VC Investment in MOBILE 2011review

7/31/2019 VC Investment in MOBILE 2011review

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VENTURE CAPITAL IN MOBILE

2011 Review

Rajeev ChandManaging DirectorHead of Research

January 20, 2012


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1

VC in Mobile$6.3 Billion in 2011

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

CarrierTechnology

VC Investments in MobileGlobal, 2001-2011

$6.3

$4.5

$2.1

$3.6

$5.1

$6.4

$5.4

$4.0

$2.6

$3.1

$4.9


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2

VC in Mobile42% of Overall VC

Percent of Overall VC

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Mobile VC as Percentage of Overall Tech VC(1)

2001-2011

42.4%

30.4%

17.1%18.2%

28.4%30.4%

27.6%26.3%

18.7%18.9%

13.8%

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)


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3

VC in MobileContext of Public Companies

Source: Rutberg & Company(1) Public companies R&D expenditures as reported for last twelve month period

Mobile VC Investments vs. Tech Companies R&D Expenditures(1)

2011

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Microsoft

Samsung

Intel

Nokia

MobileVC

IBM

Cisco

Hitachi

Toshiba

Google

Ericsson

Oracle

Canon

ALU

NTT

HP

Qualcomm

SAP

Apple

STMicro

FUJIFILM

Amount ($B)


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4

VC in MobileBy Sector

Source: Rutberg & Company

Mobile VC Investments by SectorGlobal, 2011

Infrastructure$2.6B

Application$1.8B

Device

$1.0B

Carrier$0.5B

Semiconductor$0.4B

2011 = $6.3 billion

Media $936MM

Telecom $922MM

Enterprise $762MM

Consumer $1,328MM

Telecom $90MM

Enterprise $374MM

CE Device $608MM

Component $307MM

Software $62MM


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VC in MobileBy Sector over Time


Percent of Mobile VC Dollars by Sector over TimeGlobal, 2005-2011

% Total

0%

5%

10%

15%

20%

25%

2005 2006 2007 2008 2009 2010 2011

Consumer Application

% Total

0%

5%

10%

15%

20%

2005 2006 2007 2008 2009 2010 2011

Media Infrastructure

% Total

0%

5%

10%

15%

20%

2005 2006 2007 2008 2009 2010 2011

Device

% Total

0%

2%

4%

6%

8%

10%

2005 2006 2007 2008 2009 2010 2011

Telecom Application

% Total

0%

10%

20%

30%

2005 2006 2007 2008 2009 2010 2011

Telecom Infrastructure

% Total

0%

10%

20%

30%

40%

2005 2006 2007 2008 2009 2010 2011

Carrier

% Total

0%

2%

4%

6%

8%

2005 2006 2007 2008 2009 2010 2011

Enterprise Application

% Total

0%

5%

10%

15%

20%

2005 2006 2007 2008 2009 2010 2011

% Total

0%

5%

10%

15%

20%

2005 2006 2007 2008 2009 2010 2011

Semiconductor

Enterprise Infrastructure

5


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6

VC in Mobile2011 Cluster Map


Mobile

Video

Mobile

Advertising

MobileGames

Enterprise

Solutions

mHealth

Commerce and

Payments

Social

Apps


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7

VC in MobileMarketing & Advertising


Amount ($MM)

0

100

200

300

400

500

600

700

2005 2006 2007 2008 2009 2010 2011

VC Investments in Mobile Marketing & AdvertisingGlobal, 2005-2011

$592

$128$138$115

$161

$92

$29


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8

VC in MobileHealth


Amount ($MM)

0

50

100

150

200

250

300

350

400

2005 2006 2007 2008 2009 2010 2011

VC Investments in Mobile HealthGlobal, 2005-2011

$356

$209

$25$9

$183

$31$19


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9

VC in MobileCommerce & Payments


Amount ($MM)

0

100

200

300

400

500

600

2005 2006 2007 2008 2009 2010 2011

VC Investments in Mobile Commerce & PaymentsGlobal, 2005-2011

$558

$276

$85$79

$134

$87$88


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10

VC in MobileSelected Private Company Announcements in 2011

Source: Rutberg & Company, company press releases and publicly disclosed statements

16MM users,1B recordings

$11MM in

paymentsprocessed daily

10MM monthlyactive users,

50MM downloads

83MM monthlyusers, $200MM

raised fromSoftBank

$160MM raisedin 2011, valuedat over $1.5B

3.5MMdownloads,550MM flips per

month

2.5MM activeusers, 700MMproduct views

600% YoYgrowth in

customers, 435new enterprisecustomers in

Q42011

15MM users,200MM photos

15MM users,half of which are

outside U.S.

130MM monthlyactive users, 30MMdaily active users,500MM downloads

15MM users

70MM monthlyactive users,

250MMdownloads,

20MM monthlydownloads

15MM users,

1B messagesper day

30MM activeusers in justover 1 year


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11

VC in MobileBy Round Size

Source: Rutberg & Company(1) Excludes deals where amount was not disclosed

% of Deals

VC in Mobile by Round Size(1)

2005-2011

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011

>$20MM$10-$20MM

$5-$10MM


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12

VC in MobileLargest Financings

Source: Rutberg & Company(1) Represents companies with multiple announcements in 2011; date is listed as of the most recent announcement, and amounts are aggregated for the year

Top 25 VC Financings in Mobile2011

Company

LightSquared

InMobiPlastic Logic

Jawbone(1)

Eaton Towers

O3b Networks

Square(1)

Tabula

Xiaomi

DriveCam

Telecon Group

Tango(1)

Evernote

Flipboard

Foursquare Labs

Tower Cloud

Cellnovo

Rovio Mobile

ColorLookout

Mavenir Systems

INRIX

Gogo

eRecyclingCorps

Novasom

Amount($MM)

265.0

200.0200.0

159.0

150.0

137.0

130.5

108.0

90.0

85.0

60.0

50.7

50.0

50.0

50.0

49.0

48.4

42.0

41.040.0

40.0

37.0

35.0

35.0

35.0

Location

Reston, VA

San Mateo, CACambridge, UK

San Francisco, CA

London, UK

St. John, UK

San Francisco, CA

Santa Clara, CA

Beijing, China

San Diego, CA

Montral, Canada

Palo Alto, CA

Mountain View, CA

Palo Alto, CA

New York, NY

St. Petersburg, FL

London, UK

Espoo, Finland

Palo Alto, CASan Francisco, CA

Richardson, TX

Kirkland, WA

Itasca, IL

Irving, TX

Glen Burnie, MD

Date

7/5/2011

9/15/20111/18/2011

12/21/2011

9/19/2011

11/17/2011

11/8/2011

3/28/2011

12/20/2011

11/23/2011

12/21/2011

7/20/2011

7/13/2011

4/14/2011

6/27/2011

10/6/2011

2/4/2011

3/10/2011

3/23/20119/21/2011

5/31/2011

7/25/2011

2/6/2011

11/11/2011

7/11/2011

Subsector

Wholesale operator

Mobile advertisingDisplay

Consumer electronics

Tower

Satellite

Mobile payment platform

Programmable logic

Handset

Fleet management

Network engineering

Video calling

Notes application

Social content aggregation

Geosocial network

Backhaul

Consumer healthcare device

Mobile game

Photo sharingMobile device security

Convergence application server

Traffic

In-flight

Mobile phone recycler

Consumer healthcare device

Sector

Carrier

InfrastructureDevice

Device

Infrastructure

Carrier

Infrastructure

Semiconductor

Device

Infrastructure

Infrastructure

Application

Application

Application

Application

Infrastructure

Device

Application

ApplicationInfrastructure

Infrastructure

Infrastructure

Carrier

Device

Device

Rank

1

23

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

1920

21

22

23

24

25


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13

VC in MobileMost Active Investors

Source: Rutberg & Company(1) Includes family of related venture firms

Most Active VC Investors in Mobile2011

Firm

Sequoia Capital

Intel Capital

SV Angel

Google Ventures

Kleiner Perkins

DFJ(1)

Accel Partners

NEA

500 Startups

Andreessen Horowitz

Charles River

QUALCOMM

True Ventures

Rank

1

2

3

4

4

6

7

8

9

9

11

12

12

Number

24

23

21

19

19

18

17

16

13

13

12

11

11

Investments (Announced)

Bubble Motion, Bump, Clickatell, Color, Cotendo, DailyBooth, Evernote, Flite, Inkling (2), Just Dial, MeLLmo, Meraki,MobileIron, MoboTap, Onavo, Quantenna, Sencha, Sourcebits, Square, Stoke, Synapsense, Trippy, Unity

4tiitoo, AltoBridge, Animoca, Arcsoft, Borqs, CloudMade, Digital Chocolate, GainSpan, InVisage, ip.access, July, Kno,mFoundry, Mocana, NeuString, SecureKey, SkyCross, skyrockit, Sotera, Swrve, TOA, Total Immersion, Urban Airship

AppRedeem, BankSimple, Bump, Drchrono, EggCartel, Everyme, Game Closure, Hyperink, just.me, Kno, MindlessDribble, Onswipe, Orchestra, Parse, Poshmark, ShowMe, Sincerely, SnapGuide, Swrve, Tagstand, Trippy

Airy Labs, Astrid, Crittercism, Echoecho, Enterproid, just.me, Milk, Miso, Nettle, Ordr.in, Parse, Pocket Change, ReadIt Later, Rumble, Scvngr, Stickery, Subtext, ThinkNear, TweetNGo

Aerohive, Apperian, Awarepoint, Cooliris, Crittercism, Fixmo, Flipboard, GOGII, iControl, INRIX, Jawbone, Kovio,Path, Session M, Shazam, Square, Stoke, Waze, WorkSmart

4INFO, Cloudbot, do@, GameSalad, JiWire, Medialets, MomentFeed, Neul, Opinionaided (2), Qosmos, Siklu,Synapsense, Tango, Taptu, TOA, ViVOTech, Z2Live

Animoca, Azumio, BlueSprig, Breezy, CellScope, Dropcam, GetJar, Hotel Tonight, Lookout, MoPub, Pipette, Qriously,Qwilt, Rovio, Shopmium, Skimble, SoundTracking

Aerohive, CellScope, Euclid Elements, Leyden Energy, Millennial Media, Pipette, Pulse, SiliconBlue, Skimble,Stitcher, Subtext, TabbedOut, Tabula, Umami, ValueFirst Messaging, Vuclip

Apsalar, AwayFind, Drchrono, FastCustomer, Khush, Life360, MindSnacks, Nettle, Punchd, Stickery, TaskRabbit (2),Twilio

BlueStacks (2), Bump, Capriza, Everyme, Foursquare, Hyperink, Jawbone, Kno, Lookout, Massive Health, TinyCo,Wikets

DoubleDutch, Drchrono, EggCartel, Fiksu, Game Closure, InVisage, Massive Health, Millennial Media, MotherKnows,Orchestra, Sincerely, SMS GupShup

AliveCor, Apalya, ChaCha, Enterproid, ip.access, Livescribe, PowerCloud, Siklu, Sotera, ThinkNear, Xiaomi

Appconomy, Gyroscope (2), just.me, Kiip, SoundTracking, Spectrum Bridge, Trippy, Urban Airship, Valencell,Yobongo


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14

VC in MobileStrategic Investors

Source: Rutberg & Company(1) Includes limited partnership venture firms formed through strategic investors.

One in five transactions in mobile involve strategic investors. During 2011, 22.2% ofdeals involved at least one strategic investor(1), as compared to 20.6% in 2010.

Four most active strategic investors in 2011:

Other active investors in 2011 (3-6 deals) span media, advertising, retail, financial,

enterprise, device, and infrastructure sectors:

(23) (19) (11) (7)


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Thank You

Rutberg & Company ResearchContact Information

Rajeev ChandManaging DirectorHead of [email protected]

Nick MayberryEquity Research [email protected]

Kyle Spraker

Equity Data [email protected]


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Rutberg & CompanyInvestment Banking

Barry A. NewmanSenior Advisor

Office: (415) 371-1186

[email protected]

351 California Street, Suite 1100

San Francisco, CA 94104

Telephone: (415) 371-1186

800 Boylston Street, 16th Floor

Boston, MA 02199

Telephone: (857) 453-6798

SAN FRANCISCO BOSTON

Robert C. HarrisVice Chairman,

Investment Banking

Office: (415) 371-1186

[email protected]

Joseph S. SanbornManaging Director,

Head of M&A

Office: (617) 262-6694

[email protected]

Bryan B. Rutberg

Chief Executive Officer

Office: (415) 371-1186

[email protected]


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Rutberg & Company2012 Events

April 23-25, 2012

Claridges HotelLondon, England

Rutberg Summit: London

LONDON

June 18-19, 2012

Westin Market StreetSan Francisco, California

Future:Mobile

SAN FRANCISCO

October 21-23, 2012

Terranea ResortRancho Palos Verdes, California

Wireless Influencers

RANCHO PALOS VERDES

VC Investment in MOBILE 2011review

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