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VENTURE CAPITAL IN MOBILE 2012 Review Rajeev Chand Managing Director Head of Research Nick Mayberry Senior Research Associate

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Page 1: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

VENTURE CAPITAL IN MOBILE

2012 Review

Rajeev ChandManaging DirectorHead of Research

Nick MayberrySenior Research Associate

Page 2: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

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

Page 3: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

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

Page 4: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

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

Page 5: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

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%

Page 6: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

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

Sa

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Inte

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Mic

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Go

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No

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IBM

Cis

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Hitach

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Ora

cle

Ca

non

Qu

alc

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m

Hu

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ei

Ap

ple

HP

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Page 7: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

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

Page 8: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

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

Page 9: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

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

Page 10: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

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

Instagram

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

Page 11: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

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

Page 12: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

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

Page 13: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

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

Page 14: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

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

Page 15: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

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

Instagram

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

Page 16: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

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

Page 17: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

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)

Page 18: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

Thank You

Rutberg & Company ResearchContact Information

Rajeev ChandManaging Director,

Head of Research

[email protected]

Nick MayberrySenior Research Associate

[email protected]

Kyle SprakerResearch Data Associate

[email protected]

Page 19: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

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

Wireless Influencers

RANCHO PALOS VERDES

Page 20: ENTURE CAPITAL IN MOBILE - assets.fiercemarkets.netassets.fiercemarkets.net/public/sites/wireless/2012review.pdf · 2012: Increase in Consumer Apps and B2B Infrastructure Source:

Rutberg & Company—Investment Banking

Barry A. NewmanManaging Partner

[email protected]

351 California Street, Suite 1110San Francisco, CA 94104

Telephone: (415) 371-1186

800 Boylston Street, 16th FloorBoston, MA 02199

Telephone: (617) 262-6694

SAN FRANCISCO BOSTON

Robert C. HarrisVice Chairman,

Investment Banking

[email protected]

Joseph S. SanbornManaging Director,

Head of M&A

[email protected]

Bryan B. RutbergChief Executive Officer

[email protected]