Presentation of Christopher Rogers at Startup Istanbul 2016. 6-10 October, Istanbul, Turkey

1. 1CONFIDENTIAL – DO NOT DISTRIBUTE

2. 2CONFIDENTIAL – DO NOT DISTRIBUTE
Chris Rogers, Partner
October 10, 2016
A Mobile, Global, Agile Growth Fund for the Next Wave of the Internet
THESE MATERIALS ARE PROVIDED FOR CONVENIENCE ONLY AND MAY NOT BE RELIED UPON. PROSPECTIVE INVESTORS
MAY RELY ONLY UPON THE FUND'S PRIVATE PLACEMENT DISCLOSURE OR AN OFFICIAL SUPPLEMENT THERETO.

3. 3CONFIDENTIAL – DO NOT DISTRIBUTE
Traditional Data Enabled
Time spent on traditional
communications (Voice, SMS)
Time spent on data-enabled
communications
2010 20202015
Increasing size of charts reflects increasing time spent on mobile
Data courtesy of Delta Partners
Consumer mobile usage is changing

4. 4CONFIDENTIAL – DO NOT DISTRIBUTE
Increasing size of charts reflects increasing customer ARPU
Dollars spent on traditional
communications (Voice, SMS)
Dollars spent on data-enabled
communications
2010 20202015
Traditional Data Enabled
Data courtesy of Delta Partners
Resulting in changes to consumer mobile expenditure

5. 5CONFIDENTIAL – DO NOT DISTRIBUTE
Increasing size of charts reflects increasing time spent on mobile
2010 20202015
Time spent on traditional
communications (Voice, SMS)
Time spent on data-enabled
communications
Traditional Data Enabled
Data courtesy of Delta Partners
Business follows the trend in both usage…

6. 6CONFIDENTIAL – DO NOT DISTRIBUTE
Increasing size of charts reflects increasing customer ARPU
Dollars spent on traditional
communications (Voice, SMS)
Dollars spent on data-enabled
communications
2010 20202015
Traditional Data Enabled
Data courtesy of Delta Partners
…and expenditure

7. 7CONFIDENTIAL – DO NOT DISTRIBUTE
Leading to a large and growing market opportunity
$2.0
$2.8
$4.6
2010 2015 2020
Global Connectivity and Digital Revenues
Connectivity Digital Services
51% CAGR
109% CAGR
19% CAGR
Data courtesy of Delta Partners

8. 8CONFIDENTIAL – DO NOT DISTRIBUTE
How can Telcos survive in the new mobile and digital
world?

9. 9CONFIDENTIAL – DO NOT DISTRIBUTE
Telcos don’t innovate like big tech companies
Avg.
Telco
Source: estimates, Delta Partners
% of budget spent
on innovation

10. 10CONFIDENTIAL – DO NOT DISTRIBUTE
Investments Joint Ventures
TELCO PRIVATE INVESTMENTs VERIZON REDBOX PARTNERSHIP
But they do invest in and partner with tech companies

11. 11CONFIDENTIAL – DO NOT DISTRIBUTE
+
+
+
Benefits:
 Shareholder value
and returns
 Access to expertise
and resources
 Telecom enablement
partnership
for telcos
for startups
Examples:
Investments in digital startups

12. 12CONFIDENTIAL – DO NOT DISTRIBUTE
Comcast + iControl
Company
2003
Redwood City
Series C
(Jul 2009)
Founded
Initial Investment
A software platform for service providers and home
security companies enabling them to offer connected
home solutions to households worldwide
Internet of Things (Smart Home)
Description
Area of Collaboration
 Initial investment by Comcast Ventures in 2009 (other investors included Intel,
Cisco, CRV, and KPCB)
 Became important technology partner for Comcast once their smart home solution
launched in 2010
 Software was the platform behind Xfinity Home, enables communication and
management for home sensors as well as cameras and thermostats
 Acquired by Comcast in July 2016
Details

13. 13CONFIDENTIAL – DO NOT DISTRIBUTE
Orange + Deezer
Company
2006
Paris
Series E
(Jan 2016)
Founded
Initial Investment
An online platform and app that provides songs from a
variety of genres, delivering a multi-local music
experience to more than 26 million people worldwide
Entertainment (Music)
Description
Area of Collaboration
 In 2011, announced a distribution partnership with Orange to make Deezer Mobile
available exclusively to Orange pay monthly customers
 In 2016, Orange invested in $110M Series E after Deezer cancelled planned IPO
(other investors included Access Industries)
 Investment strengthened partnership with Orange, including an extension of a
longstanding distribution deal with Orange France for an additional 2 years
Details

14. 14CONFIDENTIAL – DO NOT DISTRIBUTE
Verizon + ItsOn
Company
2008
Redwood City
Series D
(Dec 2015)
Founded
Initial Investment
A cloud-based smart services platform enabling wireless
carriers to fundamentally change how mobile services
are marketed, delivered, and consumed
Cloud-based OSS/BSS
Description
Area of Collaboration
 Initial investment by Verizon Ventures in 2015 (other investors included Delta
Partners, Andreesen Horowitz, and Tenaya Capital)
 Although solution helps carriers configure, market and sell mobile services, Verizon
was not a carrier customer at time of investment
 Verizon invested because of technology aligned to core business
 “ItsOn’s expertise and ability to successfully develop and bring this technology to
market made it an easy choice to invest” – Verizon Ventures Director
Details

15. 15CONFIDENTIAL – DO NOT DISTRIBUTE
Benefits:
 Regional/demographic
structure and expertise
 Access to resources
and channels without
losing equity
 Telecom enablement
partnership
for telcos
for startups
+
+
Examples:
Local joint ventures and partnerships

16. 16CONFIDENTIAL – DO NOT DISTRIBUTE
PLDT + Rocket Internet
Partner
2006
Brooklyn
Founded
Engaged in print, event, music, online, television, and
feature film business activities
Description
 Joint venture to foster the development of internet-based businesses in the
Philippines by:
 Leveraging local market and business model insights
 Facilitating commercial, strategic and investment partnerships
 Enabling local recruiting and sourcing
 Accelerating the rollout of online startups
Details
Philippines Internet
Group
Partnership Entity
Ecommerce
Area of Collaboration

17. 17CONFIDENTIAL – DO NOT DISTRIBUTE
Verizon + Hearst / Vice Media
Partner
2007
Berlin
Founded
An internet platform that identifies and builds proven
internet business models
Description
 In 2015, Verizon struck a deal with Vice Media to license food, travel and other video
programming, prior to rollout of Go90
 Beginning of Verizon’s expansion into digital entertainment and advertising
technology, leveraging Vice Media appeal to Millennial viewers
 In 2016, Verizon and Hearst (a key stakeholder in ViceMedia) announced 50-50 joint
venture to develop mobile TV content for Millennials
Details
Verizon Hearst
Media Partners
Partnership Entity
Digital Media / Entertainment
Area of Collaboration

18. 18CONFIDENTIAL – DO NOT DISTRIBUTE
102
123
255
245
259
2011 2012 2013 2014 2015 1H-2016
Global Telecom M&A Volume ($B)
Ultimately leading to an increasing amount of acquisitions in the space

19. 19CONFIDENTIAL – DO NOT DISTRIBUTE
How can a
telco be helpful
to you?
What value
can you offer a
telco?
Distribution
Connectivity
Data
Reach
Content
Audience
Innovation
Technology
Therefore, startups should be thinking about their own telecom/carrier
strategy

20. 20CONFIDENTIAL – DO NOT DISTRIBUTE
Thank you for listening