rutberg, venture capital in mobile - 1h12 update
TRANSCRIPT
VENTURE CAPITAL IN MOBILE
1H12 Update
Rajeev ChandManaging DirectorHead of Research
August 15, 2012
1
VC in Mobile—$3.9 Billion in 1H12
Source: Rutberg & CompanyNote: Excludes debt financings for venture-backed companies
Amount ($B)
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 1H11 1H12
Carrier
Technology
VC Investments in MobileGlobal, 2001-1H12
$6.3
$4.5
$2.1
$3.6
$5.1
$6.4
$5.4
$4.0
$2.6
$3.1
$4.9
$3.9
$3.0
2
VC in Mobile—46% of Overall VC
Percent of Overall VC
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H12
Mobile VC as Percentage of Overall Tech VC(1)
2001-1H12
39.1%
29.2%
16.9%17.4%
27.5%28.9%
27.1%25.6%
17.8%17.8%
12.9%
Source: Rutberg & Company(1) Overall tech VC based NVCA data (includes computer and peripheral, IT service, networking and equipment, semiconductor, and software sectors; excludes carrier sector)
46.3%
3
VC in Mobile—4th Largest Tech R&D “Organization”
Source: Rutberg & Company(1) Public companies’ R&D expenditures as reported for last six month period.
Mobile VC Investments vs. Tech Companies’ R&D Expenditures(1)
1H12
Amount ($B)
0.0
1.0
2.0
3.0
4.0
5.0
Mic
roso
ft
Inte
l
Sa
msu
ng
Mobile
VC
Nokia
IBM
Cis
co
Ora
cle
Ericss
on
Canon
Qualc
om
m
HP
Ap
ple
AL
U
SA
P
ST
Mic
ro
EM
C
FU
JIF
ILM
4
VC in Mobile—$1B in Consumer Apps
Source: Rutberg & Company
Mobile VC Investments by SectorGlobal, 1H12
Infrastructure$1.3B
Application$1.2B
Device$0.7B
Carrier$0.4B
Semiconductor$0.3B
1H2012 = $3.9 billion
Enterprise $653MM
Media $426MM
Telecom $235MM
Consumer $1,009MM
Enterprise $176MM
Telecom $4MM
CE Device $573MM
Component $116MM
VC in Mobile—By Sector over Time
Source: Rutberg & Company
Percent of Mobile VC Dollars by Sector over TimeGlobal, 2005-1H12
% Total
0%
10%
20%
30%
2005 2006 2007 2008 2009 2010 2011 1H12
Consumer Application
% Total
0%
5%
10%
15%
20%
2005 2006 2007 2008 2009 2010 2011 1H12
Media Infrastructure
% Total
0%
5%
10%
15%
20%
2005 2006 2007 2008 2009 2010 2011 1H12
Device
% Total
0%
2%
4%
6%
8%
10%
2005 2006 2007 2008 2009 2010 2011 1H12
Telecom Application
% Total
0%
10%
20%
30%
2005 2006 2007 2008 2009 2010 2011 1H12
Telecom Infrastructure
% Total
0%
10%
20%
30%
40%
2005 2006 2007 2008 2009 2010 2011 1H12
Carrier
% Total
0%
2%
4%
6%
8%
2005 2006 2007 2008 2009 2010 2011 1H12
Enterprise Application
% Total
0%
5%
10%
15%
20%
2005 2006 2007 2008 2009 2010 2011 1H12
% Total
0%
5%
10%
15%
20%
2005 2006 2007 2008 2009 2010 2011 1H12
Semiconductor
Enterprise Infrastructure
5
VC in Mobile—1H12 Cluster Map
Video$202MM
Consumer Apps$1B
Commerce andPayments$526MM
Enterprise$609MM
Advertising$246MM
mHealth$129MM
Device$636MM
Source: Rutberg & Company
6
7
VC in Mobile—2012YTD Private Company Metrics (Selected)
Source: Rutberg & Company, company press releases and publicly disclosed statements
$6 billion in run rate payments, 2m merchants
100m rewards/month,50% re-engagement
40m users, 70,000 stations
93.5 billion monthly impressions, +251% YoY
1 billion downloads, 200m MAUs
20m users,+100% in 6 months
1.3 billion messages per day, +30% in 5 months
34m users, 1.4m premium
18m registered users,+80% in 6 months
13m users reading200m stories
per month
70m users,1m per week
45m users in 18 months
15m active users,4m pay subscribers
600% YoY growth in enterprise customers
400m downloads, 115m MAUs
8
VC in Mobile—61% of Deals are $5MM or Less
Source: Rutberg & Company(1) Excludes deals where amount was not disclosed
% of Deals
VC in Mobile by Round Size(1)
2005-1H12
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2006 2007 2008 2009 2010 2011 1H12
>$20MM
$10-$20MM
$5-$10MM
<=$5MM
Selected Early Stage Investments1H12
(Acquired by Facebook)
(Acquired by Autodesk)
9
VC in Mobile—Largest Investments
Source: Rutberg & Company(1) Represents companies with multiple announcements in 1H12; date is listed as of the most recent announcement, and amounts are aggregated for the half-year
Top 25 VC Investments in Mobile1H12
Company
Xiaomi Tech
Sistema Shyam
Sonos
Lianlian Pay
Linkem
Quantenna
Evernote
Skybox Imaging
LifeStreet Media
AnchorFree
SecureKey(1)
Foursquare
SoundCloud
SmartDrive Systems
Row 44
Ddmap.com
MobileIron
Path
Tango
Komli Media
Viddy(1)
Boku
SpiderCloud
Magnum(1)
Amount($MM)
216.0
158.0
135.0
125.0
90.3
79.0
70.0
70.0
66.0
52.0
50.2
50.0
50.0
50.0
47.0
45.0
40.0
40.0
40.0
40.0
39.0
36.4
35.0
35.0
32.8
Location
Beijing, China
Gurgaon, India
Santa Barbara, CA
Hangzhou, China
Rome, Italy
Fremont, CA
Mountain View, CA
Mountain View, CA
San Carlos, CA
Mountain View, CA
Toronto, Canada
New York, NY
San Francisco, CA
Berlin, Germany
San Diego, CA
Westlake Village, CA
Shanghai, China
Sunnyvale, CA
San Francisco, CA
Palo Alto, CA
Mumbai, India
Venice, CA
San Francisco, CA
San Jose, CA
Milpitas, CA
Most Recent Date
6/28/2012
1/12/2012
6/19/2012
1/18/2012
5/21/2012
4/17/2012
5/3/2012
4/18/2012
5/3/2012
5/22/2012
5/18/2012
3/1/2012
4/9/2012
1/2/2012
6/19/2012
6/12/2012
6/22/2012
5/30/2012
4/13/2012
4/19/2012
6/12/2012
5/14/2012
3/15/2012
4/6/2012
6/19/2012
Subsector
Handset
Network operator
Wireless home music system
Mobile payment
Wireless broadband
802.11n semiconductor
Notes application
Satellite imagery
Mobile advertising
WiFi security
Mobile payments security
LBS application
Photo sharing
Music application
Fleet management
In-flight service
Mobile map
Mobile device management
Social network
Video calling
Mobile advertising
Social video app
Mobile payments
Indoor wireless connectivity
Wireless video broadcast
Sector
Device
Carrier
Device
Carrier
Carrier
Semiconductor
Application
Infrastructure
Infrastructure
Application
Infrastructure
Application
Application
Application
Infrastructure
Carrier
Application
Infrastructure
Application
Application
Infrastructure
Application
Application
Infrastructure
Semiconductor
Rank
1
2
3
4
5
6
7
7
9
10
11
12
12
12
15
16
17
17
17
17
21
22
23
23
25
Thank You
Rutberg & Company ResearchContact Information
Rajeev ChandManaging DirectorHead of [email protected]
Nick MayberrySenior Equity Research [email protected]
Kyle SprakerEquity Data [email protected]
Rutberg & Company—Annual Events
October 21-23, 2012
Terranea Resort
Rancho Palos Verdes, California
Wireless Influencers
RANCHO PALOS VERDES
June 18-19, 2012
Westin Market Street
San Francisco, California
Future:Mobile
SAN FRANCISCO
April 16-18, 2013
Claridge’s Hotel
London, England
Rutberg Summit: London
LONDON
Rutberg & Company—Investment Banking
Barry A. Newman
Senior Advisor
Office: (415) 371-1186
351 California Street, Suite 1110
San Francisco, CA 94104
Telephone: (415) 371-1186
800 Boylston Street, 16th Floor
Boston, MA 02199
Telephone: (617) 262-6694
SAN FRANCISCO BOSTON
Robert C. Harris
Vice Chairman,
Investment Banking
Office: (415) 371-1186
Joseph S. Sanborn
Managing Director,
Head of M&A
Office: (617) 262-6694
Bryan B. Rutberg
Chief Executive Officer
Office: (415) 371-1186