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 & establishment in parallel, this state will perhaps be endless & is 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, strategies, structures & valuations, which are important to understand in this context. This presentation illustrates the described trends from a high level, incorporating certain ideas depicted in greater detail in other CoRise reports. 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.

2. CONVERGENCE AS A LONG-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 ENDS TO AN ENDLESS CYCLE
MARCH / 2013

4. AT ORIGINS: VALUE IS 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: VALUE IS 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: PROFILES BLEND & 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 THIS JOURNEY 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 THE SECTOR’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 OF WHOLE 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 INTERSECTION OF MEDIA & HEALTH
HEALTHCARE
FITBIT WEBMD BLUEPRINT
HEALTH
MEDIA/TECH
19 MARCH / 2013

20. INTRODUCING NEW FORMS OF (& 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 MIRRORED IN 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 EQUITY INVESTOR 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 FUNDING SOURCES WITHIN CAPITAL STRUCTURES
PE/VC/HEDGE BANKS /
FUNDS FINANCE CO’S
PINTEREST BOX EVERNOTE TWITTER
MUTUAL
INSTITUTIONS
FUNDS
24 MARCH / 2013

25. BLENDING OF DEBT FINANCE INTO EQUITY-BASED MODELS
EQUITY
SURVEY
MICROSOFT
MONKEY
DELL FACEBOOK
DEBT
25 MARCH / 2013

26. PICTURE OF A SEGMENT 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 YOU IN
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