Download to read offline
Uploaded byDan Ramsden
Convergence as a Long-Term Trend: Innovation in Perpetual Transition (Mar/2013)
The document discusses the continuous evolution of digital media and information technology as they transition from origins to maturity, highlighting the convergence of various sectors and the implications for financial flows and valuations. It emphasizes that this long-term trend is characterized by innovation and integration across previously separate domains, impacting industries like healthcare, education, and commerce. Furthermore, it provides examples of sector combinations and capital flow reflections illustrating this ongoing transformation.
Convergence as a Long-Term Trend: Innovation in Perpetual Transition (Mar/2013)
- 2. CONVERGENCE AS ALONG-TERM TREND INNOVATION IN PERPETUAL TRANSITION No longer at its origin, though far from maturity, digital media & information technology are in a middle state between these polar extremes. Driven by innovation, integration & establishment at once, this will be a long-term trend, now perpetuated by the adoption of information technology into other fields. As this occurs, sectors are reshaped & the convergence between previously disparate worlds, with digital media at the center, is in itself a new form of innovation. This environment shapes & is mirrored in financial flows, structures & valuations, which are important to understand in this context. This presentation illustrates the described trends from a high level, incorporating some ideas depicted in other CoRise reports in greater detail. It is not a comprehensive review of industry activities or a survey of competitors. Nor is it an analysis or set of recommendations for purposes of assessing any investment, public or private. MARCH / 2013
- 3. BACKGROUND FROM POLAR ENDSTO AN ENDLESS CYCLE MARCH / 2013
- 4. AT ORIGINS: VALUEIS BUILT THROUGH EXPERIMENTATION & VOLATILITY, OFTEN VENTURE BACKED SEED SERIES A VENTURE FINANCE CAPITAL Prototype Iteration Beta ANGELS Development Launch Traction ADVISORS A/B Pricing Scaling testing Partnership FOUNDERS Pivoting Team building MENTORS ACCELERATORS INCUBATORS 4 MARCH / 2013
- 5. AT MATURITY: VALUEIS BUILT THROUGH STABILITY & THE FINANCIAL ENGINEERING THIS ALLOWS, OFTEN DRIVEN BY CONSOLIDATION OF LIKE ASSETS M&A PRIVATE BANK EQUITY FINANCE Standardization PUBLIC Price Competition MARKETS reduction COST OF Productivity Earnings CAPITAL Reorganization LBO Market REFINANCE expansion ACCOUNTANTS REGULATION LAWYERS VALUATION 5 MARCH / 2013
- 6. BETWEEN EXTREMES: PROFILESBLEND & VALUE IS BUILT TO REFLECT OVERLAPPING ELEMENTS IN THE MIDDLE PRIVATE VENTURE EQUITY CAPITAL M&A Development PUBLIC BANK MARKETS Competition Pricing FINANCE Productivity Earnings VALUATION Reorganization LAWYERS Pivoting Partnership Scaling Team ACCOUNTANTS building COST OF Market expansion CAPITAL REGULATION REFINANCE 6 MARCH / 2013
- 7. AS A SECTOR,DIGITAL MEDIA/INFO TECH IS IN A PERPETUAL MIDDLE: WELL PAST ORIGIN, NOT QUITE EVER AT MATURITY REINVENTION ORIGIN EVOLUTION MATURITY GROWTH 7 MARCH / 2013
- 8. THE LONGER THISJOURNEY CONTINUES, THE MORE THE SECTOR’S FOOTPRINT EXPANDS GOOGLE MEGAFUNDS HEDGE FUNDS INTERNATIONAL MICRO VCs Y COMBINATOR APPLE MOBILITY FACEBOOK BIG DATA API SECURITY AD NETWORKS APPS AMAZON 8 MARCH / 2013
- 9. AS IT DOES,EXTERNAL & PREVIOUSLY DISASSOCIATED SECTORS ARE BEING PULLED IN & INTEGRATED... TRADITIONAL MEDIA HARDWARE DIGITAL FINANCIAL MEDIA COMMERCE MARKETS & INFO TECH HEALTHCARE , INFRASTRUCTURE EDUCATION, OTHERS 9 MARCH / 2013
- 10. ... EXTENDING THESECTOR’S GROWTH & PERPETUATING ITS TRANSITIONAL MIDDLE-STAGE TOWARDS MATURITY REINVENTION TRADITIONAL HARDWARE MEDIA DIGITAL FINANCIAL MEDIA & COMMERCE MARKETS INFO TECH HEALTHCARE , INFRASTRUCTURE EDUCATION, OTHERS EVOLUTION 10 MARCH / 2013
- 11. THE REINVENTION OFWHOLE SECTORS CONVERGENCE AS INNOVATION FORM The following slides are a sampling of sector combinations, providing illustrative examples of business & product convergence & the novelty to which this gives rise. MARCH / 2013
- 12. COMBINATIONS WITHIN “NEW”MEDIA Google + INF FB Graph Search OR I AL Tumblr TechCrunch M C SO AT AT AT AT LinkedIn Twitter GigaOm Business Insider IO Pinterest N Flickr MapQuest Aol MSN Bing Yelp Facebook Google Instagram Quora Yahoo! Skype Friendster Weather.com WebMD MySpace StockTwits Wikipedia Siri Voice AMZN Reviews/ iMessage Search Suggestions Kindle Silk Google FB Apps Shopping FB Credits Groupon Android Netflix YouTube EBay Etsy Gilt Priceline Kayak Craigslist Hulu Pandora Amazon Apple Square Foursquare NT TRA PayPal Zynga Spotify ME Zillow Hailo NS Turntable.fm IN C Uber A TI Kindle Fire RT A ON iBooks & iTunes E AL ENT 12 MARCH / 2013
- 13. BETWEEN "NEW" &"TRADITIONAL" MEDIA Magazines Newspapers Music TRADITIONAL Cable Movies Radio Television NETFLIX Books GOOGLE / ZAGATS, FROMERS APPLE TV / HBO GO INTO NOW / iBOOKS / KINDLE GETGLUE / SPOTIFY SHAZAM Mobile Social Streaming NEW Digital Interactive Broadband 13 MARCH / 2013
- 14. INTEGRATING SOFTWARE &HARDWARE SOFTWARE ANDROID INTERNET OF THINGS GOOGLE GLASS 3-D PRINT MICROSOFT TABLET HARDWARE 14 MARCH / 2013
- 15. INTRODUCING INFRASTRUCTURE INTEGRATION MEDIA/TECH AMAZON GOOGLE FIBER VERIZON WEB FIOS SERVICES INFRASTRUCTURE 15 MARCH / 2013
- 16. COMBINING MEDIA &COMMERCE Engagement Access MEDIA Community Distribution GROUPON ETSY AMAZON EBAY/PAYPAL BITCOIN FOURSQUARE Merchandise Payments COMMERCE Brand Promotion 16 MARCH / 2013
- 17. BLENDING ONLINE &OFFLINE RETAIL OFFLINE APPLE SQUARE / STORE STARBUCKS GOOGLE AMAZON SHOPPING PRIME EXPRESS B&N UBER & NOOK HAILO ONLINE 17 MARCH / 2013
- 18. COMBINING MEDIA &FINANCIAL MARKETS Content MEDIA Information ANGEL LIST CB INSIGHTS SECOND MARKET LENDING STOCKTWITS CLUB Capital MARKETS Distribution 18 MARCH / 2013
- 19. AT THE INTERSECTIONOF MEDIA & HEALTH HEALTHCARE FITBIT WEBMD BLUEPRINT HEALTH MEDIA/TECH 19 MARCH / 2013
- 20. INTRODUCING NEW FORMSOF (& FACILITATING) EDUCATION EDUCATION CODECADEMY LYNDA KHAN ACADEMY MEDIA/TECH 20 MARCH / 2013
- 21. REFLECTING OVERLAPPING NEEDS& STYLES OF CONSUMERS & THE ENTERPRISE CONSUMER LINKED IN IPAD BLOOMBERG ENTERPRISE 21 MARCH / 2013
- 22. SECTOR STATUS MIRROREDIN FINANCE WHERE STRATEGIES LEAD CAPITAL FOLLOWS * The following slides illustrate ways in which capital flows & funding sources have started to reflect the blend & integration themes highlighted. As in prior slides, this is only an illustrative sampling, not a survey or database. * Though sometimes vice-versa MARCH / 2013
- 23. OVERLAP BETWEEN EQUITYINVESTOR TYPES IN PURSUIT OF DIGITAL MEDIA ASSETS VENTURE HEDGE CAPITAL FUNDS TIGER VALIANT GLOBAL CAPITAL BAIN SPECTRUM A16Z KLEINER GOOGLE INTEL PRIVATE STRATEGIC EQUITY CAPITAL 23 MARCH / 2013
- 24. MIX OF FUNDINGSOURCES WITHIN CAPITAL STRUCTURES PE/VC/HEDGE BANKS / FUNDS FINANCE CO’S PINTEREST BOX EVERNOTE TWITTER MUTUAL INSTITUTIONS FUNDS 24 MARCH / 2013
- 25. BLENDING OF DEBTFINANCE INTO EQUITY-BASED MODELS EQUITY SURVEY MICROSOFT MONKEY DELL FACEBOOK DEBT 25 MARCH / 2013
- 26. PICTURE OF ASEGMENT IN TRANSITION ALWAYS ON ITS WAY NEVER SETTLED MARCH / 2013
- 27. REFINANCE VENTURE PRIVATE CAPITAL EQUITY TRADITIONAL HARDWARE MEDIA PUBLIC MARKETS M&A DIGITAL FINANCIAL MEDIA ORIGIN MARKETS & COMMERCE MATURITY INFO TECH BANK REINVENTION FINANCE HEALTHCARE , INFRASTRUCTURE EDUCATION, OTHERS COST OF EVOLUTION CAPITAL GROWTH 27 MARCH / 2013
- 28. WHERE ARE YOUIN THIS LANDSCAPE? WHERE ARE YOU HEADING? MARCH / 2013
- 29. CONTACT INFORMATION TO DISCUSS FURTHER: CoRise Co., LLC 535 Fifth Avenue, 4th floor New York, NY 10036 Telephone: (646) 532-6690 email: info@coriseco.com www.coriseco.com 29 MARCH / 2013