Technology Sector Update: Marketing and Advertising 4Q 2015
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Technology Sector Update: Marketing and Advertising 4Q 2015
Member FINRA
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New technologies are driving customer adoption of both MarTech and AdTech as marketing departments emerge as a competitive differentiator for enterprises Rapid Adoption – Marketers are rapidly adopting both point solutions and platforms as advertising technologies enable
new ways of conducting business and acquiring customers
Metrics Matter – Metrics continue to grow in importance – attribution and conversion metrics drive marketer’s decisions – both for which technologies to buy and to properly evaluate spend and ROI across all marketing tactics
Marketing moves up the funnel with significant efficiency improvements Rather than targeting large audiences and then spending significant time and resources whittling them down, emerging
technologies and analytics are becoming accurate enough to effectively disrupt the traditional sales funnel model
Marketers expand beyond retargeting by investing and spending on understanding intent and marketing higher in the funnel as opposed to “preaching to the converted”
M&A activity remains strong for the near future, driven by: Traditional buyers building out their marketing platforms, stacks or data assets
New categories of buyers continue to emerge, including marketing agencies adopting technology, data providers levering their data assets into new markets, telcos and media
Lowering valuation expectations – investors in crowded sectors of digital marketing recognizing a solid exit is better than no exit
Funding is both available at higher scale, and scarce at lower scale Companies that have demonstrated business models with solid margins and ability to scale will continue to find funding
available for growth
However, companies seeking series A and B rounds with limited traction or proof points will likely struggle finding attractive capital and valuations
Key Themes We are Watching in 2016
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Capital Markets – U.S. Marketing and Advertising companies continue to outpace their international counterparts and outperform the NASDAQ, S&P 500 and MSCI Europe indexes
Trading Multiples – U.S. Marketing and Advertising companies are trading at a median LTM revenue multiple of 1.0x, while International Marketing and Advertising companies are trading at a median LTM revenue multiple of 3.9x
M&A Activity – M&A activity stayed close to pace in 4Q 2015, with 53 deals compared to 55 deals in 3Q 2015, after it had dropped in 1Q 2015 and 2Q 2015, with 42 deals and 40 deals respectively, although aggregate transaction increase substantially. Notable recent transactions include Rubicon’s acquisition of Chango ($100M), Oracle’s acquisition of Datalogix ($1.1B), Twitter’s acquisition of TellApart ($532M), BlueFocus’ acquisition of Domob Network Technology ($289M), AOL’s acquisition of Millennial Media ($248M), and Endurance International’s acquisition of Constant Contact ($1.1B)
Investment Activity – Investment volume and aggregate values rose in 4Q 2015 to 64 investments and $622M in value, from 60 investments and $456M in value in 3Q 2015. Notable recent investments include Kahuna ($45M), Demandbase ($30M), Panshi ($200M), Lattice Engines ($28M), Magnetic Media ($25M), and SteelHouse ($49M)
Executive Summary
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-20.00%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
Capital Markets Performance Since 2013, U.S. Marketing and Advertising companies (+106.6%) have outperformed the NASDAQ (+60.9%), S&P 500 (+39.8%), and MSCI Europe (+2.8%) indexes, along with their international counterparts (+52.2%)
NASDAQ: +60.9%
MSCI Europe: +2.8%
S&P 500: +39.8%
Int'l. Marketing and Advertising Companies: +52.2%
Source: Capital IQ; refer to public comps for constituents
U.S. Marketing and Advertising Companies: +106.6%
5
6.3x
5.0x
2.9x
5.6x
2.0x
0.6x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0xLTM Revenue Multiple
Marketing and Advertising Comparable Public Companies
International Marketing and Advertising Companies
U.S. Marketing and Advertising Companies
6.6x
5.4x
1.5x
4.1x
6.4x
2.2x
3.7x
1.0x 0.3x 0.5x 1.0x
0.1x 0.3x 0.3x 0.2x 0.0x
2.0x
4.0x
6.0x
8.0xLTM Revenue Multiple
Median: 1.0x
Median: 3.9x
Source: Capital IQ; companies arranged by descending enterprise value
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Public Trading Comparables: Marketing and Advertising Tech
_______ Source: Capital IQ
Trading Metrics($ in millions, except per share data) Stock
Price 52-Week Price Range Market Enterprise EV / Revenue EV / EBITDACompany Ticker 12/31/15 Low High Cap. Value LTM CY 2015E CY 2016E LTM CY 2015E CY 2016E
U.S. COMPANIESGoogle NasdaqGS:GOOGL $778.01 $490.91 $798.69 $539,129 $476,714 6.6x 6.5x 5.7x 20.5x 16.0x 13.6xYahoo! NasdaqGS:YHOO 33.26 27.20 50.78 31,545 26,913 5.4x 6.7x 7.0x NM 29.1x 30.9xIAC/InterActive NasdaqGS:IACI 60.05 58.30 84.66 4,764 4,969 1.5x 1.5x 1.5x 12.1x 10.3x 8.6xcomScore NasdaqGS:SCOR 41.15 36.91 65.00 1,598 1,487 4.1x 4.0x 3.5x NM 16.2x 14.5xMarketo NasdaqGS:MKTO 28.71 23.17 35.63 1,345 1,239 6.4x 5.9x 4.5x NM NM NMConstant Contact NasdaqGS:CTCT 29.24 22.75 43.18 973 792 2.2x 2.1x 1.9x 17.4x 10.9x 8.6xRubicon Project NYSE:RUBI 16.45 13.08 20.59 798 718 3.7x 2.9x 2.1x NM 16.4x 13.0xJive Software NasdaqGS:JIVE 4.08 3.51 6.33 310 203 1.0x 1.0x 1.0x NM 33.4x 20.6xRocketFuel NasdaqGS:FUEL 3.49 2.80 16.82 150 151 0.3x 0.3x 0.3x NM NM 15.6xQuinStreet NasdaqGS:QNST 4.29 4.23 6.83 193 148 0.5x 0.5x 0.5x NM 16.0x 10.2xMarin Software NYSE:MRIN 3.58 3.04 8.62 133 103 1.0x 1.0x 0.9x NM NM NMReachLocal NasdaqGS:RLOC 1.65 0.55 3.62 49 57 0.1x 0.1x 0.2x NM NM 3.5xMarchex NasdaqGS:MCHX 3.89 3.51 5.32 161 52 0.3x 0.4x 0.4x 7.8x 3.4x 4.7xSizmek NasdaqGS:SZMK 3.65 3.47 8.47 108 43 0.3x NM NM 5.0x NM NMMaxPoint NYSE:MXPT 1.71 1.32 11.24 46 24 0.2x 0.3x 0.3x NM NM NM
High 6.6x 6.7x 7.0x 20.5x 33.4x 30.9xMean 2.3x 2.4x 2.1x 12.6x 16.9x 13.1x
Median 1.0x 1.3x 1.2x 12.1x 16.0x 13.0xLow 0.1x 0.1x 0.2x 5.0x 3.4x 3.5x
INTERNATIONAL COMPANIESBaidu NasdaqGS:BIDU 189.04 100.00 234.67 65,486 60,900 6.3x 5.9x 4.6x 24.1x 26.6x 20.1xYahoo! Japan TSE:4689 4.11 3.28 4.80 23,434 19,657 5.0x 5.0x 3.4x 8.7x 9.9x 9.4xRakuten TSE:4755 11.67 11.21 19.93 16,624 16,695 2.9x 2.8x 2.4x 13.0x 13.0x 10.5xYandex NasdaqGS:YNDX 15.72 9.94 21.36 5,029 4,847 5.6x 5.9x 5.5x 18.4x 17.1x 15.1xCriteo NasdaqGS:CRTO 39.60 28.09 57.30 2,631 2,333 2.0x 4.5x 3.4x 23.2x 17.3x 12.5xMatomy LSE:MTMY 1.54 1.33 3.61 144 159 0.6x 0.6x 0.4x 8.2x 6.1x 4.1x
High 6.3x 5.9x 5.5x 24.1x 26.6x 20.1xMean 3.7x 4.1x 3.3x 15.9x 15.0x 12.0x
Median 3.9x 4.8x 3.4x 15.7x 15.1x 11.5xLow 0.6x 0.6x 0.4x 8.2x 6.1x 4.1x
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Public Operating Comparables: Marketing and Advertising Tech
_______ Source: Capital IQ
Operating Metrics($ in millions, except per share data)
LTM Revenue Growth LTM Revenue EBITDACompany Ticker As Of '14A-'15E '15E-'16E GM LTM CY 2015E CY 2016E LTM CY 2015E CY 2016E
U.S. COMPANIESGoogle NasdaqGS:GOOGL Sep 2015 11% 14% 63% $71,763 $73,403 $83,825 $23,304 $29,722 $35,080Yahoo! NasdaqGS:YHOO Sep 2015 (12%) (5%) 64% 4,948 4,042 3,854 477 926 872IAC/InterActive NasdaqGS:IACI Sep 2015 4% 2% 75% 3,213 3,248 3,299 410 482 580comScore NasdaqGS:SCOR Sep 2015 13% 16% 69% 361 371 431 23 92 103 Marketo NasdaqGS:MKTO Sep 2015 40% 32% 65% 194 210 277 (57) NA NAConstant Contact NasdaqGS:CTCT Sep 2015 11% 14% 73% 362 369 420 45 73 92 Rubicon Project NYSE:RUBI Sep 2015 98% 36% 78% 196 248 337 (7) 44 55 Jive Software NasdaqGS:JIVE Sep 2015 9% 6% 63% 193 195 208 (23) 6 10 RocketFuel NasdaqGS:FUEL Sep 2015 12% 4% 41% 476 457 476 (54) NA 10 QuinStreet NasdaqGS:QNST Sep 2015 6% 12% 11% 285 292 326 (2) 9 14 Marin Software NYSE:MRIN Sep 2015 8% 6% 63% 107 107 113 (27) NA 0ReachLocal NasdaqGS:RLOC Sep 2015 (19%) (5%) 44% 403 384 365 (28) NA 16 Marchex NasdaqGS:MCHX Sep 2015 (19%) (1%) 46% 148 147 146 7 15 11 Sizmek NasdaqGS:SZMK Sep 2015 (1) NA 63% 166 NA NA 9 NA NAMaxPoint NYSE:MXPT Sep 2015 (22%) 13% 50% 138 84 94 (13) NA NA
INTERNATIONAL COMPANIESBaidu NasdaqGS:BIDU Sep 2015 32% 26% 67% 9,711 10,375 13,112 2,525 2,291 3,025Yahoo! Japan TSE:4689 Sep 2015 (31%) 45% 76% 3,960 3,944 5,710 2,260 1,988 2,085Rakuten TSE:4755 Sep 2015 18% 17% 16% 5,755 5,905 6,882 1,288 1,288 1,593Yandex NasdaqGS:YNDX Sep 2015 (1%) 9% 72% 859 816 888 264 283 322Criteo NasdaqGS:CRTO Sep 2015 40% 31% 36% 1,188 515 677 101 135 186Matomy LSE:MTMY Jun 2015 6% 39% 23% 255 275 383 19 26 38
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Marketing and Advertising M&A Reaches New Heights
_______ Source: 451 Group; includes transactions with disclosed, estimated, undisclosed transaction values Top 3 acquisitions with disclosed transaction values
Average LTM Revenue Multiple 2013 2014 2015 6.1x 4.9x 1.9x
Top 3 Acquisitions by Quarter ($M) – Target / Acquirer 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
Channel Intel / Google ($125)
ExactTarget / Salesforce ($2,500)
DG (assets) / Extreme Reach
($485)
Responsys / Oracle
($1,607)
Valassis / Harland Clarke
($1,947)
Vocus / GTCR
($413)
Conversant / ADS
($2,216)
Datalogix / Oracle
($1,100)
eXelate / Nielsen ($195)
TellApart / Twitter ($532)
DT (assets) / Stroeer ($331)
Cons. Contact / Endurance Intl.
($1,100) AfterDownload /
ironSource ($28)
Hybris / SAP
($1,341)
Adap.tv / AOL
($465)
Dealer.com / DealerTrack
($987)
BlueKai / Oracle ($320)
Adconion / Amobee ($209)
LiveRail / Facebook
($382)
BrightRoll / Yahoo! ($640)
Chango / Rubicon ($100)
Domob / BlueFocus
($289)
Mil. Media / AOL
($248)
ShopperTrak / Tyco
($175) Akamai (asset) / MediaMath
($25)
Neolane / Adobe ($600)
Locu / GoDaddy
($70)
Aggregate / NeuStar ($119)
FreeWheel / Comcast ($320)
Adometry / Google ($150)
[x+1] / Rocket Fuel
($230)
Videoplaza / Ooyala ($80)
Yashi / Nexstar
($33)
Bronto / NetSuite ($200)
Unruly Media / News Corp
($90)
Undertone / Perion ($130)
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Top Acquirers in Marketing and Advertising Market
Buyer # Acquisitions Total Value ($M) Targets
Google 8 1,025.0 Admeld, Adometry, Channel Intelligence, Incentive Targeting, mDialog, Red Hot Labs, Wildfire, Zave Networks
Yahoo! 8 975.5 5to1.com, AdMovate, Brightroll, Flurry, Interclick, Luminate, Palaran, Ztelic
Adobe 7 1,178.0 Auditude, comScore (assets), Demdex, Efficient Frontier, Neolane, Search Discovery, Tumri
Oracle 6 4,408.7 BlueKai, Datalogix, Eloqua, Involver, Responsys, Vitrue
Facebook 5 382.0 LiveRail, Microsoft Corporation (Atlas Advertiser Suite Assets), Onavo, Pryte, Threadsy
Top Acquirers by Volume – Five or More Acquisitions, 2011 – Present
Buyer Total Value ($M) Targets
Oracle 4,408.7 BlueKai, Datalogix, Eloqua, Involver, Responsys, Vitrue
Salesforce 3,515.0 Buddy Media, ExactTarget, Radian6
Alliance Data Systems 2,300.0 Conversant
Harland Clarke 1,947.0 Valassis
SAP AG 1,381.0 Hybris, KXEN, SeeWhy
Adobe 1,178.0 Auditude, Demdex, Efficient Frontier, Neolane, Search Discovery, Tumri
Endurance International 1,100.0 Constant Contact
DealerTrack Holdings 1,048.5 ClickMotive, Dealer Dot Com
Google 1,025.0 Admeld, Adometry, Channel Intelligence, Incentive Targeting, mDialog, Red Hot Labs, Wildfire, Zave Networks
Yahoo! 975.5 5to1.com, AdMovate, Brightroll, Flurry, Interclick, Luminate, Palaran, Ztelic
DG 597.6 EyeWonder, MediaMind Technologies, Peer39, Republic Project
Twitter 532.6 AdGrok, RestEngine, TellApart
IBM 500.1 Now Factory, The Silverpop Systems, Tealeaf Technology, Inc.
Top Acquirers by Total Transaction Value – $450M or More, 2011 – Present
_______ Source: 451 Group
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Marketing and Advertising Market: M&A Case Study
On November 2nd, 2015
ACQUIRED
Transaction Overview: $1.1B acquisition of Constant Contact by Endurance International Group
- All cash offer for an enterprise value of $919M - $32.00 per share, representing a 23% premium
Constant Contact had $353.5M LTM revenue and $50.6M LTM EBITDA at the time of acquisition, representing a 2.6x revenue multiple and 18.2x EBITDA multiple Millennial Media was not profitable at the time of the transaction
Target Description: Provides email marketing and online survey creation, campaign management and delivery software-as-a-service (SaaS) for businesses. Also provides social media marketing and monitoring SaaS
Transaction Commentary: “[Constant Contact’s] focus on the customer and product development complements our offerings for small business services, and expands our ability to address the needs of SMBs,” said Hari Ravichandran, CEO of Endurance International "Joining the Endurance family of brands will allow us to extend our reach and be a better partner to small businesses across the globe,” said Gail Goodman, CEO of Constant Contact
_______ Source: 451 Group, Press Release
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Marketing and Advertising Investment Declining Slightly
_______ Source: PitchBook; includes transactions with disclosed, estimated, undisclosed transaction values Top 3 investments with disclosed investment values
Top 3 Investments by Quarter ($M) 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
AppNexus ($75)
Brand Ntwk ($68)
Droga5 ($225)
Komli Media ($30)
Appforma ($80)
Campaign Monitor ($250)
AppNexus ($85)
AppNexus ($110)
Red Ventures ($250)
Panshi ($200)
Kahuna ($45)
iPinYou ($78)
Infusionsoft ($60)
BrightEdge ($43)
Videology ($68)
BrightTag ($27)
Turn ($80)
MediaMath ($176)
Hootsuite ($60)
Matomy Media ($82)
Harbor City ($100)
Lattice Engines ($28.3)
Emarsys ($33)
Siteimprove ($55)
AVITO.ru ($50)
MarketShare ($38)
SugarCRM ($40)
Vungle ($19)
Integral Ad ($30)
AdRoll ($70)
xAd ($50)
Infusionsoft ($55)
Volusion ($55)
Magnetic ($25)
Demandbase ($30)
SteelHouse ($49)
# Investments
71
85
63
45
59
71
61
53
65 65 60
64
$519 $488 $554
$268
$459
$1,071
$478 $462
$827
$458 $456
$622
0
10
20
30
40
50
60
70
80
90
$0
$200
$400
$600
$800
$1,000
$1,200
1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015
$ in millions
Investment Volume Investment Value ($M)
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Top Investors in Marketing and Advertising Market
_______ Source: PitchBook; number of investments may include follow-on investments in same target
Investor Investments Targets
500 Startups 31 AdStage, BackType, Boostable, BrandCont, Capseo, Central Mayoreo, Conekta, Crowdrally, Ginzamarkets, Iterable, LocBox, MarketVibe, Newswhip Media, OwnLocal, PostRocket, Privy, Regresa Pronto, Samba Ads, ShareRoot, Skimbit, Spinnakr, Unbounce Marketing, Vid Network, Virool, Vungle
First Round Capital 22 33Across, Altruik, AppNexus, DoubleVerify, Elicit, Flurry, Handshakez, Jirafe, Moat, Nomi, Say Media, SinglePlatform, Solve Media, VigLink
Greycroft Partners 22 33Across, Custora, Elicit, Media Armor, Molio, Netsertive, Nomi, Performance Horizon Group, Radiate Media, Resonate Networks, Skimbit, SteelHouse, TagMan
SV Angel 21 Booshaka, Boostable, Custora, Heap, Moat, Nomi, NowSpots, Pipewise, SocialFlow, SteelHouse, TellApart, TT Labs, Tubular Labs, Vungle, WibiData, Wish, Yext
Draper Fisher Jurvetson 19 4INFO, AdXpose, Flurry, ignitAd, InsightSquared, iSocket, Komli Media, PubMatic, Servio, StrikeAd, SugarCRM, Tremor Video, Virool, Yodle
Sequoia Capital 19 AgilOne, Dianping.com, Flite, HubSpot, Innovid, Kahuna, Kenshoo, Kontera Technologies, Lattice Engines, Taykey
Accel Partners 18 AdRoll, AVITO.ru, BEBB India, ChargeBee, Collective, Dealer.com, Genius.com, HootSuite, LocBox, MoPub, myThings, Nomi, OpenX Software, Origami Logic, YuMe
Battery Ventures 17 BrightEdge Technologies, ExactTarget, Kontagent, Lotame Solutions, Marketo, Smarter Remarketer, Sprinklr, Tapad, Tealium
Intel Capital 15 [x+1], BrightEdge Technologies, Delivery Agent, HookLogic, Movable Inc, SmartZip Analytics, Sprinklr, Vizury, YuMe, Zamplus Technology
New Enterprise Associates 15 BloomReach, Compass Labs, Lattice Engines, Millennial Media, RezNext Global, Say Media, Spare5, SugarCRM, TrackMaven, Videology, WibiData
Atlas Venture 12 Bluetrain Mobile, DataXu, InsightSquared, Integral Ad Science, Overdog, Privy, Unbounce Marketing
Bertelsmann Digital Media Investments 12 Adomic, Content Fleet, CrowdTwist, Deal United, Regiohelden, Semasio, SensorTower, Skimbit
Y Combinator 11 AdGrok, BackType, Boostable, Custora, Heap, LocalOn, Orankl, Reebee, TT Labs, Virool
SoftTech VC 10 iSocket, Kahuna, Rapleaf, StrikeAd, TurnHere, VigLink, Vungle
Top Investors by Volume, 2011 – Present
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Top Seed and Series A Investors in Marketing and Advertising
Investor Investments Targets
500 Startups 26 AdStage, BackType Boostable, Capseo, Central Mayoreo, Conekta, Crowdrally ,Iterable, LocBox, MarketVibe, PostRocket, Privy, Regresa Pronto, Samba Ads, ShareRoot, Spinnakr, Unbounce Marketing, Vid Network, Virool, Vungle
SV Angel 14 Booshaka, Boostable, Custora, Heap, Moat, Nomi, NowSpots, Pipewise, SocialFlow, TT Labs, Tubular Labs, Vungle
RRE Ventures 11 Bloglovin, BlueTrain Mobile, Deepomatic, ividence, Klaviyo, Pontiflex, Say Media, SinglePlatform, SocialFlow, Yieldbot
Y Combinator 11 AdGrok, BackType, Boostable, Custora, Heap, LocalOn, Orankl, Reebee, TT Labs, Virool
First Round Capital 10 Altruik, Elicit, Handshakez, Jirafe, Moat, Nomi, Say Media, SinglePlatform, Solve Media
TechStars 10 AdYapper, Bizible, inRentive, MarketVibe, Mavrck, Mobintent, Simple Energy, SimpleRelevance, Splashscore
Lerer Hippeau Ventures 8 Bloglovin, Bottlenose, Brandtale, Fuisz Media, GraphEffect, Moat, Tubular Labs
Greycroft Partners 7 Custora, Elicit, Media Armor, Molio, Nomi, TagMan
Betaworks 6 Bloglovin, Namo Media, SocialFlow, Teleportd
Atlas Venture 5 Bluetrain Mobile, InsightSquared, Privy, Unbounce Marketing
CommonAngels 5 InsightSquared, Linkable Networks, Yieldbot
Draper Associates 5 Autopilot, MomentFeed, Vungle
ff Venture Capital 5 Bottlenose, Elicit, Movable Inc, Parse.ly
Founder Collective 5 BackType, Custora, GraphEffect, Moat, ThriveHive
Top Investors by Volume, 2011 – Present
_______ Source: PitchBook; number of investments may include follow-on investments in same target
14
Top Series B and C Investors in Marketing and Advertising
Investor Investments Targets
Greycroft Partners 10 Netsertive, Performance Horizon Group, Resonate Networks, Skimbit, SteelHouse, TagMan
Sequoia Capital 10 AgilOne, Dianping.com, Flite, Innovid, Kahuna, Lattice Engines, Taykey
Battery Ventures 8 BrightEdge Technologies, Kontagent, Sprinklr, Tapad, Tealium
Lightspeed Venture Partners 8 BloomReach, Dianping.com, Evariant, Eyeviewdigital, MediaV, MyBuys, Origami Logic
First Round Capital 7 33Across, DoubleVerify, Moat, Solve Media, VigLink
Intel Capital 7 BrightEdge Technologies, HookLogic, Movable Inc, SmartZip Analytics, Sprinklr, Vizury
New Enterprise Associates 6 BloomReach, Compass Labs, Lattice Engines, TrackMaven, Videology, WibiData
Redpoint Ventures 6 55social, Adap.tv, nadco, Intent Media, The Miaozhen Systems
Baird Capital 5 BrightTag, ClickFuel, eDo Interactive, WordStream
Draper Fisher Jurvetson 5 ignitAd, InsightSquared, iSocket, Servio
Ignition Partners 5 Dianping.com, Moz, Visible Technologies
Top Investors by Volume, 2011 – Present
_______ Source: PitchBook; number of investments may include follow-on investments in same target
15
Top Series D+ Investors in Marketing and Advertising
Investor Investments Targets
Norwest Venture Partners 8 Act-On Software, Komli Media, True[x] Media, Turn
Draper Fisher Jurvetson 7 4INFO, AdXpose, Flurry, Komli Media, PubMatic, SugarCRM, Tremor Video, Yodle
Accel Partners 5 AdRoll, Genius.com, OpenX Software, YuMe
Battery Ventures 5 BrightEdge Technologies, Lotame, Marketo, Sprinklr, Tealium
Focus Ventures 5 Delivery Agent, Marin Software, Turn
Institutional Venture Partners 5 AdRoll, Buddy Media, Marketo, xAd, Yext
Menlo Ventures 5 DataXu, Flurry, YuMe
SAP Ventures 5 Criteo, Marin Software, OpenX Software, Tremor Video
Crosslink Capital 4 Flurry, Marin Software
First Round Capital 4 33Across, AppNexus, Flurry
Intel Capital 4 BrightEdge Technologies, Delivery Agent, Sprinklr, YuMe
Panorama Capital 4 33Across, JiWire, Zoove
Scale Venture Partners 4 BrightRoll, Demandbase, HubSpot
Trident Capital 4 BrightRoll, JiWire, Turn
Top Investors by Volume, 2011 – Present
_______ Source: PitchBook; number of investments may include follow-on investments in same target
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On December 10th, 2015
INVESTED IN
Transaction Overview: $49M of Series C venture funding from lead investor Mercato Partners. Staley Capital and SVB also participated The round includes a $10M debt portion Puts pre-money valuation at $150M
Target Description Provider of a data-driven advertising software. The company provides a remarketing platform for advertisers to target and reach their visitors and customers. It also delivers and displays advertising data given by its customers, including logos, graphic files, links and other advertising materials through its advertisement delivery system
Transaction Commentary: “For us this is a great validation that what we’re doing in terms of disrupting the marketplace is working, not just for us but for advertisers,” said Patrizio Spagnoletto, Chief Marketing Officer at the company. “It sets us up for continued disruption early next year” To date, Steelhouse has seen year-over-year growth of over 155 percent and anticipates it will end 2015 with a run rate of $130 million. According to Spagnoletto, the latest round of funding will be used for product development, hiring and marketing
Marketing and Advertising Investment Case Study
_______ Source: PitchBook, LA Business Journal
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15+ Years of Marketing and Advertising Tech Sector Success
IPO
Lead Manager
IPO
Lead Manager
IPO
Lead Manager
HAS ACQUIRED
Fairness Opinion to the Buyer
IPO
Co-Manager
HAS BEEN ACQUIRED BY
Financial Advisor to the Seller
_______ Certain transactions executed by Headwaters TMT bankers at prior firms
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Financial Advisor to the Seller
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Financial Advisor to the Seller
HAS BEEN ACQUIRED BY
Financial Advisor to the Seller
HAS BEEN ACQUIRED BY
Financial Advisor to the Seller
HAS BEEN ACQUIRED BY
Financial Advisor to the Seller
HAS BEEN ACQUIRED BY
Financial Advisor to the Seller
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A DIVISION OF
Financial Advisor to the Seller
HAS BEEN ACQUIRED BY
Financial Advisor to the Seller
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Financial Advisor to the Seller
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Headwaters Technology, Media & Telecom (TMT) team has won awards for
2014 Online and Mobile Tech Deal of the Year and 2014 Consumer Services Deal of the Year
and back-to-back M&A Advisor TMT Deal of the Year awards
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A DIVISION OF
Financial Advisor to
the Seller
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Financial Advisor to the Seller
HAS BEEN ACQUIRED BY
A PORTFOLIO COMPANY OF
Financial Advisor to
the Seller
2013 TMT DEAL OF THE YEAR <$100M
CONSUMER SERVICES
DEAL OF THE YEAR
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CORPORATE / STRATEGIC ACQUISITION OF THE
YEAR
2014 ONLINE AND MOBILE TECH DEAL
OF THE YEAR
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2012 TMT DEAL OF THE YEAR <$100M
7th ANNUAL INTERNATIONAL M&A AWARDS
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HAS ACQUIRED
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Contact Us
www.headwatersmb.com
John Batdorf Managing Director
Head of Software & Internet Investment Banking
Office: (415) 926-7454
Cell: (415) 847-8805 jbatdorf@headwatersmb.com
135 Main St
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Disclosure: This newsletter is a periodic compilation of certain economic and corporate information, as well as completed and announced merger and acquisition activity. Information contained in this newsletter should not be construed as a recommendation to sell or buy any security. Any reference to or omission of any reference to any company in this newsletter should not be construed as a recommendation to buy, sell or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this newsletter. The newsletter is published solely for the general information of clients and friends of Headwaters MB, LLC. It does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Certain transactions, including those involving 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, and it should not be relied upon as such. Prediction of future events is inherently subject to both known and unknown risks, and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this newsletter. Opinions expressed are our present opinions only and are subject to change without notice. Additional information is available upon request. The companies mentioned in this newsletter may be clients of Headwaters MB, LLC. The decisions to include any company in this newsletter is unrelated in all respects to any service that Headwaters MB, LLC may provide to such company. This newsletter may not be copied or reproduced in any form, or redistributed without the prior written consent of Headwaters MB, LLC. The information contained herein should not be construed as legal advice.
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