20 trends you as a business leader need to know (and eventually master) as you draft and execute your long term growth (and survival) strategy - see more @ sws.ms
About Bessemer Venture Partners:
Bessemer Venture Partners was born from innovations in steel that literally forged modern building and manufacturing. Today, we work with people who want to create revolutions of their own. We've been fortunate to be a part of over 120 IPOs in the last 50 years, including Shopify, Yelp, LinkedIn, Skype, LifeLock, Twilio, SendGrid, DocuSign, Wix, Box, and MindBody.
2020 has been a challenging year. Yet, amidst the various trials, widespread digital transformation has sparked several triumphs in SaaS. For instance, UiPath made history this summer when they became the first European Cloud Decacorn. Now we’re 10 months in, the question on everyone’s lips is what’s just happened and what’s coming next? In this keynote presentation, Philippe Botteri, Partner and Varun Purandare, VP at Accel will present original findings from Accel’s 2020 Euroscape. They'll explore the biggest trends in SaaS, deep dive into COVID's impacts on the ecosystem and share the region’s top 100 cloud companies.
As Bessemer officially launches its presence in London, Alex Ferrara and Dhruv Jain are releasing this report to reaffirm that Silicon Valley doesn’t have a monopoly on innovation and entrepreneurship is a borderless endeavor. In this report, they share the signals giving us confidence in Europe as a new technology leader, the macro trends driving the rise of the European cloud ecosystem, and the predictions we believe will be a driving force for our investments. To read the full report go to: https://www.bvp.com/atlas/the-rise-of-cloud-in-europe
20 trends you as a business leader need to know (and eventually master) as you draft and execute your long term growth (and survival) strategy - see more @ sws.ms
About Bessemer Venture Partners:
Bessemer Venture Partners was born from innovations in steel that literally forged modern building and manufacturing. Today, we work with people who want to create revolutions of their own. We've been fortunate to be a part of over 120 IPOs in the last 50 years, including Shopify, Yelp, LinkedIn, Skype, LifeLock, Twilio, SendGrid, DocuSign, Wix, Box, and MindBody.
2020 has been a challenging year. Yet, amidst the various trials, widespread digital transformation has sparked several triumphs in SaaS. For instance, UiPath made history this summer when they became the first European Cloud Decacorn. Now we’re 10 months in, the question on everyone’s lips is what’s just happened and what’s coming next? In this keynote presentation, Philippe Botteri, Partner and Varun Purandare, VP at Accel will present original findings from Accel’s 2020 Euroscape. They'll explore the biggest trends in SaaS, deep dive into COVID's impacts on the ecosystem and share the region’s top 100 cloud companies.
As Bessemer officially launches its presence in London, Alex Ferrara and Dhruv Jain are releasing this report to reaffirm that Silicon Valley doesn’t have a monopoly on innovation and entrepreneurship is a borderless endeavor. In this report, they share the signals giving us confidence in Europe as a new technology leader, the macro trends driving the rise of the European cloud ecosystem, and the predictions we believe will be a driving force for our investments. To read the full report go to: https://www.bvp.com/atlas/the-rise-of-cloud-in-europe
One in three goods crosses national borders, and more than one-third of financial investments are international transactions. And in the next decade, global flows could triple, powered by rising prosperity and participation in the emerging world. In a new McKinsey Global Institute (MGI) report, "Global flows in a digital age: How trade, finance, people, and data connect the world economy," scenarios show that global flows could reach $54 trillion to $85 trillion by 2025.
Slides presenting the attractiveness of Eastern Europe for Venture investors and highlighting market opportunities around Big Data, Cloud Computing and Mobile
The European SaaS world changed forever when Daniel Dines, the founder of UiPath made the cover of Forbes last month as ‘Boss of the Bots’. Who would have thought five years ago that a Romanian SaaS company would be valued at $7B and reach that valuation in record time?
It is prime time for European SaaS companies and the third edition of the Accel Euroscape, the list of the top 100 SaaS companies from Europe and Israel, shows the rising position of Europe on the global SaaS stage, benchmarks how European SaaS companies compare to their US counterparts and lays out five predictions for the European SaaS market.
In 2015, cloud markets outperformed NASDAQ by 2x demonstrating how cloud computing continues to be an influential technology sector. In Bessemer’s 2016 State of the Cloud, leading SaaS and cloud investors Byron Deeter and Kristina Shen highlight market trends, metrics and benchmarks every SaaS founder should track, and the top predictions for 2016.
In this report, you’ll also learn:
- Key trends of the Cloud Index from 2015
- The five metrics of cloud finance
- Predictions for 2016
In State of the Cloud 2021, we explore the major milestones and changes within the cloud economy and original analysis on what’s driving today’s private cloud valuations. In addition, we share new frameworks and emerging strategies to help founders measure growth endurance and drive go-to-market momentum. Plus, we dive into our seven predictions for 2021.
Top takeaways
Cloud companies have not just reset in the New Normal, but have thrived with a record-breaking market capitalization of more than $2 trillion.
There’s been a changing of the guard afoot: MT SAAS has overtaken FAANG.
Cloud multiples are rising to new heights, with both public and private cloud trading over 20x.
Cloud growth rates and access to capital are at all-time highs, with the average Cloud 100 company growing 80% YoY and $186 billion going into private cloud companies in 2020 alone.
Good-better-best of growth endurance is 70%-75%-80%.
GTM strategies have adapted in the New Normal; best practices include product-led growth, usage-based pricing, and the adoption of cloud marketplaces.
Accel 2021 Euroscape: On the path to global dominance?Philippe Botteri
The European and Israeli cloud ecosystem is accelerating as never before. Back in 2016, Europe and Israel had only four public companies worth less than $9B combined and local cloud companies had raised just $900M throughout 2015. Today, Europe and Israel have generated 23 public companies worth $231B and private cloud financing reached c. $30B. The $900M of SaaS VC funding in 2015 now represents less than Europe's largest financing round, with Celonis raising $1B in June this year. These are just some of the SaaS milestones Europe and Israel have hit over the last year, so now seems like the right time to as: "are Europe and Israel on the path to global SaaS dominace?" Take a look at the insights in our 2021 Euroscape and see what the data says!
Global Technology Trends & Startup Hubs 2014Bernard Moon
Provides an overview of general technology and startup trends around the world. Snapshots of Silicon Valley, NYC, London, Stockholm, Berlin, Tel Aviv, Beijing and Seoul.
In Bessemer’s State of the Cloud 2020 Report, we distill twenty years of data on the private and public cloud market trends, dive into the time tested tenets that early-stage cloud founders need to prioritize for growth, and of course, share our predictions that explain the emerging categories we’re eyeing to spot promising new companies.
Since the early 2000s, the industry has seen exponential growth, both in private and public spheres. Many companies have cloud strategies in place, but they are amidst their digital transformations. We believe the future of technology is forged in the cloud, and after two decades of growth it’s just the beginning.
In a time when founders and investors are faced with unprecedented market volatility, it is especially timely to step back and look at the long arc of technology, and the cloud computing revolution in particular.
Source: bvp.com/cloud
Bessemer Venture Partners (Byron Deeter, Elliott Robinson, Hansae Catlett, Mary D'Onofrio)
Pioneering One Africa: The Companies Blazing a Trail Across the ContinentBoston Consulting Group
Despite multiple barriers, economic integration in Africa is not only taking place, but also gathering speed. The primary drivers of this process are African businesses.
White Star Capital Canadian Venture Capital Landscape 2019White Star Capital
In this third edition of our report, we aim to reiterate our enthusiasm for the Canadian Tech and Venture Capital ecosystem as well as touch upon a few new topics.
In addition to sharing our excitement about Canada and expressing our belief that the ecosystem is stronger than ever, we examine larger round dynamics, the continuation of the VCCI program, the rise of narwhals, and funding activity by state and region. We have also explored one of Canada's key strengths: its diversity and increased immigration influx. Finally, we end with an updated deep dive on VCs and other investors.
Moving digital transformation forward: Findings from the 2016 digital busines...Deloitte United States
Are you ready for a digital future? Nearly 90 percent of managers and executives surveyed expect “great” or “moderate” digital disruption, but fewer than half say their organizations are adequately preparing. Companies can take steps toward digital maturity, though—without necessarily putting technologists in charge.
To read more and download the full report, visit: http://deloi.tt/2fnahoe
SparkLabs Group Deep Tech Sector Overview 2017Bernard Moon
SparkLabs Group has been active in deep tech, or frontier tech, since our inception in 2013. We have invested in a broad definition of deep tech which includes blockchain, VR & AR, transportation, industrial IoT, artificial intelligence, health & wellness (sensor related, genomics, and advanced biotech technologies), and space. Under this definition, 25% of our overall portfolio (38 out of 155 companies across our investment entities) were deep tech investments.
"State of the Cloud" Report -- Bessemer Venture Partners (June 2015)Ian Gertler
Cloud computing continues to gain momentum and according to this state of the cloud report from Bessemer Venture Partners, the total market cap for the 42 public cloud companies indexed will pass $500 billion by 2020.
Technology Sector Update: Marketing and Advertising 4Q 2015Capstone Headwaters
The latest issue of our Marketing and Advertising Q4 2015 Market Update, highlighting trends in M&A, financing, IPOs and capital markets for private and public companies in Internet Advertising, is now available.
Highlights include:
- Key themes we are watching in 2016
- M&A activity stayed close to pace in 4Q 2015
- Investment volume and aggregate values rose in Q4 2015
- U.S. Marketing and Advertising public companies continue to
outpace their international counterparts and outperform the
NASDAQ, S&P 500, and MSCI Europe indexes
- U.S. Internet Advertising companies are trading at a media
LTM revenue multiple of 1.0x
Интернет-реклама преодолела очередную историческую отметку. По итогам полугодия объем рынка Digital составил 23,1 млрд долларов. Рост в январе–июне составил 15%, во втором квартале — 14%. Доходы от мобильной рекламы достигли 5,3 млрд долларов, что на 76% больше прошлогоднего показателя. На рекламу в мобильном поиске пришлось 2,7 млрд, на медийную — 2,5 млрд, остальные 103 млн — на прочие форматы. Цифровая видеореклама прибавила 13%, до 1,5 млрд долларов, говорится в отчете Interactive Advertising Bureau (IAB) и PricewaterhouseCoopers.
Подробнее об отчёте по ссылке -
One in three goods crosses national borders, and more than one-third of financial investments are international transactions. And in the next decade, global flows could triple, powered by rising prosperity and participation in the emerging world. In a new McKinsey Global Institute (MGI) report, "Global flows in a digital age: How trade, finance, people, and data connect the world economy," scenarios show that global flows could reach $54 trillion to $85 trillion by 2025.
Slides presenting the attractiveness of Eastern Europe for Venture investors and highlighting market opportunities around Big Data, Cloud Computing and Mobile
The European SaaS world changed forever when Daniel Dines, the founder of UiPath made the cover of Forbes last month as ‘Boss of the Bots’. Who would have thought five years ago that a Romanian SaaS company would be valued at $7B and reach that valuation in record time?
It is prime time for European SaaS companies and the third edition of the Accel Euroscape, the list of the top 100 SaaS companies from Europe and Israel, shows the rising position of Europe on the global SaaS stage, benchmarks how European SaaS companies compare to their US counterparts and lays out five predictions for the European SaaS market.
In 2015, cloud markets outperformed NASDAQ by 2x demonstrating how cloud computing continues to be an influential technology sector. In Bessemer’s 2016 State of the Cloud, leading SaaS and cloud investors Byron Deeter and Kristina Shen highlight market trends, metrics and benchmarks every SaaS founder should track, and the top predictions for 2016.
In this report, you’ll also learn:
- Key trends of the Cloud Index from 2015
- The five metrics of cloud finance
- Predictions for 2016
In State of the Cloud 2021, we explore the major milestones and changes within the cloud economy and original analysis on what’s driving today’s private cloud valuations. In addition, we share new frameworks and emerging strategies to help founders measure growth endurance and drive go-to-market momentum. Plus, we dive into our seven predictions for 2021.
Top takeaways
Cloud companies have not just reset in the New Normal, but have thrived with a record-breaking market capitalization of more than $2 trillion.
There’s been a changing of the guard afoot: MT SAAS has overtaken FAANG.
Cloud multiples are rising to new heights, with both public and private cloud trading over 20x.
Cloud growth rates and access to capital are at all-time highs, with the average Cloud 100 company growing 80% YoY and $186 billion going into private cloud companies in 2020 alone.
Good-better-best of growth endurance is 70%-75%-80%.
GTM strategies have adapted in the New Normal; best practices include product-led growth, usage-based pricing, and the adoption of cloud marketplaces.
Accel 2021 Euroscape: On the path to global dominance?Philippe Botteri
The European and Israeli cloud ecosystem is accelerating as never before. Back in 2016, Europe and Israel had only four public companies worth less than $9B combined and local cloud companies had raised just $900M throughout 2015. Today, Europe and Israel have generated 23 public companies worth $231B and private cloud financing reached c. $30B. The $900M of SaaS VC funding in 2015 now represents less than Europe's largest financing round, with Celonis raising $1B in June this year. These are just some of the SaaS milestones Europe and Israel have hit over the last year, so now seems like the right time to as: "are Europe and Israel on the path to global SaaS dominace?" Take a look at the insights in our 2021 Euroscape and see what the data says!
Global Technology Trends & Startup Hubs 2014Bernard Moon
Provides an overview of general technology and startup trends around the world. Snapshots of Silicon Valley, NYC, London, Stockholm, Berlin, Tel Aviv, Beijing and Seoul.
In Bessemer’s State of the Cloud 2020 Report, we distill twenty years of data on the private and public cloud market trends, dive into the time tested tenets that early-stage cloud founders need to prioritize for growth, and of course, share our predictions that explain the emerging categories we’re eyeing to spot promising new companies.
Since the early 2000s, the industry has seen exponential growth, both in private and public spheres. Many companies have cloud strategies in place, but they are amidst their digital transformations. We believe the future of technology is forged in the cloud, and after two decades of growth it’s just the beginning.
In a time when founders and investors are faced with unprecedented market volatility, it is especially timely to step back and look at the long arc of technology, and the cloud computing revolution in particular.
Source: bvp.com/cloud
Bessemer Venture Partners (Byron Deeter, Elliott Robinson, Hansae Catlett, Mary D'Onofrio)
Pioneering One Africa: The Companies Blazing a Trail Across the ContinentBoston Consulting Group
Despite multiple barriers, economic integration in Africa is not only taking place, but also gathering speed. The primary drivers of this process are African businesses.
White Star Capital Canadian Venture Capital Landscape 2019White Star Capital
In this third edition of our report, we aim to reiterate our enthusiasm for the Canadian Tech and Venture Capital ecosystem as well as touch upon a few new topics.
In addition to sharing our excitement about Canada and expressing our belief that the ecosystem is stronger than ever, we examine larger round dynamics, the continuation of the VCCI program, the rise of narwhals, and funding activity by state and region. We have also explored one of Canada's key strengths: its diversity and increased immigration influx. Finally, we end with an updated deep dive on VCs and other investors.
Moving digital transformation forward: Findings from the 2016 digital busines...Deloitte United States
Are you ready for a digital future? Nearly 90 percent of managers and executives surveyed expect “great” or “moderate” digital disruption, but fewer than half say their organizations are adequately preparing. Companies can take steps toward digital maturity, though—without necessarily putting technologists in charge.
To read more and download the full report, visit: http://deloi.tt/2fnahoe
SparkLabs Group Deep Tech Sector Overview 2017Bernard Moon
SparkLabs Group has been active in deep tech, or frontier tech, since our inception in 2013. We have invested in a broad definition of deep tech which includes blockchain, VR & AR, transportation, industrial IoT, artificial intelligence, health & wellness (sensor related, genomics, and advanced biotech technologies), and space. Under this definition, 25% of our overall portfolio (38 out of 155 companies across our investment entities) were deep tech investments.
"State of the Cloud" Report -- Bessemer Venture Partners (June 2015)Ian Gertler
Cloud computing continues to gain momentum and according to this state of the cloud report from Bessemer Venture Partners, the total market cap for the 42 public cloud companies indexed will pass $500 billion by 2020.
Technology Sector Update: Marketing and Advertising 4Q 2015Capstone Headwaters
The latest issue of our Marketing and Advertising Q4 2015 Market Update, highlighting trends in M&A, financing, IPOs and capital markets for private and public companies in Internet Advertising, is now available.
Highlights include:
- Key themes we are watching in 2016
- M&A activity stayed close to pace in 4Q 2015
- Investment volume and aggregate values rose in Q4 2015
- U.S. Marketing and Advertising public companies continue to
outpace their international counterparts and outperform the
NASDAQ, S&P 500, and MSCI Europe indexes
- U.S. Internet Advertising companies are trading at a media
LTM revenue multiple of 1.0x
Интернет-реклама преодолела очередную историческую отметку. По итогам полугодия объем рынка Digital составил 23,1 млрд долларов. Рост в январе–июне составил 15%, во втором квартале — 14%. Доходы от мобильной рекламы достигли 5,3 млрд долларов, что на 76% больше прошлогоднего показателя. На рекламу в мобильном поиске пришлось 2,7 млрд, на медийную — 2,5 млрд, остальные 103 млн — на прочие форматы. Цифровая видеореклама прибавила 13%, до 1,5 млрд долларов, говорится в отчете Interactive Advertising Bureau (IAB) и PricewaterhouseCoopers.
Подробнее об отчёте по ссылке -
Deep analysis of the Martech's leading 1461 companies. This reports offers insights on:
- How big is the market
- Where are the investments made
- Who are the top performing companies
- What happened to the Unicorns
And much more.
Madison Park Group activity monitors public equity market activity across a range of software and technology sectors. In our Q2 2021 Software & Technology Public Market Update Report, readers will find market and financial data that is relevant to a range of critical sectors.
The Future of Retail In A Digital World - Keynote at Boston eTailLee McCabe
In this compelling keynote, we explore the transformative journey of the retail sector through the lens of digital innovation. As technology continues to reshape consumer expectations and behaviors, the retail industry stands at a pivotal crossroads. This presentation delves into the heart of how digital trends are revolutionizing shopping experiences, from personalized customer service powered by AI to seamless omnichannel shopping journeys.
Our expert speaker will guide you through the evolving landscape of retail, highlighting the crucial role of technology in creating competitive advantages and fostering customer loyalty. Attendees will gain insights into:
The latest consumer behavior trends and their implications for retailers.
Innovative technologies driving the future of retail, including augmented reality, IoT, and blockchain.
Strategies for embracing digital transformation while overcoming challenges such as cybersecurity and privacy concerns.
Predictions for the next decade of retail and how businesses can adapt to stay ahead.
This keynote is a must-attend for retail professionals seeking to understand the future of the industry and how to navigate the challenges and opportunities presented by the digital world. Join us for an enlightening journey into the future of retail, where digital innovation meets customer experience.
At the end of the year, we often reflect on the current state of the venture market in technology. We are sharing it with our broader community in the hope that someone will find it informative, interesting or at least entertaining.
M&A in Gaming has hit record levels in 2013 and 2014 H1. For the first time, Corum Group has put together research M&A trending within the Gaming Ecosystem.
I gave this talk at Casual Connect SF July 2014 detailing increased appetite of Asian buyers and driving trends of innovation and interest activity across the gaming industry.
Since 2011, U.S. Internet Advertising companies (+92.3%) have outperformed the NASDAQ (+63.8%), S&P 500
(+54.1%), and MSCI Europe (+43.2%) indexes, along with their international counterparts (+51.1%).
F-Prime Capital State of Technology Venture Capital - 2021F-Prime Capital
At the end of each year, we reflect on the current state of the venture market in technology. We are sharing it with our broader community in the hope that someone will find it informative, interesting or at least entertaining.
Global PE Challenges & Opportunities July 2020Jordan Selleck
Global Private Equity Challenges & Opportunities
TOPICS include...
- Developments in M&A and private equity across Asia, Europe, Africa, and the US
- Regulatory dynamics
- Q&A
PANELISTS
Global Private Equity
Cathay Capital, Andre Puong, Partner
$4bn AUM, 143 investments, Asia/Europe/US
Riverside Company, Robert Landis, Founding Partner (Origination)
$10bn AUM, 650+ transactions
Development Partners International
Joanne Yoo, Managing Director
$1.6bn AUM, pan-Africa focus
Global M&A Advisor
BDA Partners - Sponsor & Co-Host
Euan Rellie, Co-Founder & Sr. Managing Director
Global Law Firm
Kirkland & Ellis - Sponsor
Duncan N. Enista, Partner
Co-Host
Jordan Selleck, CEO & Co-Founder, 51 Labs, digital marketing agency for the middle market
Gridley's Guide to Digital NY -- January 2012Linda Gridley
Gridley’s Guide to Digital New York is a unique and comprehensive report for investors, buyers and entrepreneurs looking for one place to quickly get up to speed on New York’s exciting, explosive digital ecosystem. In addition to this report, we have designed an “easy to use” website that lays out the information in this report (and more) in a fun, creative way. You can access this website from our firm’s home page, www.gridleyco.com, or at www.gridleydigitalny.com.
We decided to put together this report when we were out visiting companies and investors in May/June of 2011 and people starting asking us about all of the “digital momentum” in NY. There was a feeling that lots was going on, but people didn’t really understand just what “it” was and how extensive “it” was. Well, now we can tell you a few things about “it”:
Since 2006,
• There has been $8.4 billion of capital invested in Digital NY companies.
• While the total number of Digital NY private companies probably is well over 600, we have identified 374 to be included in this report. Companies in our report either have raised at least $5 million of outside capital or are prominent enough in the Digital NY scene to merit inclusion. The digital sectors we focused on are: Content, eCommerce, Marketing, Mobile, and Social.
• There are approximately 212 investors with a focused interest in Digital NY. This includes all stages – Seed, Early Stage, Growth, and Buyout – and includes local firms as well as firms with little or no physical presence in NY.
• There have been fifteen private companies that have raised over $100MM of capital (Fab.com, Fotolia, ZocDoc, Gilt Groupe, MongoDB, Appnexus, GrubHub Seamless, Foursquare, OnDeck Capital, Everyday Health, ideeli, Thing Daemon, Warby Parker, 1stdibs, Quirky) and 24 that have raised between $50MM and $100MM.
• There have been seventeen $100MM+ sale transactions of private Digital NY companies since January 2008 (Tumblr, Buddy Media, Mediamind, iCrossing, Admeld, Huffington Post, Webloyalty, About.com, Interclick, Hotjobs, Innovation Interactive, OMGPOP, Ziff Davis Media, Zagat, Behance Network, Register.com, and Answers.com).
Mobile Goes Mainstreet: Consumers Lead the Way — Key Trends and Investment Op...Linda Gridley
The number of smartphone users in the U.S. is consistently growing and the connected user is turning to mobile more and more frequently for everyday consumption. Global mobile data traffic is predicted to increase 26-fold between 2010 and 2015. Smartphone and tablet revenues overtook traditional desktop and laptop revenues in 2013. At the same time, the amount of time users are spending on mobile daily is increasing. Mobile commerce sales are reaching all-time highs, and now represent 12% of total digital commerce, while mobile traffic represent about 40% for major eCommerce retailers such as Amazon, eBay, Apple, and Walmart.
The mobile industry was unquestionably the most important growth channel across digital media. Some of the most important trends we’ve seen in the sector include:
Average mobile (plus tablet) time spend now equal to desktop
Mobile is no longer just for gaming. Growing number
of use cases and apps hitting mass adoption— utilities, productivity,shopping, media & entertainment
Total mobile ad revenue grew twofold in 2013, and still only represents 2% of total ad spend but 12% of total media time spend
Strong M&A and funding environment – First $1bn M&A deal in mobile. Q3’13 was record quarter for mobile
Digital media leaders such as Facebook and Twitter realigned their organizations to mobile over the past two years and now see 40% plus of their revenue from the mobile channel
The evolution of mobile as the next computing platform is just beginning to take shape, bringing new billion market opportunities to the digital media ecosystem. We believe it is still early in this evolution and expect to see new technologies and innovative applications to fuel continued growth over the next five years.
POS Goes Digital: Evolution of the in Store Shopping ExperienceLinda Gridley
Gridley & Company released an industry overview on the dynamic in-store consumer experience called, “POS Goes Digital: Evolution of the In-Store Shopping Experience.” The report focuses on recent trends in the in-store consumer experience as well as our expectations about how the industry, particularly the payments and marketing sectors, will transform in the coming years.
OMMA Display 2011 -- Transformation of the Measurement Industry: How Much Can...Linda Gridley
OMMA Display 2011
Presentation by Linda Gridley
Transformation of the Measurement Industry: How Much Can be Attriibuted to M&A? Learn more about Gridley & Company at http://www.gridleyco.com
5. 2014 YTD Global Market Performance
+8%
+8%
+3%
+5%
5
50%
30%
10%
(10%)
50%
30%
10%
(10%)
(30%)
FTSE 100 DAX
Bovespa
+3%
Jan Feb Mar May Jun Jul Sep
50%
30%
10%
(10%)
50%
30%
10%
(10%)
(30%)
S&P 500 DJIA NASDAQ
Nikkei 225 Hang Seng
Jan Feb Mar May Jun Jul Sep
(30%)
Jan Feb Mar May Jun Jul Sep
(30%)
Jan Feb Mar May Jun Jul Sep
Source: Capital IQ, as of September 25, 2014.
0%
U.S. Market Index Performance European Market Index Performance
Latin American Asian Market Index Performance Market Index Performance
+3%
+12%
6. U.S. Equity Market at a Glance
6
Market Value 2014 YTD Since 2008
($ in billions)
$392 7% 73%
149 (19%) 250%
39 (4%) 66%
65 (4%) 58%
201 41% NA
219 32% NA
100%
80%
60%
40%
20%
0%
(20%)
(40%)
(60%)
U.S. Market Index Performance
Source: Capital IQ, as of September 25, 2014.
+30% Performance of Internet Bellwethers
Strong Market Despite Some Skepticism
• Anticipated correction yet to occur
• Ukrainian and Israeli conflicts still
unresolved; ISIS impact growing
• 10-year Treasuries reaching lows
2013
+38%
+27%
2014 YTD
+8%
+8%
+3%
7. Digital Media Equity Market Performance
• Performance has been very mixed: 82% of all Digital Media stocks this year
• 50% of all Digital Media IPOs this year
• AdTech has struggled
Median Stock Price Performance of Digital Media Sectors
7
Median % Change
2012 2013 2014YTD
Digital Media +20.6% +59.7% (9.4%)
Internet Titans +33.1% +87.4% (1.8%)
Digital Marketing (31.2%) +29.3% (26.1%)
eCommerce +23.4% +80.5% (5.6%)
Market Indices
S&P 500 +13.4% +29.6% +8.1%
Dow Jones +7.3% +26.5% +2.9%
Nasdaq +15.9% +38.3% +8.0%
8. Global IPO Volume
($ billions)
64%
66%
• Issuances are up in all geographies
• The US IPO market has been particularly
51%
28%
United States Latin America Europe Asia/Pacific Africa/Middle East
8
$106.0
$234.4
$135.9
$99.6
$137.0
$90.6
2009 2010 2011 2012 2013 1H 2014
Source: Capital IQ; Renaissance Capital; Annual Global IPO Reviews.
42%
33%
21%
16% 25% 40% 38%
6%
12%
19% 10%
20%
40%
31%
active
9. U.S. and Global IPO Issuance and Deal Volume
9
500
400
300
200
100
0
$120
$100
$80
$60
$40
$20
$0
$400
$300
$200
$100
Source: Renaissance Capital; Dealogic; EY Global IPO Trends, Factset.
YTD as of September 25, 2014.
Global IPO Issuance
IPO Deal Volume
# of IPOs
U.S. IPO Issuance
# of IPOs
IPO Deal Volume
($ in billions)
Alibaba
$ Volume # IPOs
2,500
2,000
1,500
1,000
500
0
$0
10. Digital Media Sector IPO Performance
($ in millions) Market Cap Price Performance
Date Company Subsector IPO Size @ IPO Day 1 Since IPO
2014 (12)
Sep 18 Alibaba Group Holding Limited eCommerce $21,767 $167,620.4 38.1% 30.8%
Jul 18 Globant S.A. Digital Agency 59 333.5 15.1% 29.7%
Jul 17 TubeMogul, Inc. AdTech 44 200.8 64.3% 60.9%
May 21 JD.com, Inc. Social 1,780 25,974.6 10.0% 39.8%
May 19 TrueCar, Inc. eCommerce 70 639.3 5.6% 98.8%
Mar 21 Borderfree, Inc. eCommerce 80 487.6 20.4% (17.3%)
Apr 04 GrubHub Inc. eCommerce 193 1,934.0 33.8% 33.5%
Mar 25 King Digital Entertainment plc Digital Content 500 7,086.0 (15.6%) (41.1%)
Apr 02 The Rubicon Project, Inc. AdTech 102 520.7 32.3% (19.0%)
Mar 06 Coupons.com Incorporated eCommerce 168 1,170.7 87.5% (22.2%)
Mar 28 Everyday Health, Inc. Digital Content 100 415.5 (0.1%) (6.0%)
Jan 24 Care.com, Inc. eCommerce 91 505.7 46.5% (51.9%)
2014 Median 101 580.0 26.4% 11.9%
2013 (11)
Nov 14 zulily, Inc. eCommerce 253 2,685.4 63.7% 80.4%
Nov 06 Twitter, Inc. Social 1,820 14,162.1 72.7% 97.9%
Oct 29 Criteo SA Ad Tech 251 1,714.2 14.2% 12.2%
Sep 19 Rocket Fuel Inc. Ad Tech 116 942.3 93.4% (47.2%)
Aug 06 YuMe, Inc. Ad Tech 46 286.2 0.0% (45.0%)
Jul 18 RetailMeNot, Inc. Retail 191 1,054.3 31.9% (20.7%)
Jun 26 Tremor Video, Inc. Ad Tech 75 494.2 (15.0%) (74.3%)
May 22 ChannelAdvisor eCommerce 81 286.6 31.7% 11.9%
May 16 Marketo, Inc. Marketing Auto 79 465.2 77.7% 138.2%
Mar 21 Marin Software Digital Marketing 105 432.8 16.1% (38.3%)
Mar 04 Professional Diversity Social 21 29.1 (4.1%) (36.3%)
2013 Median 105 494.2 31.7% (20.7%)
Overall Median 102 520.7 31.7% (6.0%)
10
Source: Capital IQ.
11. …Digital Media Companies Going Public Today Have
Higher Growth Profiles/Reasonable Valuations
EBITDA
Margin
NM
35%
NM
NM
21%
28%
11
44.2%
42.1%
33.1%
32.1%
29.7%
27.3%
21.0%
15.0%
26.2%
35.8%
48.3%
Public Comp Universe at End of 2012
’12-’13 Revenue Growth
24.2%
23.0%
21.0%
17.2%
10.8%
(16.4%)
76.1%
Millennial Media Inc.
ValueClick, Inc.
ChannelAdvisor
Corporation
ReachLocal, Inc.
Constant Contact, Inc.
Bankrate, Inc.
QuinStreet, Inc.
2012
Revenue
Multiple
2.5x
2.5x
13.8x
0.6x
2.8x
4.1x
1.0x
6%
Median: 22.0% 2.7x 24%
Source: Capital IQ.
2014 Digital Media IPOs
’14-’15 Revenue Growth
2014E
Revenue
Multiple
1.7x
1.2x
3.5x
5.9x
19.5x
3.5x
2.8x
10.8x
2.1x
2.2x
2.3x
1.6x
EBITDA
Margin
NM
NM
NM
8%
54%
14%
NM
32%
7%
20%
20%
39%
Median: 32.1% 2.5x 20%
13. U.S. and Global M&A Deal Volume
13
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
$2,000
$1,500
$1,000
$500
$0
$3,000
$2,500
$2,000
$1,500
$1,000
$500
Source: Dealogic, Capital IQ.
YTD as of September 25, 2014.
Global M&A Deals
Deal Volume
# of Deals
U.S. M&A Deals
# of Deals
Deal Volume
($ in billions)
$ Volume # Deals
60,000
50,000
40,000
30,000
20,000
10,000
0
$0
14. Global M&A Deal Volume and VC Financings
Global M&A Volume ($ billions) Global VC Financings ($ billions)
14
33%
23%
37%
31%
23%
35%
29%
22%
39%
Source: Capital IQ; Annual Global IPO Reviews.
YTD as of September 25, 2014.
32%
21%
39%
26%
23%
45%
36%
29%
29%
24%
37%
27%
13%
61%
18%
22%
38%
29%
16%
35%
37%
$1,919
$2,280
$2,511
$2,351
$2,543
$2,799
$82.5
$155.8
$278.6
$150.6
$128.1
$115.5
United States Latin America and Caribbean Europe Asia/Pacific Africa/Middle East
15. U.S. M&A and VC Markets
Annual M&A Deal Volume
($ in billions)
$1,263
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
$1,400
$1,200
$1,000
$800
$600
$400
$200
$35
$30
$25
$20
$15
$10
$5
Source: Capital IQ, PwC National Venture Capital Association MoneyTree Report.
15
YTD as of September 25, 2014.
Annual VC Financing Volume
$711
$800
$982
$908
$1,150
0
$0
4,500
4,000
3,500
3,000
# of Deals
Deal Volume
$ Volume # Deals
$20
$23
$30
$27 $28
$23
2,500
2,000
1,500
1,000
500
0
$0
16. Financial Sponsor M&A Activity
Top Global Private Equity Deals of 2014 (All U.S.)
U.S. Private Equity (% Total) Global Private Equity M&A (% Total)
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
16
6.3%
10.1% 11.2% 12.1%
15.5% 15.0%
0.0%
2009 2010 2011 2012 20132014YTD
24.9%
22.6%
26.1% 26.0%
32.2%
34.1%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
2009 2010 2011 2012 20132014YTD
Sources: Thomson Reuters; Capital IQ.
YTD as of September 25, 2014.
$4.2BN
$4.2BN
$3.6BN
17. 2014 Has Been a Good Year for U.S. Venture Backed Exits
Total Disclosed M&A $ Value ($ billions) Total IPO $ Amount ($ billions)
17
600
500
400
300
200
100
0
$30
$25
$20
$15
$10
$5
$0
2009 2010 2011 2012 2013 1H
2014
600
500
400
300
200
100
$30
$25
$20
$15
$10
$5
Sources: Thomson Reuters, Natural Venture Capital Association, July 2014.
Deal Volume
# of Deals
($ in billions)
$ Volume # Deals
=
0
$0
2009 2010 2011 2012 2013 1H
2014
18. Key Themes in the U.S. Digital Media M&A Market
• AdTech Consolidation Continues…still too many companies
• Enterprise Software Giants Continue to Build Out their
Marketing Stack
• A Few Traditional Strategics Get “Digital Courage” via M&A
• Early M&A Deals in the “Internet of Things”
• PE Firms Place $1 Billion+ Bets on Traditional Marketing
Services Businesses
18
19. Top U.S. Digital Media Deals – YTD 2014
Implied Enterprise Value to LTM
Date Acquirer Size Revenue
19
($ in Millions)
EBITDA
Target
Feb. 2014 $19,500 NA NA
Apr. 2014 3,305 19.0x NA
Jun. 2014 2,600 13.1x 52.4x
Sep. 2014 2,448 4.12x 12.4x
Aug. 2014 1,827 30.9x 11.6x
Sep. 2014 1,000 NA NA
May 2014 1,000 32.3x NA
Aug. 2014 970 NA 18x
Sep. 2014 950 NA NA
Source: Capital IQ
20. Internet “Titans” M&A in 2014
Company # Deals in 2014 Notable Deals
20
28
15
12
Mkt. Value ($bn)
$40.7
$369.2
$37.6
$138.6
$69.0
$3.4
$181.5
4
3
2
Machine Translation Technology
Division
10
Source: Capital IQ
21. Return of the Traditional Strategic Buyers
Implied Enterprise Value to LTM
Date Acquirer Size Revenue
May. 2014 $1,000 15.5x NA
Mar. 2014 950 NA NA
Sep. 2014 950 NA NA
Jul. 2014 422 2.3x 24.7x
Mar. 2014 360 10.3x NA
May. 2014 310 12.4x NA
Jul. 2014 281 0.7x NA
Apr. 2014 205 2.1x NA
Aug. 2014 160 2.3x NA
2014 NA NA NA
21
($ in Millions)
EBITDA
Target
Source: Capital IQ
22. Key 2014 Digital Investment Themes
• Niche eCommerce and Content Companies Still Getting Funded
• Companies Doing Record-Breaking Late Stage Financings as
22
Alternative to IPO
• Ad Tech M&A Consolidation Fewer Ad Tech Startups Doing
Large Rounds
• Data Analytics and Cloud Storage Continue to See Many New
Entrants
23. Notable 2014 Digital Private Financings
Date Company Investors Size
Jun. 2014 Mobile $1,400 $18,400
Aug. 2014 Content 500 2,500
Apr. 2014 eCommerce 475 10,000
Mar. 2014 Mobile 285 1,100
Mar. 2014 Mobile 250 950
May 2014 Social 200 5,200
May 2014 Content 160 1,160
Jan. 2014 eCommerce 157 2,000
Jun. 2014 Content Not Disclosed 150 2,300
Jul. 2014 Content 120 1,000
Jan. 2014 eCommerce 112 912
Mar. 2014 Ad Tech 100 NA
Sep. 2014 Mobile 100 6,000
23
($ in Millions)
Implied
Valuation Sector
Source: Capital IQ
(a) Selection criteria based on size and publicly available information.
(a)
25. Mobile
25
Sector
Ad Tech
eCommerce
Marketing Automation
Internet of Things
Traditional Advertising / Marketing Services
26. 26
Key Trends in Ad Tech
• Recent IPOs have brought new life into the Ad Tech community
‒ Creating urgency to get scale
‒ Establishing clarity around value for high growth advertising
stories
• Noise level on Privacy/Cookie debate up; although still very
exploratory in terms of going forward models
• Programmatic ad buying is getting closer to being the “new norm”
• Category leaders getting funding, but otherwise hard market for new
capital
• Convergence of marketing and advertising technologies not leading to
considerable strategic activity yet
27. Continuing Influence of RTB
Technology and transparency leading to greater buying efficiencies for advertisers
27
Sources: e-Marketer.
U.S. Digital Display Ad Spend
• Improved
ROI
• Growth of
digital
share of
total ad
spend
23% 25% 27% 28% 29% 31%
Digital %
Overall Ad
Spend:
28. Select Ad Tech M&A in 2014YTD
28
($ in Millions)
Implied Enterprise Value to LTM
Date Acquirer Target
Size Revenue EBITDA
Jul. 2014 $382 3.5x 21.0x
Feb. 2014 408 6.5x NA
Mar. 2014 360 10.3x NA
May 2014 101 8.1x NA
Apr. 2014 205 2.1x NA
Aug. 2014 230 2.7x NA
Jun. 2014 350 6.6x 44.0x
May 2014 310 12.4x NA
Jul. 2014 240 4.8x NA
Sep. 2014 107 17.6x NA
Oct. 2013 119 9.9x NA
Jul. 2014 144 1.4x NA
Jun. 2014 235 1.3x NA
Jun. 2014 150 5.8x NA
Mar. 2014 200 NA NA
Source: Capital IQ
(a) Selection criteria based on size and publicly available information.
(a)
29. Mobile
Internet of Things
29
Sector
Ad Tech
eCommerce
Marketing Automation
Traditional Advertising / Marketing Services
30. Big Industry Growth Opportunity in eCommerce
U.S. ($ Trillions)
■ eCommerce ■ Traditional Retail
2012 2013 2014E 2015E 2016E 2017E 2018E
8% 11%
Source: eMarketer, April 2014; Goldman Sachs, “eCommerce Expected to Accelerate
Globally in 2014”; Forrester Research , 2014
30
$4.3 $4.5
$4.7
$4.9 $5.1
$5.3
$5.5
7%
Traditional
Y/Y Growth (%)
5.2 4.2 4.4 4.3 4.0 4.0 4.0
eCommerce
Y/Y Growth (%)
16.0 15.9 16.1 15.6 14.8 13.7 12.6
31. Mobile Will Play an Increasingly Important Role
U.S. ($ Billions) Global ($ Billions)
■ Mobile Commerce ■ Desktop Commerce
2012 2013 2014E 2015E 2016E 2017E 2018E
$545
$638
$752
14% 24% 32% 11% 27%
47%
31
2012 2013 2014E 2015E 2016E 2017E 2018E
Source: Goldman Sachs, “eCommerce Expected to Accelerate Globally in 2014”
$882
$1,024
$1,179
$1,346
$179
$208
$241
$279
$320
$364
$410
32. eCommerce M&A Dynamics
• Early Days for eCommerce M&A
32
• Complicated Because…
− Logical Buyers = Traditional Retail, Trade at Low Multiples
− Many eCommerce Companies Choose Growth Over Profits
− Many Specialty Verticals Hit the “$100mm Wall”
− Lots of VC/PE $$ Invested…Big EXIT Expectations
• Role of Social eCommerce M&A – Not There Yet
33. Select eCommerce M&A in 2014YTD
Implied Enterprise Value to LTM
Date Acquirer Size(1) Revenue
Jul. 2014 $3,305 19.0x NA
Feb. 2014 2,600 13.1x 43.3x
Jul. 2014 970 NA NA
Mar. 2014 422 2.3x 24.7x
Jul. 2014 300 1.4x NA
May 2014 281 0.7x NA
Sep 2014 200 7.6x NA
Apr. 2014 160 8.7x NA
Aug. 2014 121 0.7x NA
Oct. 2013 100 9.9x NA
Sep. 2014 50 2.5x NA
Jul. 2014 42 0.4x NA
33
($ in Millions)
EBITDA
Target
Source: Capital IQ
(a) Selection criteria based on size and publicly available information.
(a)
34. Mobile
Internet of Things
34
Sector
Ad Tech
eCommerce
Marketing Automation
Traditional Advertising / Marketing Services
35. Evolution of Marketing Software
1995-2001 2002-2007 2009-2010 2011-2014YTD
35
Dotcom Bubble
•Email and the Internet
are in their introduction /
growth stage, as
mainstream adoption
begins to occur.
• Companies like
Google, MSN, and
Yahoo were launched in
order to support the
demand for email and
internet content
Dotcom Bubble
Burst and the
Emergence of
Social
•After the Dot.com bubble
burst, there was a drought
of funding for new internet
businesses.
• Shortly after, a new
generation of companies
were founded as people’s
use of the internet evolved
and became more
integrated with their daily
lives
The Rise of the
Devices
•As social media consolidation
occurs ad acquirers try to add
critical capabilities to their own
product suite
Critical Mass in the Need
for Data Automation
&
Do Not Call List
Can-Spam Act
Launched
IPOs
Key Acquisitions
Launched
Legislation
Key Acquisitions
Source: Capital IQ
36. Basics of Marketing Automation Lifecycle
36
Lead Generation
• Management
• Scoring
• Segmentation
• Nurturing
Measurement
• Analytics
• Tracking
• Optimization
Management
• Campaigns
• Monitoring
• Surveys
• Advertising
• Personalization
CALL
MOBILE
SEO
EMAIL
SOCIAL
CRM
37. Marketing is Becoming a Key Strategic Imperative
37
CRM
(Database)
Marketing
Automation
Alignment
Client Sales
Sales Marketing
CMO/CTO CFO/CEO
Key Objectives
RPM
(revenue
performance
management)
• Identify, organize, and assign leads
and prospects
• Sophisticated conversion from lead to
prospect
• Integrated measurement across
channels/touch points
• Incorporate social channels
(Campaign management vs.
marketing tool management)
• Cloud-based platform allows for rapid
prototyping and ongoing development
• Marketing viewed as revenue
generator vs. cost center
• Attribute marketing activities against
financial performance
• Plot most direct course through sales
funnel to maximize marketing ROI
38. Marketing Automation Ecosystem
Database Marketing (2) Web Analytics (3) Mobile Marketing (8)
38
Site Optimization (4)
Attribution (2)
CRM (9)
Demand Side Platform
(4)
Email (8)
Social Marketing (19)
Display/Search
Retargeters (4)
Marketing Automation
Predictive Analytics
Personalization
39. Marketing Automation Will Increasingly Be a Multi-
Channel Story
Mobile Web
Social Email
39
• Emerging marketing
channel with highest
growth in customer
engagement
• Considerable
opportunities for growth
and scale
• Greatly increases
conversion rates
• Established channel,
considerable
optimization
possibilities
• Category has quickly
scaled and developed
comprehensive
management capabilities
• Many companies are
centering digital “suite”
capabilities around social
capabilities
• Email remains the most
scalable and effective
digital communication
channel
• Email providers leading
innovation around the
email channel
40. Select Marketing Automation M&A in 2014YTD
Implied Enterprise Value to LTM
Date Acquirer Size Revenue
Apr. 2014 $492 2.6x NA
Jul. 2014 390 NA NA
Apr. 2014 275 3.4x NA
Jul. 2014 175 4.4x NA
40
($ in Millions)
EBITDA
Target
Source: Capital IQ
(a) Selection criteria based on size and publicly available information.
(a)
41. Mobile
41
Sector
Ad Tech
eCommerce
Marketing Automation
Internet of Things
Traditional Advertising / Marketing Services
42. Mobile = Most Important Broad Theme in 2014
42
Average Timespend Per Day (minutes)
142
153 147
139
10
22
43
67
1
12
40
63
2010 2011 2012 2013
Desktop/laptop Smartphone Tablet
Source: eMarketer, Jul. 2013. US Data
Mobile Timespend is Spread Broadly
Source: Experian Marketing Services. US Data
(in billions)
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Desktops+Notebooks
Smartphones+Tablets
2013 Projected Inflection
Point
Mobile Usage > PC Usage
2009 2010 2011 2012E 2013E 2014E 2015E
Note: Notebook PCs include Netbooks. Assumes the following lifecycles:
Desktop PCs – 5 years: Notebook PCs – 4 years; Smartphones – 2
years; Tablets – 2.5 years. Source: Equity Research, 2012. Global data.
Non-Talk Applications
= 70% Of Timespend
Global Installed Base
Text
20%
Email
9%
Browser
14%
Social
16%
Talk
26%
Games
8%
Other
7%
43. Mobile Scalability is Increasing Dramatically
Unprecedented Mobile Adoption Cycle
Time It Took to Reach 50 Million Users (Years)
4 3.5
43
38
13
Source: Digital Buzz Blog, Extreme Networks
0.5
50
days
35
days
Radio TV Internet
44. Mobile Starting to Dominate as Primary Social
Channel
AJpurliyl 22001133 AJuplryi l2 2001144 July 2013 July 2014
July 2013 July 2014 July 2013 July 2014
44
Source: DigiDay, 2014
Share of Time Spent on Mobile
88%
April 2013 April 2014
15%
92%
48%
April 2013 April 2014
62%
72%
68%
93%
April 2013 April 2014
45. Mobile is Becoming the Key Tool in Commerce
Mobile Influences Path To Purchase
90% Of Smartphone Shoppers Use Their Phone for Pre-Shopping
Activities
Of Smartphone Shoppers Use Their Devices to Help Shop While in a Store
Shoppers Use Their Smartphones to Find Information Instead of Asking Store
84%
1 in 3
Mobile Increases Median Basket Sizes
50% 34%
40% 25%
Source: “Mobile In-Store Research,” Google and Shopper Marketing Council.
45
Employees
Increase in Health & Beauty
Increase in Electronics
Increase in Household Care
Increase in Appliances
46. Consumer Usage is Ahead of Mobile Ad Spend
% of Time Spent in Media vs. % of Advertising Spending, USA 2013
46
5%
12%
38%
Internet Ad = $43B
Mobile Ad = $7.1B
25%
19% 20%
10%
45%
22%
4%
Print Radio TV Internet Mobile
% of Total Media Consumption
Time or Advertising Spending
~$30B+
Opportunity
in US
Consumer Time Spent
Ad Spend
Source: Mary Meeker’s 2014 “Internet Trends”, Advertising spend based on IAB data for full year 2013. Print includes newspaper and magazine.
$30B+ opportunity calculated assuming Internet and Mobile ad spend share equal their respective time spent share.
47. Mobile Has Plenty of Room to Disrupt Traditional
Advertising and Retail
Mobile % of Time Spent vs. % Total Ad Spending vs. % Total Retail
47
20%
4%
2%
25%
20%
15%
10%
5%
0%
Consumer Time
Spent
Mobile Ad
Spending
Mobile
Commerce
% of Total
Consumption
Source: Mary Meeker’s 2014 “Internet Trends”, Advertising spend based on IAB data for full year 2013. Print includes newspaper and magazine.
48. $1 Billion+ Vertical Based Mobile Categories
Section/Leader Competitors Adjacent Verticals $BN Category 2014 Highlights
48
• Proliferation of the “Uber
model” into other
transportation-related
verticals
• Pandora only non-game top 10
iPhone app of 2013
• “Pandora model” replicated in
other content verticals
• Other privacy apps compete and
specialty messaging apps gain
traction
• WhatsApp has >600mm active
users
• Exercise gamification
• Convergence of mobile &
wearables
• Top iOS app of 2013
• 9 of top 10 most downloaded
apps are in gaming
Utilities
Media &
Entertainment
Messaging
Health & Wellness
Gaming
49. Select Mobile M&A in 2014YTD
Implied Enterprise Value to LTM
Date Acquirer Size Revenue
Feb. 2014 $19,000 NA NA
Feb. 2014 900 594x NA
May 2014 360 NA NA
Jul. 2014 100 2.3x 8x
Feb. 2014 17 NA NA
Aug. 2014 NA NA NA
Aug. 2014 NA NA NA
49
($ in Millions)
EBITDA
Target
Source: Capital IQ
(a) Selection criteria based on size and publicly available information.
(a)
50. Mobile
50
Sector
Ad Tech
eCommerce
Marketing Automation
Internet of Things
Traditional Advertising / Marketing Services
51. “Internet of Things” = Key Growth Area for the
Broader Technology Ecosystem
51
Lower cost
of hardware
development
Ubiquity of
wireless
protocols
and
applications
Digitization
of the
physical
world
Enabling
factors for
mass
consumer
adoption
Key Themes
Source: Cisco
Connected Objects Around the World: 2014 – 2020 (billions of devices)
14.4
18.2
22.9
28.4
34.8
42.1
50.1
2014 2015 2016 2017 2018 2019 2020
52. Select Internet of Things M&A in 2014YTD
Implied Enterprise Value to LTM
Date Acquirer Size Revenue
Jan. 2014 $3,200 NA NA
May 2014 3,000 NA NA
Jun. 2014 555 NA NA
Aug. 2014 200 NA NA
Jul. 2014 170 NA NA
52
/
($ in Millions)
EBITDA
Target
Source: Capital IQ
(a) Selection criteria based on size and publicly available information.
(a)
54. Secular Shift in Ad Spend to Digital
54
U.S. Total Ad Spending Share
4.0% 4.0% 4.1% 4.1% 4.1% 4.1% 4.1%
5.8% 5.2% 4.5% 4.0% 3.6% 3.2% 2.9%
9.9% 9.6% 9.3% 9.2% 9.0% 8.8% 8.5%
24.7%
17.1%
22.6%
20.2%
20.7%
19.3% 18.1% 17.4% 16.6%
22.5% 24.8% 26.8% 28.3% 29.2%
38.4% 38.3% 38.9% 38.7% 38.4% 38.2% 38.6%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2010 2011 2012 2013 2014 2015 2016
TV Digital Print Radio Directories Outdoor
U.S. Total Ad Spending ($ in Billions)
$158.3
$166.0
$171.7
$178.4
$183.2
$189.2
2011 2012 2013 2014 2015 2016
Sources: eMarketer..
55. Key Threats to Core Traditional Agency Services
Key Threats Key Thoughts
55
• Increased
measurability and
targeting capabilities
• Multichannel creative
applicability and
execution
Creative
• Multi-channel integration
• New “angles” in mobile,
social, and eCommerce
• Integration with ad
measurement platforms
Prod-uction
• Efficient offshore
models
• Enable large scale
production, driving
revenue, at low cost
• Develop in-house offshore
teams, e.g.
Digitas/Publicis
Emerging
Competitors
Vertical Oriented
Solutions
Mobile Oriented
Solutions
56. Key Threats to Core Traditional Agency Services
(cont’d)
Key Threats Key Thoughts
56
• Cheaper, real-time
data collection
• Plentiful peer reviews
and social media
Market
Research
• Online surveys replacing
traditional focus groups
• Social media (“likes”)
becoming a proxy for
survey data
Media
Buying
• “Managed service
technology” providers
‒ DSPs, DMPs and
other ad tech tools
• Ad Tech moving
upstream, forging
relationships directly with
agency clients
• Media buying agency claims
face dramatic upheaval
• The commoditization of DSPs
‒ Agency trading desks
must build proprietary
buying tech in order to
compete
• DMP begin to supply
“research”-enabled RTB
Emerging
Competitors
57. PE Firms Invest in Traditional Advertising /
Marketing Services
Implied Enterprise Value to LTM
Date Acquirer Size Revenue
Jun. 2014 $4,200 0.8x NA
Jan. 2014 1,840 NA NA
Apr. 2014 446 2.4x NA
Jul. 2014 NA NA NA
Jan. 2014 NA NA NA
Mar. 2014 NA NA NA
57
($ in Millions)
EBITDA
Target
Source: Capital IQ
59. 59
Summary Thoughts
• Digital Media Private Financings: Bigger Checks
− Higher Valuations
− An Increasing Number of $1billion+ Babies
• Digital Media IPO’s: Lots of Exits in 2013 and 2014
− Mixed Performance
• Digital Media M&A: Good Deal Year with Many Solid Growth
Themes
− Variety to Size and Scale
− Broadening Buyer Universe
• Favorite Gridley 2015 Investment Themes:
− Mobile
− eCommerce Services
− Ad Agency Disruption
60. This document is intended to serve as information only, and to suggest that further analysis and consideration may be
warranted. 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. Only those representations or warranties which are made in a
definitive purchase agreement will have any legal effect. 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.
Linda Gridley
Partner & Co-Head of Digital Media Group
AGC Partners
60 East 42nd Street, Suite 2200
New York, NY 10165
Phone: (212) 400-9710 | Mobile: (917) 282-0395
60
Disclaimer