Headwaters MB 2Q 2016 Mobile Market Update

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Mobile Market Update2Q 2016

Mobile Market Update

• Capital Markets – Mobile Software and Solutions companies performed in-line with the NASDAQ, and outperformed the S&P in 2Q 2016. Handsets, Wireless and Diversified Infrastructure, IoT / M2M and Mobile Marketing and Advertising companies continued to trail the broader market indices

• Trading Multiples – Mobile Software & Solutions Companies (1.9x LTM revenue median), along with Handsets companies (0.5x LTM revenue median) rose in 2Q 2016, whereas Wireless & Diversified Infrastructure (1.7x LTM revenue median) and Mobile Marketing & Advertising companies (2.0x LTM revenue multiple) declined, while IoT / M2M companies (1.1x LTM revenue) held steady

Page | 2

• M&A Activity – M&A activity slowed in 2Q 2016 with 81 deals, which amounts to the lowest volume since 2Q 2014. M&A aggregate transaction value increased sharply over the prior quarter and reached $10.4 billion. Notable transactions include Tencent’s$8.6 billion acquisition of an 84% stake in Supercell and Verizon’s $900 million acquisition of Telogis

• Investment Activity – Investment volume rose steadily and aggregate values rose sharply, with 249 investments and $14.6 billion in value for 2Q 2016. Notable recent investments include Chinese ridesharing company Didi Kuaidi’s $4.5 billion raise, and Uber Technologies’ $3.5 billion raise

Mobile Capital Markets Performance

Page | 3

Since 2013, Mobile Software and Solutions companies (+59.8%) have outperformed broader market indices (S&P 500 and NASDAQ) while Handsets (+8.1%), Wireless & Diversified Infrastructure (+13.2%), IoT / M2M (-10.6%), and Mobile Marketing & Advertising (-28.5%) companies have underperformed on the whole

_______Source: Capital IQ as of 6/30/16; refer to public comparables for constituents

(40.0%)

(20.0%)

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

NASDAQ: +55.6%

S&P 500: +43.5%

Mobile Software & Solutions: +59.8%

Mobile Marketing & Advertising: (28.5%)

Wireless & Diversified Infrastructure: +13.2%

IoT / M2M: (10.6%)

Handsets: +8.1%

Mobile Comparable Public Companies

Page | 4

Median:1.9x

Mobile Software & Solutions

_______Source: Capital IQ as of 6/30/16; companies arranged by descending enterprise value

2.1x

0.9x

2.7x

1.9x2.2x

1.5x 1.5x

8.8x

1.8x

0.9x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

LTM Revenue Multiple

2.9x

1.9x

0.7x

1.1x

0.7x0.8x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x


Median:1.1x

IoT / M2M


Mobile Comparable Public Companies (Cont.)

Page | 5

Median:1.7x

Wireless & Diversified Infrastructure


Mobile Marketing & Advertising

2.2x

3.3x

0.7x

2.6x

1.4x

0.5x

1.7x1.6x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

2.0x

0.2x

2.2x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x


Median:2.0x


Handsets


2.9x

0.6x

0.3x0.2x

1.3x

0.5x0.4x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x


Median:0.5x

Page | 6

Mobile Comparable Public Companies

Page | 7

_______Source: Capital IQ

Trading Metrics($ in millions, except per share data) Stock

Price 52-Week Price Range Market Enterprise EV / Revenue EV / EBITDA

Company Ticker 06/30/16 Low High Cap. Value LTM CY 2016E CY 2017E LTM CY 2016E CY 2017E


Amdocs Nasdaq:DOX $57.72 $50.06 $61.46 $8,814 $7,664 2.1x 2.0x 2.0x 11.2x 10.4x 10.2x

Convergys NYSE:CVG 25.00 20.57 28.54 2,418 2,504 0.9x 0.9x 0.8x 6.5x 6.5x 6.2x

Synchronoss Nasdaq:SNCR 31.86 20.33 49.53 1,397 1,568 2.7x 2.3x 2.0x 10.8x 6.8x 5.7x

CSG Nasdaq:CSGS 40.31 29.18 46.54 1,236 1,407 1.9x 1.9x 1.8x 9.0x 7.7x 7.5x

Xura Nasdaq:MESG 24.43 17.28 26.63 613 643 2.2x 1.9x 1.7x NM 8.1x 6.4x

Comtech Communications Nasdaq:CMTL 12.84 11.24 30.93 208 490 1.5x 0.8x NM 13.1x 8.0x NA

Spok Holdings (fka USA Mobility) Nasdaq:SPOK 19.17 15.26 19.31 395 283 1.5x NM NM 6.9x NA NA

Myriad SWX:MYRN 2.41 2.16 5.69 270 239 8.8x NM NM NM NA NA

CLX Communications OM:CLX 7.14 6.67 11.47 231 234 1.8x 1.7x 1.5x 26.9x 18.4x 15.2x

RedKnee TSX:RKN 1.43 1.02 4.03 157 175 0.9x 1.0x 0.8x 25.5x 10.3x 4.7x

High 8.8x 2.3x 2.0x 26.9x 18.4x 15.2x

Mean 2.4x 1.6x 1.5x 13.7x 9.5x 8.0x

Median 1.9x 1.8x 1.7x 11.0x 8.0x 6.4x

Low 0.9x 0.8x 0.8x 6.5x 6.5x 4.7x

IoT / M2M

Trimble Navigation Nasdaq:TRMB $24.36 $15.90 $27.79 $6,142 $6,643 2.9x 2.8x 2.6x 18.0x 14.5x 12.6x

CalAmp Nasdaq:CAMP 14.81 13.01 21.35 550 574 1.9x 1.6x 1.4x 13.9x 10.2x 8.4x

Sierra Wireless TSX:SW 16.86 10.45 26.96 536 449 0.7x 0.7x 0.6x 15.4x 11.1x 7.9x

Telit AIM:TCM 3.23 2.23 4.75 380 379 1.1x 1.0x 0.9x 13.7x 7.0x 5.8x

Digi Nasdaq:DGII 10.73 7.70 13.53 283 167 0.8x 0.8x NM 9.4x 8.4x NA

Novatel Nasdaq:MIFI 1.52 0.84 3.19 81 163 0.7x 0.7x 0.6x NM 18.1x 9.6x

High 2.9x 2.8x 2.6x 18.0x 18.1x 12.6x

Mean 1.4x 1.3x 1.2x 14.1x 11.6x 8.9x

Median 1.0x 0.9x 0.9x 13.9x 10.7x 8.4x

Low 0.7x 0.7x 0.6x 9.4x 7.0x 5.8x


Page | 8


Trading Metrics($ in millions, except per share data) Stock

Price 52-Week Price Range Market Enterprise EV / Revenue EV / EBITDA

Company Ticker 06/30/16 Low High Cap. Value LTM CY 2016E CY 2017E LTM CY 2016E CY 2017E


Cisco Nasdaq:CSCO $28.69 $22.46 $29.49 $144,531 $109,614 2.2x 2.2x 2.1x 7.6x 7.3x 7.0x

QUALCOMM Nasdaq:QCOM 53.57 42.24 66.05 79,047 74,579 3.3x 3.2x 3.2x 9.0x 8.3x 7.9x

Nokia HLSE:NOKIA 5.67 4.98 7.89 32,385 24,607 1.4x 0.9x 0.9x 9.9x 7.8x 6.5x

Ericsson OM:ERIC B 7.59 7.03 11.37 24,920 20,533 0.7x 0.7x 0.7x 4.6x 5.6x 5.0x

Motorola Solutions NYSE:MSI 65.97 56.40 76.83 11,609 14,659 2.6x 2.4x 2.4x 11.7x 9.4x 8.8x

Juniper Networks NYSE:JNPR 22.49 21.18 32.39 8,645 8,532 1.7x 1.8x 1.7x 7.8x 6.5x 6.2x

ZTE Corp SZSE:000063 2.16 1.97 3.38 9,000 8,531 0.5x 0.5x 0.5x 29.6x 7.6x 7.0x

Aerohive NYSE:HIVE 6.62 4.08 8.10 337 271 1.6x 1.4x 1.2x NM NA 28.4x

High 12.3x 12.0x 11.5x 29.6x 20.7x 28.4x

Mean 2.9x 2.8x 2.7x 12.8x 9.1x 10.7x

Median 1.7x 1.8x 1.7x 9.5x 7.7x 7.0x

Low 0.5x 0.5x 0.5x 4.6x 5.6x 5.0x

Mobile Marketing and Advertising

1000mercis ENXTPA:ALMIL 41.65 38.87 49.31 129 116 2.0x 1.7x 2.0x 8.8x 7.9x 7.1x

Sito Nasdaq:SITO 3.62 1.55 6.15 63 69 2.2x 2.1x 3.8x NM 30.9x 8.7x

Marchex Nasdaq:MCHX 3.18 3.05 5.14 131 24 0.2x 0.2x 0.2x NM 17.1x 3.6x

High 2.2x 2.1x 3.8x 8.8x 30.9x 8.7x

Mean 1.4x 1.3x 2.0x 8.8x 18.6x 6.5x

Median 2.0x 1.7x 2.0x 8.8x 17.1x 7.1x

Low 0.2x 0.2x 0.2x 8.8x 7.9x 3.6x

Handsets & Hardware

Apple Nasdaq:AAPL $118.30 $92.00 $134.54 $659,686 $682,166 2.9x 2.9x 2.7x 8.3x 8.2x 8.1x

Samsung KOSE:A005930 1,235.96 895.96 1,257.64 155,111 106,592 0.6x 0.6x 0.6x 2.5x 2.4x 2.4x

LG Electronics KOSE:A066570 46.75 34.09 57.33 7,615 14,073 0.3x 0.3x 0.3x 4.9x 4.4x 4.2x

Lenovo SEHK:992 0.60 0.58 1.42 6,687 8,149 0.2x 0.2x 0.2x 6.8x 5.4x 4.4x

BlackBerry TSX:BB 6.68 6.16 10.11 3,493 2,513 1.3x 1.5x 1.7x 8.4x 10.4x 6.3x

HTC TSEC:2498 3.21 1.25 4.23 2,656 1,346 0.5x 0.5x 0.4x NM NA NA

Coolpad SEHK:2369 0.19 0.14 0.35 812 675 0.4x 0.2x 0.2x NM 10.4x 8.9x

High 2.9x 2.9x 2.7x 8.4x 10.4x 8.9x

Mean 0.9x 0.9x 0.9x 6.2x 6.9x 5.7x

Median 0.5x 0.5x 0.4x 6.8x 6.8x 5.4x

Low 0.2x 0.2x 0.2x 2.5x 2.4x 2.4x


Page | 9


Operating Metrics($ in millions, except per share data)

LTM Revenue Growth LTM Revenue EBITDA

Company Ticker As Of '15A-'16E '16E-'17E GM LTM CY 2016E CY 2017E LTM CY 2016E CY 2017E


Amdocs Nasdaq:DOX Mar 2016 3% 4% 35% $3,682 $3,758 $3,908 $685 $734 $749

Convergys NYSE:CVG Mar 2016 (1%) 3% 37% 2,932 2,934 3,027 384 386 404

Synchronoss Nasdaq:SNCR Mar 2016 16% 18% 57% 589 673 792 144 229 275

CSG Nasdaq:CSGS Mar 2016 (0%) 4% 51% 753 750 780 157 182 188

Xura Nasdaq:MESG Apr 2016 26% 12% 34% 293 342 383 NM 80 101

Comtech Communications Nasdaq:CMTL Apr 2016 117% NA 42% 336 614 NA 37 61 NA

Spok Holdings (fka USA Mobility) Nasdaq:SPOK Mar 2016 NA NA 66% 187 NA NA 41 NA NA

Myriad SWX:MYRN Dec 2015 NA NA 52% 27 NA NA (15) NA NA

CLX Communications OM:CLX Mar 2016 NA 16% 15% 127 134 156 9 13 15

RedKnee TSX:RKN Mar 2016 (13%) 17% 57% 196 183 213 7 17 37

IoT / M2M

Trimble Navigation Nasdaq:TRMB Apr 2016 4% 6% 56% $2,291 $2,393 $2,543 $369 $457 $528

CalAmp Nasdaq:CAMP May 2016 25% 16% 39% 306 350 407 41 56 68

Sierra Wireless TSX:SW Mar 2016 6% 11% 32% 600 645 715 29 40 57

Telit AIM:TCM Dec 2015 15% 15% 40% 333 382 438 28 54 65

Digi Nasdaq:DGII Mar 2016 (1%) NA 47% 216 211 NA 18 20 NA

Novatel Nasdaq:MIFI Mar 2016 13% 5% 31% 234 251 263 (5) 9 17


Page | 10


Operating Metrics($ in millions, except per share data)

LTM Revenue Growth LTM Revenue EBITDA

Company Ticker As Of '15A-'16E '16E-'17E GM LTM CY 2016E CY 2017E LTM CY 2016E CY 2017E


Cisco Nasdaq:CSCO Apr 2016 (0%) 4% 62% $49,452 $49,408 $51,194 $14,426 $15,089 $15,592

QUALCOMM Nasdaq:QCOM Mar 2016 (4%) 2% 60% 22,614 22,953 23,515 8,272 9,011 9,469

Nokia HLSE:NOKIA Mar 2016 102% 2% 42% 17,155 27,450 27,899 2,480 3,159 3,796

Ericsson OM:ERIC B Mar 2016 (5%) 1% 35% 30,313 27,765 27,986 4,427 3,668 4,106

Motorola Solutions NYSE:MSI Apr 2016 5% 3% 48% 5,665 5,991 6,155 1,253 1,561 1,661

Juniper Networks NYSE:JNPR Mar 2016 0% 4% 64% 4,888 4,859 5,073 1,093 1,306 1,379

ZTE Corp SZSE:000063 Mar 2016 12% 6% 30% 15,656 16,299 17,295 288 1,126 1,212

Aerohive NYSE:HIVE Mar 2016 26% 17% 67% 166 191 223 (38) NA 10

Mobile Marketing and Advertising

1000mercis ENXTPA:ALMIL Dec 2015 18% 14% 24% 59 68 77 13 15 16

Sito Nasdaq:SITO Mar 2016 81% 47% 52% 32 32 48 NM 2 8

Marchex Nasdaq:MCHX Mar 2016 (1%) 4% 43% 143 142 148 (1) 1 7

Handsets & Hardware

Apple Nasdaq:AAPL Mar 2016 (10%) 8% 40% $227,535 $212,350 $228,745 $78,498 $68,858 $73,453

Samsung KOSE:A005930 Mar 2016 5% 2% 39% 178,867 179,094 182,699 42,256 43,689 45,273

LG Electronics KOSE:A066570 Mar 2016 4% 4% 23% 49,157 49,708 51,486 2,893 3,220 3,367

Lenovo SEHK:992 Mar 2016 (10%) 4% 15% 44,912 42,211 43,968 1,203 1,510 1,835

BlackBerry TSX:BB May 2016 (30%) (8%) 43% 1,902 1,643 1,511 301 242 396

HTC TSEC:2498 Mar 2016 (23%) 11% 16% 2,955 2,843 3,159 (457) NA NA

Coolpad SEHK:2369 Dec 2015 47% 2% 11% 1,893 2,788 2,830 (34) 65 75

46 53

65 70

98 100 93

99

120

93

109

81

$7.6

$2.2

$22.9

$2.4 $2.7 $1.9 $1.6

$2.5 $2.4 $1.0

$3.0

$10.4

0

20

40

60

80

100

120

140

$0

$5

$10

$15

$20

$25

3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016

# Deals$ in billions Deal Volume Deal Value ($B)

2Q 2016 Mobile M&A Volume Slows, Value Booms

Page | 11

_______Source: 451 Group; includes transactions with disclosed, estimated, undisclosed transaction valuesTop 3 acquisitions with disclosed transaction valuesAverage LTM revenue multiple excludes 50x+ revenue multiples

Average LTM Revenue Multiple 2013 2014 2015 1H 2016

2.6x 1.7x 2.2x 4.9x

Top 3 Acquisitions by Quarter ($M) – Target / Acquirer 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

Nokia (assets) / Microsoft($5,010)

Supercell / Softbank Corp.

($1,530)

WhatsApp / Facebook($19,000)

AutoNavi / Alibaba($1,580)

TOA Tech. /Oracle($550)

BrightRoll /Yahoo!($640)

MyFitnessPal /UnderArmour

($475)

China Mobile Games/

Pegasus Inv.($689)

FL Mobile / Jinxing Inv.

($626)

Yidao Yongche / LeTV

($700)

Xamarin / Microsoft

($400)

Supercell / Tencent($8,568)

91 Wireless / Baidu

($1,850)

Fiberlink / IBM

($300)

AirWatch / VMware($1,540)

Check / Intuit($360)

LiveRail /Facebook

($382)

Telerik /Progress ($263)

Paydiant /PayPal ($280)

TellApart / Twitter($533)

Good Tech. /Blackberry

($425)

Undertone / Perion($130)

Tapad / Telenor($360)

Telogis / Verizon($900)

MoPub / Twitter($350)

MapMyFitness/ UnderArmour

($150)

Viber Media / Rakuten($900)

Enterproid / Google($130)

Flurry /Yahoo!($270)

Acompli /Microsoft

($200)

Red Bend /Harman Int’l

($170)

Domob / BlueFocus

($289)

AtHoc /Blackberry

($250)

Novero / Laird($71)

SwiftKey / Microsoft

($250)

Withings / Nokia($191)

Transaction Overview:• $250 million acquisition of Nexmo by Vonage

- $194 million cash, $36 million stock, $20 million potential earn-out• Financial metrics:

- 2015 revenue estimated at $70 million, implying an approximate 3.6x 2015 revenue multiple

- Nexmo had raised $37 million in funding prior to the acquisition, with a post-money valuation of $303 million at the time of its most recent financing

Target Description:• Provides API and SDK PaaS to enable voice, text, chat application and phone

verification services for enterprises and developers globally• Nexmo enables applications and enterprises to communicate with their

customers reliably and with ease, no matter where in the world they are located

Transaction Commentary:• "By combining Vonage's rapidly growing Unified Communications as a Service

business, with Nexmo, the second largest player in Cloud PaaS, we are creating the future of Cloud Communications. These companies represent a set of strategic, technology and human resources assets that deliver the broadest services offering in our industry.“ – Alan Masarek, CEO of Vonage

• Our API technology, global network of interconnected carriers, and messaging expertise, combined with Vonage's powerful brand, industrial-strength infrastructure and second-to-none voice capabilities, will enable us to provide an unmatched value proposition to businesses.“ – Tony Jamous, CEO of Nexmo

On May 5, 2016

Mobile M&A Case Study

Page | 12

_______Source: 451 Group, PitchBook, acquirer press release

ACQUIRED

Top Acquirers in Mobile

Page | 13

Buyer # Acquisitions Total Value ($M) Targets

23 936AdMovate, Alike, Anchor, Astrid, Aviate, Bignoggins, Blink, BrightRoll, Cooliris, Flurry, GhostBird Software, Go Poll Go, Hitpost, Incredible Labs, Jybe, Loki Studios, Luminate, MessageMe, Quik.io, Qwiki, Summly, Wander, Zofari

21 1,096Agawi, Bitspin, Bump Technologies, Enterproid (Divide), Firebase, Flexycore, Fly Labs, Green Throttle Games, Input Factory, Jetpac, Jibe Mobile, mDialog, Pie.co, Pixate, Quest Visual, RelativeWave, Timeful, Tinker Square, wavii, Waze, WIMM Labs

15 6,0586Wunderkinder, Acompli, Capptain, Datazen Software, DoubleLabs, FieldOne Systems, HockeyApp, id8, Mobile Data Labs (MileIQ), Nokia (assets), Sunrise, SwiftKey, Wunderlist, Xamarin, Zikera (assets)

12 30AlgoTrim, Catch.com, Coherent Navigation, Embark, Flyby Media, Mapsense, Metaio, Perceptio, Prss, SnappyLabs, Swell, TestFlight

Top Acquirers by Volume – 10+ Acquisitions, 2013 – Present

Top Acquirers by Total Transaction Value – $1.5B+, 2013 – Present

_______Source: 451 Group; includes transactions with disclosed, estimated, undisclosed values

BuyerTotal Value

($M)Targets

19,100 Branch Media, Luma, Osmeta, Parse, WhatsApp

8,568 Miniclip, Supercell

6,0586Wunderkinder, Acompli, Capptain, Datazen Software, DoubleLabs, FieldOne Systems, HockeyApp, id8, Mobile Data Labs (MileIQ), Nokia (assets), Sunrise, SwiftKey, Wunderlist, Xamarin, Zikera (assets)

1,850 91 Wireless Websoft

1,580 AutoNavi Holdings

1,540 AirWatch

1,530 Supercell

Mobile Investment Volume & Aggregate Value Increase for the Second Consecutive Quarter

Page | 14

_______Source: PitchBook; includes announced transactions with disclosed, estimated, undisclosed transaction valuesTop 3 investments with disclosed investment values

163

203 192

222 211

253

211 213

189

168

98

229

249

$0.6 $0.9 $1.1 $1.9

$2.4 $2.1 $2.1 $2.1 $2.7

$7.2

$3.8 $4.5

$14.6

$0

$2

$4

$6

$8

$10

$12

$14

$16

0

50

100

150

200

250

300

2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016

$ in billions

Tho

usa

nd

s

# Investments Investment Volume Investment Value ($B)

Top 3 Investments by Quarter ($M)

3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

Uber($258)

Idea Cellular ($490)

Tango($283)

Uber($1,188)

Delivery Hero($350)

Koudai($350)

Ele.me($350)

Context Logic($514)

Didi Kuaidi($3,000)

Uber($2,100)

Uber($2,000)

Didi Kuaidi($4,500)

Delivery Hero($80)

Flipboard($101)

Wuxi($200)

Garena($118)

Lookout($150)

Instacart($220)

HungamaDigital

($100)

Iwjw($120)

Uber($1,000)

WePiao($235)

Dada($300)

Uber($3,500)

Rdio($75)

Telogis($93)

Snapdeal($134)

Mozido($103)

Pluralsight($135)

Guahao($107)

Shenzhen Wangzhi Tech

($100)

WePiao($105)

Ele.me($630)

Yixia($200)

Garena($170)

Eleme($1,250)

Transaction Overview:

• $61 million PE Growth / Expansion investment in Flipp by General

Atlantic, valuing the Company at $400 million post-money

• As of this latest financing, Flipp as raised $78.5 million in funding to

date

• General Atlantic will join Insight Venture Partners as a primary investor

in Flipp, and will have a seat on the board

Target Description:

• Provider of mobile application-based consumer marketplace. The

company offers an online platform that aggregates digital circulars from

retailers and stores, enabling users to plan weekly shopping and seek

out appropriate local deals

Transaction Commentary:

• The funds raised will be used to grow the company’s footprint,

partnerships and further development of its platform

• “Flipp is helping retailers transform their marketing strategy. It’s exciting

to see how our technology is enabling retailers to achieve incremental

store trips, increased consumer engagement, and a higher ROI with

reduced costs,” said Wehuns Tan, CEO and co-founder of Flipp.

“General Atlantic’s expertise in global expansion and significant capital

base will enable us to grow our footprint, extend our partnerships, and

further accelerate how we deliver innovation into the hands of

consumers around the world.”

On April 14, 2016

Mobile Investment Case Study

_______Source: PitchBook, Forbes, Betakit

Page | 15

INVESTED IN

Top Notable Investors In Mobile

Investor Investments Targets

100

90 Seconds, AgilOne, Backwater Technologies, Beijing Century Technology, Beijing Datacom Century IT, Days Billion Technology, Beijing Perfect Creative, Blue Danube Labs, Carousell, Chukong Technologies, Citrus Payment Solutions, Clari, CooTek, CREO Tech, Cryptopy Technologies, Dada, Dayima.com, Drawbridge,Druva Software, Ele.me, Feidee, Girnar Software, Inkling Systems, Instacart, July Systems, Kahuna, Keen IO, Luminate Wireless, MangoMan Consumer Electronics, Mishi, Mobvoi, Moovit, Myfriday.cn, Near, Nubank, Octro, On Haiaihaisi IT, PicsArt, Plain Vanilla Games, Relcy, Shanghai Bai Sheng IT, Shopular, Skillz, Skyhigh Networks, Strava, Thanx, TinyOwl Technology, Trippy, Ver se' Innovation, WeLab, WhisperText, WizRocket Technologies, Wuxi Maimaibao,Yixia, Yunmanman, Zhongshan Communication, Zilingo, Zomato, Zoomcar

71

Azumio, Blablacar, CartoDB, Centrify, Clinkle, Cornershop, CrownIT, Dasher, Dronebase, Emergent VR, Ensygnia, Fever Labs, Flaregames, ForgeRock,Gametime United, Hammer & Chisel, Hotel Tonight, Industrial Toys, InfinyPool, Instabug, InvisionApp, Invoice2go, JobToday, Juspay, Lola, Lookout, MobStac,Mubble, Naritiv, Neumob, Nextbit Systems, Nudge Rewards, OpenX Software, Rep.ai, Skydio, Space Ape, SwiftKey, UrbanClap Technologies, URX, UserTesting,Vinted, Wallapop, WizRocket Technologies, Zenoti

65

8sec, Ad Hoc Labs, Andy OS, Anyadir Education, BetterDoctor, Boon+Gabble, BuildersCloud, Carousell, Cleanly, Eko Communications, First Opinion, FovereverSnap, Gosmith, GoSpotCheck, Greengar, Guidekick, Hinge, Innoz, Iterable, Keen IO, Merchbar, Mojio, My Child, Neuron Fuel, Okpanda, OLSET, Online Permissions Technologies, Ordrx, Parenthooods, PayDragon, PayrollHero.com, PinMyPet, Pogoseat, PowerCore, PriceBaba, Roomkey, Rover Labs, Shoppr, SkyGiraffe, SnowShoeFood, Sonar, Sunrise Atelier, Supahands, Tamatem, Telepathic, TotSpot, Traodoidi, Vangoart, Videogram, Virool, WillCall, WishPlz, Woomoo, YaSabe, Zeemi.tv, ZipZap

59

Almalence, Apperian, Audyssey, Beijing Unispreadtrum, Bluebank, BlueStack, CaféX, Clinkle, Delta ID, EyeSmart, Fortumo, FreedomPop, Genband, Gengo,Guangdong Appscomm, Hangtime, Helpshift, Hungama Digital Media, Incoming Media, INRIX, InVisage, ip.access, iZettle, Joyent, July Systems, LeWaTechnology, LISNR, Microprogram, Navita Tecnologia, NetSpeed Systems, Nexmo, Occipital, Olive Telecom, Qnovo, Rancard, Reebonz, Reflektion,Screenovate, Shanghai Ailiao IT, SkyCross, Snapdeal, Swrve, Thunder Software, Urban Airship, Venafi, Zinitix, Zumigo, Zya

56

AllMobilize, AppVirality, askem TLV, Bar Pass, Beijing Technology, BuildersCloud, Chai Energy, Chance, CreatingEV, Culligence Software, DabKick, DailyRounds,Deck App Technologies, Diting Technology, EvoMob, Hermetic, i7 Networks, Idotools, Igloo, iReff, Kanisi, KO-SU, Lanmei, Linglong Salon, LionHeartInnovations, Liquid Commerce, MediSafe Project, MISingularity, MobileReady, My Manisku, Ping ++, Powzy, Prism Bill Pay, Productive Mobile, Raven Tech,Run Mobile, Sensorberg, Sensoro, Shanghai Wemart eCommerce, SkyGiraffe, SmartNotify, Solvebot, StoneMountain, UBQT, UnlockYourBrain, UXCam, WAG Mobile, Wozhi Tech, XYSec Labs, Zoomcar, Zula

56

AdYapper, Amino, Augur Technologies, Avuba, Brandfolder, Brewbot, Change Collective, Clandestine Development, Colatris, Crowdly, DaoPay, Dash Labs, Digital Manufacturing, Fancred, FeedPack, Final, Findit, flck.me, Gooten, HYP3R, Keen IO, Lassy Project, Leanplum, Moni Technologies, Nexercise, Numerous, Ordrx, Owlet Baby Care, Package Zen, Pathful, Patient IO, Peerby, Perfect Glass App, Placester, Prism Bill Pay, ProductGram, ROCKI, ShortCut, SnowShoeFood, Spitfire Athlete, Sportsy, Stand in, Sundar, Synch, Testlio, Touchbase, Trusted, TYFFON, WiCastr, Yosko

53

99Taxis, AppsDaily, August Home, Beijing Unisound, BlueStack, Chukong Technologies, Clearcare, Cubic Telecom, Curbside, Cyanogen, Deck App Technologies,Emprego Ligado, Even, Ineda Systems, Kaleo Software, Infinypool Payment, Leanworks, Lookout, MangoPlate, Mantis Vision, MediSafe Project, Naldo, Navdy, OpenSignal, Peak, Playdek, Sense360, Seworks, Shanghai CooTek, Siklu, Simplest Software, Strider, Tapingo, Verve Mobile, Voluntis, Workspot, Zoom Video Communications

Top Notable Investors by Volume, 2013 – Present

_______Source: PitchBook; number of investments may include follow-on investments in same target

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Top Seed Investors in Mobile

Top Investors by Volume, 2013 – Present



62

8sec, Ad Hoc Labs, Andy OS, Anyadir Education, BetterDoctor, Boon + Gable, BuildersCloud, Carousell, Cleanly, Eko, First Opinion, Foverever Snap, Gosmith, GoSpotCheck, Greengar Studios, Guidekick, Hinge, Innoz Technologies, Iterable, Keen Labs, Merchbar, Mojio, Neuron Fuel, Okpanda, OLSET, Online Permissions Technologies, Ordrx, Parenthooods, PayDragon, PayrollHero.com, PinMyPet, Pogoseat, PowerCore, PriceBaba, Roomkey Technologies, Rover Labs, Shoppr, SkyGiraffe, SnowShoeFood, Sonar, Sunrise Atelier, Supahands, Tamatem, Telepathic, TotSpot, Traodoidi, Vangoart, Videogram, WillCall, WishPlz, Woomoo, YaSabe, Zeemi.tv, ZipZap

54

AdYapper, Amino, Augur Technologies, Avuba, Brandfolder, Brewbot, Change Collective, Clandestine Development, Colatris, Crowdly, DaoPay, Dash Labs, Digital Manufacturing, Fancred, FeedPack, Final, Findit, flck.me, HYP3R, Lassy Project, Leanplum, Moni Technologies, Nexercise, Numerous, Ordrx, Owlet Baby Care, Package Zen, Pathful, Patient IO, Peerby, Perfect Glass App, Placester, Prism Bill Pay, ProductGram, ROCKI, ShortCut, SnowShoeFood, Spitfire Athlete, Sportsy, Stand in, Sundar, Synch, Testlio, Touchbase, Trusted, TYFFON, WiCastr, Yosko

KimaVentures

38

7-hugs Labs, Agentdesks, Andy OS, BetterDoctor, Caktus, Curve, Dispatch, Final, Flaviar, Geenapp, Gosmith, Heyku, Instaply, Jackpocket, Keecker, Labrdr, Leanplum, Mango, Mobi Rider, MyCrowd, Navdy, Navendis, Nonyelu, Pixalate, Podo, Pogoseat, SimpliField, SixDoors, Smore, Toze Labs, Travelnuts, Trusting Social, Tulip Retail, Useful Systems, Webaoo, Whally, Whatt

Y Combinator 32Apptimize, Authbox, BloomThat, Emailio, Estimote, Final, Fixed, Flaviar, HD Trade Services, HoverChat, Hum, Lob, LocalOn, Mixerbox, Nightingale App, Notice Software, One Signal, Parenthoods, PayDragon, Povio, Reebee, Sonalight, Strikingly, Syrp, Two Tap, Tyrant, Whirlscape, ZowPow

24Cargomatic, Confide, Coopkanics, DroneBase, Layer, Lugg, PayDragon, Projector, Pushbullet, Shopservices, Sonalight, Spot, Strikingly, Sunrise Atelier, Swipe Labs, Teleport, Two Tap, Veri, Vertical Mass, WillCall, Wit Dot Media, WUT

20Cord, Dash Labs, Dwellers, Fixed, Freebird, Friendsy, Heal, Life Before Us, Nexar, Parenthoods, Resy Network, Strut, Swipe Labs, Trusted, Wag Labs, WillCall, WUT, Yett, Yoi, Yup

17Basket, BioBeats, Change Collective, DSSV, Hinge, MaestroIQ, mParticle, Navdy, Neumob, Owlet Baby Care, Reactor Labs, Sneeky, StockUp, Strut, Testfire, WUT

19appLoud, Cargomatic, DoLightful, Fixed, Flyp, Ghostruck, Gosmith, Honk Technologies, HYP3R, Iggbo, Kash, Merchbar, Pogoseat, Saucey, Shyp, The League, TotSpot, Wag Labs, WillCall

16 Beaming, DabKick, Dasher, KaChing!, Mbaas Development, Muzley, Neumob, Number25, OLSET, Podo, ProxToMe, Riffsy, Tinyview, Waldo, Yonomi

DreamItVentures

16Bar & Club Stats, Charlie Contacts, emocha Mobile Health, GamePress, Grassroots Unwired, Knowledge Diffusion, Medlio, Meerkat, Miner, Notorious, Parkloco, Psico Smart Apps, Redberry Mobile, SnipSnap App, Stat

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Top Series A Investors in Mobile




27

90 Seconds, Backwater Technologies, Beijing Perfect Creative Technology, Carousell, Clari, Cryptopy Technologies, Girnar Software, Instacart, Kahuna, Keen Labs, Luminate Wireless, NuBank, Octro, On Haiaihaisi IT, PicsArt, Plain Vanilla Games, Relcy, Shopular, Thanx, TinyOwl Technology, Trippy, WeLab, WizRocket Technologies, Zilingo, Zoomcar India

26Azumio, Cornershop, CrownIT, Ensygnia, Fever Labs, Gametime United, Hammer & Chisel, Industrial Toys, Invoice2go, JobToday, Juspay, Lola, Mubble, MySmartPrice, Naritiv, Neumob, Nextbit Systems, Shuddle, Skydio, Sprig, UrbanClap, URX, Vinted, Wallapop, WizRocket, Zenoti

21App.io, Bloodhound, Carousell, Catch That Bus, Clip, Eaze Solutions, Kudo, Mediaspike, Mojio, Next Door Learning Solutions, Shots Mobile, Silverpush, SkyGiraffe, SpotHero, Sprig, Tableapp, Trocafone, VERSUS IQ, Videogram, Virool

18BetterDoctor, Bitglass, Branch Metrics, Cape Productions, DataVisor, GQQii, GrowingIO, Luminate Wireless, mNectar, Movius Interactive, Niantic, Pager, Sentry, SocialRadar, Spare5, Tuya, Tynker

15 Azimo, Blinkist, Fortumo, Giddy (Boxed), Kaleo Software, Motivation Science, Plain Vanilla Games, Playdek, Playdots, Scopely, When I Work, Wochit

15Atzuche, Bee Cave Games, Bugsnag, Confer Technologies, Edaixi, GrowingIO, Hoodinn Interactive, Klook Travel Technology, Machinity, Reebonz, Shenzhen Wangzhi Technology, Tasteful, The Flatiron School, Wuhu Cube Network Information Service

14 Adcade, Amino, Betable, ChatID, Estimote, Even, Giddy (Boxed), Hightower, Informed Data Systems, Jello Labs, RigUp, Studio SBV, The Flatiron School, Veri

13 Amino, Hey, Jello Labs, KeepTruckin, LotusFlare, MediaSpike, MobileDay, N3twork, Nextbit Systems, Niantic, Product Hunt, Spruce, URX

13 Amino, BloomThat, Cargomatic, Coopkanics, FiftyThree, Instacart, Jello Labs, Product Hunt, Reserve Media, Studio SBV, TIKL, URX, Zesty

13 99Taxis, Emprego Ligado, Even, MangoPlate, MediSafe Project, Naldo, Navdy, OpenSignal, Peak, Playdek, Simplest Software, Workspot, Zoom

Page | 18

Top Series B Investors in Mobile




29

Beijing Perfect Creative Technology, Blue Danube Labs, Citrus Payment Solutions, Clari, Cryptopy Technologies, Dayima, Drawbridge, Faaso’s Food Services, Feidee, Girnar Software, Instacart, Kahuna, Mishi, Mobvoi, Moovit, Myfriday.cn, Near, NuBank, On Haiaihaisi IT, Shanhai Bai Sheng IT, Skillz, SkyhighNetworks, TinyOwl Technology, True Software, Ver se’ Innovation, WhisperText, Wuxi Maimaibao IT, Yunmanman, Zoomcar India

13CartoDB, Fever Labs, Flaregames, ForgeRock, Hammer & Chisel, MobStac, MySmartPrice Web Technology, Origami Logic, Roofoods, Sprig, SwiftKey, UrbanClap Technologies, Vinted

12 Apperian, CafeX, Gengo, LISNR, NetSpeed Systems, Nexmo, Occipital, Qnovo, Reflektion, Swrve New Media, Zumigo

12 99Taxis, AppsDaily, August Home, Beijing Unisound IT, ClearCare, Curbside, Ineda Systems, Kaleo Software, Leanworks, Workspot

11Adelphic, Aquto, Atzuche, Confer Technologies, Edaixi, Eleme, Fastback Networks, PinGuo Technology, Quri, Shenzhen Wangzhi Technology, The Flatiron School

Page | 19

Top Series C Investors in Mobile




18AgilOne, Beijing Century Technology, Beijing Days Billion Technology, CooTek IT, Citrus Payment Solutions, Dayima.com, Drawbridge, Druva Software, Eleme, Inkling Systems, Instacart, Moovit, NuBank, Skyhigh Networks, True Software, Ver se’ Innovation, WhisperText, Yunmanman

11 Boxed, ContextLogic, DraftKings, lwjw, Keep, Music.ly, Poshmark, Quixey, WePiao

9 BlaBlaCar, ForgeRock, Invoice2go, Origami Logic, Roofoods, Space Ape, UserTesting, Vinted, Wallapop

9 Apperian, Drawbridge, Flipboard, Instacart, Remind, Tantan, True Software, Victorious, Yixia

8 Apperian, Gengo, Hungama, ip.access, iZettle, Nexmo, Snapdeal, Zya

7 Cootek IT, Cyanogen, ip.access, Siklu, Tapingo, Verve Mobile, Zoom

7 AgilOne, Capriza, Druva Software, FutureSimple, Inkling Systems, ItsOn, Smartling

7 BlaBlaCar, Cyanogen, DoubleDutch, Flipboard, FutureSimple, iZettle, Roofoods

7 Affirmed Networks, Edaijia, Eleme, Fastback Networks, Huoli Tianhui, Quri, Shenzhen Wangzhi Technology

6 PlaceIQ, Quixey, Smartling, Wayin, Zerto

Page | 20

Top Series D+ Investors in Mobile




10 Chukong Technologies, Dada, Druva Software, Eleme, Straya, Yixia, Zomato Media

9 Centrify, Hotel Tonight, InVisionApp, Lookout, OpenX, Roofoods

8 Centrify, DoubleDutch, iZettle, Lookout, OpenX, Roofoods

7 INRIX, InVisage Technologies, iZettle, Joyent, Urban Airship

7 AltoBeam, Electric Cloud, Hotel Tonight, PlaceIQ, Smartling, Zerto

6 Chukong Technologies, DraftKings, Hotel Tonight, InVisage Technologies, lwjw

6 90min, Avalara, Fastly, Hotel Tonight, Zerto

5 DataXu, DraftKings, Integral Ad Science

5 One Kings Lane, ServiceMax, Uber Technologies

5 DoubleDutch, Smule, Thinking Phone Networks

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HAS BEEN ACQUIRED BY

Financial Advisor tothe Seller

Recent Awards and Nominations


A DIVISION OF





A PORTFOLIO COMPANY OF


2013 TMT DEAL OF THE YEAR <$100M

CONSUMER SERVICES

DEAL OF THE YEAR

CROSS BORDER DEAL OF THE YEAR


CORPORATE / STRATEGIC ACQUISITION

OF THE YEAR

2014 ONLINE AND MOBILE TECH DEAL

OF THE YEAR






7th ANNUAL

INTERNATIONAL M&A

AWARDS

2015 WINNER

HAS ACQUIRED

Financial Advisor tothe Buyer

Page | 22

Headwaters Technology, Media & Telecom (TMT) team has

won awards for

Online and Mobile Tech Deal of the Year

& Consumer Services Deal of the Year

and back-to-back M&A Advisor TMT Deal of the Year

awards

Deep Industry Focus Leads to Successful Transactions

_______Certain transactions completed by Headwaters MB bankers at prior firms









CERTAIN ASSETSACQUIRED BY


HAS ACQUIRED

Financial Advisor tothe Buyer





HAS DIVESTED MOST OF ITS ASSETS TO




STRATEGIC PARTNERSHIP

WITH

Sole Advisor


A PORTFOLIO COMPANY OF


Page | 23

Contact

www.headwatersmb.com

Gary MoonManaging Director

Head of Technology, Media & Telecom

Investment Banking

Office: (415) 766-3862

Cell: (650) 515-8734

[email protected]

135 Main St

Suite 800

San Francisco, CA 94105

Ryan McCarthyDirector

Technology, Media & Telecom

Investment Banking

Office: (415) 766-3864

Cell: (203) 984-9057

[email protected]

135 Main St

Suite 800

San Francisco, CA 94105

Page | 24

Disclaimer

Disclosure: This newsletter is a periodic compilation of certain economic and corporate information, as well as completed andannounced merger and acquisition activity. Information contained in this newsletter should not be construed as arecommendation to sell or buy any security. Any reference to or omission of any reference to any company in this newslettershould not be construed as a recommendation to buy, sell or take any other action with respect to any security of any suchcompany. We are not soliciting any action with respect to any security or company based on this newsletter. The newsletter ispublished solely for the general information of clients and friends of Headwaters MB, LLC. It does not take into account theparticular investment objectives, financial situation, or needs of individual recipients. Certain transactions, including thoseinvolving early stage companies, give rise to substantial risk and are not suitable for all investors.

This newsletter is based upon information that we consider reliable, but we do not represent that it is accurate or complete, andit should not be relied upon as such. Prediction of future events is inherently subject to both known and unknown risks, and otherfactors that may cause actual results to vary materially. We are under no obligation to update the information contained in thisnewsletter. Opinions expressed are our present opinions only and are subject to change without notice. Additional information isavailable upon request. The companies mentioned in this newsletter may be clients of Headwaters MB, LLC. The decisions toinclude any company in this newsletter is unrelated in all respects to any service that Headwaters MB, LLC may provide to suchcompany. This newsletter may not be copied or reproduced in any form, or redistributed without the prior written consent ofHeadwaters MB, LLC. The information contained herein should not be construed as legal advice.

Page | 25

Headwaters MB 2Q 2016 Mobile Market Update

Technology

Transcript of Headwaters MB 2Q 2016 Mobile Market Update