Venture Right1	   Venture RightIBF ConferenceThe Right Now EconomyMark Siegel,Managing Director@msiegel11June 12, 2013
Venture Right2	  MOBILE SOCIAL CLOUD COMPUTING BIG DATA+ + +
Venture Right3	  PredictionSource: Thompson Reuters & NVCATop QuartileReturns>25%$500B
Venture Right4	  -0.501.001.502.002.503.003.504.004.505.00$0$20,000$40,000$60,000$80,000$100,000$120,0001991 1993 1995 199...
Venture Right5	  $6TTech Sector has Grown25x since 1990Source: Thompson Reuters & Capital IQ
Venture Right6	  TransformingTraditional IndustriesTHEN NOWSHOPPING
Venture Right7	  THEN NOWNEWSTransformingTraditional Industries
Venture Right8	  THEN NOWADVERTISINGTransformingTraditional Industries
Venture Right9	  THEN NOWTRANSPORTATIONTransformingTraditional Industries
Venture Right10	  THENHOSPITALITYNOWTransformingTraditional Industries
Venture Right11	  NOWTHENENTERTAINMENTTransformingTraditional Industries
Venture Right12	  NOWTHENEDUCATIONTransformingTraditional Industries
Venture Right13	  THEN NOWTransformingTraditional IndustriesHEALTHCARE
Venture Right14	  Hundreds of Billions ofmarket value transferred tonew market entrantsTransformingTraditional Industries
Venture Right15	  MOBILE SOCIAL CLOUD COMPUTING BIG DATA+ + +
Venture Right16	  Mobile – Connected Everything1980	   2007	  2000	  1990	   2009	  
Venture Right17	  50 BillionDevices!!2020
Venture Right18	  MOBILE SOCIAL CLOUD COMPUTING BIG DATA+ + +
Venture Right19	  Social is Now Platform for Trustsay Facebook has thegreatest impact onpurchase behavior47%“On the Intern...
Venture Right20	  MOBILE SOCIAL CLOUD COMPUTING BIG DATA+ + +
Venture Right21	  Computing on Tap
Venture Right22	  MOBILE SOCIAL CLOUD COMPUTING BIG DATA+ + +
Venture Right23	  Worldwide Data GrowthBig Data – Access to EverythingCost per GbInformationCreated from theBeginning ofCi...
Venture Right24	  Capturing Value24	  	  	  	  	  	  	  	  confiden2al	  Source: Thompson Reuters
Venture Right25	  Summary•  VC is a cyclical industry. Previous cycle was anomalous with$100B raised.•  Right Now Economy ...
Venture Right26	  MOBILE SOCIAL CLOUD COMPUTING BIG DATA+ + +
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The Right Now Economy

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We are in the midst of an unprecedented flood of innovation. The convergence of technological mega-trends in mobile, social networking, cloud computing, and big Data is something we at Menlo Ventures call The Right Now Economy. Previously impossible, The Right Now Economy centers around the idea that information can now be accessed, analyzed, and acted upon almost instantaneously - anytime and anywhere. This mega-trend is disrupting established industry sectors and players, creating opportunities for emerging growth companies to displace previously unassailable incumbents.

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The Right Now Economy

  1. 1. Venture Right1   Venture RightIBF ConferenceThe Right Now EconomyMark Siegel,Managing Director@msiegel11June 12, 2013
  2. 2. Venture Right2  MOBILE SOCIAL CLOUD COMPUTING BIG DATA+ + +
  3. 3. Venture Right3  PredictionSource: Thompson Reuters & NVCATop QuartileReturns>25%$500B
  4. 4. Venture Right4  -0.501.001.502.002.503.003.504.004.505.00$0$20,000$40,000$60,000$80,000$100,000$120,0001991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011$Million5 Year Liquidity QuotientSource: Thompson Reuters & NVCALiquidity Ratio: 5 years average exit value (IPOs and M&A) divided by 5 yearsaverage commitments to venture capital5 year average commitments5 year average of exit valuesLiquidity RatioNet IRR by Vintage year120%100%80%60%40%20%-20%0.0%
  5. 5. Venture Right5  $6TTech Sector has Grown25x since 1990Source: Thompson Reuters & Capital IQ
  6. 6. Venture Right6  TransformingTraditional IndustriesTHEN NOWSHOPPING
  7. 7. Venture Right7  THEN NOWNEWSTransformingTraditional Industries
  8. 8. Venture Right8  THEN NOWADVERTISINGTransformingTraditional Industries
  9. 9. Venture Right9  THEN NOWTRANSPORTATIONTransformingTraditional Industries
  10. 10. Venture Right10  THENHOSPITALITYNOWTransformingTraditional Industries
  11. 11. Venture Right11  NOWTHENENTERTAINMENTTransformingTraditional Industries
  12. 12. Venture Right12  NOWTHENEDUCATIONTransformingTraditional Industries
  13. 13. Venture Right13  THEN NOWTransformingTraditional IndustriesHEALTHCARE
  14. 14. Venture Right14  Hundreds of Billions ofmarket value transferred tonew market entrantsTransformingTraditional Industries
  15. 15. Venture Right15  MOBILE SOCIAL CLOUD COMPUTING BIG DATA+ + +
  16. 16. Venture Right16  Mobile – Connected Everything1980   2007  2000  1990   2009  
  17. 17. Venture Right17  50 BillionDevices!!2020
  18. 18. Venture Right18  MOBILE SOCIAL CLOUD COMPUTING BIG DATA+ + +
  19. 19. Venture Right19  Social is Now Platform for Trustsay Facebook has thegreatest impact onpurchase behavior47%“On the Internet, nobody knows you’re a dog.”of businesses are usingFacebook for marketing2/3Source: Edison Research
  20. 20. Venture Right20  MOBILE SOCIAL CLOUD COMPUTING BIG DATA+ + +
  21. 21. Venture Right21  Computing on Tap
  22. 22. Venture Right22  MOBILE SOCIAL CLOUD COMPUTING BIG DATA+ + +
  23. 23. Venture Right23  Worldwide Data GrowthBig Data – Access to EverythingCost per GbInformationCreated from theBeginning ofCivilizationuntil 2003
  24. 24. Venture Right24  Capturing Value24                confiden2al  Source: Thompson Reuters
  25. 25. Venture Right25  Summary•  VC is a cyclical industry. Previous cycle was anomalous with$100B raised.•  Right Now Economy is driving the next upward cycle based onfour underlying mega-trends (mobile, social, cloud infrastructure,and big data)•  The VC industry has right-sized•  The next cycle promises to be a era for venture returns•  There will be $500B returned by venture-funded companies in thenext decade•  Most value will be created in the private market, so investors mustbe in venture asset class
  26. 26. Venture Right26  MOBILE SOCIAL CLOUD COMPUTING BIG DATA+ + +

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