Venture Capital in AI & Data Technologies

Venture Capital in AI & Data Technologies Mid Year Review 2020

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Contents

2 DataTech Overview • ICON’s DataTech Compass • Key Insights DataTech • DataTech Stack • Detailed Market Segmentation 6 Financing Trends • Robust Financing Overview • Trends in Transaction Sizes • Total Raised By Sector By Year 10 Investor Review • Most Active Investors • Select CVC Activity – 1H20 13 Select Recent Financings • CVC Highlights 16 Valuation Analysis 18 About ICON Corporate Finance • Deep Experience • Global Transaction Record • Select Transaction Experience

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VENTURE CAPITAL IN AI & DATA TECHNOLOGIES – MID YEAR REVIEW 2020 3 ICON’s DataTech Compass Identify Strategic Opportunities. Leverage Competitive Dynamics. Achieve Execution Advantage.

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

Company & Transaction Database Proactive & Proprietary Analysis

VC, CVC & PE Trends > 3,900 M&A Transactions By • Firm-specific Investment Analysis • Breakdown By Size & Valuation > 2,500 Acquirers

Acquirer Appetite Analyses > 2,10 0 VC Financings From • Product Gap Analysis • Strategic Opportunity Review > 1,900 Investors

Hyperdetailed Categorization > 1,350 Companies In • Identifies Competitive Dynamics • Vendor Financial Sizing > 140 Sectors

VENTURE CAPITAL IN AI & DATA TECHNOLOGIES – MID YEAR REVIEW 2020 ICON’s DataTech Compass is continuously updated; data contained in this report will adjust over time. 4 Key Insights DataTech Stack

Datatech Investment Remains Strong Survey after survey continue to show insatiable customer Data Apps demand for data-driven tools. Venture investors continue Industry Apps to fund this trend. The average round size for DataTech Functional Apps companies hit an all time high in the first half of 2020. Source: Sierra Ventures CXO Survey

The AI Age Is Upon Us

Having an AI angle has become nearly a prerequisite for Analytics DataTech companies seeking venture capital—that means AI & Advanced Analytics either incorporating or enabling AI & ML. Specialized financial Marketing Analytics and strategic investment funds have formed or maneuvered in Reporting & Visualization recent years specifically to target AI opportunities.

VCs Mitigating Risks Governance Whereas previously a single VC would seek to take as much of a compelling round as possible, they’re now open to more of Data Management a syndicate approach to reduce risk during uncertain times. In Data Security fact, the average number of investors in a round hit a new high Data Providers

Source: ICON research, Capital IQ in 1H20. Process management is critical.

It’s A Marathon Infrastructure Raising venture capital has always been time consuming, but with current global challenges Databases presenting once-in-a-lifetime barriers, startup CEOs should prepare for a marathon, not a Performance & Optimization sprint. Market knowledge, messaging, relationships, and again, process management, are Query Engines critical to closing financing in an efficient manner.

VENTURE CAPITAL IN AI & DATA TECHNOLOGIES – MID YEAR REVIEW 2020 5 Detailed Market Segmentation

INDUSTRY APPS FUNCTIONAL APPS

Accounting CPG Gaming Manufacturing Retail Contact Center Networking Advertising Credit Geopolitical Materials Shipping Customer Support Pricing Analytics Agriculture Defense Government Mining Sports Drone Data Product Aquaculture eCommerce Healthcare Oil & Gas Supply Chain Economics Risk DATA APPS Automotive Education Hospitality Pharma Telecom Fraud Sales Autonomous Driving Energy Industrial Public Safety Traffic HR Security Cities Farming Insurance Railroad Transportation IT Smart Buildings Civic Finance IT Real Estate Utilities Loss Prevention Supply Chain Commercial Real Estate Food Legal Regulatory Marketing Translation Construction Forestry Logistics Research

AI & ADVANCED ANALYTICS MARKETING ANALYTICS REPORTING & VISUALIZATION

AI Model Ops Real-Time Content Analytics Behavioral Analytics Mobile Analytics BI ANALYTICS Computer Vision Collaborative Analytics Programming Languages Semantic Analytics Churn Analytics Social Analytics BI Platform ML Platforms Log Analytics Sound Recognition Customer Data Platform VoC Embedded Analytics AutoML Predictive Geo Analytics Optimization/Solvers Journey Analytics Web Analytics CPM CX Analytics Interactive Visualisation

DATA MANAGEMENT DATA SECURITY DATA PROVIDERS

GOVERNANCE Archiving & Recovery DataOps Metadata Mgmt Data Sharing Data Loss Prevention Data as a Service Data Extraction Data Catalog Data Integration Data Prep Training Data Data Discovery & Privacy Data Exchange Web Scraping Data Quality Master Data Mgmt Search Platforms Data Encryption

DATABASES PERFORMANCE & OPTIMISATION QUERY ENGINES

INFRASTRUCTURE Edge Computing In Memory SQL/SQL-on-Hadoop Performance Access Data Virtualization Graph NoSQL & NewSQL Time Series IMDG Data Lake Data Warehousing

VENTURE CAPITAL IN AI & DATA TECHNOLOGIES – MID YEAR REVIEW 2020 v

Financing Trends

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12 50 Robust $46.4m Financing 45 10 40 • Despite global turmoil, financings for $46.6bn data technologies companies have TOTAL RAISED $35.7m remained resilient. 35 • In the first half of this year, DataTech 8 companies collectively raised $4.82bn. On an annualized basis, that’s nearly the same amount as was 30 raised last year. $26.7m • Perhaps most notable, the average $27.7m round size hit an all time high of 6 25 $46.4m. In the first half of 2020, 13 $23.2m companies raised rounds of $100m Average Size ($m) Average or more, the same amount as did so Raised ($bn) Total in 1H19. 20 • Palantir’s $500m and Snowflake’s $479m rounds on their own 4 $15.4m accounted for one-fifth of the total $14.5m 15 amount raised in the first half of the year. $11.4m $9.9m $12.9m 10 2 $10.6m

$0.4bn $0.7bn $1.0bn $1.9bn $2.5bn $5.3bn $3.3bn $7.1bn $7.8bn $10.4bn $4.8bn 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H2020

Total Raised $bn Average Size $m

VENTURE CAPITAL IN AI & DATA TECHNOLOGIES – MID YEAR REVIEW 2020 As of June 30, 2020. Excludes rounds of ≤ $1m & undisclosed values; excludes public companies taken private. Source: ICON research, Capital IQ, Company reports 8 Rounds Announced Trends In 100% Transaction 90% Sizes 80%

70% • Late stage mega rounds continued to account for a growing share of the total number of rounds announced, while the number of earlier stage 60% investments continued to decline as a percent of total number of investments. 50% • Early stage financings favored analytics companies, with those vendors accounting for more than half of announced rounds up to $10m. 40%

• In rounds of ranging from $10m to $50m, analytics companies accounted for just under one-third 30% of total financings. Data driven applications companies raised nearly half of these rounds. 20%

10%

0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H2020

>1m to 10m >10m to 30m >30m to 50m >50m to 100m >100m

$10bn

$8bn

$6bn

$4bn

$2bn

$0bn 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H2020

Infrastructure Governance Analytics Data Apps

Investor Review

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Most Active Investors

Infrastructure Governance Analytics Data Apps

• A perfect recipe of strong balance sheets, digital transformation trends, and the technology industry’s continued growth has led many large companies to launch corporate venture capital (CVC) groups.

• The tech and finance industries are among the most active CVC investors, though corporates from myriad industries, such as industrials, telecom, and pharma, invested in DataTech.

• All time, more than 140 strategic investors have made at least one investment in a data technologies company. In the first half of 2020, Includes only select investments announced in the first half of 2020. Source: ICON research, Capital IQ, Company reports more than 30 strategic investors made at least one DataTech investment.

• Google, through its various venture NUMBER OF INVESTMENTS WITH 120 arms, was the most prolific strategic AT LEAST ONE CVC INVESTOR investor. 80

0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H20

Select Recent Financings

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Data Apps Analytics Governance Select Recent Financings Infrastructure

ANNOUNCED COMPANY SUBSECTOR INVESTORS AMOUNT ($m) POST $ VALUATION 6/30/20 Fivetran Integration Matrix Partners; General Catalyst; Andreessen; CEAS Investments 100.0 1,200.0 6/25/20 Element Analytics Industrial Kleiner Perkins; ABB Technology Ventures; Kerogen Capital; Evonik VC; Forté Ventures; Activate Capital; Blue Bear; Honeywell Ventures; 18.0 – High Tide Foundation; Schneider Electric Ventures; Ajax Strategies 6/24/20 SQream Tech. GPU Blumberg Capital; Mangrove Capital Partners; Alibaba; Silvertech Ventures; Sistema VC; World Trade Ventures; Hanaco VC 39.4 – 6/23/20 Immuta Access Intel Capital; Greycroft Partners; Citi Ventures; Drive Capital; Ten Eleven Ventures; DFJ Growth; Dell Tech Capital 40.0 – 6/18/20 Palantir Platforms Sompo Holdings 500.0 – 6/16/20 Streamlit ML GGV Capital; Bloomberg Beta; Gradient Ventures 21.0 – 6/11/20 StreetLight Data Transportation – 15.0 – 6/11/20 Ethyca Data Masking & Privacy IA Ventures; Abstract Ventures; SciFi VC 13.5 – 6/10/20 Domino Data Lab Platforms Highland Capital Partners; Sequoia; Coatue Management; Highland Capital (UK); Dell Tech. Capital 43.0 – 6/10/20 Binah.ai Healthcare Sompo Holdings; Maverick Ventures Israel; Global IoT Tech. Ventures; Esplanade Ventures 13.5 – 6/10/20 Kyruus Healthcare Francisco Partners 30.0 – 5/21/20 Couchbase NoSQL & NewSQL Accel Partners; Adams Street Partners; Glynn Capital Management; Mayfield Fund; North Bridge Venture Partners; Sorenson Capital; GPI Capital 105.0 – 5/20/20 Brytlyt GPU Amadeus Capital Partners; Finch Capital 3.0 – 5/13/20 Dathena Data Masking & Privacy SPRING SEEDS; CapHorn Invest; Jungle Ventures; CerraCapital Ventures; MS&AD Ventures 12.0 – 5/11/20 memsql DbaaS – 50.0 – 5/5/20 GigaSpaces IMDG BRM Group; Fortissimo Capital; Claridge Israel 12.0 – 4/30/20 Oncology Analytics Healthcare Baird Capital Partners; Sandbox Industries; BCBS Venture Partners; Oak HC/FT; McKesson Ventures 28.0 – 4/28/20 Tecton.ai ML Sequoia; Andreessen 20.0 – 4/28/20 Enview Utilities CrossLink Capital; Statkraft Ventures; BrightCap Ventures; Ahoy Capital Management 12.0 – 4/28/20 Arterys Healthcare Temasek Holdings; Varian Medical Systems; Emergent Medical Partners; Revelation Partners; Benslie investment group 28.0 – 4/27/20 CockroachDB SQL & SQL-on-Hadoop Benchmark; Redpoint Management; Sequoia; Index Ventures; Tiger Global Management; GV; Altimeter Capital Management; Bond Capital 86.6 703.4 4/23/20 Cinnamon AI Data Extraction GEEK PICTURES; D4V; Pegasus Tech Ventures 12.1 – 4/22/20 Comet.ml ML Trilogy Equity Partners; Founder’s Co-op; Two Sigma Ventures 4.5 – 4/21/20 Profitero eCommerce Scaleworks Associates; Conviction Capital 20.0 – 4/21/20 Confluent Integration Sequoia; Franklin Templeton; Index Ventures; Coatue Management; Altimeter Capital Management 250.0 4,500 4/14/20 Atlas AI Economics Micron Technology; Airbus Ventures; Rockefeller Foundation 7.0 – 4/7/20 Node AI Canaan Partners; Galaxy Ventures; GingerBread Capital; NewView Capital Management 6.0 – 4/3/20 Privitar Data Masking & Privacy Accel Partners; Warburg Pincus; Partech Ventures; AAC Capital Partners; IQ Capital Partners; HSBC; Salesforce Ventures 87.0 – 4/2/20 Colibra Data Catalog Battery Ventures; Index Ventures; Dawn Capital; ICONIQ Capital; CapitalG; Durable Capital Partners 112.5 2,300 3/26/20 Pyramid Analytics BI Platform Jerusalem Venture Partners; Viola Growth; Sequoia; Maor Investments 25.0 – 3/20/20 OctoML Model Ops Madrona Venture Group; Amplify Partners 15.7 – 3/18/20 Deepgram Sound Recognition Y Combinator; Compound; Wing Venture Partners; GPU Ventures; SAP.iO 12.0 –

VENTURE CAPITAL IN AI & DATA TECHNOLOGIES – MID YEAR REVIEW 2020 Source: ICON research, Capital IQ, Company reports 15

Data Apps Analytics Governance Select Recent Financings–CVC Highlights Infrastructure

VENTURE CAPITAL IN AI & DATA TECHNOLOGIES – MID YEAR REVIEW 2020 Source: ICON research, Capital IQ, Company reports v

Valuation Analysis

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60.7x SNAPSHOT EV/TRAILING REVENUE VALUATIONS FOR SELECT PUBLIC Stellar DATATECH COMPANIES Valuations

• When looking at publicly traded technology companies, pure DataTech companies generally 26.1x 23.8x receive higher valuations than their non-DataTech counterparts. 17.3x • IT analytics company DataDog was 12.1x 13.6x valued at more than 60x trailing sales 12.0x 11.8x at the time of this analysis. Many other vendors were valued at greater than NASDAQ 10x, or more than twice the average AVG ANALYTICS COMPANIES’ $25.3m valuation for companies in the MEDIAN POST MONEY ~5.2x Nasdaq index. VALUATIONS, ALL STAGES

• Valuations for privately held venture- backed DataTech companies continued to rise. The median $17.4m valuation for all stages of analytics companies, for example, hit a record July 2020. Source: Capital IQ; Yahoo Finance in the first half of 2020. $13.5m $13.0m $11.6m $11.9m $12.0m $12.1m $12.3m $10.7m $10.5m

$12.2m $12.0m $12.3m $11.4m $10.0m $9.0m $8.1m $8.3m $8.0m $7.8m $6.5m

Analytics All other software

2010 2012 2014 2016 2018 1H20

VENTURE CAPITAL IN AI & DATA TECHNOLOGIES – MID YEAR REVIEW 2020 As of June 30, 2020. Source: Pitchbook v

About ICON Corporate Finance

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Deep Experience Industry Focus:

AI & Data FinTech

180+ CyberSecurity HeathTech combined years’ experience 8 Cloud/ Enterprise languages comms Software 250+ spoken 1 focus – closed 25 Tech Investment transactions Banking countries transacted in

Banker Backgrounds

VENTURE CAPITAL IN AI & DATA TECHNOLOGIES – MID YEAR REVIEW 2020 20 Global Transaction Record

WEALTHIFY STRATEGIC INVESTMENT AVIVA PARMENION FinTech ACQUIRED BY REDLAND ABERDEEN ACQUIRED BY Digital Wealth Mgmt IDEAGEN CYPAD RegTech ACQUIRED BY HONEYCOMB.IO PARENTPAY MERGED WITH GROUP IMD BUSINESS eProcurement INTEGRITY TV Ad Delivery SaaS APPLICABLE ACQUIRED BY ACQUIRED BY MOSAIC FOCUS THOMSON REUTERS STRATEGIC INVESTMENT NTT GROUP EUROPE GRC Software JP MORGAN, EXACTIVE COMMUNICATIONS ACQUIRED BY COMMERZVENTURES, ACQUIRED BY Unified Communications ACCENTURE OCTOPUS VENTURES FinTech Ai GAMMA IT Biz Mgmt Software Unified Communications

RUMM OPTIMUM ACQUIRED BY CONTACT NPOWER ACQUIRED BY IQVIA Energy Management Healthcare Analytics

PARAGON THE ACQUIRED BY TOCARDO MY-CHANNELS MOBILITY HOUSE APTEAN STRATEGIC ACQUIRED BY STRATEGIC INVESTMENT SOFTWARE AG INVESTMENT Logistics Analytics REPSOL DAIMLER, MITSUI&CO Energy Streaming Integration Automotive & IoT Mgmt

NATIV ACQUIRED BY TELSTRA

Video Tech SaaS

IMX ACQUIRED BY INFINEA

FinTech

VENTURE CAPITAL IN AI & DATA TECHNOLOGIES – MID YEAR REVIEW 2020 21 Select Transaction Experience

Capital Raising M&A

For further details contact: Ben Kolada, Head of DataTech

STRATEGIC INVESTMENT BY FUNDED BY FUNDED BY ACQUIRED BY ACQUIRED BY Head of US Tech Investment Banking +1 415 385 8189 [email protected] Alan Bristow, CEO +44 (0) 207 152 6375 [email protected]

FinTech AI Data Integration FinTech Analytics Logistics Analytics Healthcare  ICONcorpfin Patient Analytics  icon-corporate-finance

STRATEGIC INVESTMENT BY STRATEGIC INVESTMENT BY FUNDED BY ACQUIRED BY ACQUIRED BY

ICON Corporate Finance San Francisco Office: 580, Marketing Data California Street, Financial District, Market Intelligence Management Digital Transformation Information Management Energy Analytics San Francisco 94104 London Office: 53 Davies Street, London W1K 5JH

FUNDED BY MBO MBO ACQUIRED BY ACQUIRED BY* Bristol Office: 5 Kings Court, Little King Street, Bristol BS1 4HW www.iconcorpfin.com

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Registered Representatives of and Securities Products and Investment Banking Services are offered throughBA Securities, Unstructured Analytics Archiving & Recovery Digital Transformation Streaming Integration CPM LLC. Member FINRA SIPC. ICON Corporate Finance and BA Securities, LLC are separate, unaffiliated entities.

VENTURE CAPITAL IN AI & DATA TECHNOLOGIES – MID YEAR REVIEW 2020 *Completed by ICON bankers at predecessor firms 22

ICON Corporate Finance San Francisco | London | Bristol www.iconcorpfin.com  twitter.com/ICONcorpfin  linkedin.com/company/icon-corporate-finance

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