bowery capital opportunities in vertical software v2.0

B/Bowery CapitalOpportunities In Vertical Software v2.0

Summary /

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Positive / High

Intermediate

Negative / Low

Industry Mkt Size Mkt Growth Competition Opportunities Overall

Insurance

Auto, Transport, & Logistics

Drones

Healthcare

Legal

Construction

Restaurant

Education

Agriculture

Manufacturing

We See Continued Opportunities For Disruption In Vertically Focused Business Software

Key

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• Given category expansion and vertical market development we add Healthcare, Restaurant, Education, and Agriculture vertical market SaaS to v2.0.

• We eliminate Oil & Gas, Natural Resources, Real Estate, and Hospitality vertical market SaaS from v2.0.

• Legal and Construction vertical market SaaS have changed materially since v1.0.

• Legal vertical market SaaS has shifted from green to yellow mainly driven by slowing of opportunities in the market. Legal SaaS has been averaging only 2 deals per quarter over the last few years and has the lowest total exits in comparison to other vertical market SaaS.

• Construction market SaaS has shifted from yellow to red primarily driven by the market size relative to that of other vertical market SaaS. The market is highly fragmented due to the presence of several established companies and small scale players. Many current offerings are focused on a core area within construction. Opportunities may become appealing as larger companies roll up smaller niche players to develop comprehensive solutions and clear up the competitive landscape.

• Three new verticals were added to the report this year: Restaurant, Education, & Agriculture.

• The Restaurant software market is relatively small but is experiencing strong growth YoY. Traditionally restaurant operators felt that technology would ruin the client experience which resulted in a slowdown in tech adoption. However, recently technology has started to become leveraged beyond the POS to streamline processes such as staffing, inventory management, reservations, and other areas.

• The Education software vertical has gained prominence over the last few years and has seen good growth YoY. Currently a majority of educational software spend is on content and instructional support providers. Educational institutions have continued to slash their budgets and so growth in sector is expected to be contributed to corporate spending on education software.

• The Agriculture software market while small has been experiencing rapid growth both from a market spend perspective as well as funding in the ecosystem. As farm management continues to adopt technology for efficiency across all farm operations, coupled with supportive government regulations, the market will see continued growth and opportunity creation.

There Were Several Changes From Version 1.0 Of Our Opportunities In Vertical Software Presentation

Ⅰ. Insurance /

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• New technology developments in data analytics and IoT will drive disruption in the industry, leading to more investment opportunities.

• Numerous sub-markets such as P&C, health insurance and emerging verticals like cyber insurance, smart phone insurance and driverless car insurance offer various opportunities for SaaS innovation and market penetration.

• Focus on cost reduction and customer relations by insurance companies may also drive new business models in the space.

Spend on Software by the Insurance Industry

Industry Leaders Key Trends

• Insurance spending on software and IT has grown over the past 3 years and is projected to accelerate as large players continue to build more robust platforms leveraging data analytics and continue innovating the user experience.

• Insurers are recognizing the potential of the Internet of Things (IoT) market by partnering with emerging startups in the space.

• Key requirements for insurers: - Single view of the consumer across channels/interactions (e.g.CRM). - Flexible, low-cost core policy management and claims processing. - Ability to integrate, manage and analyze data from various sources (including IoT). - Building customer relations through encouraging them to make smart decisions that benefit both the customers and the insurer. - Compliance. • Potential disruptive business models include: - IoT/telematics: mitigating the cost of claims through early detection/tracking. - Models like usage-based insurance can improve margins and drive premium growths for insurers. - Artificial intelligence/machine learning: reducing cost through insurance-specific BI, data warehousing and fraud detection.

Scores

29.3 30.3 32.534.9 37.4 40.2

Insurance IT Spend As % Of Revenue

2.9 % /Top Investors In The Space

Funding Activity in the Insurance Tech Space

2011 2012 2013 2014 2015 2016 YTD

109

24

55

42

7582

2015 2016 2017 2018 2019 2020

than average

Public Private

source: cb insights; gartner

Rapid Development In IoT & SaaS Will Enable Insurers To Improve Underwriting & CX Experience

Competition

Investment Opportunity

Overall

Market Size

Market Growth

$B # of funding rounds6.5% CAGR

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Headquarters: Austin, TX

Employees: ~40

Business OverviewFounded in 2011• InforcePRO is a post-sale software solutions for the life insurance market. It offers an

automated policy management software upgrading how the $2T life insurance industry manages and mines it’s largest unmanaged asset – policyholder data.

• The real-time policy review tool allows life insurance distributors to run policy reviews instantly.

• It’s legacy rates tables, contractual knowledge on legacy products and analysis algorithms can help identify sales and service opportunities on any policy sold in the last 30 years.

• InforcePRO helps life insurance agents automatically uncover new business opportunities in their in-force policies through carrier connections and automated policy illustrations.

• Founders: Karan Kanodia/James Hilton/Kameron Jacox.

InvestorsTotal Funding: $4.0MM

Key Milestones

$4.0M Series A on September 1, 2015.

Headquarters: Paris, France

Employees: ~40

Business OverviewFounded in 2013• Shift Technology uses big data and machine learning to detect patterns of fraudulent

insurance claims. It uses the power of AI to help insurers save money. • The company has processed around 50 million claims. It detects 75% of fraud cases,

compared with the industry average of 30-35%. • Shift Technology works closely with claim handlers, helping them use and understand its

solution. • All the data that the company collects from all its clients can educate its algorithms, so its

platform and detection get better overtime. • Founders: Eric Sibony/David Durrleman/Jeremy Jawish.


Key Milestones

Raised $10.0M series A in May, 2016 from Accel, Elaia Partners and Iris Capital.

Headquarters: London, UK

Employees: ~30

Business OverviewFounded in 2012• QuanTemplate is the insurance analytics platform that is specialized in insurance data

management. • It offers solutions for bordereaux management, empowering underwriters with tools to

harmonize and interrogate their data. • Its distribution channel solutions enable underwriters to instantly identify insights and help

target the most profitable business. • It also has features to accurately measure and monitor underwriting performance and assist

with regulatory reporting. • QuanTemplate also provides niche consultancy to help clients achieve strategic business

goals using technology. • Founders: Adrian Rands/Marek Nelken.


Key Milestones

Part of TechStars London in 2013. Received seed funding in September 2014 and series A funding in August 2015.

Insurance Industry Software: Profiles Of Disruptors / New Entrants

source: company websites; crunchbase; cb insights

Headquarters: San Francisco, CA

Employees: ~250

Business OverviewFounded in 2014• Clover Health is a health insurance plan focused on down costs and producing improved

health for participants • Clover leverages data insights to proactively track all the inputs of a person’s medical

history from insurance claims and determine if the patient is at risk for any illness (e.g. diabetes) and works with the patient and doctors to facilitate preventative care.

• If any data is missing from the patients records, Clover deploys healthcare professionals to go conduct any assessment on the patient to ensure all information is on file

• Leveraging this model, the patient benefits since their insurance carrier is looking to keep them from falling ill rather than responding to illness. Clover benefits through improved costs through lower levels of patient hospitalization, etc.

• Founders: Kris Gale/Vivek Garipalli.


Key Milestones

Currently operating in NJ and TX with plans to expand further.

ⅠⅠ. Auto, Transport, & Logistics /

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• Larger enterprises likely have some solution in place through existing ERP vendors (e.g. Oracle, SAP), but many SMBs have no existing solution.

• More funding is flowing into the space, with increasing investment opportunities in companies specialized in TMS and FMS for SMB, logistics marketplaces, anticipatory logistics, cloud logistics and IoT.

• Established supply chain services can be unbundled into singular solutions delivered better through startups.

Spend on Software by the A,T, & L Industry

• Transportation Management Systems offer strong ROI for logistics / transportation businesses (average 8% savings on freight costs each year). There is large opportunity for TMS and FMS (Freight Management Systems) in the SMB market.

• Oracle and SAP dominate the space within larger businesses, and both are focusing on improving fleet management capabilities.

• Industry experts see increasing requests for software that can handle multi-modal delivery (truck / rail / ship) as well as customs / regulations and multi-carrier coordination for global sourcing.

• Fragmented nature of the customer base can make it costly to gain scale without significant spending on sales teams.

• Other potential disruptive business models include: • Anticipatory logistics: Powered by big data-based predictive algorithms/machine

learning, anticipatory logistics enables logistics providers to boost process efficiency and service quality.

• Logistics Marketplace: By disintermediation of brokers and aggregation of shipments, centralized marketplaces can provide visibility on the information, rates, and services of logistics providers.

• IoT connected devices: IoT empowers smart objects to be active participants in self-steering, event-driven logistics processes.

$B

20.1 20.9 22.424.0 25.7

27.6

Transportation IT Spend As % Of Revenue Top Investors In The Space

Funding Activity in the A, T, & L Tech Space

2011 2012 2013 2014 2015 2016 YTD

131

15

41

25

# of funding rounds100

81

Public Private

2015 2016 2017 2018 2019 2020

3.0 % / than average

ERPs Focusing Downmarket & Rise Of Logistics Marketplaces Will Allow Capture Of SMB Segment

source: dal logistics trend radar 2016; cb insights; gartner

Competition


Overall

Market Size

Market Growth

Industry Leaders Key TrendsScores

6.5% CAGR

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Headquarters: New York, NY

Employees: ~65

Business OverviewFounded in 2013• Transfix is the world's first fully automated freight brokerage. • Transfix empowers shippers and carriers to make more money through the Transfix web

and mobile platforms. • Transfix provides real time tracking and visibility for packages and Transfix shippers

typically save 10-15% per shipment. • For carriers, Transfix provides on-demand truck locations for fleet management, as well as

quality customers to fit with the carrier’s location and availability. • Founders: Drew McElroy/Jonathan Salama.


Key Milestones

Customers include Barnes & Noble, Priority Distribution & PST Trucking. Raised $22.0MM Series B in July, 2016.

Headquarters: Palo Alto, CA

Employees: ~120

Business OverviewFounded in 2006• Shipwire provides product fulfillment to growing product brands and retailers with

ecommerce order fulfillment services powered by a global warehouse network and a cloud logistics platform.

• Merchants send inventory to Shipwire warehouses and connect Shipwire to their online store, marketplace listings, or order systems. As orders flow to Shipwire, they are optimized for least-cost delivery and fulfilled from the closest located warehouse. Shipwire helps merchants save up to 35% on domestic shipping, and 75% on international shipping.

• Shipwire has a network of 11 warehouses in the US, the UK, Canada, China, Australia and the Netherlands.

• Founder: Damon Schechter.

Key Milestones

Delivered $4.0MM series A in October, 2007. Raised $6.0MM in July, 2011. Acquired by Ingram Micro in October, 2013.

Headquarters: Mountain View, CA

Employees: ~70

Business OverviewFounded in 2013• Trucker Path is an online marketplace for the commercial long-haul trucking industry,

connecting brokers with carriers. • It provides navigational assistance, load sourcing and freight tracking to over 450,000

active users in the U.S. • The Trucker Path software is easily accessible on both the web-based app and the mobile

app. • It’s Truck Stops solutions allow roadside businesses to target truckers and convert road

traffic to clients. • It’s InstaPay solution allows drivers to get paid easily and quickly. • Founders: Ivan Tsybaev/Viktor Radchenko.


Key Milestones

Received $20.0MM Series A in June, 2015.

Headquarters: Cambridge, MA

Employees: ~20

Business OverviewFounded in 2013• The Weft Tracking and Control system provides manufacturers and shipping/logistics

companies with cost-effective, high-performance hardware and an intelligent platform for monitoring and setting alerts for themselves and partners.

• The platform integrates with ERP systems (SAP, Oracle, Microsoft) and CRM systems as well as other certified sensors through the Works with Weft program.

• Users log in to get the current status and to set alerts for out-of-bounds conditions (location, temperature, moisture, shock/vibration) and stages completed.

• With predictive analytics, the Weft platform uses the information from sensors and all other clients and shipments in the Weft network to identify problems, and predict bottlenecks or missed deliveries.

• Founder: Marc Held.


Key Milestones

Seed round (March 2014). Weft already partners with Vodafone, Telefonica and Etisalat on various initiatives. Raised $2MM series A in July, 2015.

Auto, Transport, & Logistics Industry Software: Profiles Of Disruptors / New Entrants

source: company websites; crunchbase; cb insights; bowery capital is an investor in transfix


ⅠⅠⅠ. Drones /

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• Commercial drones would be helpful in many industries for surveying and covering large areas efficiently.

• In the private sector, while agriculture and forestry are early adopters of drones, businesses are starting to use drones for monitoring, especially enterprise asset management (EAM) and facilities/infrastructure management.

• The new FAA regulations has made great progress in removing barriers of entry for businesses wanting to use drones and for SaaS companies wanting to provide solutions, although there is still need to advocate for looser regulations.

Overall Spend on Drones

• The aerospace market for drones is an emerging industry, transitioning from hobbyists to businesses.

• New Part 107 Drones Regulation by the FAA has made great progress in removing barriers of entry for businesses. It allows commercial use of small drones weighing under 55 pounds and simplifies the process for a operator to obtain a remote pilot certificate.

• Key trends likely to emerge in the drone technology space: – Software for specific purposes designed to work across different drone types. – Because the demand for drones for surveillance and monitoring purposes from

energy, telecomm and construction verticals will increase, SaaS companies providing video analytics, object recognition, and image metadata processing solutions will be on the rise.

– Artificial intelligence will be likely to play a role in aerial data collection and subsequent data management and analysis.

• Right now drones have to be within visual line of site (VLOS) of the operator according to FAA. Widespread adoption depends on the permission of beyond VLOS (BVLOS) flights and may be years away.

2013 2014 2015 2016 2017 2018

5.2 5.97.6

8.89.5 9.9

Drone IT Spend As % Of Revenue Top Investors In The Space

Funding Activity in the Drone Tech Space

Public Private

2011 2012 2013 2014 2015 2016 YTD

3

15

4

38 40

74

N/A

Strong Industry Growth Predicted As New Regulations Encourage Commercial Use

source: business insider; cb insights

$B # of funding rounds

Industry Leaders Key TrendsScores

Competition


Overall

Market Size

Market Growth

5.6% CAGR

BOWERY CAPITAL 13


Employees: ~60

Business OverviewFounded in 2013• Skycatch allows businesses to deploy flying autonomous drones with real-time HD imagery

and video from the sky. • It’s mapping tool, Commander, allows users to view live video feed from the drone's

camera. With it’s intelligent routing feature, it can plan complex flights and fly only within the area the user outlines.

• Skycatch’s advanced routing algorithms ensure that the photos will generate successful maps.

• The Skywatch Dashboard, targeting the construction industry, helps businesses digitize the job site and shorten workflow. The solution combines the job site in a high-resolution interface with a powerful set of easy to use data and collaboration tools.

• Founders: Christopher Bumgardner/Christian Sanz.


Key Milestones

Raised $13.2MM Series A in May, 2014. Raised $22.0MM Series B in August, 2015.


Employees: ~150

Business Overview Founded in 2011• Airware specializes in the development of autopilots for unmanned aircraft systems. • Airware created the industry’s most comprehensive operating system for commercial

drones, the Aerial Information Platform. • Airware offers complete enterprise drone solutions that are built on the Aerial Information

Platform, so that aerial data becomes an extension of a business’ existing data management systems.

• Airware’s technology enables enterprises to plan, capture, and analyze aerial data, all within an enterprise workflow.

• It is now targeting the insurance, oil & gas, telecom and utilities industries. • Founder: Jonathan Downey.


Key Milestones

Received $30.0MM Series C funding in March 2016. Launched drone operating system in April 2015.

Headquarters: Fargo, ND

Employees: ~20

Business OverviewFounded in 2014• Botlink is a UAV control software + hardware platform, providing users the capability to

safely fly their drones, remain compliant, and send data over a cellular network. • For users in the construction industry, Botlink conveniently gathers aerial imagery of

construction sites at any time and delivers that imagery to all stakeholders automatically, in real time.

• For users in agriculture, Botlink can obtain aerial imagery of the user’s farm or ranch and use the imagery to monitor your day-to-day operations, all in real time.

• Botlink integrates with industry-specific software including precision agriculture, construction, job site management and infrastructure inspection platforms.

• Founders: Terri F. Zimmerman/Alex Kube.

InvestorsTotal Funding: $500K

Key Milestones

Raised $500k seed funding in April, 2015.

Headquarters: Raleigh, NC

Employees: ~120

Business OverviewFounded in 2011• PrecisionHawk combines unmanned aerial systems, cutting-edge artificial intelligence and

remote sensing technologies to improve business operations and decision making. • Artificial intelligence operates all elements of the UAV, including the aerial and data

decisions throughout the system. AI also eliminates the need for a technical operator. • The platform provides autonomous transfer from the UAV into the cloud where it can be

processed and analyzed on the Data Mapper software, made into 2D or 3D products, and accessed on a desktop or mobile device.

• AlgoMarket is offered as a library of automated analysis tools for aerial data, turning geospatial data into actionable insights.

• Founders: Christopher Dean/Ernest Earon.


Key Milestones

Received $16.0MM Series C funding in April, 2016. Received $10.0MM Series B funding in September, 2014.

Undisclosed


Drone Industry Software: Profiles Of Disruptors / New Entrants

Ⅳ. Manufacturing /

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• Manufacturing SaaS in 2015 has reached the tipping point when manufacturers began to adopt cloud solutions at a high rate.

• Scale players are often entrenched with large and midmarket firms.

• Opportunities exist for disruptive solutions targeting SMBs and newer firms.

• IoT, predictive analytics, cloud computing and mobile integration will be key areas for development and disruption.

Spend on Software by the Manufacturing Industry

• Manufacturing software represents a massive industry segment, with major players focused on providing software solutions for large enterprises. For midsize firms, companies like Infor offer tailored software, specific to an industry vertical. • Most larger players offer general ERP solutions while new disruptors focus on providing industry specific solutions. • Although the manufacturers have the reputation of being slow in the adoption of technology, manufacturers view the cloud as central to their ability to compete. 77% expect to increase plant or enterprise integration as a result of cloud technologies. • Key trends that will increasingly impact the industry include: - IoT will link machines, sensors, computers, and humans in order to enable new

levels of information monitoring, collection, processing, and analysis. - Predictive analytics: New software and sensors allow for precise predictions

based on data captured through all points of the production. Maintenance scheduling by urgency and demand forecasting will be more accurate.

- Increasingly technology connectivity between customers, partners and supplier – systems will connect with each other.

64.367.2

72.6 78.084.1

91.1

Manufacturing IT Spend As % Of Revenue Top Investors In The Space

Funding Activity in the Manufacturing Tech Space

2011 2012 2013 2014 2015 2016 YTD

30

6

17

12

2622

Public Private

2015 2016 2017 2018 2019 2020


Large Opportunities For Continued Development Of IoT & Analytics To Increase Efficiency


source: flex; idc research; gartner; cb insights

Scores

Competition


Overall

Market Size

Market Growth


7.2% CAGR

BOWERY CAPITAL 16

Headquarters: Mountain View, CA

Employees: ~20

Business OverviewFounded in 2014• FogHorn provides an edge intelligence (fog computing) platform for industrial and

commercial IoT applications, enabling a new class of real-time analytics, machine learning models and edge computing applications.

• FogHorn software’s main advantage is fog computing. Different from cloud computing, the new technology can maintain close proximity to the edge devices rather than sending all data to a distant centralized cloud. It minimizes latency allowing for maximum performance, faster response times, and more effective maintenance and operational strategies.

• The immediacy of edge intelligence enables automated feedback loops in the manufacturing process as well as predictive maintenance for maximizing the uptime and lifespan of equipment and assembly lines.

• Founders: Kamesh Raghavendra/Mohan Reddy.


Key Milestones

Received $12.0MM Series A in July, 2016.


Employees: ~50

Business OverviewFounded in 2012• Sight Machine is driving the digital transformation of manufacturing, offering an end-to-end

big data platform powered by cloud intelligence and built specifically for manufacturing. • Sight Machine's manufacturing analytics platform transforms data into actionable insights,

helping manufacturers address critical challenges in quality and operations. • Sight Machine works with data from machines, PLCs, databases, sensors, parts, test

equipment and cameras, across factories and across supply chains. • The platform provides:

• real-time production, quality and supply chain monitoring. • retrospective analysis of product variation and failures. • predictive analytics to support process improvement.

• Founders: Jon Sobel/Nathan Oostendorp/Kurt DeMaagd/Adam Taisch/Anthony Oliver.


Key Milestones

Mentioned as 2015 Gartner Cool Vendor. Raised $13.5MM series B in March, 2016.

Headquarters: Haifa, Israel

Employees: ~10

Business OverviewFounded in 2015• Presenso is maximizing industrial production uptime by crowdsourcing machines and

predicting future failures. • Presenso constantly analyzes big Industrial IoT data in order to maximize machine up-time

and improve operations. • Presenso leverages sophisticated machine-learning and real-time analysis algorithms to

precisely predict future failures. • Presenso offers full prescriptive-maintenance solution serving users with a cook-book

recommendation on how to effectively mitigate upcoming failures. • Founders: Eitan Vesely/Deddy Lavid/David Almagor.


Key Milestones

Received $2.0MM seed VC funding in June 2016.

Headquarters: London, UK

Employees: ~3

Business OverviewFounded in 2015• CloudNC replaces the human operator of CNC manufacturing equipment, halving the cost

of production for more than $300 billion of components every year. • CloudNC is developing a radical new type of Computer Aided Manufacturing (CAM)

software to control multi-axis CNC milling machines. • It uses artificial intelligence and cloud supercomputing to rapidly generate optimized,

machine specific tool paths with fully automatic tool selection. • CloudNC’s technology will be able to control CNC machines more efficiently than humans

can. • Founders: Theo Saville/Chris Emery.

InvestorsTotal Funding: Undisclosed

Key Milestones

Participated in the Entrepreneur First program in London. Received seed funding of undisclosed amount in July, 2016.

Manufacturing Industry Software: Profiles Of Disruptors / New Entrants


Ⅴ. Healthcare /

BOWERY CAPITAL 18

• The new Fee-For-Value reimbursement system under Patient Protection and Affordable Care Act (PPACA) incentivizes quality of care over quantity, providing massive market opportunity for SaaS innovation.

• Big players (Allscripts, Cerner, etc) offer comprehensive software suites but there are opportunities for startups to unbundle and upgrade these solutions.

• Telehealth, IoT, analytics are all driving the digital revolution in healthcare, contributing to reduced cost and improved quality of healthcare.

Spend on Software by the Healthcare Industry

• Right now under the Patient Protection and Affordable Care Act (PPACA), nearly 20 percent of all healthcare payments are value-based. Healthcare industry experts expect this to increase to 75 percent or more by the year 2020. • As the Fee-For-Service reimbursement model shifts to the Fee-For-Value model, the technology infrastructure in the industry needs to be upgraded. • The shift will create opportunities in the ACO (accountable care organization) enablement space for SaaS companies to work on clinical integration, population health, and risk management, helping providers to reduce cost and improve quality. • The market is also seeing the rise of telehealth as research has shown that it is as effective as in-person care with much lower cost, providing opportunities in HIPAA-compliant video call platforms, patient engagement softwares and other infrastructure necessary for the advance of telehealth. • In the disease management space, the rise of connected devices/wearables is also creating opportunities for SaaS founders to provide companion softwares. • Opportunities also exist in upgrading patient monitoring, risk management and drug discovery by leveraging AI/machine learning/big data. • Data security will be an area for innovation. Health apps are high-value targets of cyberattack. SaaS founders can tackle this problem by building secure databases and offering database-as-a-service.

17.718.5 20.0 21.5

23.1 24.8

Healthcare IT Spend As % Of Revenue Top Investors In The Space

Funding Activity in the Healthcare Tech Space

2011 2012 2013 2014 2015 2016 YTD

861

310

548415

689

486

Public Private

2015 2016 2017 2018 2019 2020

4.1% / than average

New Opportunities As The Healthcare System Transitions to the Value-Based Model


source: centers for medicare and medicaid services; bessemer venture partners; gartner; cb insights

Scores

Competition


Overall

Market Size

Market Growth


7.0% CAGR

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Headquarters: Redwood City, CA

Employees: ~11

Business OverviewFounded in 2013• TrueVault is a HIPAA compliant database-as-a-service. Healthcare applications use

TrueVault to store protected health information (PHI). • TrueVault is making mission-critical data more secure and accessible through an

architecture and connectivity layer, empowering breakthrough ideas that are transforming the world.

• TrueVault provides all client-side and server-side functionalities required by HIPAA, and works like any other API service.

• TrueVault will sign a Business Associate Agreement (BAA), and protects customers under a comprehensive Privacy/Data Breach insurance policy.

• Founders: Jason Wang/Trey Swann.


Key Milestones

Received its $2.5MM seed funding in March, 2014.


Employees: ~10

Business Overview Founded in 2013• CredSimple is an NCQA certified credentialing and provider data management solution. • CredSimple brings the entire physician credentialing process online and partners with

medical boards, resulting in shrinking the verification process from 3 months to under 24 hours.

• Physician information is checked against several sources spanning medical licensing boards, drug enforcement agencies, and universities.

• CredSimple provides clients with an easy way to get through the credentialing process, but also aids in maintaining data with much more integrity so that it can be used in more effective ways downstream.

• Founders: Mike Simmons/Sam Meyer/Garry Choy.


Key Milestones

Received $2.7MM of seed funding in July, 2015.


Employees: ~20

Business OverviewFounded in 2010• AI Cure uses artificial intelligence (AI) on mobile devices to confirm medication ingestion in

clinical trials and high-risk populations. • AiCure's HIPAA-compliant platform uses sophisticated facial recognition and motion-

sensing software to automate directly observed therapy (DOT) on smartphones. The system directly visualizes patient behavior.

• It reminds the patient of the upcoming dose and asks the patient to use the imaging power of the smartphone to confirm ingestion. Educational content, real-time feedback, incentives are all tailored to the patient's needs.

• Its predictive analytics function uses longitudinal adherence data and predictive trends to optimize adherence and treatment.

• Founders: Laura Shafner/Adam Hanina.


Key Milestones

Received $12.0MM Series A funding in Jan 2016.


Employees: ~10

Business OverviewFounded in 2012• Atomwise uses Deep Learning Neural Networks to discover new medicines. Atomwise

achieves the world’s best results for new drug hit discovery, binding affinity prediction, and toxicity detection.

• Atomwise uses supercomputers to predict, in advance, which potential medicines will work, and which won’t for pharmaceutical companies, startups, and research institutions.

• Its clients include Merck, Notable Labs and Karolinska Instituet. • Founders: Alexander Levy/Dr. Izhar Wallach/Dr. Abraham Heifets.


Key Milestones

Received $6.0MM seed funding in June, 2015.

Healthcare Industry Software: Profiles Of Disruptors / New Entrants

source: company websites; crunchbase; cb insights; bowery capital is an investor in credsimple

Ⅵ. Legal /

BOWERY CAPITAL 21

• A variety of tools, such as practice management software and online legal marketplace are generating demand while litigation tools powered by data analytics and AI are gaining the most traction.

• The eDiscovery market is growing mature with a large number of players. Vendors focus on different stages of the eDiscovery reference model.

• Mobile-based and web-based solutions are likely to dominate from 2016. Early adopters are demonstrating benefits, motivating others to start cloud migration.

Spend On Software by the Legal Industry

• Software for the legal industry typically falls into a couple of key categories Practice, Document management software/ Litigation support / e-Discovery/Legal research support, Time and billing management software. • E-Discovery has become a mature and competitive space over the years. Vendors have developed core competencies for a specific stage of eDiscovery Reference Model and buyers tend to only use a vendor's best capabilities and complete their e-discovery toolbox with different solutions from other vendors. • SaaS tools to provide litigation and research support could see strong adoption - E-Discovery / Data Analytics /AI will play an increasing role - A 2015 survey shows that more of half of the law firms have used predictive

coding and this trend will continue. - Natural language processing will increase productivity at law firms by processing and interpreting unstructured legal texts. • The growth of data and document review systems will likely make law firms an increasing target by attackers looking to gain information - Tailored security for law firm stored files and eDiscovery tools may become an

increasing trend. - Many of the trends in cybersecurity for financial services may find an application in

legal databases.

1.942.18

2.552.83

3.343.85

Legal IT Spend As % Of Revenue Top Investors In The Space

Funding Activity in the Legal Tech Space

2011 2012 2013 2014 2015 2016 YTD

65

14

48

21

44

25

Public Private

2015 2016 2017 2018 2019 2020

4.5% / than average

Widespread Adoption Of Litigation Tools Powered By Data Analytics/AI Will Be Game Changers


source: American Bar Association; techCrunch; cb insights; complex discovery

Scores

Competition


Overall

Market Size

Market Growth


14.7% CAGR

BOWERY CAPITAL 22

Headquarters: Berkeley, CA

Employees: ~30

Business OverviewFounded in 2010• Everlaw is a cloud-based eDiscovery platform. • Everlaw provides tools such as intuitive visual search, predictive coding, context panel,

case review analytics, real-time activity tracker/team management, accuracy tracking and post-review tools that help legal teams move from review to crafting a winning narrative.

• Everlaw serves 9 of the top 10 class action law firms in the country and more than 65 percent of state Attorneys General.

• Everlaw currently charges clients by the volume of data that its artificial intelligence-enhanced solution helps them sort through.

• Founders: Jeff Friedman/AJ Shankar.

InvestorsTotal Funding: ~$9.6MM

Key Milestones

Received $8.1MM Series A funding in Jan, 2016. Another eDiscovery and digital forensics company, DSi, announced partnership with Everlaw in February, 2016.


Employees: ~40

Business OverviewFounded in 2012• Ravel Law is a legal search, analytics, and visualization platform that enables lawyers to

find, contextualize, and interpret information that turns legal data into legal insights. • It has 3 core solutions: - Judge Analytics helps lawyers navigate millions of documents to parse how a specific judge thinks and rules by collecting every decision and every citation in this judge’s career. - Case Analytics helps lawyers find key factual passages and points of law. - Search Visualization is able to create case maps and organizes cases by court, date, citation count and relevance. • Founders: Nik Reed/Daniel Lewis.


Key Milestones

Received seed funding In July 2012. Received series A funding in Feb, 2014. Launched Judge Analytics in April, 2015. Formed partnership with Harvard Law School.


Employees: ~50

Business OverviewFounded in 2012• Upcounsel is a game-changing legal marketplace. • Through Upcounsel, businesses, especially SMBs, can efficiently access and manage a

high quality and on-demand legal workforce. • Currently, large and small businesses alike use UpCounsel to supplement or replace their

large law firms or traditional service providers. • The rapidly growing UpCounsel community is made up of part-time, solo, and boutique

attorneys who hail from global law firms. • Upcounsel allows its customers to compare detailed proposals and transparent pricing,

helping them save up to 60% compared to traditional law firms. • Founders: Mason Blake/Matt Faustman.


Key Milestones

Company Raised $10.0MM Series A round in July, 2015.

Headquarters: Pittsburgh, PA

Employees: ~10

Business OverviewFounded in 2013• LegalSifter uses natural language processing and machine learning to turn unstructured

terms, conditions, and words into structured data and insights. • The service scans the user’s contract documents and assigns them a score based on how

favorable the terms are for the user. • It also provides users with an explanation of the clauses and provisions in the document

and suggests potential changes to provisions that are probably not in the user’s best interest.

• Its targeted clients are small businesses and freelancers. • Founders: Elliott Williams/ Lars Mahler.


Key Milestones

Received $1.6MM seed funding in March, 2016.

Legal Industry Software: Profiles Of Disruptors / New Entrants


Ⅶ. Construction /

BOWERY CAPITAL 24

• 2016 is a strong year for the construction industry, with a predicted growth rate of 6% and the value of total U.S. construction starts reaching $712 billion.

• The increasing use of mobile technology and cloud-based software will continue, and the need for mobile applications to integrate with office software is growing.

• BIM (Building Information Modeling), combined with augmented reality (AR), will provide users with better visualizations.

Spend on Software by the Construction Industry

• There has been notable expansion in the construction industry, the Dodge Outlook Report predicts that total U.S. construction starts for 2016 will rise 6% to $712 billion, following gains of 9% in 2014 and 13% in 2015. This provides opportunities for entrepreneurs looking to venture into construction. • Construction companies traditionally have very slim IT budgets, sometimes even smaller than 1%. Therefore, there must be a clear return on investment (ROI) from the purchase of new software. • As with many industries, construction firms have really begun to embrace the cloud and mobile platforms in recent years. • Potential disruptive business models include: - As contractors are working towards paperless job-sites (more than half are using

pen and paper), the demand for collaboration software (workflow/task/document management softwares) that are accessible on various mobile devices and can be integrated with office software will increase.

- Data-driven design through Building Information Modeling (BIM), combined with augmented reality (AR).

- The explosion in the sources of field data will require data analytics softwares that provide insights for contractors to boost productivity.

- Frontier Tech: Drones will help analyze and track progress on construction sites.

2015 2016 2017 2018 2019 2020

1.33 1.421.52

1.631.77

Construction IT Spend As % Of Revenue Top Investors In The Space

Funding Activity in the Construction Tech Space

2011 2012 2013 2014 2015 2016 YTD

41

8

30

1522 20


1.91

Public Private

The Growing Industry Needs Better Collaboration SaaS As It Embraces Mobile and Cloud Platforms


source: CB Insights, TechCrunch, Dodge Outlook Report, Bridgit Construction Technology Trends

Scores

Competition


Overall

Market Size

Market Growth


7.5% CAGR

BOWERY CAPITAL 25


Employees: ~30

Business OverviewFounded in 2014• Rhumbix provides construction field supervision with a robust mobile platform. • Using the mobile app, foremen can select their crews, assign their crew to cost codes, write

notes, and take photos. • The app also allows foremen to manage and approve timecards from the field in real-time,

ensuring accurate reporting of data and saving hours of time previously spent on paperwork.

• Data and timecards can be reviewed and edited on the web app and exported to accounting and payroll software.

• Founders: Zachary Scheel/Drew DeWalt.


Key Milestones

Received $6.1MM Series A funding in September, 2015.


Employees: ~30

Business OverviewFounded in 2012• BuildingConnected provides bidding management solutions to contractors. • Contractors can create projects, store documents and reach out to subcontractors on the

platform. • BuildingConnected also offers performance analytics features and helps contractors track

win rates by time, geography or partner. • Additional features include cost analytics, relationship tracking, and NDA & sealed bids. • For owners, it offers portfolio performance dashboard that allows them to view analytics

across the entire portfolio. • Founders: Jesse Pedersen/Dustin DeVan.


Key Milestones

Received $8.5MM in September, 2015.

Business OverviewFounded in 2015• Buildcon is a hassle-free construction management app that helps cut costs and meet

deadlines, with full control over one or more construction projects. • Buildcon offers a web app and a mobile app, making communication and collaboration

instant with all data in one place. • Contractors can use Buildcon to schedule all project activities. define responsibilities, check

progress status, collaborate with colleagues to create documents and reports. • Pricing: from $49/month to $149/month • Founders: Ilija Dragisic/Igor Milanovic/Djordje Filipovic/Janko Stojanovic.

InvestorsTotal Funding: $120k

Key Milestones

Company Raised $120k seed funding in Dec, 2015.


Employees: ~40

Business OverviewFounded in 2012• Flux provides collaborative design software for the building design and construction

industry. • The cloud-based collaboration service allows contractors, engineers and architects to add

helpful plugins into their existing work flows and saves them crucial time in simplifying file transfer, data conversion, and data-merge.

• Flux provides seamless data exchange between industry design tools such as Rhino and Revit, and creates agile workflows.

• Founders: Nicholas Chim/Jen Carlile.


Key Milestones

Flux Factory came out of Google X Labs in 2011. Received $8MM series A in May, 2014. Received $29MM series B in Dec, 2015.

Construction Industry Software: Profiles Of Disruptors / New Entrants



Employees: ~40

Ⅷ. Restaurant /

BOWERY CAPITAL 27

• Restaurant operators are starting to embrace various consumer-facing and behind-the-counter technologies. Limited-service restaurants have a significantly higher adoption rate.

• Established players are more focused on certain submarkets including point-of-sales system (Oracle, Aloha), payment processing (Square) and online ordering (Seamless). Behind-the-counter space offers a lot of room for modernization or optimization.

• UI/UX and strong arguments for ROI will be key for successful solutions.

Spend on Software by the Restaurant Industry

• Most players in the space tend to focus on optimizing a specific point solution while some established scale players provide solutions across different consumer-facing submarkets. (e.g.: OpenTable is in marketing, reservations, CRM and diner analytics.) • Food delivery startups have continued to be popular, raising $5.5 billion in 2015. • While the consumer-facing restaurant tech market is crowded with many players and overlaps, kitchen and back of the house need tech upgrades and offer opportunities for optimization: - Inventory Management (food spend and supplier pricing monitoring, invoices

management) - Task Management (prep, checklists) - Predictive Analytics (actionable data, performance metrics for operators) • Staffing and staff management could also be an area for disruption. The staff scheduling space is crowded, but opportunities still exist in onboarding & education and staff analytics. • Restaurant operators are worried that technology will complicate the experience for diners, so building a user-friendly, streamlined solution will be key for more adoption.

2015 2016 2017 2018 2019 2020

0.31 0.330.36 0.39

0.42 0.45

Restaurant IT Spend as % OF Revenue Top Investors In The Space

Funding Activity in the Restaurant Tech Space

2011 2012 2013 2014 2015

45

22

28

23

43

Public Private


Opportunity For Integration Across The Entire Value Chain To Increase Efficiency & Data Flow


source: national restaurant association; CB Insights, TechCrunch; bowery estimates

Scores

Competition


Overall

Market Size

Market Growth


7.7% CAGR

BOWERY CAPITAL 28


Employees: ~20

Business OverviewFounded in 2012• SALIDO is a single platform for restaurant operations. (rOS: Restaurant Operating System) • SALIDO collects comprehensive customer profiles and analyzes the data to offer insights

on predictive up-sell, intelligent discounts and branded giveaways. • The features also include POS system, labor management (scheduling, employee

management), supply chain management (inventory, purchase orders) and decision support for cost efficiencies and operational improvements.

• Founders: David Guilfoyle/Casey Cohen/Shu Chowdhury/Matthew Gaines.


Key Milestones

Raised $2.0MM seed round in Nov, 2015. Salido had more than 50 installations in New York City at the end of 2015, and it plans to expand to 350 restaurants over 2016.

Headquarters: Washington DC

Employees: ~25

Business OverviewFounded in 2010• Venga offers a CRM and business intelligence platform for restaurants to analyze their

customers' purchases, habits and preferences. • Its customer insight feature automatically generates detailed customer profiles for targeted

up-selling and personalized service. For restaurant chains,it can seamlessly sync guest notes and guest codes across all locations.

• Its targeted marketing tools are able to create segmented lists based on guest visits, spending, specific menu item purchases, or guest codes and create automated campaigns.

• Restaurant review management/analytics with POS integration allow the operator to see which terms most often sway a guest’s experience positively or negatively.

• Founders: Winston Lord/Reg Stettinius.


Key Milestones

Raised $1.0MM series A in Jan, 2014. Now working with over 1,000 restaurants, track over 50 mm guest profiles and $6 billion restaurant sales.


Employees: ~7

Business OverviewFounded in 2012• CulinaryAgents.com is a professional networking and job matching site designed

specifically for the food, beverage and hospitality industry. • The platform has an automatic matching process to work with talents and opportunities,

along with the tools to support applicant matching, messaging and management. • The “Get Inspired” platform and the networking platform on the website offer professionals

the opportunities to expand their network and establish virtual mentorship. • Founders: Alice Cheng/Raymond Chan/Jun Seok Yoon.


Key Milestones

Raised $3.0MM series A in April, 2015. Supports over 65% of Michelin-star rated U.S. restaurants. Currently in 30+ U.S. cities, France, Italy and HK.

Headquarters: Atlanta, GA

Employees: ~25

Business OverviewFounded in 2011• Orderly’s restaurant purchasing app helps restaurant operators with online ordering,

paperless invoicing, painless inventory, and automated accounting. • With Orderly, restaurant operators can snap pictures of invoices and store them in the

online file cabinet. The app will then capture invoice images, dollar amounts, line-item detail, and all the existing supplier information.

• Its food spending dashboard allows operators to monitor spending by items and suppliers and identify price increases and trends on individual items and categories.

• Additional features include restaurant account and inventory reports. • Founders: John Heyman/Alon Goren/Mark E. Haidet.


Key Milestones

Raised $4.0MM series A in June, 2014. Announced the launch of its Snap App, a free paperless invoicing management app in Nov, 2015.

Restaurant Industry Software: Profiles Of Disruptors / New Entrants


Ⅸ. Education /

BOWERY CAPITAL 30

• Over the past few years there have been massive investments in the edtech space, and the future of the edtech landscape will depend on the success of the first generation of edtech companies.

• A few submarkets that have been gaining traction include the specific learning space (tech learning, language learning), enterprise learning space, and learning management systems space.

• Moving forward, the market will see opportunities in personalized learning, learning analytics, lesson planning, and micro credentials/skill training.

Spend on Software by the Education Industry

• Funding to edtech companies is booming. Overall, the period from 2010 to 2014 saw more than a 503% growth in investment dollars. •However, investment has been slowing down in 2016. Investments in the first generation of edtech made it difficult for the second generation of companies to attract investment, as investors are watching this first cohort closely to gauge results. •There have been numerous acquisitions in the space, but very few IPOs. •The K-12 institutional market is limited, and more investment opportunities exist in corporate learning and higher education. • Potential disruptive business models include: - Personalized (adaptive) learning: empowered by machine learning, this technology

can adjust to a learner’s demonstrated performance level, and anticipate what types of resources learners need at a specific point in time to make progress.

- Learning analytics: The big data analytics platforms can empower active learning, identify students in danger of failing and provide targeted assistance.

- Corporate training: In the corporate space, we are seeing the rise of skill training (primarily coding and digital literacy) and English language learning.

- Online lesson planning platforms: There will be more opportunities in this space as flipped classrooms (students will learn outside of the class so that class time is used for higher level skills work) require teachers to move courses online.

2015 2016 2017 2018 2019 2020

12.0 12.5 13.514.5

15.616.7

Education IT Spend As % Of Revenue Top Investors In The Space

Funding Activity in the Education Tech Space

2011 2012 2013 2014 2015

491

220

412

300

447

2011 2012 2013 2014 2015 2016 YTD

207

5.5% / than average

Funding Increases As Opportunities In LMS Upgrade and Corporate Training Emerges


source: CB Insights; TechCrunch; Hack Education; Edsurge; gartner

Scores

Competition


Overall

Market Size

Market Growth


Public Private

6.8% CAGR

BOWERY CAPITAL 31

Headquarters: Indianapolis, IN

Employees: ~50

Business OverviewFounded in 2012• Lessonly’s learning automation software helps companies build lessons that are easy to

assign, track, search, and update. • Lessonly provides all the content elements companies need to build lessons. Features also

include courses/schedule assignment, self-registration, progress tracking and integration APIs.

• Customers include Stripe, Birchbox, Gusto, and Movoto. • Founder: Max Yoder.


Key Milestones

Announced partnership with Namely in Aug, 2016. Reached more than 250 corporate clients in 2016. Raised $5.0MM series A funding in March, 2016.

Headquarters: Palo Alto, CA

Employees: ~70

Business OverviewFounded in 2010• BloomBoard is a place for educators to learn, share and discuss the best teaching ideas.

The company has built a holistic set of tools and products to power both effective coaching and continuous, personalized, competency-based learning for educators.

• The platform provides curated collections of resources, on topics related to individual educators’ unique classroom challenges.

• BloomBoard supports a model of competency-based professional growth via a library of micro-credentials, such as data literacy, teacher leadership, or deeper learning.

• The company also provides evaluation tools for educators to view feedback provided by their administrators and set goals aligned to their strengths and areas for improvement.

• Founders: Jason Lange/Eric Dunn.


Key Milestones

Raised $7.2MM series B in June, 2015. Raised $5.0MM series A in September, 2014.

Headquarters: Austin, TX

Employees: ~230

Business OverviewFounded in 2011• Civitas Learning offers a cloud-based, predictive analytics platform that delivers insights to

universities so that they can improve student success. • Civitas Learning’s Student Success Platform and its front-line action applications provide a

holistic view of student engagement that highlights clear opportunities to improve student outcomes as educators/admins zoom in and out of deep data on user-friendly dashboards.

• “Illume” allows clients to identify key student segments for personalized outreach, know which courses wield the greatest influence on long-term student outcomes, and then attribute the impact of every initiative and optimally allocate their resources.

• The platform for faculty provides professors with the comprehensive, changing view of student engagement and risk necessary to understand the unique needs of every student.

• Founders: Charles Thornburgh/Mark Milliron.


Key Milestones

Raised $60MM series D funding in Sep, 2015. Raised $16MM series C funding in Jan, 2015. So far Civets Learning has partnered with 66 colleges, including U of Texas and PennState.

Headquarters:New York, NY

Employees: ~210

Business OverviewFounded in 2010• Grovo combines technology, engaging content, and hands-on advisory support to deliver a

better way to learn at work. The platform is available on the web app and mobile app. • Grovo’s corporate clients can create their own training from scratch on the platform or

select Grovo’s pre-made training, easily add and group learners and assign content. • The system can automatically deliver training by role and location, and send reminders. • Grovo enables users to get performance data and insights on every level and generates

data visualizations for the most important key performance indicators. • Grovo comes with thousands of microlearning videos that improve performance in 144

seconds or less. The content includes leadership skills, soft skills and digital skills. • Founders: Nick Narodny/Surag Mungekar/Jeff Fernandez.


Key Milestones

So far Grovo has delivered more than 9 million learning moments at organizations in over 190 countries. Received $40MM series C funding in Jan, 2016.

Education Industry Software: Profiles Of Disruptors / New Entrants


Ⅹ. Agriculture /

BOWERY CAPITAL 33

• Farm management software is being deployed to allow efficient management of resources, crop production, farm animals; increased leverage of data analytics for informed decision making in farm processes

• More funding is flowing into the space, with a majority in Seed and Series A financing

• Farming is seen as an untapped area of opportunity for optimization via software management tools

• Significant development of agricultural software taking place in African innovation hubs

• The farm management software market in APAC is expected to grow significantly, primarily driven by agricultural developments and increased governmental expenditure.

• Record management is a major application of farming software, accrual of records will provide premise for decision making, auditing, and analyzing the performance in later years.

• Internet availability and increased demand for precise farming systems will drive demand, but lack of technical expertise is expected to pose a challenge to market growth.

• The market is highly fragmented with several players competing at a regional and global level

• Farm management software will see increased integration with accounting data to streamline cost/revenue management

1.1 1.3 1.61.8 2.2

2.5

Agriculture IT Spend as % of Revenue Top Investors In The Space

2011 2012 2013 2014 2015 2016 YTD

131

19

3433

69

91

Public Private

2015 2016 2017 2018 2019 2020

Increased Need For Optimization In Agriculture Provides An Opportunity For SaaS Players

Spend on Software by the Agriculture Industry Funding Activity in the Agriculture Tech Space


Scores

Competition


Overall

Market Size

Market Growth


source: Agtech Insight Research and Markets, CB Insights, CropLife

N/A

17.8% CAGR

BOWERY CAPITAL 34


Employees: ~65

Business OverviewFounded in 2014• Granular is an agriculture software company enabling efficient farm management. • With data science technology, Granular allows farm management to make data driven

decisions. • Crop and field planning capabilities calculate profitability at the enterprise level and as

granular as the field level. • Farms can actively manage forecast of costs, yield, and price to attain targets. • Farms can track inputs and crop inventory and ensure validity in invoicing. • Founders: Sid Gorham/Mike Preiner.


Raised $18.7MM series A in June, 2015.


Employees: ~7

Business OverviewFounded in 2013• Tule sensors measure evapotranspiration over several acres and transmits data back to the

Tule platform to enable informed irrigation decisions. • Tule provides forecasts of atmospheric demand for the near future to aid in irrigation

schedule management. • Evapotranspiration monitoring quantifies the volume of water usage and aggregates across

all fields. • Water Stress Tracking allows farm management to analyze the amount of water crops are

receiving and time water application accordingly to maximize production. • Leveraging network data, farms can assess their irrigation results in comparison to other

growers in their region. • Founders: Jeff LaBarge/Tom Shapland.

InvestorsTotal Funding: $120K

Raised $120K seed round in 2014


Employees: ~500

Business OverviewFounded in 2006• The Climate Corporation uses data science to analyze historical data on crops and weather

to generate insights for farmers. • The proprietary platform allows for weather monitoring, agronomic modeling, and weather

simulations to enable informed decision making. • Yield analysis tools leverage prior farming decisions to inform best case scenarios for future

planting decisions. • Operated on a mobile SaaS platform to enable insights and analysis to be accessible at

anytime. • Founders: Siraj Khaliq/David Friedberg.


Acquired in 2013 by Monsanto for ~$1.1B

Headquarters: Columbus, OH

Employees: ~40

Business OverviewFounded in 2012• Farmeron is a SaaS platform that enables dairy farmers to view and analyze data on their

livestock. • Farmers can track costs and growth at level of each calf to calculate ROI at the individual

and herd level and analyze performance of each generation. • The platform captures data inputs around dairy cow health, fertility, etc. to identify reasons

for underperformance and take appropriate action. • Founder: Matija Kopić.


Acquired by Virtus Nutrition in 2016

Agriculture Industry Software: Profiles Of Disruptors / New Entrants


Key Milestones Key Milestones

Key Milestones Key Milestones

ⅩI. Emerging Verticals /

BOWERY CAPITAL 36

Key Trends & Market Dynamics• There is enormous opportunity for software to bring structure and efficiency to a nascent

market and major future CPG category. • The US market size for legal marijuana is already over $3B, likely >$10B market within 5

years. 28 states (plus DC) have some form of legal marijuana use. • The cannabis opportunity spans retail, wholesale, logistics, compliance, testing, security,

and ERP. • Investor appetite in the space is turning the corner; only ~70% of cannabis businesses were

bootstrapped in 2016. • Industry may face near term headwinds as Jeff Sessions chosen as Trump choice for AG.

Software Is Starting To Add Efficiency & Scale To Several Emerging Verticals

source: company websites; crunchbase; cb insights; faith driven global; global wellness institute;

Cannabis Industry

Industry Leaders & Emerging Players

LeafLink LeafLink is a wholesale management platform for the cannabis industry designed to support participants in the b2b supply chain.

New Frontier Data is a technology-driven analytics company offering the power of big data to trailblazers in the cannabis industry

Key Trends & Market Dynamics• Several startups are leveraging SaaS to change the way faith institutions manage member

enrollment and facility management. • Religious learning and content management is gaining traction as a way of curating and

maintaining content. • Marketplaces are developing to cater to large religious market such as kosher and halal. • The market remains enormous with over 2.4B followers of Christianity, 1.7B followers of

Islam, and 13MM followers of Judaism worldwide. Faith driven consumers represent over $2T of economic activity in the US alone.


Mohid is a cloud based masjid management solution combining core management systems with kiosks and mobile devices for Islamic centers.

Ministry Brands is a SaaS based church system for financial accounting, background screening, online giving, and church management.

Religion Industry

Key Trends & Market Dynamics• The space industry is “unlocking” from a sheltered government managed industry to a large

scale commercial market and audience. • Big data & cloud computing coupled with efficiency in electronic manufacturing present a

greater opportunity for businesses to build Aerospace focused companies. • There was $200M+ in VC funding in 2016 YTD in the Aerospace industry. • Following five consecutive years of record results, the overall health of the software industry

for Aerospace still remains strong and is poised for solid growth through 2017.


Leaf Space enables microsatellite operators to access space data directly to their laptops efficiently and at a minimal cost.

Planet Labs collects data for climate measurement, agricultural planning, and urban planning using micro satellites that image the earth.

Aerospace IndustryKey Trends & Market Dynamics• Startups ecosystem is taking the saying “work hard play hard” literally with the rapid growth

of wellness focused startups. • Several companies have been created to make access to leisure and wellness activities

available with a click of a button (e.g. massages). • Site management platforms have also started to grow in number to allow locations such as

camp sites manage their process end to end via a SaaS portal. • The wellness industry now represents 5.1% of global economic output at roughly $3.72T.

The industry continues to grow rapidly as more and more corporate business (employees and employers) invest in wellness and leisure for their businesses.


MINDBODY provides cloud based business management and payments platforms for the wellness services industry.

Campsite is a camp management platform for enrollment management, billing, financial analysis, staff recruiting, and alumni tracking.

Wellness Industry

Thank You / Mike Brown Jr. [email protected]

Loren Vittetoe [email protected]

Stephen Zheng [email protected]

Moshe Lifschitz [email protected]

Nic Poulos [email protected]

Mohamed Khalil [email protected]

Ray Thek [email protected]

Boya Wang [email protected]