KBSP.VC - 2011

2011

kbs+p Ventures 2011 Annual Report

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Immediate access to quality deal flow (over 120 companies evaluated) led to investing in 7 early-stage companies

Building a venture arm inside an agency brought innovation and new opportunities to clients, and created key strategic relationships and revenue-creating opportunities for our portfolio

We’re excited about supporting our portfolio and finding new partners to work with in 2012

EXECUTIVE SUMMARY

Formed in Q1 2011, kbs+p Ventures established itself as a differentiated, strategic, value-added investor in marketing and advertising technology.

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2011

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Tight investment thesis centering on advertising and marketing technology

Noncompetitive to VCs (partners in relevant investments and companies)

Evolved the model of how agencies partner with technology

2011

kbs+p Ventures debuted in Q1 2011 as a differentiated, strategic value-added investor in marketing and advertising technology.

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Immediate access to quality deal flow

Relationships, advice and distribution valued by venture capitalists and entrepreneurs

Bridge between Madison Avenue, entrepreneurs, venture capitalists, and brands

2011

kbs+p Ventures resonated with venture capitalists, entrepreneurs, and agencies.

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Jan 2011

2011

We invested in 7 companies in B2B enterprise advertising and marketing technology.

Dec 2011

Marketing Technology

Advertising Technology

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We co-invested with premier Silicon Alley and Silicon Valley VCs.

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2011

We provided immediate value to our entrepreneurs.

Introductions to potential customers, partners, clients, creating immediate test cases and revenue opportunities

Strategy sessions with decision-makers throughout kbs+ to share ideas and get concrete feedback

Events to promote entrepreneurs and their big ideas, including the IAB / kbs+p Ventures Display Innovation Panel, the Silicon Valley Golf Invitational, the Ventures Holiday Salon and others

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2011

We brought innovation and new opportunities to clients.

Building a venture arm inside an agency reinforced kbs+p’s commitment and exposure to innovation

Insights about digital innovation and opportunities to work with emerging companies were shared with clients

Key strategic relationships and revenue-creating opportunities were created between portfolio companies and clients

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2011

The Fellows Program built a link between early-stage innovation and the agency.

18 Fellows from throughout the agency worked with Ventures part-time on investment due diligence through an application-based fellowship program

Talks and classes taught the Fellows about venture capital and early-stage entrepreneurship

Due diligence was more informed by bringing in subject-matter expert Fellows

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THE MARKET

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THE MARKET

THE MARKET

We evaluated over 120 quality potential investments.

ADTECH

BIG DATA

MOBILE

SOCIAL MEDIA

MARKETING TECH

SHAPES, SIZES AND OVERLAPS REPRESENTATIVE OF OVERALL DEALFLOW

CONSUMER INTERNET

DESIGNINFUSED

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THE MARKET

We invested in 7 B2B-focused companies centered on adtech and marketing tech.

ADTECH MARKETING TECH

SHAPES, SIZES AND OVERLAPS REPRESENTATIVE OF OVERALL DEALFLOW

MOBILE

CONSUMER INTERNETSOCIAL

MEDIA

BIG DATA

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THE MARKET

Deal flow centered on adtech and marketing tech, while the highest average raises were in big data and consumer web.

AVERAGE $ RAISE% OF DEALS. %s DO NOT SUM TO 100, AS SOME COMPANIES OVERLAP IN AREAS

ADTECH MARKETING TECH CONSUMER WEB SOCIALMEDIA MOBILE BIG DATA DESIGN

7%

13%13%

18%

23%23%

44%

$1.6 MM

% OF DEALS

$1.8 MM $2.0 MM $1.7 MM $1.9 MM $2.1 MM $500 KAVERAGERAISE

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THE MARKET

37% of prospects and 71% of investments originated with referrals from VCs and investors.

COLD CALLS & ANGELLIST

42%

REFERRALS FROM VCs, ANGELS,

ACCELERATORS37%

REFERRALS FROM AGENCY

13%

PROSPECTS

INVESTMENTS

RELATIONSHIP WITH KBS+P VENTURES

8%

RELATIONSHIP WITH KBS+P VENTURES

29%

REFERRALS FROM VCs, ANGELS,

ACCELERATORS71%

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THE MARKET

Seed stage was 57% of our inbound deal flow, but 71% of our investments were Series A.

SEED57%

SERIES A37%

PROSPECTS

INVESTMENTS

SERIES B, C8%

SEED29%

SERIES A71%

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THE PORTFOLIO

PORTFOLIO

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Jan 2011 - $1.0 MM Series A

Realtime intent engine. Captures, organizes, and makes actionable in realtime the intent arriving, existing, and created in the publisher’s domain.

What we love. First-party intent data is massively underutilized and unmonetized by publishers.

Notable clients. Brand-name publishers.

How you can use them. Publishers: install Yieldbot and sell realtime keyword advertising just like search.

More. yieldbot.com - @yieldbot

PORTFOLIO

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Feb 2011 - $1 MM Seed and Nov 2011 - $4.2 MM Series A

Provider of location-based intent data, allowing advertisers to purchase data to find the right audience at the right time, place, and intent.

What we love. It’s not just about location, but about intent.

Notable clients. Large QSR, Leading Retailer, Sesame Workshop, Paul Stuart

How you can use them. Purchase location data through an ad network to find and target your audience, or purchase data and media through PlaceIQ and their partner network.

More. placeiq.com - @placeiq

PORTFOLIO

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March 2011 - $2.7 MM Series A

Social DSP to buy and optimize ads across all social media platforms.

What we love. It’s not just about Facebook. Adaptly helps you optimize your advertising spend across all social media platforms by tapping into each native ad platform in their unique ways.

Notable clients. Leading advertising and PR agencies and notable brands.

How you can use them. Agencies and brands: optimize your social marketing spend using Adaptly.

More. adaptly.com - @adaptly

PORTFOLIO

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June 2011 - $6.0 MM Series A

CrowdTwist is a social loyalty and rewards platform that activates your audience wherever they are. CrowdTwist sits on top of a Brand’s ecosystem, tying together their consumers and identifying

their top advocates.

What we love. Creates a complete picture of customer loyalty by tying together social actions to purchase behavior with powerful, customizable platform for brands.

Notable clients. LiveNation, Sony, JC Penny, Zumiez

How you can use them. Agencies and brands: Crowdtwist’s platform can work with your CRM platform and help you complete the picture of your customers and fans.

PORTFOLIO

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July 2011 - $3 MM + Series A

Next-gen community management and event solution.

What we love. Up till now groups have been managed in disorganized silos, forcing members to manage multiple accounts. Kohort combines group management, communication, events, ticketing, and

dues capabilities into a single platform.

Notable clients. Top tech and venture capital groups, including New York Venture Community, Startup Weekend and Columbia Venture Community - among others.

How you can use them. Group and community organizers: use Kohort to manage your group and connect your community. 

More. kohort.com - @kohort

PORTFOLIO

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Nov 2011 – $1.5 MM Series A

Transparent audience data provider for advertisers.

What we love. Cross Pixel has relationships with more than 450 ecommerce and deep research sites, and provides powerful audience data at a level of transparency not available elsewhere.

Notable clients. Major publishers and advertisers.

How you can use them. Publishers: partner with Cross Pixel to provide your audience data. Advertisers: use Cross Pixel to find and target the appropriate audience for your campaign.

More. crosspixel.net - @alanpearlstein

PORTFOLIO

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Nov 2011 - $4.2 MM Series A

Social media measurement infrastructure.

What we love. Their focus on tying social media actions to business metrics by making them trackable and measurable at a level of granularity not previously possible

Notable clients. Topspin, StockTwits, Local Response

How you can use them. Application developers, social media marketers: awe.sm’s API allows you to track how your product’s social actions perform.

More. awe.sm - @awesm

PORTFOLIO

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2012

2012

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2012

Darren HermanPresident, kbs+p Ventures and Chief Digital Media Officer, kbs+pdherman@kbsp.vc@dherman76

Work with us.

Taylor DavidsonSenior Associate, kbs+p Venturestdavidson@kbsp.vc@tdavidson

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