The Next Big Thing
June 2013 Agenda
1 About Petsky Prunier
2 Market Overview
3 The Next Big Thing – Trends & Activity
2 Petsky Prunier was Ranked #1 by Bloomberg in 2011‐2012 for Mid‐Market Internet & Advertising Transactions
Rank Advisor Deal Count 1Petsky Prunier LLC 30 2Nomura Holdings Inc 24 3GCA Savvian Group Corp 23 4Goldman Sachs & Co. 20 5MorganStanley 19 6Jordan Edmiston Group 18 7Jefferies Group Inc. 16 8China Renaissance Partners 15 8Sumitomo Mitsui Financial 15 10 JP Morgan 14 10 RBC Capital Markets 14
Based on number of deals announced in 2011‐2012 valued at $500 million or less
Nearly 60 transactions closed since 2010: . Ranging from strategic sales and divestitures to private equity recaps to growth, mezzanine, and alternative financings . Across a broad universe of industries, including digital advertising and marketing, eCommerce and digital media, technology and software, information services, and healthcare
3 Petsky Prunier: Maximizing Shareholder Value
Overview
. Founded in 1999 . Focused on the technology, marketing, media, eCommerce, and healthcare industries • More than 35 focused professionals . Unique combination of investment banking and consulting expertise . New York, Palo Alto, Las Vegas, Chicago, Tampa . Sell‐side and private placement close rate is unmatched at our level of deal volume . Deep relilations hips across a bdbroad spectrum of venture capilital and private equity groups, ldlenders and strategic buyers . With strategic consulting firm Winterberry Group, one of the largest industry‐specific advisors providing strategic and transactional services . International reach enhanced through our partnership with investment bank Altium, which operates from ten offices across Europe . Securities transactions processed through Petsky Prunier Securities LLC, a licensed broker‐dealer
. Sell‐Side Representation . Technology . Strategic Development and Competitive Analysis . Capital Raising and Private Placements . Media . M&A Transaction Due Diligence Support and . Corporate Divestitures . Marketing Valuation Analysis . M&A Advisory . eCommerce . Acquisition Strategy and Target Identification . Fairness Opinions . Healthcare . Publishing and Thought Leadership
4 Representative Recent eCommerce and Related Industry Transactions
a leading digital advertising has sold monetization and shopper marketing partner for e‐commerce retailers a real‐time behavioral a portfolio company of advertising company provider of online travel has been acquired by guides for top destinations has been sold to around the world to with financing from (NYSE: GCI) (NYSE: AOL)
a dynamic display media and retargeting company a provider of a cloud‐based a leader in multichannel integration platform for the retail, ecommerce and has been sold to digital marketing industry loyalty marketing services has received $15M has been sold to financing led by
(JASDAQ:4755)
the top independent (NASDAQ: TREE) direct‐to‐consumer has sold marketer of dental has been sold to savings plans a leading online lead has been sold to generation business to
(Nasdaq: GSIC) (Nasdaq: LEDR) )
5 Agenda
1 About Petsky Prunier
2 Market Overview
3 The Next Big Thing – Trends & Activity
6 Marketing, Media, and Technology Transaction Activity (Last Twelve Months as of 5/31/13)
2013 Last Twelve Months Transaction Value by Segment 2013 Last Twelve Months Transactions by Segment Total: $161.4 Billion Total: 4,576 Deals
Marketing Digital Software Marketing Technology Advertising eCommerce/ 610 Deals Technology $9,366.0 $5,696.3 Digital Media 773 Deals Software Traditional 905 Deals eCommerce/ $20,131.4 Marketing Media Digital Media Services $39,595.4 $23,626.3 91 Deals
Digital Technology Advertising 450 Deals Agency & Information & 350 Deals Communications Marketing Business Traditional 234 Deals Information & Services Communications Services Media Technology Business $10,054.2 $8,473.7 $12,748.4 670 Deals $18,876.5 Services M&A and Investment Volume: 1Q09 –1Q13 ($BN) 282 Deals All transactions; value based on reported values only
$50.2 $141.8 $179.6 $189.5 $50.9
$70. 0 $64.8 $60.0 $54.9 $49.5 $51.6 $50.0 $42.7 $42.7 $40.3 $37.8 $36.6 $35.4 $40.0 $31.7 $27.6 $30.0 $23.8 $22.8 $23.2 $20.0 $12. 5 $8.9 $10.0 $5.0 302 356 361 421 393 621 986 1,142 1,135 1,147 1,083 1,206 1,170 1,215 1,042 722 $0.0 353 311 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 YTD
7 eCommerce and Multichannel Marketing Deal Activity (Last Twelve Months as of 5/31/13)
Marketers 2013 LTM BUYER/INVESTOR BREAKDOWN Transactions Reported Value ($MM) Strategic Buyout Venture/Growth Capital # % $ % # $ # $ # $ eCommerce 297 80% 10,790.1 34% 78 1,659.3 6 4,945.1 213 4,185.7 Catalog 9 2% 697.8 2% 6 392.8 2 235.0 1 70.0 Other* 63 17% 20,096.6 64% 44 11,345.6 8 7,997.9 11 753.1 Total 369 100% 31,584.4 100% 128 13,397.6 16 13,178.0 225 5,008.8
Transaction Value by Segment ($MM) Transaction Volume by Segment ($MM) Last Twelve Months as of 4/30/13: Last Twelve Months as of 4/30/13:
eCommerce $10,392.8 Catalog eCommerce $520.0 297 Deals
Other 63 Deals
Catalog 9 Deals Other $18,594.8
*Other consists of Affinity/Partner, Direct Selling, and Retail 8 eCommerce and Multichannel Marketing M&A Trends
2002‐2013 Year‐to‐Date Transaction Volume
400 349 350 325 324
300 265 250 229
Volume 202
200 183 174 158 154 150 114 104 sactions
nn 100
Tra 50 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD Catalog Other* eCommerce
2002‐2013 Year‐to‐DtDate TtiTransaction VlValue ($BN)
$60 $53.0 $50 $46.7 $43.0 $40 Value $31.1 $32.4 $30 $22.3 $19.5 $21.3 $20 $16.3 $13.4
Transactions $8.5 $10 $5.5
$0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD
Catalog Other* eCommerce
*Other consists of Affinity/Partner, Direct Selling, and Retail 9 Most Active Buyers and Investors (Last Twelve Months as of 5/31/13)
Number of Buyer Representative Targets Transactions Amazon.com, Inc. 5 AtidAstrid, EiEvi ThTechno log ies, GdGoodrea ds, IVONA SftSoftware, UNUpNex t Apple Inc. 4 AuthenTec, Col or Labs, Particle, WifiSLAM IAC/InterActiveCorp 4 About.com, DateHookUp.com, Pastas Party, Tutor.com fab.com 3 Fab DBY, Llustre Design, True Sparrow Systems Myntra.com 3 Exclusively.In, Fitiquette, SherSingh Shutterfly, Inc. 3 MyPublisher, Penguin Digital, ThisLife Target Corpora ti on 3 CHEFS, Cooki ng.com, Pikes Peak Direct Marketing Tesco PLC 2 Mobcast Services, WE7
Number of Investor Representative Investments Transactions Summit Partners LP 9 Jade 1352, Jumia, Lazada, Linio, Moto, Namshi, Westwing Home and Living Accel Partners 6 BaubleBar, BEBB India, BookMyShow, Dropcam, One Jackson, Qriously 500 Startups 4 BarkBox, Chews e, Mile High Organics, SupplyHog Andreessen Horowitz 4 Flurish , Julep Beauty, Ky,ynetic, Runscop,pe, Zulily Canaan Partners 4 Artspace Marketplace, Borro, Instacart, Onefinestay GRP Partners 4 ChowNow, DailyLook.com, NuORDER, Pop‐Up Pantry Battery Ventures 3 Modria, Retail Relay, Wayfair.com First Round Ca pi ta l 3 EAT Cl ub, Grand St., The Founders Cl ub General Ca ta l ys t Partners LLC 3 JAND, NaureBox, Warby Parker Insight Venture Partners 3 B2B‐Center, IndiaGoGo, One Kings Lane J.P. Morgan Asset Management 3 Dafiti, KupiVip.ru, Zalando
10 eCommerce and Multichannel Marketing Largest Acquisitions & Investments (Deals with Terms Announced for the Last Twelve Months as of 5/31/13)
($ in Millions) Acquisitions Date Target Segment Buyer Deal Value EV/Revenue EV/EBITDA 10/24/12 PSS World Medical, Inc. Direct Selling McKesson Corporation 1,819.0 0.8x 10.7x 11/08/12 KkKayak SftSoftware CtiCorporation CiComparison Shopp ing PiPrice line.com, Inc. 1, 629. 0 585.8x 30. 2x 10/22/12 Ancestry.com Inc. eCommerce Permira Advisers 1,590.4 3.5x 10.5x 05/23/13 rue21, Inc. Retail Apax Partners 970.4 1.1x 9.6x 06/04/12 1‐800 Contacts, Inc. eCommerce WellPoint, Inc. 900.0 2.3x NA 05/02/12 Charming Shoppes, Inc. Retail Ascena Retail Group, Inc. 890.0 0.4x 10.7x 03/12/13 Naspers Ltd., Slando.ru and OLX.ru Classifieds/Auctions/P‐to‐P Avito.ru 570.0 NA NA 05/10/12 Things Remembered, Inc. eCommerce Madison Dearborn Partners, Inc. 295.0 NA NA 05/30/12 Leader Participacoes Retail BTG Pactual Participations 281.0 NA NA 11/08/12 The Sportsman’s Guide and The Golf Warehouse Catalog Northern Tool & Equipment 215.0 NA NA 05/17/13 SkyMall, Inc. Catalog Xhibit Corp. 177.8 NA NA 08/07/12 Triad Catalog Company Catalog Brentwood Associates 175.0 NA NA 07/16/12 Sundance Catalog Company, Inc. Catalog Brentwood Associates 125.0 1.3x 8.9x
Investments Date Target Segment Investor Deal Value EV/Revenue EV/EBITDA 01/29/13 Netflix, Inc. eCommerce (Institutional Buyers) 500.0 2.5x 94.0x 02/19/13 Beijing Jingdong Century Trading Co., Ltd. eCommerce Kingdom Holding Company 400.0 NA NA 07/14/12 360buy.com eCommerce Ontario Teachers' Pension Plan 400.0 NA NA 12/11/12 TripAdvisor, Inc. Comparison Shopping Liberty Interactive Group 300.0 0.4x 1.0x 08/07/12 ShSchus termann & BtiBorenstein Who lesa le AXA PiPriva te EitEquity 248. 0 NA NA 08/28/12 Flipkart Online Services Private Limited eCommerce MIH Group 150.0 NA NA 07/18/12 fab.com eCommerce Atomico Ventures 105.0 0.8x NA 05/22/13 Zalora Co. Ltd. eCommerce Rocket Internet 100.0 NA NA 11/16/12 Zulily, Inc. eCommerce Andreessen Horowitz 85.0 2.0x NA 04/09/13 Acumen Brands, Inc eCommerce General Atlantic, LLC 83.0 NA NA 07///26/12 JustFabulous eCommerce Rho Ca pital Partners, Inc. 76.0 NA NA 12/10/12 Dafiti eCommerce Quadrant Capital Advisors, Inc. 65.0 NA NA 09/04/12 KupiVip.ru eCommerce J.P. Morgan Asset Management 65.0 NA NA 04/03/13 Moonbasa eCommerce GSR Ventures 55.0 NA NA
11 Agenda
1 About Petsky Prunier
2 Market Overview
3 The Next Big Thing – Trends & Activity
12 Everything Old is New Again
. Continuing investments in new technologies allow tried‐and‐true tactics to adapt to new solutions, making eCommerce sites bigger, stronger, faster, and cheaper from front to back‐end
eCommerce mCommerce, fCommerce Basic Search Retargeting and Personalization Discount Offers Digital Couponing, Group Buying Loyalty Programs Prime, ShopRunner, MCX Product‐of‐the‐Month Clubs Subscription Commerce Paper‐based Catalogs Catalog Shopping Apps Offline Pricing Models Dynamic Pricing Shopper MMktiarketing Dig ita l Ad Mtiti/ShMonetization/Shopper MktiMarketing Inflexible Systems Infrastructure Cloud Expensive Enterprise Software SaaS Packaging Data‐Driven Marketing/Ad Monetization Opportunity
13 Everything Old is New Again: Shopper Marketing Goes Digital and Offers Ad Monetization Opportunities
. The pioneer and market leader in creating and operating digital retail media programs for highly‐trafficked retail websites . Creates and places targeted premium ads and sponsored/
a leading digital advertising monetization and shopper customized content (enhanced via use of first‐party data) that marketing partner for top e‐commerce retailers engage consumers when they are actively in a shopping mode
a portfolio company of . Retail partners include Walmart, Sam’s Club, eBay, Toys“R”Us, CVS, and many other leading retailers . Provides +650 top brand advertisers, including P&G, Ford, J&J, has been sold to State Farm, Microsoft, Chase, Disney, AT&T, and Unilever, with exclusive access to premium media inventory and 100 million with financing from monthly unique shoppers on leading online and mobile ecommerce sites . Revenue share from advertisers provides retailers significant additional profit at no cost . Triad has twice been named one of the fastest‐growing private companies in the U.S. by Inc. Magazine . Petsky Prunier advised Triad Retail Media on its sale in December 2012 to private equity firm Rockbridge Growth Equity 14 Everything Old is New Again: Search Evolves into Retargeting and Personalization
. Retargeted consumers are nearly 70% more likely to complete a purchase as compared to non‐retargeted consumers (Source: InfoTrust) . mediaFORGE is a leading provider of retargeting solutions for e‐tailers, providing technologically‐advanced, dynamic, a dynamic display media and retargeting and personalized ad units, and associated media buying to company the web's top brands
has been acquired by . One of the only display advertising companies to base its business model on consumer engagement, aligning its performance with ad'dvertisers' goals by using a metric that measurably increases site conversions (JASDAQ: 4755) . Robust, real‐time business analytics and reporting capabilities . Venture capital‐backed company . Top five fastest growing companies in Utah in 2011 . #55 on the 2012 Inc. 500 list . Petsky Prunier advised mediaFORGE on its sale to Rakuten Linkshare in September 2012
15 Everything Old is New Again: Packaging Becomes a Data‐Driven Marketing and Monetization Opportunity
. Zadspace, Inc. operates the first technology‐enabled media platform that allows brands to place highly‐ targeted, data‐driven advertisements (“Zads”) on the outside of packages shippe d by eCommerce marketers
. ExclusiveAnatomy partnerships (4” x 6”) with “Channel Partner” 1 1. Personalization 2 retailers to provide third‐party brands with access to 2.mUnlimitedillions Creative of s Versioninghoppers each month via premium, on‐ 3. Highly-Targeted 4.package Dynamic Real-Time media Offers inventory .5.Channel Removable Label Partners also use Zadspace’s targeted Key Highlights 3 media platform to execute cross‐sell, up‐sell, loyalty, 4 • Visibility: Adjacent to shipping label • didRelevance:rive‐toData-driven‐retiltail targeting, and ddirive‐to‐web markktieting delivers the right message, to the campaignsright consumer, at thefor right their time own products on the outside of 5 • theirTimeliness: directDelivered‐to to‐ “hot-line”consumer (“DTC”) shipments consumers who just made purchases . Zad campaigns generate average response rates of up to 5%, riilivaling or exceeding solo direc t mail response rates at approximately 50% of the cost, and outperforming non‐targeted, in‐package inserts by up to 800% . PtkPetsky PiPrunier is currently adiidvising ZdZadspace on raising additional capital for growth
16 Everything Old is New Again: Selected Acquisitions
($ in Millions) Date Target Segment Buyer Deal Value 05/28/13 WebCollage, Inc. Content Management Answers Corporation 37.0 05/13/13 Avail Intelligence Content Management RichRelevance ‐ 05/08/13 OrderMotion, Inc. Commerce Management NetSuite Inc. ‐ 05/03/13 Group Commerce, Inc. Content Management Nimble Commerce ‐ 04/16/13 Fitiquette Content Management Myntra.com ‐ 04/12/13 Iron Pearl Analytics/Reporting PayPal, Inc. ‐ 02/19/13 Channe l In te lligence, Inc. Commerce MtManagement GlGoogle, Inc. 125. 0 01/28/13 Payvment, Inc. Commerce Management Intuit, Inc. ‐ 01/11/13 Retail Anywhere Cloud Retail Software Netsuite, Inc. ‐ 01/04/13 ThisLife LLC Cloud Storage Shutterfly, Inc. 25.0 12/21/12 Triad Digital Media, LLC Advertising Monetization Rockbridge Growth Equity, LLC ‐ 12/21/12 CItfCommerceInterface Commerce MtManagement Groupon, Inc. ‐ 12/17/12 Black Locus Cloud Retail Software Celerant Technology Corporation ‐ 12/17/12 Crossrider Content Management Markets.com 37.0 12/04/12 Buysight, Inc. Online Targeting/Optimization Advertising.com ‐ 11/13/12 50 Below Sales & Marketing Commerce Management ARI Network Services, Inc. 5.0 09/05/12 MdiFORGEMediaFORGE OliOnline Ti/OiiiTargeting/Optimization RkRakuten, Inc. ‐ 07/13/12 Onlycart.com Commerce Management Gripsell Technologies Pvt. Ltd. 10.0 06/18/12 Seamless Receipts Content Management Sailthru, Inc. 15.0 06/05/12 Vin65 Commerce Management WineDirect 8.0 04/25/12 PickupZone Logistics ShopRunner ‐ 03///01/12 Medhdiachase Commerce Management EPiServer AB 25.0 02/22/12 WHI Solutions Commerce Management eBay Incorporated 40.0 01/12/12 Zeon Solutions, Inc. Commerce Management The Grand River 10.0
17 Everything Old is New Again: Selected Investments
($ in Millions) Date Target Segment Investor Invest. Value Total Invest. 05/15/13 RJMetrics BI Tools Trinity Ventures 6.5 7.7 04/24/13 Pivo ta l One AlitiApplication MtManagement GlGeneral Elec tr ic Company 105. 0 105. 0 04/23/13 Chirpify, Inc. Commerce Management Voyager Capital 2.0 03/08/13 Photobucket Corporation Cloud Storage Oak Investment Partners 10.0 25.0 03/07/13 Servio Commerce Management (Unnamed Fund Contibuters) 4.3 03/05/13 Hybris Software Commerce Management Meritech Capital Partners 30.0 30.0 02/04/13 DropShip.com Commerce Management Kickstart Seed Fund 1.5 11/14/12 10gen, Inc. Data Management Red Hat, Inc. 8.0 89.4 09/18/12 Monsoon Commerce, Inc. Commerce Management Oak Hill Capital Partners 8.0 09/14/12 Amplidata Data Storage Quantum Corporation 6.0 23.1 09/05/12 BigCommerce Pty. Ltd. Commerce Management General Catalyst Partners LLC 20.0 07/17/12 FiftyOne Commerce Management Vintage Capital Partners 10.1 07/17/12 Basho Technologies, Inc. Data Management Georgetown Partners, Inc. 11.5 24.9 07/02/12 Needle, Inc. Commerce Management Shasta Ventures 10.5
05/30/12 Group Commerce, Inc.(1) Content Management Jafco America Ventures, Inc. 21.0 47.2 05/14/12 Utopia, Inc. Data Management FTV Capital 50.0 50.0 05/07/12 RichRelevance, Inc. Commerce Management Crosslink Capital 20.0 03/06/12 Commerce Guys Commerce Management Alven Capital Partners 5.0 01/10/12 Zmags, Inc. Content Management Square 1 Bank 7.0
(1) Group Commerce merged with Nimble Commerce on May 3, 2013 18 Mobile: The Big Driver
. Mobile has finally begun to fulfill its promise of becoming a core component of any digital commerce strategy • USU.S. smarthtphone‐bdbased mCommerce sales will increase to $31 billion in 2017 and 9% of tttlotal eCommerce sales, up from $8 billion in 2012 and 3% of total eCommerce sales (Source: Forrester) . Approximately 90% of organizations are in some state of mobile deployment for customers: • Moblbile web site: widddespread dldeployment (()39%), lldimited ddleployment (()14%), pilot testing (()10%), evaluating (27%) • Mobile app(s): widespread deployment (25%), limited deployment (29%), pilot testing (12%), evaluating (23%) (Source: Information Week 2012) . No dominant “tech stack” has emerged ‐‐ investment and M&A activity continue to focus on point solutions that need to be integrated to provide a single, seamless mobile solution that works both externally and internally • Many advertising and marketing solutions for mobile are still difficult to deploy at scale and require custom work • Complexities that always apply to developing mobile applications are compounded in mCommerce by financial and security issues and the required integration of mCommerce systems into core IT, financial and inventory management, and delivery systems 19 Selected Mobile Acquisitions
($ in Millions) Date Target Segment Buyer Deal Value 05/15/13 Tech Hollywood Studios / IWantIt Mobile Technology Bitzio, Inc. ‐ 03///28/13 Nellymoser, Inc. Mobile Content/Apps Brown Printing Company ‐ 03/25/13 WifiSLAM Geo‐demo Software Apple Inc. 19.5 03/08/13 Priority Processing Systems Payments Technology Motopia Limited 1.7 03/07/13 Blazerfish Mobile Content/Apps Quadrant 4 Systems Corporation ‐ 03/07/13 Wilico Wireless Networking Solutions Mobile Technology Ace Marketing & Promotions, Inc. ‐ 01/31/13 mFoundry, Inc. Payments Technology Fidelity National Information Services, Inc. 120.0 01/23/13 Mixel Mobile Content/Apps Etsy, Inc. ‐ 12/03/12 Mobile Money Network Ltd. Payments Technology Monitise plc 24.1 11/07/12 True Sparrow Systems Mobile Content/Apps fab.com ‐ 11/01/12 Shanghai Gsuo Information Technology Geo‐demo Software Alibaba.com ‐ 10/31/12 Litle & Company Payments Technology Vantiv, Inc. 361.0 09/17/12 Penguin Digital Mobile Content/Apps Shutterfly, Inc. ‐ 07/18/12 card.io Payments Technology eBay Incorporated ‐ 04/23/12 Apps4less Mobile Content/Apps Suff Holdings ‐ 04/13/12 Netmind' s Payment Mobile Platform Payments Technology Telpac Industries, Inc. 20. 0 04/03/12 TxVia Payments Technology Google, Inc. ‐
20 Selected Mobile Investments
($ in Millions) Date Target Segment Investor Invest. Value Total Invest. 05/10/13 AutoNavi Holdings Geo‐demo Software Alibaba Group 294.0 334.0 05/07/13 Place IQ Geo‐demo SftSoftware USU.S. VtVenture PtPartners 686.8 12. 8 04/23/13 Zooz Payments Technology XSeed Capital 2.0 2.0 04/18/13 GoCardless Ltd. Payments Technology Accel Partners 3.3 4.8 04/10/13 Bypass Mobile, LLC Payments Technology eBay Incorporated 3.5 5.9 04/10/13 Walk.By, Inc. Digital Media/Commerce Lightbank 0.7 0.7 04///10/13 Bypass Mobile, LLC Payments Technology eBay Incorporated 3.5 5.9 04/04/13 Jusp S.p.A. Payments Technology Vertis SGR SpA 6.0 6.7 03/20/13 Masabi Mobile Technology Fontinalis Partners, LLC 2.8 8.8 03/05/13 GlobeSherpa, Inc. Mobile Technology Oregon Angel Fund 2.0 3.3 03/04/13 Marxent Labs Mobile Content/Apps Stage 1 Ventures 0.8 1.6 02/21/13 Fortumo Ltd. Payments Technology Intel Capital 10.0 10.0 10/17/12 Braintree Payment Solutions Payments Technology New Enterprise Associates 35.0 70.0 09/12/12 Inspire Commerce, Inc. Payments Technology Axia Payment Solutions 0.5 0.5 09/04/12 Pirq, Inc. Mobile Content/Apps Rally Capital 1.2 3.2 08/30/12 MoBank Limited Payments Technology Business Angel Co Investment Fund 3.6 4.6 07/17/12 Tapingo Mobile Content/Apps Carmel Ventures 3.5 3.5 07/10/12 Stripe Payments Technology General Catalyst Partners LLC 20.0 40.0 04/03/12 Money‐On‐Mobile.net Payments Technology Calpain 29.7 29.7 01/18/12 LianLian Pay Payments Technology American Express Company 125.0 125.0 01/18/12 On The Spot Systems, Inc. Mobile Technology Kepha Partners 0.8 0.8
21 Emerging Technology: What’s New and What’s Next?
. Social media has driven new opportunities for digital commerce • Sales of physical goods through social networks is expected to grow to approximately $14 billion of U.S. sales by 2015, up from $1 billion in 2011 – 27% of shoppers say they are willing to buy through social media (Source: Booz & Co.) • 75% of social media users would be more likely to purchase a product or service that a friend openly endorses (i. e., write about and/or make recommendation of) on a social media site, than one they just “like” or “follow.” (Source: Digitas) . “Big Data” has been a huge driver for investments in the past 24 months • Large enterprises, in particular, are now pulling together both structured and unstructured data from diverse and, often previously separate, online and offline sources across their organizations . While Big Data has been big with larger e‐tailers, eCommerce sites of all sizes have moved toward more efficient data management with cloud‐based tag management software • Tag management allows e‐tailers to remove third‐party tags from their web sites to control their own data and speed up their sites • Four top tag management software providers – BrightTag, Ensighten, Tealium, and TagMan – have raised nearly $75 million in capital between them since 2010, while other technology companies have moved to add tag management capabilities to their software solutions 22 Emerging Technologies: Cloud‐based Tag Management
. BrightTag is the leading provider of integrated cloud‐based data management and analytics software for web sites of all sizes . Created the first and only operating system that facilitates “Petsky Prunier delivered bulge bracket advice, relationships, service and execution for our middle market transaction.” the transfer of valuable digital data from one party to a provider of a cloud‐based integration platform another via a single, integrated cloud‐based data server for theMitchell digital Weisman marketing, CEO industry, LifeStreet Media • Third‐party tags placed directly on web sites create has received $15M financing led by multiple problems, including complex integration processes, compliance and privacy issues, and data losses when users abbdandon slow‐ldloading sites weighhded down by tags . BrightTag has approximately 130 global direct enterprise client relationships with more than 500 brands, including Gap, Macys, Orbitz, Sears, 1‐800 Flowers, and Macys . BrightTag is the exclusive tag management and data integration solution provider to P&G and GM . Petsky Prunier advised BrightTag on its most recent round of growth capital in April 2012
23 Selected Emerging Technology Acquisitions
($ in Millions) Date Target Segment Buyer Deal Value 05/30/13 ShopLogic, Inc. Big Data Technology BloomReach, Inc. ‐ 05/14/13 PeopleString Social Technology Echelong Growth Partners ‐ 05/14/13 OneOps Cloud Computing @WalkmartLabs ‐ 05/14/13 Tasty Labs Social Media/Apps @WalkmartLabs ‐ 05/14/13 Shopalize Social Technology 24/7 Customer, Inc. ‐ 05/09/13 Clipboard, Inc. Social Media/Apps Salesforce.com 12.0 04/25/13 ParAccel, Inc. Big Data Technology Actian Corporation ‐ 04/01/13 Goodreads, Inc. Social Media/Apps Amazon.com 150.0 01/31/13 Quantivo Corporation Big Data Technology Aggregate Knowledge, Inc. ‐ 07/10/12 Algo Anywhere Social Technology 500px, Inc. 202.0 08/22/12 SiteTagger Tag Management BrightTag, Inc. ‐ 05/24/12 PowerReviews, Inc. Social Technology BazaarVoice, Inc. 127.8 05/02/12 TeaLeaf Technology, Inc. Big Data Analytics IBM Corporation ‐ 04/19/12 BIQ, LLC Big Data Analytics Opera Solutions, LLC ‐ 04/09/12 Instagram Social Media/Apps Facebook 735.0 02/17/12 Hyperpublic Big Data Technology Groupon, Inc. ‐ 02/10/12 ShopSanity Social Technology ShopRunner ‐ 02/06/12 Adku Big Data Analytics Groupon, Inc. 10.0 01/23/12 Effiscience, Inc. Big Data Analytics BearingPoint, Inc. ‐
24 Selected Emerging Technology Investments
($ in Millions) Date Target Segment Investor Invest. Value Total Invest. 05/30/13 Dering Hall Social eCommerce Lerer Ventures 1.4 1.4 05/16/13 Luvocracy Social eCommerce Kleiner Perkins Caufield & Byers 11.0 11.0 05/01/13 Skytree Big Data Analytics U.S. Venture Partners 18.0 21.5 04/30/13 Weibo.com Social Media/Apps Alibaba.com 586.0 846.0 04/17/13 Gainsight Big Data Analytics Battery Ventures 9.0 9.5 04/03/13 SiSense, Ltd. Big Data Analytics Battery Ventures 10.0 22.0 04/03/13 Tealium Tag Management Tenaya Capital 15.6 27.2 02/27/13 Wanelo.com Social Media/Apps (Unnamed) 10.0 13.7 02/21/13 Euclid, Inc. Big Data Analytics Benchmark Capital 17.3 44.8 02/20/13 Pinterest Social Media/Apps Valiant Capital Management 200.0 337.0 02/19/13 Elasticsearch Big Data Analytics Index Ventures 24.0 34.0 02/12/13 Monetate, Inc. Big Data Analytics (Unnamed) 17.0 37.0 02/12/13 Storenvy, LLC Social Media/Apps Intel Capital 5.0 6.5 02/11/13 Sailthru, Inc. Big Data Analytics Benchmark Capital 19.0 28.0 01/29/13 DataGravity Big Data Analytics Andreessen Horowitz 30.0 42.0 01/07/13 Attivio, Inc. Big Data Analytics General Electric Pension Trust 8.0 8.0 12/06/12 Cloudera, Inc. Big Data Analytics Accel Partners 65.0 141.0 12/06/12 ClearStory Data Big Data Analytics Kleiner Perkins Caufield & Byers 9.0 9.0 11/29/12 Agilone LLC Big Data Analytics Mayfield Fund 10.0 10.0 11/20/12 SumAll Big Data Analytics Battery Ventures 6.0 7.5 11/14/12 Origami Logic Big Data Analytics Accel Partners 9.3 9.3 10/30/12 iJento Big Data Analytics MMC Ventures, LLC 8.0 27.8
25 Selected Emerging Technology Investments
($ in Millions) Date Target Segment Investor Invest. Value Total Invest. 10/01/12 DataStax Big Data Analytics Meritech Capital Partners 25.0 38.7 07/26/12 Olapic, Inc. Social Technology Bonobos, Inc. 1.0 1.0 07/19/12 Pocket Social Technology Foundation Capital 5.0 5.0 07/12/12 SteelHouse, Inc. Social Technology QUALCOMM Ventures 8.3 8.3 06/26/12 Jirafe Big Data Analytics Foundry Group 7.0 9.0 06/25/12 Visual IQ, Inc. Big Data Analytics Volution Capital LLC 12.0 15.0 06/05/12 Cartera Commerce, Inc. Social Technology Comvest Partners 12.2 29.8 04/25/12 BrightTag, Inc. Tag Management Baird Venture Partners 15.0 20.0 01/23/12 Fantasy Shopper Social Media/Apps Accel Partners 3.3 3.6 01/13/12 Polyvore, Inc. Social Media/Apps Duff Ackerman & Goodrick, Inc. 14.0 22.1 01/12/12 GraphDive, Inc. Social Technology Crosslink Capital 1.0 1.0
26 Thank You
60 Broad Street, 38th Floor New York, NY 10004 www.petskyprunier.com
Norm CClbolbert Partner & Managing Director
[email protected] (702) 990‐3280