enture capital in mobile -...
TRANSCRIPT
VENTURE CAPITAL IN MOBILE
2012 Review
Rajeev ChandManaging DirectorHead of Research
Nick MayberrySenior Research Associate
1
2012: $6.85B in 990 Mobile VC Deals
Source: Rutberg & Company
Amount ($B)
0
100
200
300
400
500
600
700
800
900
1,000
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Amount
Number
VC Investments in MobileGlobal, 2001-2012
Number
2
2Q12 Marked Peak of Mobile VC by Dollar Amount
Source: Rutberg & Company
Amount ($B)
0
50
100
150
200
250
300
0.0
0.5
1.0
1.5
2.0
2.5
3.0
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
Amount
Number
VC Investments in Mobile by QuarterGlobal, 1Q09-4Q12
Number
3
2012: 62% of Deals <$5M, 3Q12-4Q12 Decline in $20M+
Source: Rutberg & Company
Amount ($B)
0.0
0.5
1.0
1.5
2.0
2.5
1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12
$50M+
$20M-$49M
$10M-$19M
$5M-$9M
<$5M
Dollar Amount by Deal SizeGlobal, 1Q09-4Q12
Number
0
50
100
150
200
250
1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12
$50M+
$20M-$49M
$10M-$19M
$5M-$9M
<$5M
Number of Deals by Deal SizeGlobal, 1Q09-4Q12
4
2012: 41% of Overall Tech VC
Percent of Overall VC
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Mobile VC as Percentage of Overall Tech VC(1)
United States, 2001-2012
39.1%
29.2%
16.9%17.4%
27.5%28.9%
27.1%25.6%
17.8%17.8%
12.9%
Source: Rutberg & Company(1) Overall tech VC based U.S. NVCA data (includes computer and peripheral, IT service, networking and equipment, semiconductor, and software sectors; excludes carrier sector)
41.4%
5
VC in Mobile: 4th Largest Tech R&D “Organization”
Source: Rutberg & Company, Capital IQ(1) Public companies’ R&D expenditures as reported for last twelve month period.
Mobile VC Investments vs. Tech Companies’ R&D Expenditures(1)
2012
Amount ($B)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
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Ca
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Hu
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Ap
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HP
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6
2012: $1.8B in Mobile Consumer Apps
Source: Rutberg & Company
Mobile VC Investments by SectorGlobal, 2012
Infrastructure$2.9B
Application$2.2B
Device$0.9B
Carrier$0.3B
Semiconductor$0.5B
2012 = $6.85 billion
Enterprise $1,406MM
Media $746MM
Telecom $704MM
Consumer $1,766MM
Enterprise $402MM
Telecom $16MM
CE Device $704MM
Component $240MM
2012: Increase in Consumer Apps and B2B Infrastructure
Source: Rutberg & Company
Percent of Mobile VC Dollars by Sector over TimeGlobal, 2005-2012
% Total
0%
10%
20%
30%
2005 2006 2007 2008 2009 2010 2011 2012
Consumer Application
% Total
0%
5%
10%
15%
20%
2005 2006 2007 2008 2009 2010 2011 2012
Media Infrastructure
% Total
0%
5%
10%
15%
20%
2005 2006 2007 2008 2009 2010 2011 2012
Device
% Total
0%
2%
4%
6%
8%
10%
2005 2006 2007 2008 2009 2010 2011 2012
Telecom Application
% Total
0%
10%
20%
30%
2005 2006 2007 2008 2009 2010 2011 2012
Telecom Infrastructure
% Total
0%
10%
20%
30%
40%
2005 2006 2007 2008 2009 2010 2011 2012
Carrier
% Total
0%
2%
4%
6%
8%
2005 2006 2007 2008 2009 2010 2011 2012
Enterprise Application
% Total
0%
5%
10%
15%
20%
25%
2005 2006 2007 2008 2009 2010 2011 2012
% Total
0%
5%
10%
15%
20%
2005 2006 2007 2008 2009 2010 2011 2012
Semiconductor
Enterprise Infrastructure
7
2012: Investments Cluster Map
Source: Rutberg & Company
Consumer Apps$1.8B
Advertising$460MM
Video$405MM
Device$943MM
mHealth
$347MM
B2B Infrastructure
$1.4B
Commerce andPayments
$1.1B
9
Mobile Consumer Applications: $1.8B in 2012, +25% YoY
Source: Rutberg & Company
VC Amount ($B)
0
50
100
150
200
250
300
350
400
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
2005 2006 2007 2008 2009 2010 2011 2012
Amount
Number
Number
Mobile Consumer ApplicationsGlobal, 2005-2012
Selected Investments2012
Company
Alarm.com
Evernote
AnchorFree
SoundCloud
Ddmap.com
Momo
Tango
Viddy
Quikr
Amount($MM)
136.0
91.0
52.0
50.0
50.0
40.0
40.0
40.0
36.0
32.0
Subsector
Wireless home security application
Notes-taking application
WiFi security
Photo sharing application
Social music platform
Local application
Location-based dating in China
Mobile video communication application
Mobile social video app
Community classifieds
10
Enterprise Mobile IT: $610MM in 2012, +22% YoY
Source: Rutberg & Company(1) Excludes enterprise networking and vertical-specific solutions such as payments and healthcare
VC Amount ($B)
0
20
40
60
80
100
120
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2005 2006 2007 2008 2009 2010 2011 2012
Amount
Number
Number
Enterprise Mobile IT(1)
Global, 2005-2012
Selected Investments2012
Company
SmartDrive
Magnet Systems
MobileIron
ServiceMax
Netbiscuits
Aryaka
Mocana
WEMS
Apigee
CloudOn
Amount($MM)
47.0
47.0
40.0
27.0
27.0
25.0
25.0
20.8
20.0
16.0
Subsector
Fleet management
Enterprise sales app
Mobile enterprise IT
Fieldforce/salesforceapplication
HTML5 development
Cloud-based WAN development
Enterprise mobile security
Wireless energy management
API management platform
Workplace productivity
11
Mobile Commerce & Payments: $1.1B in 2012, +83% YoY
Source: Rutberg & Company(1) Excludes application store commerce
VC Amount ($B)
0
20
40
60
80
100
120
140
160
180
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2005 2006 2007 2008 2009 2010 2011 2012
Amount
Number
Number
Mobile Commerce & Payments(1)
Global, 2005-2012
Selected Investments2012
Company
Square
Lianlian Pay
Boku
BraintreePayments
Quikr
iZettle
SecureKeyTechnologies
LightSpeedRetail
Jumio
99Bill
Amount($MM)
200.0
125.0
35.0
35.0
32.0
31.6
30.0
30.0
28.8
27.0
Subsector
Mobile payment and commerce
Micropayment service in China
Carrier mobile payment
Mobile and online payment platform
Community classifieds
Merchant acquisition
Mobile and online payment security
Retail and Web store POS
Payment identity scanning
Mobile payment in China
12
mHealth: $347MM in 2012, -3% YoY
Source: Rutberg & Company
VC Amount ($B)
0
10
20
30
40
50
60
70
80
0.0
0.1
0.2
0.3
0.4
2005 2006 2007 2008 2009 2010 2011 2012
Amount
Number
Number
mHealthGlobal, 2005-2012
Selected Investments2012
Company
Telcare
AwarePoint
Sensimed
Netpulse
OrthoSensor
EarlySense
PatientSafeSolutions
Modernizing Medicine
Fitbit
MapMyFitness
Amount($MM)
25.5
18.0
17.9
15.6
15.0
15.0
13.3
12.0
12.0
12.0
Subsector
Wireless glucose meter
Healthcare asset tracking
Connected contact lens
Fitness center media
Orthopedic sensor
Patient supervision system
Patient organization and safety
Mobile EMR
Fitness tracking device
Fitness application
13
Mobile Marketing & Advertising: $460MM in 2012, -21% YoY
Source: Rutberg & Company
VC Amount ($B)
0
10
20
30
40
50
60
70
80
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2005 2006 2007 2008 2009 2010 2011 2012
Amount
Number
Number
Mobile Marketing & AdvertisingGlobal, 2005-2012
Selected Investments2012
Company
LifeStreet Media
Komli Media
Jumptap
Flurry
I-Media
Tinkoff Digital
NEXAGE
Trademob
Videoplaza
MoPub
Adelphic Mobile
Amount($MM)
66.0
39.0
27.5
25.0
20.0
20.0
15.0
15.0
12.0
12.0
12.0
Subsector
In-app advertising
Asia/Pacific advertising
Mobile ad network
Mobile app analytics and monetization
Mobile ad network
Russian mobile and online advertising
Mobile ad exchange
Mobile app marketing
Mobile video advertising
Mobile ad exchange
Mobile ad targeting
14
2012: Largest Mobile VC Investments
Source: Rutberg & Company(1) Represents companies with multiple announcements in 2012; date is listed as of the most recent announcement, and amounts are aggregated for the half-year
Top 20 VC Investments in Mobile2012
Company
Xiaomi
Square
Sistema Shyam
Alarm.com
Sonos
Lianlian Pay
Continental Towers
Evernote(1)
Linkem
Quantenna
Skybox Imaging
LifeStreet Media
Affirmed Networks
AnchorFree
SoundCloud
SmartDrive
Row 44(1)
AOptix
Avalanche Technology(1)
Amount($MM)
216.0
200.0
158.0
136.0
135.0
125.0
120.0
91.0
90.3
79.0
70.0
66.0
52.0
52.0
50.0
50.0
47.0
45.0
42.0
41.5
Location
Beijing, China
San Francisco, CA
Gurgaon, India
Vienna, VA
Santa Barbara, CA
Hangzhou, China
Guatemala City, Guatemala
Mountain View, CA
Roma, Italy
Fremont, CA
Mountain View, CA
San Carlos, CA
Acton, MA
Mountain View, CA
San Francisco, CA
Berlin, Germany
San Diego, CA
Westlake Village, CA
Campbell, CA
Fremont, CA
Most Recent Date
6/28/2012
9/17/2012
1/12/2012
7/25/2012
6/19/2012
1/18/2012
7/16/2012
11/30/2012
5/21/2012
4/17/2012
4/18/2012
5/3/2012
11/12/2012
5/22/2012
4/9/2012
1/2/2012
6/19/2012
6/11/2012
8/23/2012
8/1/2012
Subsector
Handset
Mobile payment and commerce
Network operator
Wireless home security
Wireless home music system
Mobile payment
Telecom infrastructure
Notes-taking application
Wireless broadband
802.11n semiconductor
Satellite imagery
Mobile advertising
Virtualized software layer
WiFi security
Photo sharing application
Social music platform
Fleet management
In-flight entertainment
Wireless optical equipment
Low power memory
Sector
Device
Infrastructure
Carrier
Application
Device
Infrastructure
Infrastructure
Application
Carrier
Semiconductor
Infrastructure
Infrastructure
Infrastructure
Application
Application
Application
Infrastructure
Infrastructure
Infrastructure
Semiconductor
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
13
15
15
17
18
19
20
15
2012: Most Active Investors in Mobile
Source: Rutberg & Company(1) Includes family of related venture firms
Most Active VC Investors in Mobile2012
Firm
500 Startups
SV Angel
Qualcomm Ventures
DFJ(1)
Google Ventures
Sequoia Capital
CrunchFund
Intel Capital
Accel Partners
NEA
Andreessen Horowitz
Rank
1
2
3
4
5
6
7
7
9
10
10
Number
34
25
23
22
21
19
18
18
15
14
14
Investments (Announced)
955 Dreams, Ad Hoc Labs, AppStack, biNu, Bionic Panda, Chromatik, Cinemacraft, Cubie, Curious Hat, EmpregoLigado, eSpark, Gyft, Karma, Kickfolio, Lumatic, Monogram, Moveline, NetPlenish, Open Air Publishing, PeaTiX, Pixowl, PlanGrid, SendHub, Sightly, SpotHero, Tip or Skip, TouristEye, Translate Abroad, Trigger, Ubooly, Unipay, Vungle, WalletKit, WillCall
Bluebox, CardSpring, Exec, Highlight, ItsOn, Lift, M.dot, Open Air Publishing, OrderAhead, Oyster, Pair, PayDragon, Picturelife, Pinwheel, Plivo, Poshmark, Romotive, Silvercar, SmartThings, Spindle Labs, Spool, Trigger, Voxer, Vungle, WillCall
AirStrip, AliveCor, Avalanche Technology, Blippar, BlueStack, Capillary Technologies, Fiksu, IntelRa, Livescribe, Macheen, MightyText, Mobotap, Noom, OpenSignal, Plivo, Pontis, Tango, Telcare, Validity Sensors, Viddy, Videoplaza, Visage Mobile, Xiaomi
Avalanche Technology, BodyMedia, Enevate, Everything.me, Flurry, Karma, Komli Media, Koupon Media, Lemon, Macheen, Medialets, MoBeam, Mobile Travel, Mogreet, Netpulse, PeaTiX, Pickie, Retailigence, Retrofit, Signature, SpotHero, StrikeAd
Adelphic Mobile, AppStack, Apptentive, Bionic Panda, Crittercism, Desmos, Duo Security, Expect Labs, FitStar, Gyft, Kamcord, Kibits, LevelUp, Pocket, Pocket Change, Roqbot, Scan, SideCar, Stamped, TuneIn, Vungle
AirStrip, Avalanche Technology, Capillary Technologies, Clutch Mobile, Drawbridge, Duck Duck Moose, Instagram, July Systems, Karma, Meraki, MindSnacks, MobileIron, Onavo, Pontis, Quantenna, Romotive, Ruckus, Telcare, TuneIn
955 Dreams, Artillery, Betable, Branding Brand, Highlight, Kidaptive, OrderAhead, Pair, Picturelife, Romotive, Silvercar, Skybox, SmartThings, Snapguide, Stamped, Triposo, uBeam, Voxer
BridgeWave, CashStar, Crowdstar, FlatFrog, Impinj, Jelli, July Systems, Lilliputian, Mocana, Omek Interactive, Ozmo, Rancard, Sand 9, SecureKey, Speaktoit, Swrve, Validity Sensors, Voxer
Braintree, CardSpring, Dragonplay, Dropcam, Educreations, flaregames, Hailo, HotelTonight, LightSpeed Retail, MobileSpaces, MoPub, Phoenix Guild, Pontis, Prismatic, Ubiquisys
Aerohive, BenchPrep, Boku, Braintree, Edmodo, eeGeo, Koozoo, PatientKeeper, Payleven, Scopely, SmartDrive, SuVolta, Viddy, Vuclip
Artillery, Belly, Bluebox, Boku, Clover, Exec, ItsOn, Kamcord, Mixpanel, Pindrop, Plivo, QuickPay, Skout, uBeam
16
2012: Over 1 in 5 Deals with Strategic Investors
Source: Rutberg & Company(1) Only deals with disclosed investors have been included.(2) Includes limited partnership venture firms formed through strategic investors.
� During 2012, 22.9% of deals(1) involved at least one strategic investor(2), as compared to 22.2% in 2011 and 20.6% in 2010.
� Three most active strategic investors in 2012:
� Other active investors in 2012 (≥ 3 deals) span telecom, media, Internet, device, infrastructure, and financial sectors:
(18)(21)(23)
Thank You
Rutberg & Company ResearchContact Information
Rajeev ChandManaging Director,
Head of Research
Nick MayberrySenior Research Associate
Kyle SprakerResearch Data Associate
Rutberg & Company—Annual Forums
June 17-19, 2013Westin St. Francis HotelSan Francisco, California
Future:Mobile
SAN FRANCISCO
April 16-18, 2013Claridge’s HotelLondon, England
Rutberg Summit: London
LONDON
October 20-22, 2013Terranea Resort
Rancho Palos Verdes, California
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Telephone: (617) 262-6694
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Investment Banking
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Head of M&A
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