Post on 30-Jul-2020
Venture Investments in IoT
PAVEL CHERKASHIN
Investment Fund & Entrepreneurs Hub
• Early-stage venture capital ~ $100M under management (and growing)
• HQ in San Francisco, CA
• Investment stages: product prototype to go-to-market
• Key focus areas:• Artificial Intelligence / Machine Learning
• Transportation (self-driving vehicles)
• Financial services
• Internet of Things
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HACK TEMPLECommunity Project:
• Hub for technology startups• Mission: Provide international
startups equal access to networking, knowledge and resources of Silicon Valley
• Connect entrepreneurs with global corporations for free flow of ideas and business opportunities
Selected Portfolio Companies (IoT)
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Security chips for IoT
Wearable tech with AIAI for building storylines
Analytics for retail
3D vision for self-driving cars
Autonomous fork-liftsGrowing diamonds
Satellite imagery for agriculture
CON
SUM
ERCO
RPORATE
SOFTWARE
HARDWARE
Our Dream Investments in IoT
• Communications for IoT era• Reliable point-to-multipoint radio (beyond 5G, >1Gbps,
>10Ghz)
• Affordable components for self-driving vehicles• Sensors, 3D mapping, electric power and storage,
navigation, smart city
• Decision-support systems (AI)• From consumer recommendations to enterprise
management
• New computing systems• Optical, quantum computing, grid and distributed
• Space technology• Anything that can be thrown to orbit
• Cyborg tech• Cognitive tech, bioelectronics, implantable chips
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Contact Information
Connect and share:
http://gva.capital
pavel@gva.capitalhttp://linkedin.com/in/cherkashin
Twitter: @p_cherkashin
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Know of any projects / people / inventions in these segments?
M&A Across IoT Landscape
M&A activity in IoT has been robust over last 24 months as multiple
constituencies have sought to improve their market position
Semi
Consolidation
IoT ConnectivitySecurity
Connected Car &
Telematics
IoT / Wireless
Chipsets
IoT PaaS
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/(IoT Business)
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Observations
Tracking the
broader tech
market, IoT sector
has been active
Diverse group of
participants with
unique
perspectives and
capabilities
actively seeking to
improve position
Private equity also
participating and
building and
buying scaled
assets
Page 0
Source: 451 Research as of 12/8/16
(1) Represents Belden’s unsolicited offer announced 11/11/16
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/(1)
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/Identity
Management
Business
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Leading IoT and Wireless Research
Matt Ramsay, Sr. Analyst
● Application-specific semis in wireless, IoT
and data centers
● Industry experience from AMD and Sun
Microsystems
● Selected by Institutional Investor
Magazine as Rising Star in 2015
Mike Walkley, Sr. Analyst
● Internet of Things/Connectivity Tech
● 15+ years experience, previously at RBC
Capital Markets, Raymond James
● Longest tenured coverage of IoT sector on
Wall Street, frequent sought out as
speaker for IoT industry events
Coverage Universe
Page 1
Canaccord Genuity’s tech research team covers ~300 companies globally, including more than 30 leading
IoT/Wireless companies
Money MattersJames Brehm
James Turino Mike Walkley Mike Lenoce
Michael Crawford Fred Thiel Pavel Cherkashin
Carl Ford
$0.6 $0.8 $1.1 $1.2 $1.4 $1.0
$39.9
28
34
26
4136
80
127
0
40
80
120
160
$-
$10.0
$20.0
$30.0
$40.0
2010 2011 2012 2013 2014 2015 2016Transaction Value Deal Volume ($bn)
Deal Volume & Total Disclosed Value ($bn)
M&A Activity• Notable 2016 deals:
ARM Holdings / SoftBank Group: $30.4bn Fleetmatics Group / Verizon Communications: $2.2bn Sensus / Xylem: $1.7bn Jasper Technologies / Cisco Systems: $1.4bn
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$-
$500.0
$1,000.0
$1,500.0
$2,000.0
$2,500.0
2010 2011 2012 2013 2014 2015 2016
Transaction Value Av. Transaction Value
• SIGFOX raised $115m in 2015 and $160m in 2016
1822
16
34 32
93
137
0
40
80
120
160
2010 2011 2012 2013 2014 2015 2016
Deal Volume per Year Total Transaction Value* ($m)
Private Placement Activity
* Less than 10% of undisclosed transaction values
• Infineon raised $935m in debt financing and NavInfo raised $520m in 2016
• Mobileye raised $400m in 2013
2. Transmit 3. Manage 4. Analyze1. Capture
Product Embedded Hardware and Sensors
Capture, track, monitor and temporarily store target data until eventual retrieval
Network Infrastructure and Connectivity
Transmit target data to and from product and/or device to external environment for storage and analytics
Data Collection, Storage and Middleware
Manage incoming target data through computing and storage capabilities, as well as providing a platform for interoperability
Data Analytics, Control and Automation
Analyze target data to control, optimize and/or automate processes
IoT Va l u e C h a i n
©QAdvisors LLC 2017 All rights reserved.
*Based on data from Capital IQ and public sources. Companies were segmented by Q Advisors according to their primary functions as of February 2017.
Manage.Data Collection, Storage &Middleware
Analyze.Data Analytics, Control &Automation
IoT T R A N S A C T I O N H EAT M A P
Capture.Sensor-Embedded Products, Machines & Hardware
Transmit.Network Infrastructure &Connectivity
# of Deals Avg. $ Deal Size(EV)1
Capture 31 $4.1 billion
Transmit 32 $2.1 billion
Manage 32 $5.5 billion
Analyze 35 $0.4 billion
(1) Excludes 53 out of 130 total transactions with undisclosed data
Mergers and Acquisitions 2014 – YTD 2017
0
5
10
15
20
25
30
35
40
$0.0 $30.0 $60.0billions
Nu
mb
er
of
Tran
sact
ion
s
Aggregate Transaction Value
Financings (VC and PE) 2014 – YTD 2017
warm
cold warm
hot
billions
0
20
40
60
80
100
120
140
$0.0 $0.5 $1.0 $1.5 $2.0 $2.5
Nu
mb
er
of
Ro
un
ds
Aggregate Transaction Value
IoT Value Chain
# of Deals Avg. $ Round Size (Capital
Invested)1
Capture 61 $58.0 million
Transmit 31 $28.0 million
Manage 68 $64.0 million
Analyze 98 $92.0 million
(1) Excludes 16 out of 258 total transactions with undisclosed data
50
40
35
30
25
20
15
10
5
0
$0.0 $45.0 $90.0 $0.0 $2.0 $4.0
120
105
90
75
60
45
30
15
0
©QAdvisors LLC 2017 All rights reserved.
Living in the Days of Unicorns154
0
20
40
60
80
100
120
140
160
180
1 2 3 4
Series1
Series2
# of Cos
$Bs Invested
1B+ <10B <40B >40B
.5 $Trillion Invested
Questions
• Is IoT an Unlimited Market?
• What Pressures are on IoT Companies Today?
• What trends do Unicorns represent in IoT?
• Predictions for the future. Exits and Opps?