Salestech Market Size

Marktanalyse:
Marktstruktur und Volumen
Author: Ben Scherer, CEO
11.11.2019

Market Sizing – Industry Analysis
1.300 Billion
Marketing
GENERAL MARKET
800 Billion
TOTAL MARKET
260 Billion
ADRESSABLE MARKET
300 Million
LeadZen TM
▪ Global Advertising: 560 Billion ( 6% CAGR)
▪ Digital Advertising: 330 Billion
▪ Marketing Software: 47 Billion (15% CAGR)
▪ Sales Enablement: 3 Billion
▪ See Below 320 Billion
▪ Direct Selling / MLM: 190 Billion
▪ Lead Generation 130 Billion
▪ Social Media: 23 Billion
▪ Marketing Data: 26 Billion (26% CAGR)
▪ See Below 70 Billion
LeadZen Marketing Potential
▪ Coupons 47 Billion (56% CAGR)
▪ Social Commerce: 22 Billion
▪ Affiliates: 12Billion
▪ Influencer: 8 Billion (22% CAGR)
▪ Referral: 3 Billion (21% CAGR)
Broad Composition
▪ IT Tool Budgets: 88 Million 0.18% of Marketing Software
▪ Advertising Budgets: 46 Million 0.01% of Digital Advertising
▪ Referral, Affiliate, Influencer 166 Million 0.71% of Servicable Market
Excludes Direct Selling (190 Billion)

Market Sizing – Industry Analysis Backup
Budget Size CAGR Source
Global Macro
Global GDP 86.000 Billion 4.5% https://www.statista.com/statistics/268750/global-gross-domestic-product-gdp/
Global Retail Sales 25.000 Billion 4.1% https://www.statista.com/statistics/443522/global-retail-sales/
Global Marketing 1.300 Billion https://www.mediapost.com/publications/article/324030/global-marketing-approaches-13-trillion-us.html
Global Advertising 560 Billion 6% https://www.statista.com/topics/990/global-advertising-market/
Digital Advertising 333 Billion https://www.hampletonpartners.com/fileadmin/user_upload/Report_PDFs/Hampleton-Partners_Digital-Marketing-Report_2H2019_FINAL.pdf
Other (Non Advertising / Implied) 740 Billion
Specialized Industries (Marketing)
Direct Selling / MLM 190 Billion https://www.worldofdirectselling.com/global-direct-selling-2017/
Lead Generation Spending (US only) 130 Billion https://www.statista.com/statistics/190328/us-online-lead-generation-spending-forecast-2010-to-2015/
Marketing Software (Revenue based) 47 Billion 15.2% https://www.grandviewresearch.com/industry-analysis/digital-marketing-software-dms-market
Social Commerce 12 Billion 31% https://www.businessinsider.com/social-commerce-report?r=DE&IR=T
Affiliate Marketing Spending 12 Billion https://hostingtribunal.com/blog/affiliate-marketing-stats/
Social Media Marketing 23 Billion https://www.statista.com/statistics/562397/worldwide-revenue-from-social-media/
Influencer Market 8 Billion 22% https://www.businessinsider.com/influencer-marketing-report?r=DE&IR=T
Referral Marketing 2.6 Billion 21% https://www.verifiedmarketresearch.com/product/global-referral-management-market-size-and-forecast-to-2025/
https://www.marketsandmarkets.com/PressReleases/referral-management.asp
Coupons 47 Billion 56% https://wikibuy.com/blog/coupon-statistics-4c49b386c833
Other Industires
Sales Enablement 2.6 Billion https://www.prnewswire.com/news-releases/global-2-6bn-sales-enablement-platform-market-by-component-organization-size-deployment-type-
industry-vertical-and-region---forecast-to-2024--300848016.html
PRM Market (350M SaaS, + 500M Services) 0.4 Billion 15% https://go.forrester.com/blogs/partner-relationship-management-prm-comes-of-age/

Market Sizing – Bottom Up Targeting
130 Billion
Total Market
23 Billion
Addressable Market
300 Million
Servicable Market
100 Million
Target Market
(7 Years)
Reasonably Servicable Market (1.3%) – Revenue Composition
▪ IT Tool Budgets: 80 Million via Subscriptions
▪ Advertising Budets: 42 Million via Adds and Transaction Fees
▪ Referral, Affiliate, Influencer 150 Million via Agent Subscriptions and Fees
Target Market (0.4%) – Revenue Composition
▪ IT Tool Budgets: 52 Million via Subscriptions
▪ Advertising Budets: 23 Million via Adds and Transaction Fees
▪ Referral, Affiliate, Influencer 25 Million via Agent Subscriptions and Fees
Word of Mouth Market
Lead Generation
▪ Social Media: 23 Billion
▪ Marketing Data: 26 Billion (26% CAGR)

Stage Consumers Sales Companies User
Subscriptions
User Fees Company
Subscriptions
Company Fees Total Reve YoY
Growth
Closed Beta 500 50 50 - - - - -
Public Beta 2.500 150 250 - - - - -
Launch 10.000 250 500 300,000 720,000 2,700,000 288,000 1,310,700 1331%
Year 1 18.000 350 1.000 1,080,000 2,592,000 6,129,000 1,036,800 4,714,929 170%
Year 2 25.000 400 1.500 2,000,000 4,800,000 10,434,623 1,920,000 8,730,435 77%
Year 3 35.000 450 2.000 3,360,000 8,064,000 15,791,062 3,225,600 14,665,391 59%
Year 4 55.000 500 2.500 6,336,000 15,206,400 22,403,569 6,082,560 27,647,364 64%
Year 5 85.000 600 3.000 10,967,040 26,320,896 30,513,661 10,528,358 47,846,808 57%
Year 6 105.000 750 3.500 15,173,222 36,415,734 40,405,173 14,566,294 66,195,655 36%
Year 7 145.000 900 4.000 23,467,917 56,323,002 52,411,282 22,529,201 102,372,531 45%
Year 8 185.000 1.200 4.500 33,534,845 80,483,627 66,922,656 32,193,451 146,278,845 38%
Year 10 220.000 1.500 5.000 44,664,788 107,195,490 80,000,000 42,878,196 194,818,474 29%
Assumptions: 250.000 2.500 5.000
Market Sizing – Bottom Up Targeting Growth Case Assumptions

Market Sizing – Bottom Up Targeting Growth Case Assumptions
4,008 10,838
19,155
30,441
50,029
78,330
106,560
154,731
213,135
274,738
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Revenue Potential (in €k)
User Subscriptions Company Subscriptions User Fees Company Fees
170% 77% 59%
64%
57%
36%
45%
38%
29%
YoY
Growth
Growth Assumptions benchmarked
against industry standard
▪ Global Industry CAGRs 5% - 15%
▪ Technology Sector CAGRs 15 – 25%
▪ Early Stage CAGRs – 30% - 40%

Top Down Analysis
Industry Structure and Business Subscriptions

Total Market – Bottom Up All Industries
Sources: (1) Capital IQ Data
Segment Market Cap in MM # Accounts ARPA per annum ARR in MM
Micro Caps 0 – 50 M 22141 3.000 66
50 – 150 M 8616 5.000 43
150 – 250 M 3647 8.000 29
Small Caps 250 – 400 M 3139 12.000 38
400 – 500 M 1598 18.000 29
500 – 600 M 1236 22.000 27
600 – 750 M 1468 45.000 66
Mid Caps 750 – 1.000 M 1874 60.000 112
1.000 – 2.000 M 3496 75.000 262
2.000 – 5.000 M 3067 90.000 276
Large Caps 5.000 – 10.000 M 1397 120.000 168
10.000 – 50.000 M 1392 150.000 209
Mega Caps 50.000 – 250.000 M 283 250.000 71
> 250.000 M 30 500.000 15
Total 53.384 1.411
B - Capital IQ Global Market Data : All Industries
Total Market : 1.411 M 53.384 Accounts 26k ARPA
Subtarget (Green) : 607 M 25.607 Accounts 24k ARPA

Segment Market Cap in MM TMT Sector ARPA per annum ARR in MM
Micro Caps 0 – 50 M 3077 3.000 9
50 – 150 M 1361 5.000 7
150 – 250 M 517 8.000 4
Small Caps 250 – 400 M 365 12.000 4
400 – 500 M 208 18.000 4
500 – 600 M 141 22.000 3
600 – 750 M 171 45.000 8
Mid Caps 750 – 1.000 M 236 60.000 14
1.000 – 2.000 M 427 75.000 32
2.000 – 5.000 M 347 90.000 31
Large Caps 5.000 – 10.000 M 166 120.000 20
10.000 – 50.000 M 175 150.000 26
Mega Caps 50.000 – 250.000 M 38 250.000 10
> 250.000 M 9 500.000 5
Total 7.238 177
C - Capital IQ Global Market Data : TMT Industry
Total Market : 177 M 7.238 Accounts 24k ARPA

Micro Caps 0 – 50 M 4607 3.000 14
50 – 150 M 1799 5.000 9
150 – 250 M 758 8.000 6
Small Caps 250 – 400 M 688 12.000 8
400 – 500 M 351 18.000 6
500 – 600 M 254 22.000 6
600 – 750 M 317 45.000 14
Mid Caps 750 – 1.000 M 353 60.000 21
1.000 – 2.000 M 723 75.000 54
2.000 – 5.000 M 592 90.000 53
Large Caps 5.000 – 10.000 M 252 120.000 30
10.000 – 50.000 M 261 150.000 39
Mega Caps 50.000 – 250.000 M 63 250.000 15
> 250.000 M 4 500.000 2
Total 11.022 279
D - Capital IQ Global Market Data : Consumer Industry

Micro Caps 0 – 50 M 3,400 3.000 10
50 – 150 M 300 5.000 2
150 – 250 M 250 8.000 2
Small Caps 250 – 400 M 180 12.000 2
400 – 500 M 100 18.000 2
500 – 600 M 80 22.000 2
600 – 750 M 90 45.000 4
Mid Caps 750 – 1.000 M 120 60.000 7
1.000 – 2.000 M 150 75.000 11
2.000 – 5.000 M 200 90.000 18
Large Caps 5.000 – 10.000 M 70 120.000 8
10.000 – 50.000 M 60 150.000 9
Mega Caps 50.000 – 250.000 M 20 250.000 5
> 250.000 M 5 500.000 2
Total 5.025 85
A – LeadZen Conservative Case 8-10 Year Target Account Structure
Subtarget (Green) : 30 M 970 Accounts 31k ARPA

Total Market – Market Structure
0 MicroCaps Small Cap Mid Cap - 750m to 5Bn Large Cap - 5 to 50 Bn GlobCo > 50Bn Market Cap
From - 50 150 250 400 500 600 750 1,000 2,000 5,000 10,000 50,000 250,000
To 50 150 250 400 500 600 750 1,000 2,000 5,000 10,000 50,000 250,000 1,500,000
Financials 3,692 1,674 801 690 298 238 271 354 623 623 291 348 83 11
Energy 1,171 268 107 105 54 38 50 65 131 140 64 77 20 3
Industrials 3,304 1,359 570 458 250 228 275 325 612 470 235 180 26 -
Utilities - - - - - - - - - - - - - -
Consumer Discretionary 3,263 1,310 528 497 252 168 220 260 517 400 169 162 34 1
Consumer Staples 1,344 489 230 191 99 86 97 93 206 192 83 99 29 3
Telecoms & Media - - - - - - - - - - - - - -
Materials 3,527 930 341 336 184 130 136 205 346 297 130 122 17 1
Information Technology 2,918 1,315 491 339 196 132 159 217 394 306 136 135 26 8
Healthcare 1,636 632 279 223 139 97 106 153 254 219 96 93 28 1
Real Estate 482 468 207 215 89 86 99 135 276 249 95 71 3 1
TOTAL 21337 8445 3554 3054 1561 1203 1413 1807 3359 2896 1299 1287 266 29
41.42% 16.39% 6.90% 5.93% 3.03% 2.34% 2.74% 3.51% 6.52% 5.62% 2.52% 2.50% 0.52% 0.06%
33336 Companies 7231 Companies 8062 Companies 2586 Companies 295 Companies
64.72% 14.04% 15.65% 5.02% 0.57%
From - 50 150 250 400 500 600 750 1,000 2,000 5,000 10,000 50,000 250,000
To 50 150 250 400 500 600 750 1,000 2,000 5,000 10,000 50,000 250,000 1,500,000
Telecoms & Media - - - - - - - - - - - - - -
Information
Technology 2,918 1,315 491 339 196 132 159 217 394 306 136 135 26 8
TOTAL 2,918 1315 491 339 196 132 159 217 394 306 136 135 26 8
43.09% 19.42% 7.25% 5.01% 2.89% 1.95% 2.35% 3.20% 5.82% 4.52% 2.01% 1.99% 0.38% 0.12%
68.70% 12.00% 13.30% 5.40% 0.57%

Total Market – TMT Drilldown
From - 50 150 250 400 500 600 750 1,000 2,000 5,000 10,000 50,000 250,000
To 50 150 250 400 500 600 750 1,000 2,000 5,000 10,000 50,000 250,000 1,500,000
TOTAL 2,918 1315 491 339 196 132 159 217 394 306 136 135 26 8
Innovators 2.50% 73 33 12 8 5 3 4 5 10 8 3 3 1 0
Early Adopters 13.50% 394 178 66 46 26 18 21 29 53 41 18 18 4 1
Early Majority 34% 992 447 167 115 67 45 54 74 134 104 46 46 9 3
Late Majority 34% 992 447 167 115 67 45 54 74 134 104 46 46 9 3
Laggards 16% 467 210 79 54 31 21 25 35 63 49 22 22 4 1
Target Total 467 210 79 54 31 21 25 35 63 49 22 22 4 1
43.09% 19.42% 7.25% 5.01% 2.89% 1.95% 2.35% 3.20% 5.82% 4.52% 2.01% 1.99% 0.38% 0.12%
68.70% 12.00% 13.30% 5.40% 0.57%
1.084 Accounts in Innovator and Early Adopter Segment
379 Accounts based on Geographic Target Assumptions
MicroCaps Small Cap Mid Cap - 750m to 5Bn Large Cap - 5 to 50 Bn GlobCo > 50Bn Market Cap
- 50 150 250 400 500 600 750 1,000 2,000 5,000 10,000 50,000 250,000
50 150 250 400 500 600 750 1,000 2,000 5,000 10,000 50,000 250,000 1,500,000
2,918 1315 491 339 196 132 159 217 394 306 136 135 26 8
Target Total 467 210 79 54 31 21 25 35 63 49 22 22 4 1
USA 14% 65 29 11 8 4 3 4 5 9 7 3 3 1 0
Europe 12% 56 25 9 7 4 3 3 4 8 6 3 3 0 0
China 3% 14 6 2 2 1 1 1 1 2 1 1 1 0 0
JP + Korea 4% 19 8 3 2 1 1 1 1 3 2 1 1 0 0
India 2% 9 4 2 1 1 0 1 1 1 1 0 0 0 0
Subtarget Total 35% 163 74 27 19 11 7 9 12 22 17 8 8 1 0

Total Market – TMT Drilldown to Go to Market Segments
Possible Private Beta Distribution
MicroCaps Small Cap Mid Cap - 750m to 5Bn Large Cap - 5 to 50 Bn GlobCo > 50Bn Market Cap
Total
- 50 150 250 400 500 600 750 1,000 2,000 5,000 10,000 50,000 250,000
50 150 250 400 500 600 750 1,000 2,000 5,000 10,000 50,000 250,000 1,500,000
2,918 1315 491 339 196 132 159 217 394 306 136 135 26 8 6772
Target Total 467 210 79 54 31 21 25 35 63 49 22 22 4 1 1,084
USA 14% 65 29 11 8 4 3 4 5 9 7 3 3 1 0 152
Europe 12% 56 25 9 7 4 3 3 4 8 6 3 3 0 0 130
China 3% 14 6 2 2 1 1 1 1 2 1 1 1 0 0 33
JP + Korea 4% 19 8 3 2 1 1 1 1 3 2 1 1 0 0 43
India 2% 9 4 2 1 1 0 1 1 1 1 0 0 0 0 22
Subtarget Total 35% 163 74 27 19 11 7 9 12 22 17 8 8 1 0
USA 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
Europe 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
China 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
JP + Korea 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
India 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
Subtarget Total 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
USA 0.14 13 6 2 2 1 1 1 1 2 1 1 1 0 0 30
Europe 0.12 11 5 2 1 1 1 1 1 2 1 1 1 0 0 26
China 0.03 3 1 0 0 0 0 0 0 0 0 0 0 0 0 7
JP + Korea 0.04 4 2 1 0 0 0 0 0 1 0 0 0 0 0 9
India 0.02 2 1 0 0 0 0 0 0 0 0 0 0 0 0 4
Subtarget Total 35% 33 15 5 4 2 1 2 2 4 3 2 2 0 0

Corporate Budgets: IT / Technology

Company IT Budgets - Summary
Key Statistics
▪ Approx 4 – 5 tools used by average sales person
▪ Average spending on IT per FTE is:
5.000 USD per annum, or
420 USD per month
▪ 3.8 Trillion global IT spending, with 135 Billion
spent on business function solutions
Sales Technology
Sources: (1) MarTech Market Size: https://chiefmartec.com/2019/10/martech-now-121-5-billion-market-worldwide/
(2) http://unified.vu/2016/01/28/why-sales-tech-stack-shoud-not-cost-500-per-sales-person/
(3) http://unified.vu/2018/06/11/the-ever-growing-sales-technology-landscape-sales-tech-stack-2018/
75
35
50
60
50
150
CRM Office
Communication Prospecting
Hardware Tools
Estimated IT Cost Allocation of Sales FTE
Total IT Spending: 3.800 Billion
Key Vendors Revenue (annual in USD)
▪ Microsoft 125 Billion
▪ Apple 260 Billion
▪ AWS 36 Billion
▪ Oracle 40 Billion
▪ SAP 24 Billion
▪ Salesforce 13 Billion
▪ Hubspot 0.5 Billion
▪ Adobe 9 Billion
▪ IBM 80 Billion
▪ Cisco 50 Billion
▪ Huawai 46 Billion
▪ Accenture 43 Billion
▪ Infosys 13 Billion

Company IT Budgets – Market Sizing Statistics
Global IT Solution Budgets with Drilldown
Global IT spending 3.800 Billion (3.2% CAGR) https://www.gartner.com/en/newsroom/press-
releases/2019-01-28-gartner-says-global-it-spending-to-
reach--3-8-trillio
Global Enterprise Software 431 Billion (8.5% CAGR) [11.3%] https://www.gartner.com/en/newsroom/press-
releases/2019-01-28-gartner-says-global-it-spending-to-
reach--3-8-trillio
Global Enterprise Software Estimated
(Based on next slide)
798 Billion [21% of Total]
Sub-Sample for Business Function Software 135 Billion [17% of above]
Total SaaS 125 Billion (7% CAGR) (Statista)
205 Billion (Gartner)
https://www.bmc.com/blogs/saas-growth-trends/
https://medium.com/@adammitch708/saas-basics-and-
types-of-saas-software-as-a-service-industry-5bb20da4c865
Application Services (SaaS) 85.1 Billion (13% CAGR) (Gartner) https://www.bmc.com/blogs/saas-growth-trends/
Innovation Budget (Available for new tools) 14.5 Billion (17% of SaaS Budget) https://www2.deloitte.com/us/en/insights/focus/cio-
insider-business-insights/technology-investments-value-
creation.html

15 21 24
76
70
103 112
355
85
124 136
431
Application SaaS Total SaaS Business Function
Software
Enterprise Software
Innovation Other
Annual IT Spending
per Category in Billion USD

Company IT Budgets – Market Sizing Statistics
Sources: (1) https://www.bmc.com/blogs/saas-growth-trends/
Sector Drilldown (Estimated Model)
Segment Budget
MNOs (> 50 Billion MCap) 56 Billion
Large Cap (5-50 Bn MC) 39 Billion
Mid Cap (0.75 – 5 Bn MC) 12 Billion
Small Cap (0.25 – 0.75 Bn Mc) 2 Billion
Microcap (< 0.25 Bn MC 1.5 Billion

Company IT Budgets – Budget Breakdowns
Sources: (1) https://www.spiceworks.com/marketing/state-of-it/report/ (5) https://searchcio.techtarget.com/magazineContent/How-Company-Size-Relates-to-IT-Spending
(2) https://leapfrogservices.com/percentage-companys-budget-allocated/
(3) https://www.computereconomics.com/page.cfm?name=it-spending-and-staffing-study
(4) https://www.computereconomics.com/article.cfm?id=2626
% of Revenue Spending on IT: 3.28% Average – 7.16% Maximum – 1.51% Minimum
Per User: 3.700 – 12.000 – 24.000

Sources: (1) https://www.spiceworks.com/marketing/state-of-it/report/
(2) https://www2.deloitte.com/us/en/insights/focus/cio-insider-business-insights/technology-investments-value-creation.html
Company IT Budgets – Budget Breakdowns

Sources: (1) https://www2.deloitte.com/us/en/insights/focus/cio-insider-business-insights/technology-investments-value-creation.html
Company IT Budgets – Budget Breakdown on Innovation Budgets
16% Business Innovation Budgets
▪ 85.1 Billion SaaS Budgets => 14.5 Billion Innovation Budgets
Goal for LeadZen : Find story to enter Innovation Budget
▪ Stories : “Automation, Analytics, Data, A.I.”
▪ Identify need of each customer to tailor VP

Company IT Budgets – Cloud Acceptance Data
Sources: (1) https://financesonline.com/2019-saas-industry-market-report/
(2) https://financesonline.com/saas-statistics/
Steady increase in Cloud Acceptance
Pure Cloud Models adopted more and more
Related to LeadZen:
1. Communications 54%
2. CRM 21%
3. Data Analytics 14%

Company IT Budgets – Cloud Acceptance Data
Sources: (1) https://www.appsruntheworld.com/top-10-crm-software-vendors-and-market-forecast/

Corporate Budgets: Lead Generation

Company Marketing Budgets - Overview
Sources: (1) https://www.brafton.com/blog/content-marketing/the-ultimate-list-of-marketing-spend-statistics-for-2019-infographic/
(2) https://vtldesign.com/digital-marketing/content-marketing-strategy/percent-of-revenue-spent-on-marketing-sales/
Marketing Spending
US 197 Billion
Germany, UK, France 59 Billion
China 79 Billion
Japan + South Korea 53 Billion
▪ 11% - 20% of revenue spent on marketing
▪ Tech with approx. 15%

Company Marketing Budgets – Market Sizing Statistics
Budget Size (CAGR) Source
Global Marketing Spending 1.300 Billion https://www.mediapost.com/publications/article/324030/g
lobal-marketing-approaches-13-trillion-us.html
Global Advertising Market 560 Billion (6%) https://www.statista.com/topics/990/global-advertising-
market/
Lead Generation Spending (US only) 130 Billion https://www.statista.com/statistics/190328/us-online-lead-generation-
spending-forecast-2010-to-2015/
Marketing Software (Revenue based) 36 Billion [2017](15.2%) https://www.grandviewresearch.com/industry-
analysis/digital-marketing-software-dms-market
Marketing Data Market 26 Billion (30%) https://www.statista.com/statistics/818754/global-
marketing-data-market-size/
Affiliate Marketing Spending
12 Billion https://hostingtribunal.com/blog/affiliate-marketing-stats/
Social Media Marketing
23 Billion
https://www.statista.com/statistics/562397/worldwide-revenue-from-
social-media/
Digital Ad Spending
333 Billion
https://www.hampletonpartners.com/fileadmin/user_upload/Report_PDF
s/Hampleton-Partners_Digital-Marketing-Report_2H2019_FINAL.pdf

Company Marketing Budgets – Advertising Breakdown

Company Marketing Budgets – Advertising Breakdown Statistics
Marketing Spending in Billion USD
Global US DE, UK, FR China JP + SK
Total 1,300.00 197.00 60.00 80.00 53.00
Breakdown
TV 461.50 69.94 21.30 28.40 18.82
News 105.30 15.96 4.86 6.48 4.29
Magazins 66.30 10.05 3.06 4.08 2.70
Radio 79.30 12.02 3.66 4.88 3.23
Cinema 7.80 1.18 0.36 0.48 0.32
Outdoor 80.60 12.21 3.72 4.96 3.29
Digital 497.90 75.45 22.98 30.64 20.30
Assumption
TV 36% 36% 36% 36% 36%
News 8% 8% 8% 8% 8%
Magazins 5% 5% 5% 5% 5%
Radio 6% 6% 6% 6% 6%
Cinema 1% 1% 1% 1% 1%
Outdoor 6% 6% 6% 6% 6%
Digital 38% 38% 38% 38% 38%
Marketing Spending Drilldown in Billion USD
Digital 497.90 75.45 22.98 30.64 20.30
Breakdown
Affiliate 12.00 1.82 0.55 0.74 0.49
Social Media 23.00 3.49 1.06 1.42 0.94
Software 36.00 5.46 1.66 2.22 1.47
Assumption
Affiliate 2% 2% 2% 2% 2%
Social Media 5% 5% 5% 5% 5%
Software 7% 7% 7% 7% 7%
Possible Revenue Distribution of LeadZen (600m Target)
Rev 600.00 90.92 27.69 36.92 24.46
# Accounts 23,077 3,497 1,065 1,420 941
Assuming 26k ARR from Marketing Budget per Account

Sources: (1) https://www.webstrategiesinc.com/blog/how-much-budget-for-online-marketing-in-2014
(2) https://www2.deloitte.com/us/en/insights/focus/cio-insider-business-insights/technology-investments-value-creation.html
Company Marketing Budgets – Marketing Spending as % of Revenue

(2) https://www.xant.ai/blog/state-sales-2017-sales-technology-systems/
Company Marketing Budgets – Spend by channel in %
Trend of Breakdown Digital vs Non-Digital Trend of Breakdown by Channel

(2) https://www.xant.ai/blog/state-sales-2017-sales-technology-systems/
Buyers – Sales and Marketing Spending Data

Sources: (1) https://deloitte.wsj.com/cmo/2017/01/24/who-has-the-biggest-marketing-budgets/
Buyers – Sales and Marketing Spending Data

Top-Down Analysis
Population Analysis and Drill-Down

Consumer Market Sizing – Top Down via Population Statistics
Sources: (1) https://population.un.org/wup/Download/
Total Age 15 - 59 Urban 7% High income
Africa 1,341 726 813 94
Asia 4,641 2,945 2,092 325
Europe 748 436 556 52
Latin America and the Caribbean 654 413 527 46
Northern America 369 217 303 26
Oceania 43 25 29 3
7,795 4761 4,320 546
Total
Total Age 15 - 59 Urban 7% High income Household Geo Personality 25.000 People
Africa 1,341 726 440 30.8 13.4
Asia 4,641 2,945 1,327 92.9 40.4
Europe 748 436 324 22.7 9.9 9.9 0.49 15.601
Latin America and the Caribbean 654 413 333 23.3 10.1
Northern America 369 217 178 12.5 5.4 5.4 0.27 8.585
Oceania 43 25 17 1.2 0.5 0.5 0.03 815
Total 7,795 4,761 2,620 183.4 79.7 15.8 0.79 0.025000
Geographic Distribution and thereof Clusters
Geographic Distribution and funnel cluster
Haircut Assumptions
World Population Filter
▪ Europe, North America and Oceania
▪ Age 15 – 59
▪ Upper Income (>50 USD per day)
▪ Urban Population
▪ Reduction by Household (2.4 FTE / Household)
▪ Reduction by Personality (95% haircut)

Potential
Market
Total
Market
Servicable
Market
790
Thousand
250
Thousand
25
Thousand
7.795 M
World Popul.
4.701 M
61%
Age 24 - 58
2.620 M
55%
Urban
183 M
7%
High Income
80 M
43%
Household (2.3 FTE / Household)
16 M
20%
Geo (North America, Europe, Oceania)
790 k
5%
Lifestyle / Personality Filter
99
Million
62.5
Million
12.5
Million
120
USD
250
USD
500
USD
31%
10% 21%
21%
Determination of
Total Market Size of 6 Million Users
Determination of
Addressable and Servicable Market
Subscription
Model
# Users % Users Monthly
Subscription
Monthly
Commission
Total
Income
Free 23.000 94.4% 0 18 5.1 M
Basic 1.500 4.8 150 250 5.8 M
Premium 500 0.8 450 500 2.3 M
25000 100%
Sample Income
Distribution on 3 Tier SaaS Model
Consumer Market Sizing – Estimation of Revenue Potential
USERS ARPU REV

Sources: (1) https://www.statista.com/statistics/206615/forecast-of-the-number-of-global-hspa-lte-subscriptions-up-to-2014/
(2) https://www.statista.com/statistics/330695/number-of-smartphone-users-worldwide/
(3) https://www.statista.com/statistics/274774/forecast-of-mobile-phone-users-worldwide/
Statistics
▪ Mobile Users: 4.76 Billion
▪ Smartphone Users: 3,8 Billion
▪ LTE Users: 4.7 Billion
▪ Social Users: 2.3 Billion
IMPACT: No impact on our clustering
Consumer Market Sizing – Sanity Verification via Mobile Data

Sources: (1) https://www.internetworldstats.com/stats.htm
(2) https://blog.hootsuite.com/social-media-advertising-stats/
OLD Mobile Statistics
▪ Mobile Users: 4.76 Billion
▪ Smartphone Users: 3.80 Billion
▪ LTE Users: 4.70 Billion
▪ Social Users: 2.30 Billion
▪ Upper Income: 0.54 Million (> 50 EUR per Day)
NEW Internet Users Statistics
▪ Europe: 727 Million
▪ North America: 327 Million
▪ Oceania: 28 Million
▪ Latin America: 453 Million
▪ Subtotal: 1,5 Billion
▪ Other: 3,0 Billion (Asia, Africa, Middle
East)
IMPACT:
No impact on existing assumptions.
Consumer Market Sizing – Sanity Verification via Internet Usage

Pre Chasm Innovators
Early
Adopters
Early
Majority
Late
Majority
Laggard
s
Europe 493 12 67 168 168 79
N. America 271 7 37 92 92 43
790 20 107 269 269 126
2.50% 13.50% 34.00% 34.00% 16.00%
Pre Chasm Innovators
Early
Adopters
Early
Majority
Late
Majority
Laggard
s
Europe 161 4 22 55 55 26
N. America 89 2 12 30 30 14
250 6 34 85 85 40
2.50% 13.50% 34.00% 34.00% 16.00%
Application to earlier results
Application to Total Market
▪ Chasm Model applied to classify population into different adopter classes
▪ Goal is to pinpoint market size down to evangelists and early adopters
▪ Excluding late majority and laggards: 396 thousand
▪ Innovators and Early Adopters: 127 thousand
▪ Assuming penetration of all classes in Total Market
▪ 40 Thousand Evangelists and Early Adopters

Filtering Criteria
▪ Europe, North America (and Oceania)
▪ Age 15 – 59
▪ Upper Income (>50 USD per day)
▪ Urban Population
▪ Reduction by Household (2.4 FTE / Household)
▪ Reduction by Personality (95% haircut)
▪ Has Access to 4G or 5G Internet
▪ Owns Smart-Phone
▪ Is Evangelist or Early Adopter
In line with Business Assumptions.
Headroom for geographic expansion.
40 k
250 k
Total Users
125 k
Early Majority

Bottom-Up Analysis
User Dimensions

Other Key Demographics - Sales
EUROPE
NORTH
AMERICA
4.000
Innovators
22.000
Early Adopters
2.000
Innovators
12.000
Early Adopters
Innovator Filters Suitability Filters
URBAN HOTSPOTS
Berlin, London, Paris, Lissabon, Cambridge,
INTERNATIONALLY NETWORKED
Thougth Leaders, Tier 1 Professionals,
International Backgrounds, Tier 1 Education
INNOVATIVE INDUSTRIES
Media, Technology, Legal, Research
INFLUENCERS
Berlin, London, Paris, Lisabon, Cambridge,
PPRODUCT KNOWLEDGE
Excellent knowledge about their domain,
highly educated, analytical
INFLUENCERS
Berlin, London, Paris, Lisabon, Cambridge,
PPRODUCT KNOWLEDGE
Excellent knowledge about their domain,
highly educated, analytical
OUTGOING / COMMUNICATORS
Meetups, Professional Networks, LinkedIn,
Twitter
Power and In

Measure Value Description
Statista UK 979k https://www.statista.com/statistics/319805/number-of-sales-marketing-and-related-associate-professionals-in-the-uk/
Brooksgroup US 3 Million https://brooksgroup.com/sales-training-blog/how-big-sales-profession
LinkedIn – Worldwide 300.000 (registered)
21 Million (extrapolated) % of world population vs LinkedIn users => 70x
Bureau of Labour Statistics 34 Million https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk
Global employed 3.3 Billion https://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/publication/wcms_670542.pdf
Employers 110 Million https://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/publication/wcms_670542.pdf

Other Key Demographics – Developers (key segment)
IT and other Information
Services
23 Million (World)
4.4 Million (CN+US)
3.0 Million (US/OECD)
630 k (Calif.)
837 k (DE)
https://www.daxx.com/blog/development-trends/number-software-developers-world
https://stats.oecd.org/Index.aspx?DataSetCode=SNA_TABLE3#
Application Dev 227 k (US) https://www.daxx.com/blog/development-trends/number-software-developers-world
Web Dev 47 k (US) https://www.daxx.com/blog/development-trends/number-software-developers-world

Global Companies 200 – 400 Million http://www.econstats.com/wdi/wdiv_494.htm
200 Million : Last row
400 Million : sum of Max each row
Cap IQ Dataset 53.000 Market cap of approx. 130 Trillion (typicaly reference in citations)

Industry CAGRs
as predictors of market growth

Sources: (1) http://www.stern.nyu.edu/~adamodar/New_Home_Page/data.html
Industry Statistics – CAGRs
Interpretation of Sector CAGRs
▪ % of Revenue spending on key financial positions stable over time
▪ Stable CAGRs implying revenue growth drive nominal growth of budgets
▪ Capitalizing on trends in budget allocation of each financial positions drives
growth and M&A activity in each technology sector
Macro-risks
▪ Market corrections impacting CAGRs also impacting spending behaviour
▪ Industry and individual company Betas can be used to estimate outlook of key
accounts and stability of budgets to be allocated to won customers

Industry Statistics – CAGR of selected Industries (Jan 2019)
Industry Name Number of Firms CAGR in Net Income- Last 5 years CAGR in Revenues- Last 5 years Expected Growth in Revenues - Next 2 years Expected Growth in EPS - Next 5 years
Advertising 303 22.57% 10.24% 13.27% 10.34%
Diversified 336 11.32% 8.72% 10.09% 13.88%
Electrical Equipment 907 11.01% 7.23% 23.51% 18.07%
Electronics (Consumer & Office) 150 15.38% 0.50% 9.97% 17.54%
Electronics (General) 1318 11.61% 5.99% 15.14% 15.59%
Green & Renewable Energy 189 19.13% 18.75% 21.93% 29.19%
Household Products 544 12.46% 8.82% 15.79% 14.61%
Information Services 214 15.97% 16.40% 21.61% 19.32%
Office Equipment & Services 156 9.43% 2.62% 14.10% 12.06%
Retail (Distributors) 983 12.33% 8.97% 26.92% 17.58%
Retail (Grocery and Food) 165 6.86% 5.67% 8.05% 17.08%
Retail (Online) 291 23.70% 12.23% 26.09% 12.45%
Semiconductor 530 16.80% 6.44% 13.78% 14.72%
Semiconductor Equip 284 32.40% 12.47% 11.65% 18.61%
Software (Entertainment) 262 22.23% 15.07% 18.96% 14.97%
Software (Internet) 131 28.65% 28.69% 33.05% 25.79%
Software (System & Application) 1272 14.73% 13.20% 25.85% 19.46%
Telecom (Wireless) 107 3.93% 2.24% 6.38% 11.02%
Telecom. Equipment 493 12.48% 8.84% 16.83% 22.59%
Total Market 43848 12.54% 8.65% 27.87% 15.86%
Global Sector CAGRs
Healthy industry CAGRs carry overall growth in marketing spending

Industry Name Number of Firms CAGR in Net Income- Last 5 years CAGR in Revenues- Last 5 years
Expected Growth in Revenues -
Next 2 years
Expected Growth in EPS - Next 5
years
Advertising 87 33.30% 4.53% 8.60% 6.60%
Computer Services 217 19.67% 8.38% 52.54% 27.46%
Computers/Peripherals 39 10.42% 6.76% 25.93% 14.85%
Diversified 64 22.14% 5.79% 7.53% 6.10%
Electrical Equipment 127 13.29% 8.99% 38.73% 14.12%
Electronics (Consumer & Office) 17 18.88% 4.69% 5.15% 21.00%
Electronics (General) 154 10.15% 7.30% 14.25% 18.38%
Entertainment 132 29.25% 9.98% 31.10% 25.73%
Environmental & Waste Services 48 20.41% 3.21% 13.48% 10.96%
Green & Renewable Energy 51 25.93% 14.92% 17.55% 32.26%
Information Services 28 18.97% 25.04% 23.03% 20.48%
Office Equipment & Services 26 11.35% 0.54% 3.62% 9.31%
Retail (Distributors) 113 18.64% 7.41% 7.67% 19.23%
Retail (General) 17 -17.40% 3.33% 1.01% -0.15%
Retail (Grocery and Food) 28 -4.41% 5.01% 6.93% 23.74%
Retail (Online) 76 22.76% 5.88% 19.63% -1.41%
Semiconductor 31 53.28% 9.95% 17.17% 10.16%
Software (Entertainment) 37 34.58% 3.52% 22.33% 19.79%
Software (Internet) 25 1.72% 11.13% 25.79% 12.70%
Software (System & Application) 246 15.14% 11.06% 23.68% 9.37%
Telecom (Wireless) 13 -21.60% 1.20% 18.35% 20.99%
Telecom. Equipment 56 6.79% 11.39% 10.38% 21.72%
Telecom. Services 83 16.16% 8.69% 8.15% 6.48%
Total Market 6519 15.41% 8.15% 24.59% 14.19%
Europe Sector CAGRs
European growth on par and also driving Exit market attractiveness

Sources: (1) https://medium.com/@adammitch708/saas-basics-and-types-of-saas-software-as-a-service-industry-5bb20da4c865
(2) https://www.bmc.com/blogs/saas-growth-trends/
SaaS CAGR (Statista 2018)
7%
0
20
40
60
80
100
120
2017 2018 2019 2020 2021
Subscription Growth Rates by Segments
BPaaS PaaS SaaS IaaS
SaaS CAGR (Gartner, ZDNet)
22% 17% 16% 14%
Billion USD
Billion USD

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