AI & Data Technologies 2021 Atlas

AI & Data Technologies IICCONN 2021 Atlas I C O N C O R P O R A T E F I N A N C E I C O N Strategic Analysis for AI & DataTech Fundraising & M&A AI & DataTechInvestment – 2021 Banking Atlas for DeepTech Disruptors N 2 Contents AI & DataTech Overview • ICON’s Expertise • Key Insights • DataTech Stack AI & DataTech • Detailed Market Segmentation Setting The Stage Overview • Snowflake’s Path • IPO Influence

Fundraising Trends • VC Feeding Frenzy • Transaction Trends • Fundraising Valuations • Most Active Investors

M&A Activity • Rebound & Resilience • Broadening Of The Buyer Pool • Premium Valuations • Private Equity Activity

About ICON Corporate Finance

AI & DataTech – 2021 Atlas 3 ICON’s AI & DataTech Expertise Identify Strategic Opportunities. Leverage Competitive Dynamics. Achieve Execution Advantage.

Data-driven advice for a data-driven industry – ICON’s AI & DataTech Platform is a curated, proprietary data platform utilized to achieve optimal results.

Company & Transaction Database Proactive & Proprietary Analysis

>4,300 M&A Transactions By VC, CVC & PE Trends ▪ Firm-specific Investment Analysis >2,900 Acquirers ▪ Breakdown By Size & Valuation

>3,200 VC Financings From Acquirer Appetite Analyses ▪ Product Gap Analysis >2,900 Investors ▪ Highlights Premium Acquirers

>1,700 Companies Hyperdetailed Categorization ▪ Identifies Competitive Dynamics >160 Sectors ▪ Vendor Financial Sizing

AI & DataTech – 2021 Atlas ICON’s AI & DataTech Platform is continuously updated. Data contained in this report will adjust over time. 4 Predictions DataTech Stack Demand Driving Investment In its IPO prospectus, C3.ai cited research pointing to enterprise AI growing at a Data Apps 24% CAGR from 2020 to 2024. VCs will continue funding companies feeding this demand, but investment will skew toward DeepTech and growth-stage companies. Vertical Apps Horizontal Apps Strategic M&A Corporate acquirers will continue to pay strategic valuations for early- and mid- stage DeepTech companies, continuing activity we saw in 2020. Last year, 4 years Analytics old was the largest age cohort of acquired companies Advanced Analytics Marketing Analytics Unicorn Platforms Reporting Most AI & DataTech unicorns today have achieved success by maniacal focus on single product excellence. As they further grow into their valuations, they’ll broaden Data Governance their offerings to becoming platforms. DataRobot underscores this prediction. Data Management Data Security Opportunity Complexity Data Provider We predict investment and M&A activity will be most active in the Data Apps layer, with PE being particularly active here. Data Governance will continue to be a source of robust opportunity – especially in data security and data management. Analytics companies will see the most premium Data Infrastructure M&A valuations. Database Processing However, the sheer number of companies throughout the DataTech stack is overloading and Query Engine confusing investors and acquirers. For startups seeking acquisition or investment—precision, Management preparation, and identifying the right targets is key.

AI & DataTech – 2021 Atlas 5 Detailed Market Segmentation

VERTICAL APPS HORIZONTAL APPS Accounting Construction Farming Industrial Oil & Gas Shipping Asset Management Loss Prevention Security Advertising CPG Finance Insurance Pharma Smart Cities Contact Center Marketing Smart Buildings Agriculture Credit Food IT PR Sports Customer Support Networking Supply Chain Data Apps Automotive Defense Forestry Law Enforcement Public Safety Supply Chain Drone Data Payroll Translation Auto. Driving eCommerce Gaming Legal Publishing Telecom Economics Pricing Analytics Batteries Education Geopolitical Logistics Railroad Traffic Fraud Product Cities Energy Government Manufacturing Real Estate Transportation HR Research Civic Entertainment Healthcare Materials Regulatory Utilities Industrial Risk Commercial RE Environmental Hospitality Mining Retail Weather IT Sales

ADVANCED ANALYTICS MARKETING ANALYTICS REPORTING AI Computer Vision Log Analytics Predictive Semantic Analytics Behavioral Analytics Media Intelligence BI Analytics AutoML Content Analytics ML Prescriptive Social Analytics Customer Churn Mobile Analytics BPM BPM Conversational AI Model Ops Prog. Languages Sound Recognition CDP Social Analytics CPM Collaborative Analytics Decision Support Optimization/Solvers Quantum Computing Spatial AI Customer Journey VoC Embedded Analytics Community Geo Analytics Platform Real-time Analytics CX Analytics Web Analytics Interactive Visual.

DATA MANAGEMENT DATA SECURITY DATA PROVIDER

Archiving & Recovery DataOps Metadata Management Search Data Discovery & Privacy Data as a Service Governance Data Catalog eDiscovery Platform Sharing Data Loss Prevention Data Exchange Data Lineage Integration Prep Training Data Encryption Data Extraction Data Quality Master Data Management Quality Platform Web Scraper

DATABASE PROCESSING QUERY ENGINE MANAGEMENT

Infrastructure DBaaS GPU IaaS NoSQL/NewSQL Time Series Acceleration IMDG Access Virtualization Administration Deployment Edge Comp. Graph Real-Time SQL/on-Hadoop Computing Data Lake Warehousing Automation Monitoring

AI & DataTech – 2021 Atlas Source: ICON 6

Setting The Stage

AI & DataTech – 2021 Atlas

AI & DataTech – 2021 Atlas 7 Snowflake’s Path To A Premium Valuation The Result

(September 16, 2020)

$68bn Opening Market Cap

9,714x Increase in valuation since Series A

$3.4bn Amount raised

AI & DataTech – 2021 Atlas Source: ICON research; Company reports; Pitchbook; Capital IQ 8 IPO Influence

• Amid global lows of 2020, AI and data companies saw record highs in public Datadog 54.8x SNAPSHOT EV/TRAILING REVENUE markets. VALUATIONS FOR SELECT PUBLIC Verisk Analytics 12.4x DATATECH COMPANIES • Data cloud provider Snowflake marked the DataApps Health Catalyst 11.0x largest-ever software IPO in its September debut. Sumo Logic went public the next day followed by Palantir two weeks later. C3.ai 78.8x C3.ai ended the year with a debut in December. Telus International, new owner Palantir 43.1x

of AI annotation company Lionbridge, filed Analytics its IPO prospectus in January 2021. SumoLogic 14.2x

Elastic 27.3x • As of this analysis, Snowflake is valued at a whopping 159x Enterprise Value / Alteryx 16.5x

Trailing Revenue multiple. Governance Splunk 12.4x • Public valuations like these influence future private company fundraising and Snowflake 159.3x M&A. MongoDB 40.3x

Infrastructure Exasol 25.2x

Nasdaq Average 5.0x AI & DataTech – 2021 Atlas Data as of January 15, 2021. Source: ICON research; Company reports; Capital IQ; Yahoo Finance 9

Fundraising Trends

AI & DataTech – 2021 Atlas

AI & DataTech – 2021 Atlas 10 12 45 $41.3m VC Feeding 40 10 Frenzy $47.2bn 35 TOTAL RAISED 8 $28.2m 30 • Driven by cheap capital, seemingly insatiable customer demand, and 25 growing competition among the VC $22.2m universe, 2020 set records for the 6 amount of capital raised and the average $23.2m size of rounds raised by AI & Data 20 Technology vendors.

$16.1m ($m) Size Average Total Raised ($bn) Raised Total 4 $13.6m 15 • 1,107 investors made at least one investment last year, just shy of the $10.8m $9.1m $9.6m 1,125 record set in 2019. However, the $8.4m 10 average number of investors per round set a new record of 4, topping the 2 $6.2m previous record of 3.2 in 2019. 5

• Although total capital raised and average $0.2bn $0.5bn $0.8bn $1.0bn $2.0bn $3.7bn $3.2bn $6.5bn $7.1bn $10.0bn $11.4bn round sizes reached new highs, the total 0 0 number of rounds announced dropped to 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 the lowest level since 2016. Total Raised Average Round Size

AI & DataTech – 2021 Atlas Excludes rounds of <$1m, undisclosed rounds, acquired companies, and companies that went public. Source: ICON research; Company reports; Capital IQ 11 Total Raised By Sector By Year $12bn $70m

$60m $10bn

$50m $8bn

$40m $6bn

$30m Total Raised Total

$4bn Size Round Average $20m

$2bn $10m

$0bn $0m 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Infrastructure Governance Analytics Data Apps Avg. Infrastructure Avg. Governance Avg. Analytics Avg. Apps

Sizes 120

100 • Early-stage financings in AI & DataTech continued to decline while the number of rounds worth more than $100m reached 80 a record percentage of total rounds announced. 60

• In the second half of 2020, a total of 20 rounds worth >$100m were announced 40 – equal to one nearly every week.

20 • Mid-stage rounds in the $10-30m range declined slightly, while deals in the $30- 50m range set a new record. 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 >1m to 10m >10m to 30m >30m to 50m >50m to 100m >100m

>1m to >10m to >30m to >50m to Financing 10m 30m 50m 100m >100m Data Apps 25 31 13 9 15

Frequency & Analytics 35 40 11 5 3

Governance &ValuationsValuations 18 21 3 7 5

Infrastructure 2020 MEDIAN POST-$ VALUATIONS 11 8 8 4 3 • With the exception of the Data Infrastructure sector, $10-30m rounds were most common for our three other Data Apps $100.0m macro sectors. Data Apps vendors raised more rounds of at least $100m than they did in each of the two immediately smaller tiers. Analytics $65.0m

• Median post money valuations in two of our four macro sectors reached $100m Governance $47.3m or more last year.

• Data Governance vendors, which are becoming increasingly critical to Infrastructure $110.0m producing accurate analytics, are attractive investment opportunities.

AI & DataTech – 2021 Atlas Excludes rounds of <$1m, undisclosed rounds, acquired companies, and companies that went public. Source: ICON research; Company reports; Capital IQ; Pitchbook 14

Andreessen Horowitz LLC New Enterprise Associates, Inc. Battery Ventures Data Collective Lightspeed Venture Partners Sequoia Capital GV Accel Partners Intel Capital Bain Capital First Round Capital Khosla Ventures, LLC Most Index Ventures SA Y Combinator Management LLC Active Sapphire Ventures, LLC Bessemer Venture Partners Kleiner Perkins Caufield & Byers Investors AME Cloud Ventures SV Angel Management, LLC

General Catalyst Group Management, LLC Infrastructure Governance Analytics Data Apps

AI & DataTech – 2021 Atlas Includes rounds across all stages and sizes. Excludes rounds of <$1m, undisclosed rounds, acquired companies, and companies that went public. Source: ICON research; Company reports; Capital IQ 15

M&A Activity

AI & DataTech – 2021 Atlas

AI & DataTech – 2021 Atlas 16

2020 Quarterly Deal Volume & Value Volume by Sector Rebound & 140 $14bn Infrastructure Governance Resilience 120 $12bn Analytics Apps

100 $10bn • Alongside all other economic activity, Major M&A M&A volumes and value halted in the 18 second and third quarters of 2020 as 80 $8bn ≥$100m global uncertainty weighed on acquirers’ 12 acquisition strategies. Deal Volume 6 60 $6bn ≥$1bn • In Q3 of last year, however, US GDP grew 0 Deal a remarkable 33.4% Q/Q, more than Volume

recouping GDP lost in Q2.

2Q20 3Q20 4Q20 40 $4bn 1Q20 Value by Sector • That led to a boom in activity in the fourth quarter. Twilio kicked off Q4 Infrastructure 20 $2bn announcing it would acquire customer Governance data platform startup Segment for $3.2 Apps billion – it’s largest-ever acquisition. By our estimates, the deal values Segment 0 $0bn Analytics at roughly 13-20x trailing revenue. 1Q20 2Q20 3Q20 4Q20 PE Deal Volume Strategic Deal Volume Total Value

AI & DataTech – 2021 Atlas Includes ICON proprietary data, estimates, and publicly reported deal values. Source: ICON research; Company reports; Capital IQ; Pitchbook; Bureau of Economic Analysis 17 Broadening Of The Buyer Pool

• As the need to become data-driven has grown over $635m / NA the years, so too has the pool of acquirers of data vendors. The diversity of the buyer pool has expanded to include agriculture, publishing, and $935m / 4x even fast-food conglomerates.

$4.4bn / 2x • Atypical acquirers are seeking both commercial and operational benefits of AI and data technologies, but also financial returns. In November 2020, Canadian telco Telus announced it was acquiring AI $325m / 10.8x annotation company Lionbridge for $935m. Two months later, Telus announced it was taking its newly acquired Lionbridge business public as a $525m / 8.8x separate entity.

• We expect this ‘broadening’ trend to continue as $500m / 10x* VCs fund ever more data-driven applications vendors that can become data empowerment targets for digitizing industries. $600m / NA

$930m / NA

AI & DataTech – 2021 Atlas *Includes ICON proprietary data, estimates, and publicly reported deal values. Source: ICON research; Company reports 18 Strategic Opportunity ICON PROPRIETARY GAP ANALYSES Snapshot

• Nimble and well-capitalized startups are developing disruptive technologies at breakneck speed. With nothing to do but work during the pandemic, development cycles have shortened significantly.

• Acquirers have frequently maintained pace via M&A, and they oftentimes acquire companies that appear to

overlap. Available one-on-one only

• For startups seeking an acquisition— identifying the right acquirers and precise messaging are key to differentiate from the scores of other companies with similar positioning.

AI & DataTech – 2021 Atlas Source: ICON research 19 Premium Valuations For Deep Technology

• Financial performance is typically the greatest influencer on M&A valuations. Transaction Date EV ($m) Rev. ($m)* EV/Rev.* Description However, in DeepTech sectors such as AI and DataTech, the value of a startup’s 11/30/20 230 <10m >23x AI platform technology and talent oftentimes supersedes financial metrics. 11/3/20 60* <3m >20x AI infrastructure & ModelOps

10/27/20 50* <3m >17x Computer Vision • ServiceNow has been among the most frequent premium buyers of AI and data 10/20/20 38 <3m >13x Digital experience monitoring management companies in recent years. True to its core business, it has preferred 6/22/20 28.1 <3m >9x Configuration data management IT-leaning targets but its most recent and largest acquisition is that of horizontal AI 1/22/20 58.4 <3m >19x Log analytics startup Element AI. 1/15/20 ~200* <3m >67x Edge AI platform

• Coinciding with the rise of DevOps, over 1/3/20 128.1 <3m >43x Computer vision the past few years the acquirers paying strategic valuations most often focused on 12/11/19 117.5 <10m >12x Database monitoring the IT market. 11/1/19 24 <3m >8x Streaming data integration • This selection of 12 acquisitions over the 4/24/19 39 <3m >13x Mobile data infrastructure past two years highlights technical value: approximately $1 billion spent for less than $50 million of revenue. 2/6/19 37 <3m >12x ML-based event analytics

AI & DataTech – 2021 Atlas *Includes ICON proprietary data, estimates, and publicly reported deal values. Source: ICON research; Company reports; Capital IQ; Pitchbook; Bureau of Economic Analysis 20 PE DEAL VOLUME, 2020 SELECT TRANSACTIONS BY SECTOR

Private Carlyle Group acquires VC- backed clinical trials data Apps management provider Equity TriNetX.

Primetime Accel-KKR-backed SugarCRM acquires VC- Analytics backed AI-based customer analytics startup Node.io. • Buoyed by record-setting fundraises in 2019, private equity firms entered the pandemic period hungrier than ever.

Providence Strategic Growth • Historically, PE generally were acquires bootstrapped Governance underbidders on acquisitions that traded master data management to strategic acquirers. That’s all in the startup Semarchy. past – they are now offering competitive valuations and should be considered in nearly every M&A or financing process. Great Hill & Catalyst • In 2020, PE firms acquired more in the Investors-backed EDB Infrastructure data-driven vertical and horizontal continues PostgreSQL applications market than any other consolidation by acquiring sector. We expect that to continue. bootstrapped 2ndQuadrant.

AI & DataTech – 2021 Atlas Infrastructure Governance Analytics Apps Source: ICON research; Company reports; Capital IQ; Pitchbook 21

About ICON Corporate Finance

AI & DataTech – 2021 Atlas

AI & DataTech – 2021 Atlas 22 Deep Experience Industry Specialization

AI & Data Enterprise

180+ Cloud FinTech Combined years’ experience 250+ 8 Cybersecurity Digital Media Languages spoken Closed transactions 1 25+ Focus – Tech Investment Countries we’ve Banking transacted in

Banker Backgrounds

AI & DataTech – 2021 Atlas 23 Global Transaction Record Select Transaction Experience Across Verticals, Geographies & Structures

For further details, contact:

Ben Kolada, Head of AI & DataTech, Head of US Tech Investment Banking +1 415 385 8189 [email protected]

Alan Bristow, CEO +44 (0) 207 152 6375 [email protected]

ICON Corporate Finance • San Francisco • London • Bristol

www.iconcorpfin.com

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Registered Representatives of and Securities Products and Investment Banking Services are offered through BA Securities, LLC. Member FINRA SIPC. ICON Corporate Finance and BA Securities, LLC are separate, unaffiliated entities.

AI & DataTech – 2021 Atlas