) Especially the Internet of Things and Artificial Intelligence have gained increasing significance for M&A/Fundraising
  5. 5. “Financing and M&A Trends in Emerging technologies” | CatCap GmbH 5 Internet of Things – Overview The Internet of Things (IoT) refers to the use of intelligently connected devices and systems to leverage data gathered by embedded sensors and actuators in machines and other physical objects. Internet of Things application examples Life and Healthcare Smart Home Connected Cars IndustrySmart Cities
  6. 6. “Financing and M&A Trends in Emerging technologies” | CatCap GmbH 6 Artificial Intelligence – Overview Example of industries that are transformed by AI Machine Learning/Deep Learning as basis for AI Factors boosting the development of AI ▪ Machine learning algorithms learn from examples and experiences (=datasets) instead of exact and predefined rules and codes ▪ Deep Learning is a subcategory of machine learning, using powerful neural networks (inspired by human brain) ▪ Neural networks are able to quickly recognize very complex pattern within datasets and thereby out-perform human decision & assessment ▪ Availability of large amounts of Data (driven by IoT/mobile) ▪ Computer hardware has become signficantly faster ▪ Cost efficient increase in computing power at lower cost (due to cloud and GPUs) ▪ Infratructure is mainly open-source ▪ More accessible talent and scientific breakthroughs Healthcare Marketing Security Insurance Finance Agriculture Quality Management Mobility
  7. 7. “Financing and M&A Trends in Emerging technologies” | CatCap GmbH 7 Strong Increase in Number of Global IoT and AI M&A Transactions 9 15 23 31 43 8 10 21 39 56 50 48 38 44 6755 0 10 20 30 40 50 60 70 80 90 1H 2017 87 56 71 1H 2014 30 71 1H 2013 1H 20162H 2013 2H 20161H 2015 46 15 2H 2014 13 69 2H 2015 Artificial Intelligence (AI) Internet of Things (IoT) Sources: CapIQ, Pitchbook, MergerMarket CatCap research
  8. 8. “Financing and M&A Trends in Emerging technologies” | CatCap GmbH M&A Activity in the IoT Sector 8 RoW; 8% North America; 68% Europe; 24% Europe; 20% RoW; 10% North America; 70% European Targets H1 2017 44 Deals H1 2017 IoT Targets (Global) by Sector IoT Targets by Location Location of Buyers of European IoT Targets Monitoring # of Deals: 15 Platforms # of Deals: 18 Telematics # of Deals: 11 Monitoring TelematicsPlatforms Sources: CapIQ, Pitchbook, MergerMarket CatCap research
  9. 9. “Financing and M&A Trends in Emerging technologies” | CatCap GmbH Machine Vision # of Deals: 19 Big Data/Analytics # of Deals: 14 M&A Activity in the AI Sector 9 North America; 62% RoW; 11% Europe; 17% Europe; 38% North America; 56% RoW; 6% European Targets H1 2017 43 Deals H1 2017 AI Targets by Location Location of Buyers of European AI Targets AI Targets (Global) by Sector Language Processing # of Deals: 10 Natural Language Processing Machine VisionBig Data/Analytics Sources: CapIQ, Pitchbook, MergerMarket CatCap research
  10. 10. “Financing and M&A Trends in Emerging technologies” | CatCap GmbH Selected Transactions 10 Top 10 M&A Deals in H1 2017 Company Buyer/ Investor Transaction ValueCountry … … Länder Länder Länder … Länder … Länder … USD 15.3 bn USD 2.3 bn USD 1.0 bn USD 400 m USD 166 m USD 125 mLänder … Länder Länder … Länder … Länder USD 115 m USD 103 m USD 100 m USD 100 m # 1 2 3 4 5 6 7 8 9 10 Description Auto anti-collision systems Semiconductors for IoT applications AI-enabled software for vehicles Machine learning and AI for robotics Connected car solutions Conversation based AI for mobile SW Connected car analytics platform Connected car solutions Deep learning cyber security Connected home solutions Sources: CapIQ, Pitchbook, MergerMarket CatCap research
  11. 11. “Financing and M&A Trends in Emerging technologies” | CatCap GmbH Number of investments between 2010 and 2017 Activity of Venture Capital Investors 11 1414151516 20 232527 44 Intel 77777 8 11 1212 13 MostactiveIoTVCsMostactiveAIVCs Sources: CapIQ, Pitchbook, MergerMarket CatCap research
  12. 12. “Financing and M&A Trends in Emerging technologies” | CatCap GmbH Selected Transactions 12 Top 10 Funding Rounds in H1 2017 Company Investors Transaction Value Country Target … … Länder Länder Länder … Länder … Länder … USD 1.4 bn USD 200 m USD 160 m USD 109 m USD 95 m USD 90 mLänder … Länder Länder … Länder … Länder USD 88 m USD 75 m USD 72 m USD 40 m # 1 2 3 4 5 6 7 8 9 10 Description Development platform for IoT Electrochronic smart glass IoT connectivity solution Connected home solutions Deep learning technology Predictive data analytics Digital identity management for IoT Low Power Wide Area Networks for IoT AI based voice and audio solutions Internet connected sensors Sources: CapIQ, Pitchbook, MergerMarket CatCap research
  13. 13. “Financing and M&A Trends in Emerging technologies” | CatCap GmbH Top Trends in IoT/BI Fundraising and M&A 13 Large corporates and tech companies have significantly increased their funding activities at earlier stages1 Venture capital firms have demonstrated a greater appetite for investing in higher layers and across ecosystems2 Private equity firms appear to be playing a waiting game for targets to mature and become roll-up platforms3 Valuation plays are being justified in the name of preemptive strikes4
  14. 14. Contact Hamburg Esplanade 41 D-20354 Hamburg Tel.: +49 (40) 300 836 - 0 Fax: +49 (40) 300 836 - 22 Munich Von-der-Tann-Str. 7 D-80539 München Tel.: +49 (89) 25 54 953 - 10 Fax: +49 (89) 25 54 953 - 20 Caspar Graf Stauffenberg Tel.: +49 (89) 255 4953 - 11 caspar.stauffenberg@catcap.de Dr. Manfred Drax Tel.: +49 (89) 255 4953 - 15 manfred.drax@catcap.de Michael Moritz Tel.: +49 (40) 300 836 - 13 michael.moritz@catcap.de Mark Miller Tel.: +49 (40) 300 836 - 11 mark.miller@catcap.de Daniel Dies Tel.: +49 (40) 300 836 - 16 daniel.dies@catcap.de Daniel Garlipp Tel.: +49 (40) 300 836 - 19 daniel.garlipp@catcap.de

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