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AGC Sales Technology Report JUL2016

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Sales tools have evolved beyond just traditional CRM. Top performing sales teams are leveraging cutting edge technology to focus their sales efforts on the best prospects, arm themselves with the most up to date and relevant sales material, and reduce manual or repetitive tasks. Sales Technology enables sales teams to accelerate the sales cycle by doing things smarter, better and faster, and, ultimately, close more and higher quality deals.

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AGC Sales Technology Report JUL2016

  1. 1. Sales Technology A l w a y s B e C l o s i n g
  2. 2. Introduction to Sales Technology The sales process for B2B companies is changing as customer buying habits change. Readily available online information enables customers to research and learn the details of specific products and services without interacting with a salesperson. The connected and empowered buyer is driven not only by the proliferation of information but also by a behavioral change in which they prefer to find information and identify alternatives on their own. According to Forrester Research ”today’s buyers might be anywhere from two- thirds to 90% through their journey before they reach out to the vendor”. To be successful in today’s customer-empowered environment, sales teams need to arm themselves with the best tools to convert clients once they do become interested in the product. In response, Sales Technology has evolved beyond just traditional CRM. Top performing sales teams are leveraging cutting edge technology to focus their sales efforts on the best prospects, arm themselves with the most up to date and relevant sales material, and reduce manual or repetitive tasks. Sales Technology enables sales teams to accelerate the sales cycle by doing things smarter, better and faster, and, ultimately, close more and higher quality deals. It also takes some of the uncertainty out of the sales function by enabling clear, repeatable processes, optimized by actionable data insights. A company’s success literally depends on the performance of their sales people and it is no surprise that executives are keen to have their sales teams humming at peak performance. This is driving significant growth in the $16.6B Sales Technology market and fueling hundreds of start-ups and strong strategic interest from buyers. 2 Sales Technology Empowers Sales Teams to be More Efficient and Effective Massive $16.6 Billion U.S. Market (excluding CRM)
  3. 3. Where Sales Technology Fits in the Conversion Funnel “The first rule of any technology…is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” – Bill Gates Sales Technology promises to do for the sales function what Marketing Technology has done for the marketing function – drive greater efficiency, effectiveness, and intelligence. Whether finding the best prospects, optimizing communications, or streamlining sales collateral, Sales Technology is becoming an invaluable tool for maximizing sales team performance. 3 Awareness Interest Consideration Intent Evaluation Decision Purchase Leads Prospects Customers MARKETING TECHNOLOGY SALES TECHNOLOGY Classification Near-Term Prospects Marketing / Sales Functions Advertising, Search, Social, Outbound Prospecting, Content Marketing, Event Marketing Website Tracking, Optimization, Email Marketing, Lead Scoring, CRM Quotes, Documentation Inside Sales, Outside Sales, Presentations Purchase Funnel
  4. 4. Sales Technology is a Massive Opportunity 4 Source: U.S. Census, Gartner, InsideSales $14.6 $16.6 CRM Sales Acceleration Total U.S. Market Size ($B) in 2015 “When you improve your product so it does the customer’s job better, then you gain market share.” – Clayton Christensen We think of Sales Technology as comprised of both traditional CRM and Sales Acceleration (essentially, everything else) technologies. While the distinction is somewhat fuzzy as CRM suites incorporate additional functionality, Sales Acceleration as a standalone opportunity is already larger than the traditional CRM market and has the potential to grow even faster. Key Assumptions:  5.8M sales reps in the U.S. (non-retail) in 2015 ̶ 1.8% increase from U.S. census 2014 estimate of 5.7M  $2,850 sales acceleration spend per sales rep in 2015 ̶ 25% increase from InsideSales’ 2013 estimate  U.S. accounts for 55.7% of the global CRM market
  5. 5. 5 Defining the Sales Technology Market Sales Force Management Sales Data / Analytics Customer Intelligence Sales Enablement Sales Engagement  Key Capabilities: CRM, email tools, call tools, automated engagement, sales activity logging  Tools to help sales professionals reach out to more prospects more efficiently.  Improves how sales professionals communicate with customers and ensures that messaging is on point.  Allows sales professionals to keep track of historical interaction so that communications are coherent and consistent.  Key Capabilities: content enablement, content sharing, automated quotes / documentation  Increases the effectiveness of sales professionals by arming them with the latest sales collateral and allowing them to easily customize for each client.  Intelligent content recommendations tactically sequenced to increase the chance of connecting with a customer at each stage of the buying cycle.  Key Capabilities: database / list services, company intelligence, buyer insights, social prospecting  Leverages internal and external data sets to gain insight into potential prospects to streamline the qualification, communication, and conversion process.  Provides access to pre-qualified leads or helps identify leads using social networking and other channels.  Key Capabilities: pipeline management, data visualization, predictive analytics, interaction analytics  Analyzes leads and historical sales activity in order to provide actionable insights that allow sales professionals to focus sales efforts on highest value targets.  Identifies, models, and predicts sales trends and outcomes while aiding sales management in understanding where salespeople can improve.  Key Capabilities: onboarding, coaching, compensation, sales gamification, performance management  Helps sales managers formulate and implement sales strategies and effectively manage sales people.  Provides tools and reward systems to train and encourage sales professionals and drive friendly competition that creates an incentive based atmosphere.  Clearly outlines sales objectives and ensures that compensation is aligned with company goals. Source: AGC Partners
  6. 6. 6 Representative Sales Technology Companies Sales Force Management Sales Data / Analytics Customer Intelligence Sales Enablement Sales Engagement DISCLAIMER: This is only a representative list and may not include all relevant companies. If your company is not on the list and would like to be added for future publications, please kindly shoot us a note at gleung@agcpartners.com and we would be happy to consider adding. Source: AGC Partners
  7. 7. “Every problem is a gift – without problems we would not grow.” – Anthony Robbins The sales process is unpredictable and inefficient. Sales Technologies take some of the burden off of sales people by standardizing and automating processes and addressing critical pain points. Addressing Key Industry Pain Points 7 Sales Problem Sales Technology Value Proposition Poor insight into the quality of leads and where they should be spending time.  Align marketing and sales goals to improve collaboration.  Leverage machine learning to optimize lead generation for highest ROI customers.  Predictive analytics to help prioritize leads. Non-linear buying process of potential customers caused by channel fragmentation.  360-degree view of the customer, including online activity, response to marketing campaigns, past communication history, etc.  Multi-channel orchestration to ensure coherent messaging across calls, emails and other communications. Time consuming tasks such as managing accounts and tracking and reporting sales activity.  Quote generation tools with visibility into the latest product and pricing information.  Automated logging of sales activity and generation of actionable reports on performance.  Outreach notifications and reminders. Poor access to updated and relevant sales collateral.  Cloud-based repository of latest sales collateral accessible from any device.  Automatic syncing of sales collateral with latest marketing campaigns.  Sales collateral organized and optimized based on client type and funnel stage. Difficult managing sales team performance and turn-over.  Get greater visibility into pipeline and forecasts making sales more predictable.  Clear, repeatable sales processes, optimized through scientific analysis, to help salespeople take some of the guesswork out of their jobs.
  8. 8. Surprising Inefficiencies in the Sales Process 8 % of Sales Reps That Think they Spend Too Much Time on Data Entry Source: ToutApp % of Sales Reps That Give up After One Follow-up Source: Scripted % of the Buyer's Journey Completed Before Talking to a Sales Rep Source: CEB % of Sales Reps Time Spent Actively Selling Source: CSO Insights % of Missed Deals Due to Sales Reps not Finding or Leveraging Internal Resources Source: Qvidian % Improvement in Close Rates when Sales and Marketing are Aligned Source: Marketo % of Prospects that Feel their Sales Rep is not Prepared for the First Meeting Source: IDC % of Top Performing Companies Using Sales Acceleration Technology Source: Forbes Insights % of Sales Reps that Store Customer Data in Physical Files or Google docs. Source: HubSpot “Statistics are used much like a drunk uses a lamppost: for support, not illumination.” – Vin Scully Significant inefficiencies exist in the sales process. Considering the cost of top sales talent and the challenging nature of the role, companies are keenly focused on optimizing their sales organizations.
  9. 9. The Empowered Buyer “How is it we have so much information, but know so little?” – Noam Chomsky Customers have access to more product information than ever before. Through company websites, white papers, web videos, infographics, social content, online review sites, etc, customers may be very well informed before they ever talk to a sales person. The challenge then is for sales reps to be able to react quickly to help customers complete the purchase journey. 9 Awareness Interest Consideration Intent Evaluation Decision Purchase Traditional Buyer Education Self Directed by Customer Discovery Channels: - Website - Trade Shows - Marketing Content Awareness Interest Consideration Intent Evaluation Decision Purchase Today’s Empowered Buyer Engages Sales Person Engages Sales Person Self Directed by Customer Discovery Channels: - Website - White Papers - Web Videos - Infographics - Social - Online Review Sites - Trade Shows - Marketing Content
  10. 10. 10 Aligning Sales and Marketing “What about the good leads?” – Shelley Levene, Glengarry Glen Ross (1992) The line between marketing and sales continues to blur. B2B marketing organizations are becoming revenue-generating centers, while salespeople are behaving like micro-marketers when they share content through social media channels. These two roles serve a shared purpose: to identify, attract, and close business for the company. Aligning sales and marketing functions ultimately leads to less finger pointing and better performance for both teams. Marketing Sales  Keeps marketing content consistent with sales collateral to deliver coherent messages to customers that are going through more of the product journey themselves.  More cooperation between marketing teams and sales teams results in faster conversion from lead to sale.  Analytics and transparency help avoid finger pointing situations where sales blames marketing for poor leads and marketing blaming sales for not being able to close. ADVANTAGES OF SALES AND MARKETING ALIGNMENT  Aligns marketing and sales on shared goals and KPIs, such as lead to close rate, lead to opportunity rate, deal velocity, average deal value growth, database reach, engagement and other metrics.  Marketing gains better insight into which leads result in the best ROI, allowing them to optimize their marketing activities.  Sales can gain valuable intel on customer needs and challenges through access to marketing analytics, allowing them to tailor their sales messages. Source: AGC Partners
  11. 11. Private Placement Activity Highlights  Key Takeaways: ̶ Possible maturing in the Sales Tech sector as deal volume declines and capital raised increases ̶ Fall-off in both number of deals and capital raised in 2016 likely a result of tougher macro environment for financings  Key Stats: ̶ 312 total transactions (2012 – 2016YTD); declining since peak in 2014 ̶ $3.47B total capital raised (2012 – 2016YTD); 60% CAGR from 2012 to 2015 ̶ $8.9M median amount raised per round in 2016YTD; 28% increase over 2015  Companies that have raised the most capital: ̶ Domo: $545M ̶ InsideSales.com: $225M ̶ Apttus: $186M ̶ Radius Intelligence: $130M ̶ Birst: $129M 11 Source: CapIQ. Note: Total Capital Raised for deals where disclosed. Calculation for Median Amount Raised excludes transactions <$1M. 49 86 89 65 45 2012 2013 2014 2015 2016 YTD (Annualized) Total Number of Transactions $279 $616 $891 $1,258 $422 2012 2013 2014 2015 2016 YTD (Annualized) Total Capital Raised ($M)
  12. 12. 12 Most Active Investors in Sales Technology Birst, Clari, Hearsay Social, HireVue, Inkling Systems, Lattice Engines, Mintigo Contactually, FullContact, Mobileworks, Novus Via, Orbit, Referly, ToutApp 6Sense, Leadspace, Narrative Science, RelateIQ, Yesware Hearsay Social, Lattice Engines, MindTickle, Referly, SugarCRM AppDirect, FullContact, Referly, Yesware MindTickle, Prezi, RelateIQ, Tactile ClearInsight, CRM Pulse, Periscope Data, SugarCRM Ambition Solutions, Datanyze, Nimble, Yesware Charlie Contacts, FutureSimple, LevelEleven, TinderBox ClearInsight, ClearSlide, Discoverly, Pipedrive Ambition Solutions, Infer, RelateIQ, Tactile 6Sense, ClearSlide, discoverOrg, InsightPool, SugarCRM Apptus, Bigmachines, ClearInsight, CRM Pulse, Discoverly, Domo, Insidesales.com, Introhive, LevelEleven, PersistIQ, Radius Intelligence, Relationship Science 12 7 7 5 5 5 4 4 4 4 4 4 4 Investor Number of Investments Investments Source: CapIQ
  13. 13. M&A Activity 13 AcquirorTarget EV ($M) $26,191 $2,630 $1,350 $937 $450 $392 $154 $125 $134 Highlights  Key Takeaways: ̶ M&A activity accelerating in Sales Tech ̶ Microsoft’s $26B acquisitions of LinkedIn the largest transaction by far and a strong endorsement of the sector ̶ Large marketing cloud and CRM players are the most active acquirors of Sales Tech ̶ Strong PE interest in the sector as leading players reach significant size and profitability  Key Stats: ̶ 111 Total transactions from 2013 to 2016 YTD ̶ Estimated 51 transactions for 2016; 37% CAGR from 2013 and the most active year so far  Most Active Strategic Acquirors # of Deals ̶ Salesforce 4 ̶ Microsoft 4 ̶ Oracle 2 ̶ SAP 2 ̶ Callidus Cloud 2 ̶ Infor 2 Top 10 Sales Tech M&A Transactions Source: CapIQ, 451 Group Note: Top 10 list represents transactions with disclosed values. Date 06/13/16 06/02/16 06/05/13 05/18/16 10/23/13 07/11/14 11/04/14 01/08/15 06/07/13 $30012/23/15
  14. 14. About AGC  Gee is a partner at AGC Partners, focusing on Digital Media and Marketing Technology.  In his 18 years as an investment banker, Gee has completed both M&A and financing transactions for some of the largest global technology and media companies, as well as growth companies at the leading edge of innovation.  Prior to joining AGC Partners, Gee held senior banking positions with MESA Global and Montgomery & Co. He started his investment banking career at Salomon Brothers in the late ‘90s and later worked at Friedman Billings Ramsey in its technology M&A team.  Gee received a B.A. from the Haas School of Business at UC Berkeley. 14 Note: This document is intended to serve as an informative article only in order to further discussion, analysis and independent verification. This document is based upon sources believed to be reliable, however, we do not guaranty the sources’ actuary. Unless otherwise indicated, AGC does not believe that the information contained herein is sufficient to serve as the basis of an investment decision. There can be no assurance that these statements, estimates or forecasts will be attained and actual results may be materially different. This is not a solicitation of an offer of any kind. To learn more about the company/companies that is/are the subject of this commentary, contact one of persons named herein who can give you additional information. AGC is a leading investment bank with a focus on providing strategic advisory services to technology companies, helping them achieve their vision. With more than 50 investment banking professionals across the Americas and in Europe, we provide global coverage across all products and sectors, from software and digital media to tech-enabled services and mobile communications. Since our inception in 2003, AGC Partners has completed more than 270 investment banking transactions for emerging growth companies. Gee M. Leung Partner
  15. 15. APPENDIX 15
  16. 16. 16 Representative Financing Activity Source: CapIQ Date Issuer Amount (US$M) Investors 04/02/15 Domo, Inc. $ 360 Glynn Capital Management, BlackRock, Inc., GGV Capital, The Capital Group Companies, Inc., Canyon Capital Advisors, LLC, Credit Suisse Group, Investment Arm 02/05/14 Domo, Inc. $ 125 Institutional Venture Partners, T. Row e Price Group, Inc., salesforce.com, inc., Fidelity Investments, TPG Grow th, GGV Capital, Morgan Stanley Investment Management Inc., Viking Global Investors LP, Mercato Partners, Dragoneer Investment Group, LLC, Greylock Partners 09/01/15 Apttus Corporation $ 108 Kuw ait Investment Authority, K1 Investment Management, LLC, ICONIQ Capital, LLC, Salesforce Ventures 04/09/14 InsideSales.com, Inc. $ 100 Hummer Winblad Venture Partners, Kleiner Perkins Caufield & Byers, Polaris Partners, U.S. Venture Partners, EPIC Ventures, salesforce.com, inc., Polaris Partners L.P., Acadia Woods Partners, LLC, Zetta Venture Partners 03/18/15 InsideSales.com, Inc. $ 90 Hummer Winblad Venture Partners, Kleiner Perkins Caufield & Byers, Polaris Partners, U.S. Venture Partners, Microsoft Ventures (nka:Microsoft Accelerator), Zetta Venture Partners, Salesforce Ventures 10/13/15 Rain King Softw are, Inc. $ 67 Spectrum Equity Management, L.P. 03/17/15 Birst, Inc. $ 65 Hummer Winblad Venture Partners, Sequoia Capital, Wellington Management Group LLP, Northgate Capital Group, L.L.C., DAG Ventures, LLC 03/11/13 Domo, Inc. $ 60 Institutional Venture Partners, GGV Capital, The Founders Fund, Bezos Expeditions, LLC, Mercato Partners, BYU Cougar Capital, Greylock Partners 11/10/14 Prezi Inc. $ 57 Accel Partners, Spectrum Equity Management, L.P. 09/23/14 Radius Intelligence Inc. $ 55 Glynn Capital Management, BlueRun Ventures, Western Technology Investment, The Founders Fund, Formation8 Partners, Slow Ventures, Yuan Capital 05/19/16 Show pad BVBA $ 50 Insight Venture Partners, Hummingbird Ventures, Daw n Capital LLP 07/29/15 Radius Intelligence Inc. $ 50 Glynn Capital Management, BlueRun Ventures, The Founders Fund, Formation8 Partners, AMECloud Ventures, Yuan Capital, Salesforce Ventures 02/27/14 ClearSlide, Inc. $ 50 Bessemer Venture Partners, Comcast Ventures, Felicis Ventures, SVB Silicon Valley Bank, Investment Arm, The Social+Capital Partnership, Greylock Partners 05/30/14 The SAVO Group Ltd. $ 49 Sterling Partners; Sapphire Ventures LLC; Goldman Sachs Private Capital Investing 06/02/15 HireVue, Inc. $ 45 Sequoia Capital; Technology Crossover Ventures; Granite Ventures, LLC; Investor Grow th Capital; Rose Park Advisors, LLC; Peterson Ventures, LLC 03/31/14 Act-On Softw are, Inc. $ 42 Norw est Venture Partners; Technology Crossover Ventures; Trinity Ventures; U.S. Venture Partners; Voyager Capital 02/02/15 Apttus Corporation $ 41 K1 Investment Management, LLC, ICONIQ Capital, LLC, Salesforce Ventures 05/25/16 Seismic Softw are, Inc. $ 40 General Atlantic LLC, JMI Equity, Jackson Square Ventures 03/25/14 RelateIQ, Inc. $ 40 Accel Partners, Kleiner Perkins Caufield & Byers, Redpoint Ventures, Felicis Ventures, Formation8 Partners, New s Corporation 08/16/13 SugarCRM Inc $ 40 Goldman Sachs Private Capital Investing 08/20/13 Birst, Inc. $ 38 Hummer Winblad Venture Partners, Sequoia Capital, Northgate Capital Group, L.L.C., DAG Ventures, LLC
  17. 17. 17 Representative Financing Activity (cont.) Source: CapIQ Date Issuer Amount (US$M) Investors 09/17/13 Apttus Corporation $ 37 salesforce.com, inc. (NYSE:CRM); K1 Investment Management, LLC; ICONIQ Capital, LLC 12/20/12 InsideSales.com, Inc. $ 35 Hummer Winblad Venture Partners, U.S. Venture Partners 03/31/14 AppDirect, Inc. $ 35 iNovia Capital; Foundry Group; Mithril Capital Management LLC 04/04/12 SugarCRM Inc $ 33 Draper Fisher Jurvetson, New Enterprise Associates, SVB Capital, Walden International, Gold Hill Capital Management, LLC 07/17/15 InsideView Technologies, Inc. $ 33 Foundation Capital, Rembrandt Venture Partners, Big Sky Partners, Split Rock Partners, LLC, Spring Lake Equity Partners LLC, Spring Lake Equity Partners LLC 01/28/15 Relationship Science LLC $ 31 - 07/29/15 FutureSimple Inc. $ 30 Index Ventures, Tenaya Capital 06/01/15 Lattice Engines, Inc. $ 30 New Enterprise Associates, River Cities Capital Funds, Sequoia Capital, PJC Capital Management LLC, Blue Cloud Ventures 01/31/15 Axtria, Inc. $ 30 Helion Venture Partners, LLC 09/10/14 DialogTech, Inc. $ 30 Apex Venture Partners; River Cities Capital Funds; SSM Partners; Origin Ventures; New Spring Capital; Spring Mill Venture Partners; Chicagoland Entrepreneurial Center, Investment Arm; Chicago Ventures 09/05/13 Hearsay Social, Inc. $ 30 New Enterprise Associates, Sequoia Capital 05/16/13 Relationship Science LLC $ 30 salesforce.com, inc. 11/26/14 Infer, Inc. $ 29 Redpoint Ventures 08/29/12 ClearSlide, Inc. $ 28 Bessemer Venture Partners, Felicis Ventures, Greylock Partners 05/01/12 Birst, Inc. $ 26 Hummer Winblad Venture Partners, Sequoia Capital, DAG Ventures, LLC 04/19/16 Insightly Inc. $ 25 Emergence Capital Partners, Sozo Ventures, Cloud Apps Management, LLC 11/12/14 Host Analytics, Inc. $ 25 Advanced Technology Ventures; Trident Capital, Inc.; StarVest Partners, L.P.; Centerview Capital Holdings, LLC; Next World Capital 10/01/13 HireVue, Inc. $ 25 Sequoia Capital; Granite Ventures, LLC; Investor Grow th Capital; Rose Park Advisors, LLC; Peterson Ventures, LLC; Kickstart Seed Fund 05/11/12 Badgeville, Inc. $ 25 El Dorado Ventures, InterWest Partners LLC, Norw est Venture Partners, Trinity Ventures, Webb Investment Netw ork 05/29/13 Five9, Inc. $ 22 Adams Street Partners, LLC, Hummer Winblad Venture Partners, Partech International, SAPVentures (nka:Sapphire Ventures LLC) 02/12/15 6Sense Insights Inc. $ 20 Battery Ventures, Venrock, Bain Capital Ventures
  18. 18. 18 Representative Financing Activity (cont.) Source: CapIQ Date Issuer Amount (US$M) Investors 12/30/14 Seismic Softw are, Inc. $ 20 JMI Equity, Jackson Square Ventures 11/03/14 ClearInsight Inc. $ 20 Atlas Venture L.P., Draper Fisher Jurvetson, NextView Ventures, Tw o Sigma Ventures 06/17/14 Clari Inc. $ 20 Sequoia Capital, Northgate Capital Group, L.L.C., Bain Capital Ventures 06/12/13 RelateIQ, Inc. $ 20 Accel Partners, Battery Ventures, Allen & Co., Thrive Capital, Formation8 Partners 11/07/12 Lattice Engines, Inc. $ 20 New Enterprise Associates, Sequoia Capital 08/12/13 InsideView Technologies, Inc. $ 19 Foundation Capital, Rembrandt Venture Partners, Emergence Capital Partners, Split Rock Partners, LLC 07/23/15 Leadspace Ltd. $ 18 Battery Ventures, JVPMedia Labs, Vertex Ventures Israel 04/17/14 SpringCM Inc. $ 18 Foundation Capital, Square 1 Bank, Goff Capital, Inc. 06/27/16 SpringCM Inc. $ 18 Bluestem Capital Company, LLC, Foundation Capital, North Bridge Venture Partners, Sand Hill Finance, LLC, Wellington Financial LP, Panorama Point Partners Limited 06/22/16 Outreach, Inc. $ 18 Mayfield Fund, Trinity Ventures, FLOODGATEFund, LP., MHS Capital, Microsoft Ventures 01/08/13 Host Analytics, Inc. $ 17 Advanced Technology Ventures; Trident Capital, Inc.; StarVest Partners, L.P.; Next World Capital 06/13/13 Inkling Systems Inc. $ 16 Sequoia Capital; Pearson plc (LSE:PSON); McGraw -Hill Education, Inc.; Sherpalo Ventures; Felicis Ventures; Kapor Capital 05/01/13 AVA.ai LLC (nka:Conversica LLC) $ 16 Kennet Partners Limited 08/30/12 Act-On Softw are, Inc. $ 16 Norw est Venture Partners; Trinity Ventures; U.S. Venture Partners; Voyager Capital 02/02/12 Leads360, Inc. (nka:Velocify, Inc.) $ 15 Rustic Canyon Partners, Volition Capital LLC 04/05/16 Mintigo Inc. $ 15 Sequoia Capital Israel 05/27/15 Yesw are, Inc. $ 15 Battery Ventures, IDG Ventures, Foundry Group, GV, Golden Venture Partners, Inc. 04/28/15 Inkling Systems Inc. $ 15 - 04/09/15 Aviso, Inc. $ 15 Scale Venture Partners; Shasta Ventures; First Round Capital; Next World Capital; Cow boy Ventures; Bloomberg Beta L.P. 03/03/15 ToutApp, Inc. $ 15 Founder Collective, Andreessen Horow itz LLC, 500 Startups, Jackson Square Ventures, Launch Fund 02/28/14 FutureSimple Inc. $ 15 RREVentures LLC, Index Ventures, OCA Venture Partners, LLC, Illinois Innovation Accelerator Fund, L.P., The Social+Capital Partnership, Hyde Park Venture Partners, Hyde Park Venture Partners Fund L.P., Chicago Ventures
  19. 19. 19 Representative Financing Activity (cont.) Source: CapIQ Date Issuer Amount (US$M) Investors 08/21/13 Yesw are, Inc. $ 15 Battery Ventures, IDG Ventures, Foundry Group, GV, Golden Venture Partners, Inc. 09/23/14 Centage Corporation $ 14 Northgate Capital Group, L.L.C.; TVC Capital, LLC 11/11/13 Attachments.me Inc. $ 14 Yesw are, Inc. 04/08/14 NetProspex, Inc. (nka:Dun & Bradstreet NetProspex) $ 13 Edison Venture Fund (nka:Edison Partners), Spring Lake Equity Partners LLC, Spring Lake Equity Partners LLC 01/09/14 Radius Intelligence Inc. $ 13 BlueRun Ventures, Formation8 Partners 05/13/16 Bloomfire, Inc. $ 13 Austin Ventures 11/20/15 MindTickle Interactive Media Pvt Ltd. $ 13 Accel Partners, New Enterprise Associates, QUALCOMM Ventures 01/23/13 Radius Intelligence Inc. $ 12 BlueRun Ventures, Western Technology Investment, Comcast Ventures, American Express Company 03/22/16 HG Data Company $ 12 EPIC Ventures, Updata Partners, Rincon Venture Partners 03/03/16 Oro, Inc. $ 12 Highland Capital Partners 07/15/15 CircleBack, Inc. $ 12 Grotech Ventures, Syncom Management Company, Inc., TDF Ventures, CNF Investments LLC 07/22/14 SmartZip Analytics, Inc. $ 12 Intel Capital; Claremont Creek Ventures; Crest Capital Ventures 05/19/14 6Sense Insights Inc. $ 12 Battery Ventures, Venrock, SVB Silicon Valley Bank, Investment Arm 04/19/12 Five9, Inc. $ 12 Adams Street Partners, LLC, Hummer Winblad Venture Partners, Partech International 12/13/13 FirstRain, Inc. $ 12 - 05/31/13 Narrative Science Inc. $ 12 Battery Ventures, SAPVentures (nka:Sapphire Ventures LLC), In-Q-Tel, Inc., In-Q-Tel, Northw estern University, Endow ment Arm, Jump Capital 03/25/14 Tactile, Inc. $ 11 Accel Partners, Redpoint Ventures 11/03/15 Contactually, Inc. $ 11 Grotech Ventures, Correlation Ventures, Point Nine Capital, Middleland Capital, Rally Ventures, Bull City Venture Partners 01/13/16 CustomerMatrix Inc. $ 11 Aster Capital Partners SAS; New fund Management S.A.; HSBC Principal Investments; True Global Ventures 03/31/15 SalesLoft, LLC $ 10 Storm Ventures LLC, Emergence Capital Partners 09/26/14 FullContact Inc. $ 10 Baird Capital Partners, Foundry Group, 500 Startups, Blue Note Ventures
  20. 20. 20 Representative Financing Activity (cont.) Source: CapIQ Date Issuer Amount (US$M) Investors 05/28/15 Iconixx Softw are Corporation $ 10 Ballast Point Ventures, S3 Ventures, Harbert Venture Partners, LLC 11/13/14 Narrative Science Inc. $ 10 Battery Ventures, Sapphire Ventures LLC, United Services Automobile Association, Jump Capital 10/17/13 Mintigo Inc. $ 10 Adams Street Partners, LLC, Sequoia Capital, Giza Venture Capital 08/28/13 Insightly Inc. $ 10 Emergence Capital Partners, TrueBridge Capital Partners, Sozo Ventures, Cloud Apps Management, LLC 06/26/13 The SAVO Group Ltd. $ 10 Sterling Partners, SAPVentures (nka:Sapphire Ventures LLC), Square 1 Bank, NXT Capital Venture Finance 03/13/13 Infer, Inc. $ 10 Redpoint Ventures, Sutter Hill Ventures, Andreessen Horow itz LLC, The Social+Capital Partnership 10/24/14 Highspot, Inc. $ 10 Madrona Venture Group 01/24/13 CallMiner, Inc. $ 10 Intersouth Partners; Sigma Partners; In-Q-Tel, Inc.; Village Ventures; Hamilton Lane Advisors; Inflexion Partners 10/22/15 Periscope Data Inc. $ 10 Draper Fisher Jurvetson, Innovation Endeavors, Susa Ventures
  21. 21. 21 Representative M&A Transaction Activity Source: 451 Group, CapIQ. Date Target Buyer EV ($M) Target Revs EV / Revs 06/24/16 Badgeville, Inc. Callidus Softw are Inc. (NasdaqGM:CALD) $ 8 - - 06/13/16 LinkedIn Corporation Microsoft Corporation $ 26,191 $ 3,214 8.1x 06/02/16 QlikTech Inc. [dba Qlik] Thoma Bravo LLC $ 2,630 $ 630 4.2x 05/24/16 Spiderbook, Inc. DEMANDBASE, INC. - - - 05/18/16 inContact Inc. NICE Systems Ltd. $ 937 $ 233 4.0x 05/12/16 Implisit Insights Ltd. salesforce.com, inc. - - - 05/04/16 MerchantAtlas, Inc. Adloop Media, Inc. - - - 05/02/16 ByPath SAS Kompass Incubateur, SAS - - - 05/02/16 Vertafore, Inc. Vista Equity Partners; Bain Capital Private Equity - - - 04/26/16 FPX, LLC HGGC, LLC, HGGC Fund II, L.P. - - - 04/20/16 ActionGrid, LLC And CRMCulture, LLC And Novatus, Inc. AppExtremes, Inc. - - - 04/06/16 Focus Technology Group, Inc. AGDATA LP - - - 04/01/16 Genw i Inc. Persistent Systems, Inc. - - - 03/10/16 Scanmar BV marketingQED Ltd. - - - 02/22/16 Contact Solutions, LLC Verint Systems Inc. $ 67 $ 47 1.4x 02/18/16 Docalytics Inc. Contently Inc. - - - 02/16/16 MeLLmo Inc. SAP SE (DB:SAP) - - - 02/10/16 Livecom International B.V. Artilium plc (AIM:ARTA) - - - 02/09/16 Vorex Inc. Kaseya International Shared Services Sàrl - - - 02/08/16 Transera Communications Inc. BroadSoft, Inc. (NasdaqGS:BSFT) $ 20 $ 8 2.5x 02/04/16 Configit A/S Polaris Management A/S, Polaris Private Equity IV - - - 02/02/16 Eazieer SAS Societe Reseau France Billet - - - 02/01/16 Webfortis LLC Avtex Solutions, LLC - - - 01/20/16 Efficio Solutions Inc. ShareBuilders, Inc. - - - 01/14/16 Dialed In, Inc. Quadrant 4 System Corporation - - - 01/05/16 Sales Simplicity Softw are, Inc. MiTek Industries, Inc. - - - 12/23/15 SteelBrick Holdings, Inc. salesforce.com, inc. $ 300 $ 11 27.3x 12/15/15 Storyw orks OnDemand, Inc. Insite Softw are Solutions, Inc. - - - 12/07/15 ABALON AB Visma Retail AS - - - 11/27/15 Pipedrive Inc - - - - 11/19/15 SalesTalk Technologies, LLC Pegasus Research Group, LLC - - - 11/05/15 Guaranteed Softw are Execution, Inc. The Shubert Organization, Inc. - - - 11/04/15 The Results Companies, LLC TLK Group LLC - - -
  22. 22. 22 Representative M&A Transaction Activity (cont.) Source: 451 Group, CapIQ. Date Target Buyer EV ($M) Target Revs EV / Revs 11/03/15 Raymark Xpert Business Systems Inc. MI9 Business Intelligence Systems, Inc. - - - 10/29/15 Configure One Inc. Autodesk Inc. - - - 10/29/15 Interactive Business Information Systems, Inc. Sonata Softw are North America Inc. $ 14 - - 10/19/15 InfoNow Corporation (OTCPK:INOW) Model N, Inc. (NYSE:MODN) $ 13 - - 10/13/15 Rain King Softw are Inc. [dba RainKing] Spectrum Equity Investors $ 67 - - 10/01/15 Coretrac, Inc. Aptean, Inc. - - - 09/17/15 Contact Advantage Limited Reynolds & Reynolds Limited - - - 09/10/15 ContactUs Review s WorkWave, LLC - - - 09/03/15 VoloMetrix, Inc. Microsoft Corporation - - - 08/27/15 Fliptop, Inc. LinkedIn Corporation - - - 08/04/15 Relevate Group Inc. Data-as-a-Service - - - 08/04/15 iProfile, LLC DiscoverOrg, LLC - - - 08/03/15 Incent Games, Inc. Microsoft Corporation - - - 07/21/15 Blue Star Infotech Business Intelligence And Analytics Private Limited Blue Star Infotech Ltd. (BSE:532346) - - - 07/15/15 V System PTE. LTD. Japan PC Service Co., LTD. (NSE:6025) - - - 07/02/15 Torque Solutions (Australia) Pty Ltd Velocity Frequent Flyer Pty Ltd $ 4 - - 07/01/15 Sicon Limited, Sage Business Pinnacle Computing Ltd. - - - 05/28/15 Cloud9 Analytics, Inc. InsideSales.com, Inc. - - - 05/18/15 Go Albert SA Bertin IT - - - 05/11/15 Unicel Technologies Pvt. Ltd. mGage LLC - - - 05/06/15 White Label Intelligence Limited Logicalis Group Limited $ 3 - - 04/02/15 Refresh, Inc. LinkedIn Corporation - - - 03/31/15 arcplan Information Services GmbH Longview Solutions, Inc. $ 20 $ 12 1.7x 03/28/15 Colibrium Partners, LLC Hinduja Global Solutions Limited (BSE:532859) $ 18 $ 13 1.4x 03/09/15 HomecareCRM, LLC eHealth Solutions, Inc. - - - 03/02/15 EarthIntegrate Pageflex Inc. - - - 02/18/15 SSS Consulting, Inc. Grow thPlay, LLC - - - 02/09/15 Juggernaut LLC Aysling LLC - - - 02/05/15 Sw ingMobility, SAS Divalto-SA - - - 02/04/15 Contactive Inc. Fuze, Inc. - - - 01/13/15 Zurmo Inc. Gravity4, Inc. - - - 01/13/15 Data Intelligence Ltd. SCIO Health Analytics Inc. - - - 01/08/15 NetProspex, Inc. (nka:Dun & Bradstreet NetProspex) The Dun & Bradstreet Corporation $ 125 $ 20 6.3x
  23. 23. 23 Representative M&A Transaction Activity (cont.) Source: 451 Group, CapIQ. Date Target Buyer EV ($M) Target Revs EV / Revs 12/24/14 LeadLedger LLC Datanyze, Inc. - - - 12/22/14 Clarus Agency, LLC Inmar, Inc. - - - 12/01/14 Acompli Inc. Microsoft Corporation - - - 11/18/14 MarketNet Services, LLC - - - - 11/18/14 BranchOut, Inc. 1-PAGE LIMITED $ 5 - - 11/17/14 Sw arm Solutions, Inc. Groupon, Inc. (NasdaqGS:GRPN) $ 11 - - 11/06/14 Decision Street, LLC Cvent, Inc. $ 4 - - 11/04/14 MetrixLab BV Macromill, Inc. $ 154 - - 11/03/14 Social Agent Limited Unchained Apps Limited - - - 08/14/14 SalesLogix, N.A., LLC Infor, Inc. $ 30 - - 07/11/14 RelateIQ, Inc. salesforce.com, inc. $ 392 - - 06/20/14 LiveLOOK, Inc. Oracle Corporation - - - 06/19/14 Aito Technologies Oy EXFO Inc (TSX:EXF) - - - 06/03/14 Deloitte Analytics LLC TrialScope Inc. - - - 06/02/14 CAR Research, Inc. Loop, LLC - - - 05/27/14 Update Softw are AG Aurea Softw are FZ-LLC $ 36 $ 47 0.8x 05/21/14 Renesys Corporation Dyn Inc. - - - 05/21/14 Infinity Info Systems Corp. Genesis Corporation - - - 05/09/14 DealerSocket, Inc. Vista Equity Partners - - - 05/06/14 Uptivity Inc. inContact, Inc. (NasdaqCM:SAAS) $ 41 $ 21 2.0x 03/25/14 Softw are Management, Inc. simpleview , inc. - - - 02/05/14 LeadRocket, Inc. Callidus Softw are Inc. [dba CallidusCloud] $ 3 - - 01/28/14 StoryQuest Inc. The SAVO Group Ltd. - - - 01/16/14 Lundalogik AB Monterro Holdings AB - - - 01/13/14 Visicom Inc. AFS Technologies, Inc. - - - 12/12/13 Compete IT Limited Access UK Limited - - - 10/31/13 ARG Interactive, LLC Ellie Mae, Inc. (NYSE:ELLI) $ 5 - - 10/24/13 Cameleon Softw are PROS Holdings, Inc. $ 30 $ 15 2.0x 10/23/13 BigMachines, Inc. Oracle Corporation $ 450 $ 60 7.5x 06/18/13 Standard Analytics LLC dunnhumby Limited - - - 06/12/13 InfoCube AB Jeeves Information Systems AB - - - 06/12/13 N2O Marketing, LLC ReviMedia, Inc. - - - 06/07/13 EdgeSpring, Inc. salesforce.com, inc. $ 134 - -
  24. 24. 24 Representative M&A Transaction Activity (cont.) Source: 451 Group, CapIQ. Date Target Buyer EV ($M) Target Revs EV / Revs 06/06/13 Incential Softw are, Inc. IMS Health Incorporated - - - 06/06/13 Qforma Inc. SkilaMederi - - - 05/02/13 PerTrac Financial Solutions, LLC, PerTrac CMS Backstop Solutions Group, LLC - - - 04/23/13 TDCI, Inc. Infor Global Solutions, Inc. - - - 04/05/13 M.SaaS Pte Ltd. M.Tech Products Pte., Ltd. - - - 04/03/13 SetLogik, Inc. ReachForce, Inc. - - - 03/11/13 Ladbrokes Israel Ltd. Ladbrokes PLC (LSE:LAD) - - - 02/04/13 WorkDigital Ltd. DHI Group, Inc. (NYSE:DHX) $ 20 - - 01/29/13 UTOPY, Inc. Genesys Telecommunications Laboratories, Inc. - - - 01/28/13 Angoss Softw are Corp. Peterson Partners LP $ 8 $ 7 1.2x 01/17/13 Mynet Japan Inc., CRM Business for Mobile Devices Yahoo Japan Corporation (TSE:4689) $ 4 - - 01/05/13 hybris GmbH SAPAG (nka:SAPSE) $ 1,350 $ 109 12.4x

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