The key questions…

Where is the homeland security market going?

What are the problems facing customers?

Where are opportunities for Rapiscan?

One way to answer these questions:

Where are venture capital firms investing in homeland security?

We analyzed two sets of investments …

Investments in Security Tech

by Non-Specialist VC’s

Investments by a “Specialist” VC –

In-Q-Tel

In-Q-Tel: a different kind of VC fund

“ We decided to use our limited dollars to leverage technology developed elsewhere … CIA identifies pressing problems, and In-Q-Tel provides the technology to address them. The In-Q-Tel alliance has put the Agency back at the leading edge of technology ” Former CIA director George Tenet

Private corporation with charter to support US intelligence

Executive team from private industry

Co-invests with traditional VC firms in early stage firms

1 2 3

In-Q-Tel's portfolio: A snapshot of technologies intelligence community and private sector think are critical for homeland security

First, we looked at 35 security tech deals by “non-specialist” VCs from October to December 2013…

Source: Global Security Finance

35%

17%17%

17%

14%

EnterpriseNetwork

Security

33 Software Companies

Secure Collaboration / File SharingMobile

Network Security

Data Analytics

Other: Digital Asset Protection, Password Mgmt. Online Security Alerts

One Hardware

Mfr

One Service

Company

35 Transactions

15

7

77

15

Explosives, Nuclear, Chem / Bio Threat Detection

Imaging, Video Analytics

0 0

“Non-Specialist” VC investments are…

Software oriented

Focused on hacking and fraud solutions

Making “hot” technologies – Big Data, Collaboration, Online Video, Mobile

Payments – more secure

Now let’s look at IQT’s portfolio

54%

37%

9%

89 Companies

in Data Analysis and Security (“Analytics and Infrastructure”)

48

Deployability, Communication Security, Chem Bio Threat Detection (“Field Deployable Tech”)

33

Securing Mobile Devices, Apps, Networks (“Mobility”)

8

22%

18%17%

11%

89 Compani

es

Secure Collaboration and Communication

20

Cyber Security /Mobility

10

Data Management

15

Visualization, Mapping, Trend and Insight Discovery

Data Analytics16

Improved Batteries,

Energy Efficiency

22%

18%17%

18%

15%

11%9%

89 Compani

es

Secure Collaboration and Communication

20

Materials and Power8

Cyber Security /Mobility

10

Enhanced Surveillance and Video Analytics

Video and Imaging

13

Threat Detection

16

Data Management

15

Visualization, Mapping, Trend and Insight Discovery

Data Analytics16

Chem-Bio Related8

IQT portfolio – some observations

Secure communication and collaborationAbility for “good guys” to work together hugely important

Energy Efficiency Threat Detection Homeland security solutions have to work everywhere, including areas where traditional power infrastructure does not go

Data analytics Making sense of multiple streams of data key to combating threats

“Bio-tech” Chem / bio threat detection, mitigation is important future requirement

“Advanced Surveillance” Higher resolution and software assisted video and imaging

Thanks!

agoldsmith@rapiscansystems.com

@agoldsmith1