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The Big Data Report
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TABLE OF CONTENTS
A MESSAGE FROM ORRICK 2
5 YEAR FINANCING TREND 4
MOST ACTIVE INVESTORS 5
TOP US MARKETS 6
TOP INTERNATIONAL MARKETS 7
FOCUS AREAS WITHIN BIG DATA 8
2012’S LARGEST FINANCINGS 9
INVESTMENTS BY STAGE 10
MEDIAN AND AVERAGE DEAL SIZES 11
EXIT ACTIVITY 12
TOP ACQUIRERS 13
DIVERSITY OF BIG DATA 14
The Orrick Emerging Companies Practice presents
The Big Data Report
The Big Data Report
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A Message from Orrick
2
With all due respect to Calvin Coolidge, it seems that “the
business of the country is . . . data.”
Here at Orrick it seems that everywhere we look we find our
clients building or financing businesses that were formed for
the purpose of compiling, analyzing and/or acting on large
streams of data, often in real time. Among those are firm
clients like Datasift, Verticloud and Selerity that accessed the
venture capital markets in 2012. While not included in the
2012 statistics presented here, the first week of February has
already included notable venture financings for New York City-
based big data startups Sailthru and Nomi. In addition, one of
the largest tech growth stage financings so far this year was
the $800 million leveraged recapitalization of Survey Monkey.
We believe that the data is telling us that big data is here to
stay for the foreseeable future. We’re happy to be a part of the
big data economy through our clients and we’re proud to
sponsor the Big Data Report – an invaluable insight into the
big data economy in 2012 and beyond. .
Sincerely,
David Concannon
Bio
David L. Concannon is a partner in the firm’s global Emerging
Companies Group. He leads our East Coast practice and works
closely with the entrepreneurial and venture capital community to
help technology companies secure financing and strategize exit
and growth opportunities. Concannon brings extensive
experience in general corporate and securities work, capital
markets, as well as mergers and acquisitions. His core industries
include technology, life sciences and cleantech/energy.
The Big Data Report
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About Orrick Total AccessOrrick’s TOTAL ACCESS Event Series provides entrepreneurs
business, tactical, and legal education through complimentary
panels and seminars. Presented by experienced industry CEOs,
venture capitalists, and Orrick lawyers, TOTAL ACCESS offers
insights on cutting-edge issues and an opportunity to network with
leading professionals in the startup community.
For more information on Orrick Total Access, please visit:
www.orrick.com/totalaccess
3
About CB InsightsThe company, financing and M&A data and trends in this report are
sourced from CB Insights, a National Science Foundation-backed
data company that tracks VC, angel, private equity investment
along with private company exits (M&A/IPOs).
For more information on CB Insights, please visit
http://www.cbinsights.com
About OrrickOrrick is one of the leading law firms for the representation of
entrepreneurs, emerging companies, and investors. With more
than 1,000 emerging clients worldwide, we provide in-depth
experience, a focus on early stage companies, a network of strong
investors, capabilities that scale with clients as they grow, and
global resources for long-terms growth and success. Our emerging
companies group has acted as counsel in one of the largest venture
capital financings each year since 2006 and represents clients who
have been listed in The Wall Street Journal’s Top 50 Venture-
Backed Companies, BusinessWeek’s 50 Best Tech Start-Ups,
Time’s Top 50 Web Sites, AlwaysOn Media 100, and GoingGreen
100.
For more information on Orrick, please visit:
www.orrick.com
The Big Data Report
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4
$4.9 Billion Invested Across 523 Big Data Deals Since ’08As evidenced by financing and deal activity, Big Data is gaining steam. 2012 saw 19.5% more deals
YoY than 2011. Funding actually dipped 6.8% in 2012 as 2011 was helped by several large big data
financings to the likes of Oslsoft, Mu Sigma and Opera Solutions.
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5
SV Angel Leads the Pack with Most Big Data InvestmentsSequoia Capital and data-oriented venture firm, IA Ventures, round out the top 3 for most active
venture firms into big data companies. The twenty most active firms have all made 6 or more
investments into big data firms.
Investors Unique Co Investments
SV Angel 14
Sequoia Capital 13
IA Ventures 13
New Enterprise Associates 12
First Round Capital 10
MDV-Mohr Davidow Ventures 9
Andreessen Horowitz 9
Khosla Ventures 8
Battery Ventures 8
Benchmark Capital 8
Lightspeed Venture Partners 7
True Ventures 7
Redpoint Ventures 7
Intel Capital 7
In-Q-Tel 7
Crosslink Capital 7
Accel Partners 7
Greylock Partners 7
SoftTech VC 6
Kleiner Perkins Caufield & Byers 6
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6
Not Surprisingly, Cali Dominates. NY Comes in Second.Like tech investing in general, Cali and NY take the top 2 spots with Cali the clear leader. Cali sees
the most deals and dollars to Big Data infrastructure while NY is more focused on Big Data
applications. Mass rounds out the top 3. Indiana buoyed by ExactTarget.
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7
The UK and Canada are Top Int’l Markets for Big DataOn both deals and funding, the UK and Canada lead international markets for Big Data. In a
surprise, Belgium cracks the top 3 for Big Data transactions and for funding.
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8
Big Data Analytics Gains on Deals and DollarsWhile Big Data Infrastructure saw the most funding in 2008, it has steadily lost share on both deals
and funding to Big Data Analytics over time as capabilities that help user make sense of data have
seen a steady uptick.
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9
Big Money to Big DataCloudera and Palantir, both oft-rumored IPO candidates, saw the two largest individual financing
rounds to big data companies in 2012. The top 10 financing rounds of the year hauled in a total of
$399 million representing almost 30% of the total investment to Big Data companies in 2012.
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10
The Big Data Opportunity Remains Nascent Funding by stage of company demonstrates that early stage investment (seed, angel and Series A)
continues to be significant as the opportunities and markets that Big Data can impact remain diverse
and largely untapped. (see page 14 for some examples)
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11
5 Year Median Deal Size at $5.5M and Average at $9.8MAlthough later stage deals have increased in size, the continued high levels of activity at the early
stages has kept average and median financing deal sizes generally within a tight range over the last
five years.
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12
Big Data Exit Activity Saw Acceleration in 2012QlikTech kicked off the Big Data IPOs in 2010 (before Big Data was en vogue). 2011 saw
Responsys go public and 2012 saw the Big Data IPOs of Splunk, Proofpoint and ExactTarget.
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13
IBM is the Most Active Acquirer of Big Data CompaniesWhile IBM leads by a significant margin, Oracle has also done a couple of deals in the Big Data
space and numerous players have done one acquisition in the world of Big Data.
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14
The Diversity of Big DataFrom exploration of ocean data to waste management logistics to digital health, big data applications
are attacking a wide variety of problems.
Marinexplore is a big data collaboration platform for searching,
analyzing and collaborating with ocean data. Data is organized
into computationally efficient storage, making it easy to explore,
access and download ocean data from different devices and
data sources.
DNAnexus has created a DNA data management and analysis
platform that provides instant online genomics data centers for
researchers and sequencing service providers alike.
ClickFox offers a cross channel solution capable of aggregating
data from all customer touch points and from other limited
analytics sources, such as speech analytics, web analytics,
quality monitoring, agent scoring, workforce optimization and
beyond.
Enevo provides smart sensor technology and big data to
improve the logistics of the waste management industry.
iMapData helps government and commercial organizations
quickly make intelligent, data-driven decisions. Using
iMapData's web-based applications, customers can correlate
information with the company's library of cleaned and regularly
updated data to clarify complex scenarios and reach actionable
conclusions.
Sawbuck offers a mobile app, HomeSnap, that allows users to
snap a picture of any home in the U.S. and then uses
algorithms to identify each home and provide consumers with
detailed information including tax records, MLS data, school
information, attendance zones, Census demographics,
neighborhood information, lot boundaries, and geolocation data.
HealthTap is an Expert Health Companion that tailors
information to each of its unique users based on their individual
health characteristics. The resource combines expert input from
physicians, together with community insights and data from its
proprietary medical knowledge base to help people make better
health decisions.