Frontier Tech

7/23/2019 Frontier Tech

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CB INSIGHTS

THEFUTURE OFFRONTIER

TECHAnalyzing trends inDrones, Space, and AR/VR

technologyAUGUST 21, 2015


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AUTHORED BY

INSERT TITLE HEREJuly 9, 2015

CB INSIGHTS

CB Insights is a National ScienceFoundation backed companythat uses data to provide VCs,corporate strategy, M&A teamsand business developmentprofessionals with intelligenceon emerging companies anddisruptive technology trends.

CB Insights is based in NYC,is revenue-funded with anamazing talented team andgrowing like a weed.

To see how our data canmake your life easier, visitwww.cbinsights.com

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KEY FIGURES

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Funding here

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Table of Contents

# SECTION

4 Summary

5 Frontier Tech Summary


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FUNDING AND DEAL VOLUME

MAJOR THEMES

GROWTH CATEGORIES

PROLIFIC INVESTORS

EXIT ACTIVITY

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Summary of Findings


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Since 2014

$3.2Braised in equity financing to Frontier Tech companies


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FRONTIER TECH STARTUPS RAISE $3.2B SINCE 2014,$2.2B IN H1 2015

Frontier tech startups (focusing on Drones, Space, AR/VR) have raised a combined $3.2B in equity

financing since 2014, across 213 deals. Funding has now topped $500M and 30 deals for threestraight quarters, with Q115s $1.34B in funding being the highest quarterly total of all-time,largely buoyed by SpaceXs $1B Series D financing. As the industries develop, there have been 9$50M+ financings to frontier tech companies since 2014.

FRONTIER TECH INVESTMENT ACTIVITYQ112 - Q215

$35 $88 $33 $47 $57 $70

$123

$318

$91 $75 $147

$672

$1,339

$880

9

12 119

11

18

23

27 28

20

27

33

58

47

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1400

Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

Dollars ($M) Deals


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ROTHENBERG VENTURES AND GOOGLE VENTURESHEADLINE MOST ACTIVE VC INVESTORS SINCE 2012

Rothenberg Ventures and Google Ventures have been the most active VCs in Frontier Tech since2012. Rothenberg Ventures has made multiple early-stage bets in companies including AltspaceVR, Matterport, and Dronebase. A number of VC firms rounded out the top 3.

MOST ACTIVE VCS IN FRONTIER TECHUnique Companies, Q112 - Q215

RANK INVESTOR RANK INVESTOR

1 Rothenberg Ventures 3 Intel Capital

1 Google Ventures 7 Felicis Ventures

3 Andreessen Horowitz 8 Founders Fund

3 Qualcomm Ventures 8 Bessemer Venture Partners

3 Lux Capital 8 Promus Ventures


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While the splashiestacquisitions in recentyears in Frontier Tech wereacquisitions by Facebook andGoogle, there have been fewinvestor-backed exits overall.

However, multiple companieshave made acquisitions withinthe Drone, Space, and AR/VRindustries.

These notable M&Atransactions include:

KMel Robotics, acquiredby Qualcomm in January

2015 Modelco, acquired by

Goliath Games in April2014

Composite Engineering,acquired by Kratos Defense& Security Solutions in May

Other Notable Exits

The maker of the Oculus Rift, avirtual reality headset with use-cases ranging from gaming to

media and more.

A commerical remote sensingcompany that utilized satellitesfor to provide insight into daily

activity on the planet.

Acquired by Facebook, 3/14$2 billion

Acquired by Google, 6/14$500 million

Provides end-to-end solutionsacross geospatial value chainincluding satellite operations,imagery distribution, and more.

Aims to provide a near-liveHD video feed of earth withmultiple cameras attached to theInternational Space Station.

Acquired by Planet Labs, 7/15*Undisclosed

IPO via Reverse Merger, 7/13$63.5 million**

NOTABLE INVESTOR-BACKED FRONTIER TECH EXITSSINCE 2012

* Blackbridge was acquired by Planet Labs in July 2015.** There is some uncertainty due to the reverse merger in Urthecasts valuation at time of IPO.For up to date valuation data the companies ticker is UR:CN.


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Google & Qualcomm Lead

Strategics

CORPORATES AND STRATEGIC INVESTORS INVESTMENTSAND ACQUISITIONS

As the graph to the left shows,

Google and Qualcomm,

through both their corporate

and venture arms have been

very active in the Frontier

Tech space with multiple

investments and acquisitions.

Other corporates visualized

include Airware, who has

made multiple investments

through its recently launched

Commercial Drone Fund,

as well as Bosch, and Intel

Capital.

DJI & Accel Partners (not

visualized) recently announced

a similar fund to Airwares

called the SkyFund.


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Its one of the few thingsIve ever experienced inmy life where I came outand said, This changes

everything. This is a markerof the future.

Thomas TullCEO, Legendary Entertainment

INVESTOR INVESTMENTS

OTHER NOTABLE STRATEGIC INVESTMENTS

Source: Fast CompanyImage Source: Legendary Entertainment
http://www.fastcompany.com/3037345/fast-feed/so-bad-ass-you-cant-believe-it-magic-leap-raises-542-million-to-launch-the-future-http://www.fastcompany.com/3037345/fast-feed/so-bad-ass-you-cant-believe-it-magic-leap-raises-542-million-to-launch-the-future-


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Since 2014

SPACEcompanies have raised more than

$1.8 billion


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SPACEX BUOYS SPACE INVESTMENT ACTIVTY, DEALSREACH MULTI-YEAR HIGH IN Q115

Space startups raised $1.76B in the first half of 2015 as both funding and deal activity has

increased drastically in recent quarters. Mega-rounds to SpaceX ($1B) and OneWeb ($500M)have buoyed funding totals. Other notable financings in 2015 include Planet Labs $70M Series Cwhich valued the company at $500M, Mapboxs $50M Series B, and Spires $40M Series B.

SPACE INVESTMENT ACTIVITYQ112 - Q215

$7 $70 $17 $1 $16 $64 $131 $7$45

$25 $24

$1,129

$6293

2

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$1,200

Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

Dollars ($M) Deals


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LUX CAPITAL, RRE VENTURES, BESSEMER ARE MOSTACTIVE VCS IN SPACE STARTUPS

Lux Capital, RRE Ventures, and Bessemer Venture Partners have been the 3 most active VCs

in space startups since 2012. Both Bessemer and RRE invested in Spire, a company hoping toput over 50 small satellites in space over the next few years to achieve daily imaging of earth.Bessemer also invested in Skybox Imaging, which was acquired for $500M by Google in 2014.

MOST ACTIVE VCS IN SPACEUnique Companies, Q112 - Q215

RANK INVESTOR SELECT INVESTMENTS

1 Lux Capital Planet Labs, Orbital Insight

1 RRE Ventures Spaceflight Industries, Spire

1 Bessemer Venture Partners Spire, Skybox Imaging

2 Khosla Ventures Rocket Lab, Skybox Imaging

2 Promus Ventures Spire, Mapbox

2 Founders Fund Planet Labs, Accion Systems


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Designs, manufactures, andlaunches advanced rockets andspacecrafts.

Plans to put more than 600satellites in space to enable globalinternet access.

Collects/analyzes data about theearth via agile satellite constellationdevelopment.

Total Funding$1.19 billion

Total Funding$500 million

Total Funding$196.1 million

Developes a new form of satelliteantenna to connect mobilenetworks and communicationsatellites.

Collects/analyzes data via satelliteconstellations related to globaltrade, weather, and more.

Map data, design, and publishingplatform.

Total Funding$82 million



THE MOST WELL-FUNDED VC-BACKED SPACE STARTUPS


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Compared to other industries, I have never seen such anenormous margin for improvement. Theres this canonicalthing about a startup needing to pitch a 10X improvement

to be a worthwhile investment. You rarely see anentrepreneur pitch a 100X improvement. But in space weveseen 1,000X, and really weve seen 10,000X.

- Steve JurvetsonPartner, Draper Fisher Jurvetson

Source: Fortune
http://fortune.com/2015/08/04/small-satellites-newspace/http://fortune.com/2015/08/04/small-satellites-newspace/


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Of all space companies fundedsince 2012, 46% have beenfocused on space servicesor rocket tech. This includescompanies like SpaceX, whichis focusing on reusable rockettechnology, as well space debrisstartup Astro Scale.

Satellite startups accounted for35% which includes multiplestartups aiming to image earthvia satellites on a daily basis,such as Planet Labs and Spire.

Imagery startups, which utilizesatellite imagery to deriveunique insights about earthaccounted for 19%.

SATELLITES & SPACE SERVICES OUTPACE SOFTWARE-BASED IMAGERY STARTUPS

FUNDED SPACE COMPANIES BY FOCUSAs % of all funded companies, Q112 - Q215

35%

46%

19%

Satellite Operation/Tech

Space Services/Rocket Tech

Imagery


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SELECT SPACE STARTUPS BY SEGMENT

SATELLITES SPACE SERVICES/ROCKET TECH IMAGERY


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SPACE STARTUPS MOVING FORWARD: NEWS HEADLINES

Startups gathering and analyzing data from space

utilize emerging satellite and imagery technologyto provide unique insights to a wide-range ofindustries including maritime, weather, wildlifeconservation, and financial institutions.

The increased innovation has not been without its

downfalls. Recently a launch failure by SpaceX,negatively impacted many satellite startups, utilizeSpaceX rockets as launch vehicles to put satellitesinto orbit.

PARTNERSHIPS & USE CASES BROADER TRENDS


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Cubesats, which led the Nanosat movement, emerged in 1999 out of Cal Poly SanLuis Obispo and Stanford in an effort to get aerospace companies to launch low-cost satellites for research. Since then, multiple startups have raised financing to

deploy larger constellations of satellites into low earth orbit in an effort to upendexisting players such as Airbus and DigitalGlobe in earth imagery. These startups,such as Planet Labs, Spire, and many more, look to utilize the lower-cost, largerconstellations to gather imagery of the earth at a much higher rate (called therevisit rate), with eventual goals to have daily or even multiple times per daysatellite imagery of any given location on earth.

The use-cases that are borne out of this unprecedented cost-efficiency, andgranularity when it comes to satellite imagery frequency are abound, howeverthe imagery analysis often lays in the hands of companies like Orbital Insight andWindward which use deep learning to analyze large datasets.The addressable markets span both public and private sectors ranging from

hedge funds for analyzing construction, parking lot traffic, crop health forcommodity trading, and much more, to the National Weather Service datathat can utilize sensors on the nanosats to gather better data and provide aclearer picture of weather to governments which can analyze imagery to detectdeforestation and environmental impact of areas over time.

Industry Analysis: Nanosat Imagery Enablement

Image credit: Planet Labs
https://www.planet.com/gallery/walla-walla/https://www.planet.com/gallery/walla-walla/


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1000 $5B 56%Nanosats launched in the next 5 years Projected global commercial satellite im-

agery market in 2019of nanosats will be for commercial use

through 2016

Market Sizing

Source: Spaceworks, The Economist, Transparency Market Research
http://www.sei.aero/eng/papers/uploads/archive/SpaceWorks_Nano_Microsatellite_Market_Assessment_January_2014.pdfhttp://www.economist.com/news/technology-quarterly/21603240-small-satellites-taking-advantage-smartphones-and-other-consumer-technologieshttp://www.transparencymarketresearch.com/pressrelease/commercial-satellite-imaging-market.htmhttp://www.transparencymarketresearch.com/pressrelease/commercial-satellite-imaging-market.htmhttp://www.economist.com/news/technology-quarterly/21603240-small-satellites-taking-advantage-smartphones-and-other-consumer-technologieshttp://www.sei.aero/eng/papers/uploads/archive/SpaceWorks_Nano_Microsatellite_Market_Assessment_January_2014.pdf


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Diversified aerospace and defensecompany with a small focuson larger commercial satellitedevelopment

Diversified aerospace and defensecompany which has delivered morethan 300 observation satellites forcommercial use

Diversified aerospace companywhich builds a range of satellites,including the 900 satellite OneWebconstellation

Market Cap$98.2 billion



HQ: Seattle, WA HQ: Bethesda, MD HQ: Blagnac, France

Provides launch services tolargely smaller telecommunicationsatellites

Leading American provider ofhigh resolution satellite imageryincluding powering Google Maps

Acquired Skybox Imaging, a smallsatellite company focused on twice-daily imaging of earth



Market Cap$465 billion

HQ: Dulles, VA HQ: Westminster, CO HQ: Mountain View, CA

NANOSATELLITE IMAGERY RELATED CORPORATES


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Since 2014

DRONEScompanies have raised

$285 million


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DRONE INVESTMENT ACTIVITY PEAKS IN Q215

Drone investment activity has picked up drastically over the past three quarters, reaching an

all-time high in Q215, with $109M invested in equity financings across 16 deals. The fundingtotal was buoyed by the $75M Series B financing to DJI Innovation, the largest consumer dronemanufacturer in the world. Other notable deals include 3D Robotics $14M Series C-II, andSquadrone Systems $5M Series A.

DRONE INVESTMENT ACTIVITYQ112 - Q215

$2 $8 $16

$32

$8 $6 $13

$65

$23

$68

$109

1

2 2

3

4

3

5 5

910

13

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Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

Dollars ($M) Deals


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NINE FIRMS TIE FOR MOST ACTIVE VCS IN DRONES

Few VCs have made multiple bets on Drones thus far. The 9 VCs below all tied for the top spot.Notably 5 of the 9 VCs have invested in Airware, the developer of an operating system for drones.

MOST ACTIVE VCS IN DRONESUnique Companies, Q112 - Q215


1 Promus Ventures 1 Commercial Drone Fund

1 Google Ventures 1 Qualcomm Ventures

1 Andreessen Horowitz 1 Draper Associates

1 Felicis Ventures 1 Intel Capital

1 Accel Partners


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Autonomous Drone/UAVmanufacturer with a focus onenterprise

Consumer and semi-pro dronemanufacturer

Develops autopilots and anoperating system for drones/UAVs

$99 million $75 million $40.2 million

Enterprise services for capturingdata at scale with autonomousdrones

Manufactures multi-rotors andvarious hardware for drones

Develops tethered dronetechnology for persistent flight andsecure streaming

$21.4 million $20 million $14.9 million

THE MOST WELL FUNDED VC-BACKED DRONE STARTUPS


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Its blindingly obvious to us that this is going to be a bigspace...Its tough to know how big it will be, but where I

stand here on the foothills, I can see the mountains in thedistance and theyre pretty high.

- John FrankelPartner, FF Venture Capital

Source: Bloomberg
http://www.bloomberg.com/news/articles/2015-06-19/drone-startups-grab-record-cash-as-kleiner-ff-venture-seek-winshttp://www.bloomberg.com/news/articles/2015-06-19/drone-startups-grab-record-cash-as-kleiner-ff-venture-seek-wins


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42% of all funded dronestartups since 2012 have beenfocused on software/services.This includes uber for dronesstartups such as Dronebase, aswell as more industrial focusedcompanies like Skycatch.

Drone hardware startups werecloseby at 40%. However,hardware startups havegarnered the most investmentdollars, as the two most well-funded companies (3D Roboticsand DJI) are focused largely onhardware.

HARDWARE, SOFTWARE & SERVICES DOMINATEINFRASTRUCTURE DRONE STARTUPS

FUNDED DRONE COMPANIES BY FOCUSAs % of all funded companies, Q112 - Q215

40%

18%

42%

Hardware

Infrastructure

Software/Services


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SELECT DRONE COMPANIES BY APPLICATION

HARDWARE SERVICES/SOFTWARE INFRASTRUCTURE


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PARTNERSHIPS & USE CASES GROWING CONCERNS

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DRONES MOVING FORWARD: NEWS HEADLINES

Multiple companies have developed innovative

partnerships or experimental trials withinthe drone space. Ranging from military useto agriculture to industrial monitoring, droneutilization currently spans a wide array ofindustries.

But not all is perfect. A mix of slow regulation of

drones, as well as a slew of infrastructure issuesstill remain. Below are relevant news headlinesfor each aspect of the emerging drone space.


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2.1M $198B $2BFarms in the US US agricultural trade exports Agriculture monitoring market

Market Sizing

Source: Karlsson Project, USDA
http://www.slideshare.net/karlssonproject/precision-agriculture-monitoring-by-drones?qid=c6168293-http://www.ers.usda.gov/data-products/farm-income-and-wealth-statistics/annual-cash-receipts-by-commodity.aspxhttp://www.ers.usda.gov/data-products/farm-income-and-wealth-statistics/annual-cash-receipts-by-commodity.aspxhttp://www.slideshare.net/karlssonproject/precision-agriculture-monitoring-by-drones?qid=c6168293-


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Diversified agriculture andgenetically engineered seeds

Agriculture machinery and softwareAgriculture equipmentmanufacturer




HQ: St. Louis, MO HQ: Moline, IL HQ: Duluth, GA

Field management softwaredevelopment through DupontPioneer

Autonomous farm equipment andconnected farm software

Precision agriculture deploymentand analytics technology



Market Cap$702.7 million

HQ: Wilmington, DE HQ: Sunnyvale, CA HQ: Sioux Falls, SD

PRECISION AGRICULTURE RELATED CORPORATES


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Drones as a delivery/logistics provider is at least a few years out, however the

advantages are large. With current technology, drones would allow businessesto deliver products to customers without utilizing a driver, and do so in aninstantaneous fashion. In todays on demand world, this trend only looks toaccelerate as multiple startups and corporates look to lower fulfillment times tosame-day or sooner.

Drones currently have the ability to carry smaller payloads of about 2 kg (which

Amazon claims covers about 70% of all packages it ships), over distances ofover 5 miles, while utilizing GPS and awareness sensors to navigate betweenwaypoints. Corporates including Amazon, Dominoes, Google, and startups likeMatternet have run pilot tests in the logistics space.

When shifting out of the US to developing nations, difficult infrastructure proves

even more willing to be disrupted, as prohibitive roads and traffic are removedas factors for delivery over distances. As drone technology advances both on aninfrastructure and autonomous software basis, this trend should only accelerate,with government regulation continuing to hang over the concept of a drone-riddled sky.

Industry Analysis: Drone Delivery

Image Source: Frankhffner
https://commons.wikimedia.org/wiki/File:Package_copter_microdrones_dhl.jpghttps://commons.wikimedia.org/wiki/File:Package_copter_microdrones_dhl.jpg


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0 $97B 7.5%FAA Approvals for commercial drone

deliveryUS Courier & Local Delivery Market Drone delivery cost as % of traditional

ground transportation delivery

Market Sizing

Source: IBIS, John Swope
http://www.ibisworld.com/industry/default.aspx?indid=1950http://www.johnswope.com/?p=83http://www.johnswope.com/?p=83http://www.ibisworld.com/industry/default.aspx?indid=1950


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Largest global package deliverycompany.

Second largest package deliverycompany

Diversified courier and logistics



Market Cap$34.6 billion*

HQ: Atlanta, GA HQ: Memphis, TN HQ: Bonn, Germany

Has expressed interest in dronedelivery tech with Project Wing

Multi-product e-commerce with afocus on drone delivery throughPrime Air

Diversified Asian technology entitywith heavy focus on delivery andlogistics related to e-commerce




HQ: Mountain View, CA HQ: Seattle, WA HQ: Hangzhou, China

DRONE DELIVERY RELATED CORPORATES

* market cap reflects Deutsche Post AG, the parent company of DHL


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Since 2014

AR/VRcompanies have raised

$1.0 billionImage credit: Microsoft Sweden
https://www.flickr.com/photos/microsoftsweden/16153485657https://www.flickr.com/photos/microsoftsweden/16153485657


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AR/VR DEALS REACH NEW HIGH IN Q115, ABOVE 10DEALS 6 OF LAST 7 QUARTERS

After Magic Leaps $542M financing drove Q414 funding to $623M across 12 deals, AR/

VR investment activity reached a record high in Q115 with 22 deals raising $114M. Fundingincreased slightly on 7 fewer deals in Q215, however that marked 6 of the last 7 quarters having10+ deals. While the bulk of the deals remain at the early-stage, in the first half of 2015, therewere over 5 $10M+ financings.

AR/VR INVESTMENT ACTIVITYQ112 - Q215

$26$16 $3 $9 $55 $36

$24 $117

$75 $16 $54

$623

$114 $128

56

54

78 8

1211

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Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

Dollars ($M) Deals


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Developer of augmented realitytechnology

Visual sensing for connecteddevices and augmented reality

Developes a system for generating3D digital models of physicalspaces.

$592 million $86.5 million $58.3 million

Augmented reality visual browserfor brands and publishers

3D motion control and sensinghardware and software

Cinematic VR experience viaproprietary hardware and software

$47.2 million $44.1 million $35.4 million

THE MOST WELL FUNDED VC-BACKED AR/VR STARTUPS


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ROTHENBERG VENTURES IS MOST ACTIVE VC IN AR/VR

Rothenberg Ventures has been the most active VC in AR/VR startups since 2012. The early-stage

funds investments include AltspaceVR, Matterport, and EmergentVR, among others. GoogleVentures, Andreessen Horowitz, and Intel Capital all placed second in activity, with both GV andA16Z investing in MediaSpike, a VR native advertising company.

MOST ACTIVE VCS IN AR/VRUnique Companies, Q112 - Q215


1 Rothenberg Ventures 5 Qualcomm Ventures

2 Google Ventures 5 High-Tech Gruenderfonds

2 Andreessen Horowitz 5 Formation 8

2 Intel Capital

MAJORITY OF FUNDED AR/VR COMPANIES FOCUSED ON


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AR/VR startups with a focuson commercial use-casesaccounted for 40% of allfunded startups since 2012.This includes Blippar, whichenables augmented reality forbrands and publishers, as wellas Augment, which utilizes ARfor sales and e-commerce.

Hardware, which includesmultiple companies developinghardware platforms for AR/VRapplications saw the secondhighest company share at 34%.

Gaming/Social was third,while a few startups such asDeepstream VR and LensAR

are focused on healthcareapplications within the AR/VRrealm.

MAJORITY OF FUNDED AR/VR COMPANIES FOCUSED ONHARDWARE & COMMERCIAL APPLICATIONS

FUNDED AR/VR COMPANIES BY FOCUSAs % of all funded companies, Q112 - Q215

34%

40%

22%

4%

Hardware

Commercial

Gaming/Social

Healthcare


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VR will be the ultimate input-output device. Some people callVR the last medium because any subsequent medium can beinvented inside of VR, using software alone.

Looking back, the movie and TV screens we use today will be

seen as an intermediate step between the invention of elec-tricity and the invention of VR. Kids will think its funny thattheir ancestors used to stare at glowing rectangles hoping to

suspend disbelief.

- Chris DixonPartner, Andreessen Horowitz

Source: Cdixon.org
http://cdixon.org/2015/01/24/virtual-reality-a-new-creative-medium-where-the-default-state-is-belief/http://cdixon.org/2015/01/24/virtual-reality-a-new-creative-medium-where-the-default-state-is-belief/


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SELECT COMPANIES BY AR/VR APPLICATION

HARDWARE COMMERCIAL GAMING/SOCIAL


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PARTNERSHIPS & USE-CASES BROADER TRENDS

AR/VR MOVING FORWARD: NEWS HEADLINES

VR is still very early on in terms of commercial

applications, however multiple partnershipshave begun experimenting with the emergingtechnology. This includes sports teams,healthcare professionals, and even astronauts.

In addition to the commercial applications of

today, a wide-range of future implementationsare in development. From virtual travel togovernment implementations to long-termhealth simulations, AR/VR implementation couldfundamentally change human behavior.


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Augmented reality and virtual reality is anticipated to have a dramatic impacton the gaming sector in the next 5-10 years. Large corporates ranging fromFacebook, with its $2B acquistion of VR hardware developer Oculus VR, toMicrosoft and Sony with AR/VR headsets of their own, to Samsung and Googlewith their low-cost cardboard headsets designed to work with high-end mobile

phones, are positioning themselves within the space.

Alternatively, software providers including game studios such as Crytek andUbisoft, look to benefit from a new, more immersive gaming experience andsurging adoption of hardware. Emerging use-cases within gaming includeadaptations of adult-focused open-world games and first-person shooters, as well

as the teen and young adult-focused social gaming where the role of avatars anddigital goods will be increasingly important.

Industry Analysis: AR/VR Gaming

Image credit: Sergey Galyonkin

M k t Si i
https://www.flickr.com/photos/sergesegal/10187246943https://www.flickr.com/photos/sergesegal/10187246943


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76% $74B $225Mof VR content related to gaming Overall gaming market VR Gaming Market

Market Sizing

Source: Superdata Research

Image Source: Ars Electronica
https://www.superdataresearch.com/blog/global-games-market-2015/https://www.flickr.com/photos/arselectronica/https://www.flickr.com/photos/arselectronica/https://www.superdataresearch.com/blog/global-games-market-2015/


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Largest exclusive Americandeveloper and distributor of videogames including EA Sports

Game developer and publisherincluding Call of Duty, World ofWarcraft, Destiny, and Diablo

Video game developer responsiblefor Half Life and Dota 2, as well asdigital distribution platform Steam

Market Cap

$22.7 billion

Market Cap

$20.91 billion

Market Cap

$3 billion (estimated)

HQ: Redwood City, CA HQ: Santa Monica, CA HQ: Bellevue, WA

Diversified investment holdingcompany with largest gaming salesin the world including video gamepublisher Riot Games

Owns Sony ComputerEntertainment which producesthe Playstation line of consolesand publishes video games acrossconsole and mobile platforms

Owns Microsoft Studios whichdevelops and publishes games forthe Xbox, Windows, and Steamplatforms including Halo

Market Cap // Gaming Revenue$171 billion // $7.2 billion

Market Cap // Gaming Revenue$34 billion // $6 billion

Market Cap // Gaming Revenue$375.9 billion // $5 billion

HQ: Shenzhen, China HQ: Tokyo, Japan HQ: Redmond, WA

AR/VR GAMING RELATED CORPORATES

Gaming Revenue Source: Newzoo
http://www.newzoo.com/insights/the-top-25-public-companies-generated-54-1bn-game-revenues-in-2014-up-10-4-year-on-year/http://www.newzoo.com/insights/the-top-25-public-companies-generated-54-1bn-game-revenues-in-2014-up-10-4-year-on-year/


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WHAT IS INCLUDED:

Equity financings into AR/VR, Drones, and Space Startups as of7/1/2015

Fundings of only private companies. Funding rounds raised bypublic companies of any kind on any exchange (including Pink Sheets)are excluded from our numbers even if they received investment by aventure firm(s).

Only include the investment made in the quarter for tranchedinvestments. If a company does a second closing of its Series B roundfor $5M and previously had closed $2M in a prior quarter, only the$5M is reflected in our results.

Round #s reflect what has closed not what is intended. If acompany indicates the closing of $5M out of a desired raise of $15M,our numbers reflect only the amount which has closed.

Only verifiable fundings are included. Fundings are verified via(1) various federal & state regulatory filings (2) direct confirmation withfirm or investor or (3) press release.

WHAT IS EXCLUDED:

No contingent funding. If a company receives a commitment for$20M subject to hitting certain milestones but first gets $8M, only the$8M is included in our data.

No business development/R&D arrangements whethertransferable into equity now, later or never. If a company signs a$300M R&D partnership with a larger corporation, this is not equityfinancing nor is it from venture capital firms. As a result, it is notincluded.

No buyouts, Consolidations and Recapitalizations. All three ofthese of transaction types are commonly employed by private equityfirms and are tracked by CB Insights. However, they are excluded forthe purposes of this report.

No private placements. These investments also known as PIPEs(Private Investment in Public Equities) even if made by a venture

capital firm(s)

No debt/loans of any kind (except convertible notes). Venturedebt or any kind of debt/loan issued to emerging, startup companieseven if included as an additional part of an equity financing is notincluded. If a company receives $3M with $2M from venture investors

and $1M in debt, only the $2M is included in these statistics.

No government funding. Grants, loans, equity financings by thefederal government, state agencies or public -private partnerships to

emerging, startup companies are not included.

METHODOLOGY - WHATS INCLUDED? WHATS NOT?

We encourage you to review the methodology and definitions employedby us to better understand the numbers presented in this report. If youhave any questions about our definitions or methodological principles,we encourage you to reach out to us directly.

Additionally, if you feel your firm has been under represented pleasesend an email to [email protected] and we can work together to

ensure your firms investment data is up-to-date.


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CB INSIGHTS CB Insights is a National ScienceFoundation backed companythat uses data to provide VCs,corporate strategy, M&A teamsand business developmentprofessionals with intelligenceon emerging companies anddisruptive technology trends.

CB Insights is based in NYC,is revenue-funded with anamazing talented team andgrowing like a weed.

To see how our data canmake your life easier, visitwww.cbinsights.com

www.cbinsights.com [website]@cbinsights [Twitter]

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