Headwaters' Internet Advertising Market Update 3Q 2015
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Transcript of Headwaters' Internet Advertising Market Update 3Q 2015
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Capital Markets – U.S. Internet Advertising companies continue to outpace their international counterparts and outperform the NASDAQ, S&P 500 and MSCI Europe indexes
Trading Multiples – U.S. Internet Advertising companies are trading at a median LTM revenue multiple of 1.3x, while International Internet Advertising companies are trading at a median LTM revenue multiple of 3.3x
M&A Activity – M&A activity reached a 3-year high in Q3 2015, with 55 deals, after it had dropped in Q1 2015 and Q2 2015, with 42 deals and 40 deals respectively, although aggregate transaction value continues to decline. 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), and AOL’s acquisition of Millennial Media ($248M)
Investment Activity – Investment volume and aggregate values declined in Q3 2015 to 60 investments and $456M in value, from Q2 2015’s 65 investments and $458M in value. Notable recent investments include Kahuna ($45M), Demandbase ($30M), Panshi ($200M), Lattice Engines ($28M), and Magnetic Media ($25M)
Executive Summary
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-40.00%
-20.00%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
Capital Markets Performance Since 2012, U.S. Internet Advertising companies (+87.4%) have outperformed the NASDAQ (+74.4%), S&P 500 (+50.3%), and MSCI Europe (+15.0%) indexes, along with their international counterparts (+8.9%)
NASDAQ: +74.4%
MSCI Europe: +15.0%
S&P 500: +50.3%
Int'l. Internet Advertising Companies: +8.9%
Source: Capital IQ; refer to public comps for constituents
U.S. Internet Advertising Companies: +87.4%
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4.6x 5.0x
3.3x 3.4x
2.0x
0.7x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0xLTM Revenue Multiple
Internet Advertising Comparable Public Companies
International Internet Advertising Companies
U.S. Internet Advertising Companies
5.5x 4.7x
1.7x
4.8x
6.8x
1.7x
3.6x
1.3x 0.7x 0.4x 0.7x 0.6x 0.7x 0.4x 0.1x
0.0x
2.0x
4.0x
6.0x
8.0xLTM Revenue Multiple
Median: 1.3x
Median: 3.3x
Source: Capital IQ; companies arranged by descending enterprise value
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Public Trading Comparables: Internet Advertising
_______ Source: Capital IQ
Trading Metrics($ in millions, except per share data) Stock
Price 52-Week Price Range Market Enterprise EV / Revenue EV / EBITDACompany Ticker 09/30/15 Low High Cap. Value LTM CY 2015E CY 2016E LTM CY 2015E CY 2016E
U.S. COMPANIESGoogle NasdaqGS:GOOG.L $638.37 $490.91 $713.33 $442,058 $382,260 5.5x 5.2x 4.5x 16.9x 12.8x 10.9xYahoo! NasdaqGS:YHOO 28.91 27.20 52.62 27,311 22,758 4.7x 5.4x 5.5x 42.0x 22.7x 22.8xIAC/InterActive NasdaqGS:IACI 65.27 56.50 84.66 5,193 5,412 1.7x 1.7x 1.5x 13.5x 11.3x 8.3xcomScore NasdaqGS:SCOR 46.15 35.03 65.00 1,833 1,676 4.8x 4.5x 3.8x NM 17.8x 14.6xMarketo NasdaqGS:MKTO 28.42 23.17 35.63 1,315 1,210 6.8x 5.8x 4.3x NM NM NMConstant Contact NasdaqGS:CTCT 24.24 22.75 43.18 796 616 1.7x 1.7x 1.5x 14.0x 8.3x 6.7xRubicon Project NYSE:RUBI 14.53 8.76 20.59 690 590 3.6x 2.4x 1.8x NM 15.8x 11.4xJive Software NasdaqGS:JIVE 4.67 3.51 7.14 353 241 1.3x 1.2x 1.2x NM NM 27.7xQuinStreet NasdaqGS:QNST 5.55 3.78 6.83 250 205 0.7x 0.7x 0.6x NM 16.2x 11.0xRocketFuel NasdaqGS:FUEL 4.67 4.41 21.10 199 201 0.4x 0.4x 0.3x NM 43.4x 7.3xSizmek NasdaqGS:SZMK 5.99 4.85 8.47 177 110 0.7x 0.6x 0.5x 8.3x 4.8x 3.7xMaxPoint NYSE:MXPT 4.08 3.93 11.24 110 82 0.6x 0.9x 0.7x NM NM NMMarin Software NYSE:MRIN 3.13 3.04 9.68 116 76 0.7x 0.7x 0.6x NM NM NMMarchex NasdaqGS:MCHX 4.03 3.15 5.32 166 62 0.4x 0.4x 0.4x 9.2x 4.5x 5.0xReachLocal NasdaqGS:RLOC 2.11 2.01 4.67 62 59 0.1x 0.2x 0.1x NM 38.7x 4.0x
High 6.8x 5.8x 5.5x 42.0x 43.4x 27.7xMean 2.3x 2.1x 1.8x 17.3x 17.8x 11.1x
Median 1.3x 1.2x 1.2x 13.8x 15.8x 9.6xLow 0.1x 0.2x 0.1x 8.3x 4.5x 3.7x
INTERNATIONAL COMPANIESBaidu NasdaqGS:BIDU 137.41 100.00 251.99 48,286 42,593 4.6x 4.0x 3.0x 15.4x 18.2x 14.1xYahoo! Japan TSE:4689 3.79 3.21 4.82 21,614 17,986 5.0x 4.7x 4.4x 10.2x 9.8x 9.1xRakuten TSE:4755 12.73 9.44 20.00 18,125 17,401 3.3x 3.0x 2.6x 14.0x 13.2x 10.7xYandex NasdaqGS:YNDX 10.73 9.94 28.87 3,429 3,265 3.4x 3.5x 3.0x 10.3x 10.4x 8.3xCriteo NasdaqGS:CRTO 37.54 28.09 57.30 2,485 2,181 2.0x 4.1x 3.1x 25.0x 16.0x 11.1xMatomy LSE:MTMY 1.66 1.38 3.85 154 169 0.7x 0.6x 0.5x 8.7x 6.5x 4.7x
High 5.0x 4.7x 4.4x 25.0x 18.2x 14.1xMean 3.2x 3.3x 2.8x 13.9x 12.3x 9.7x
Median 3.3x 3.8x 3.0x 12.2x 11.8x 9.9xLow 0.7x 0.6x 0.5x 8.7x 6.5x 4.7x
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Public Operating Comparables: Internet Advertising
_______ 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:GOOG.L Jun 2015 11% 15% 62% $69,611 $73,079 $84,217 $22,620 $29,955 $35,173Yahoo! NasdaqGS:YHOO Jun 2015 (9%) (1%) 67% 4,870 4,195 4,156 542 1,001 1,000IAC/InterActive NasdaqGS:IACI Jun 2015 4% 9% 73% 3,157 3,221 3,515 400 478 651comScore NasdaqGS:SCOR Jun 2015 14% 16% 70% 351 376 437 19 94 115 Marketo NasdaqGS:MKTO Jun 2015 40% 33% 65% 178 210 280 (55) NA NAConstant Contact NasdaqGS:CTCT Jun 2015 12% 14% 73% 353 372 424 44 74 92 Rubicon Project NYSE:RUBI Jun 2015 98% 33% 81% 164 248 331 (10) 37 52 Jive Software NasdaqGS:JIVE Jun 2015 9% 7% 63% 190 194 207 (26) 1 9 QuinStreet NasdaqGS:QNST Jun 2015 7% 9% 11% 282 294 321 (3) 13 19 RocketFuel NasdaqGS:FUEL Jun 2015 23% 17% 42% 466 504 590 (53) 5 28 Sizmek NasdaqGS:SZMK Jun 2015 4% 13% 65% 165 178 201 13 23 30MaxPoint NYSE:MXPT Jun 2015 (16%) 32% 50% 129 90 119 (13) NA NAMarin Software NYSE:MRIN Jun 2015 7% 12% 63% 106 106 119 (30) NA NAMarchex NasdaqGS:MCHX Jun 2015 (20%) 1% 43% 159 145 146 7 14 12 ReachLocal NasdaqGS:RLOC Jun 2015 (18%) 4% 44% 425 391 408 (34) 2 15
INTERNATIONAL COMPANIESBaidu NasdaqGS:BIDU Jun 2015 36% 32% 68% 9,172 10,657 14,055 2,767 2,343 3,024Yahoo! Japan TSE:4689 Jun 2015 (7%) 7% 79% 3,590 3,834 4,114 1,770 1,844 1,984Rakuten TSE:4755 Jun 2015 18% 15% 17% 5,347 5,888 6,751 1,243 1,315 1,630Yandex NasdaqGS:YNDX Jun 2015 12% 19% 72% 972 927 1,101 316 315 395Criteo NasdaqGS:CRTO Jun 2015 46% 31% 36% 1,069 537 704 87 137 196Matomy LSE:MTMY Jun 2015 3% 15% 23% 255 268 308 19 26 36
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Internet Advertising M&A Reaches New Heights
_______ Source: 451 Group; includes transactions with disclosed, estimated, undisclosed transaction values Top 3 acquisitions with disclosed transaction values
Average LTM Revenue Multiple 2012 2013 2014 6.7x 6.1x 4.9x
Top 3 Acquisitions by Quarter ($M) – Target / Acquirer 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Eloqua / Oracle ($956)
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)
Pardot / ExactTarget
($96)
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) ClickMotive /
DealerTrak ($62)
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)
27
18
31 34 34
51 53
41
53
42 40
55
$1,180
$191
$4,810
$1,167
$2,865 $3,049
$845
$3,305
$1,945
$389
$1,220 $820
0
10
20
30
40
50
60
0
1,000
2,000
3,000
4,000
5,000
6,000
4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015
# Deals $ in millions Deal Volume Deal Value ($M)
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Top Acquirers in Internet Advertising Market
Buyer # Acquisitions Total Value ($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
Oracle 6 4,408.7 BlueKai, Datalogix, Eloqua, Involver, Responsys, Vitrue
Adobe 6 1,178.0 Auditude, Demdex, Efficient Frontier, Neolane, Search Discovery, Tumri
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
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.
Extreme Reach 485.0 DG
Top Acquirers by Total Transaction Value – $450M or More, 2011 – Present
_______ Source: 451 Group
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Internet Advertising Market: M&A Case Study
On September 3rd, 2015
ACQUIRED
Transaction Overview: $247.9M acquisition of Millennial Media by AOL
- All cash offer for an enterprise value of $218.2M - $1.75 per share, representing a 31% premium
Millennial Media had $285.3M LTM revenue at the time of acquisition, representing a 0.8x revenue multiple
Millennial Media was not profitable at the time of the transaction
Target Description: Provides supply-side mobile advertising campaign management and
application monetization software for businesses.
Transaction Commentary: “As we continue to invest in our platforms and technology, the
acquisition of Millennial Media accelerates our competitive mobile offering in ONE by AOL and enhances our current publisher offering with an ‘all in’ monetization platform for app developers,” said Bob Lord, President of AOL
"By joining AOL, we will be adding additional mobile expertise to AOL's growing technology assets,” said Michael Barrett, President & CEO of Millennial Media. “I am excited by what this acquisition means for our shareholders, our employees and our partners.”
_______ Source: 451 Group, Acquirer Press Release, WSJ
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Internet Advertising Investment Declining Slightly
_______ Source: PitchBook; includes transactions with disclosed, estimated, undisclosed transaction values Top 3 investments with disclosed investment values
Top 3 Investments by Quarter ($M) 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
ignitAd ($65)
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)
HubSpot ($35)
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)
Emailvision ($30)
AVITO.ru ($50)
MarketShare ($38)
SugarCRM ($40)
Vungle ($19)
Integral Ad ($30)
AdRoll ($70)
xAd ($50)
Infusionsoft ($55)
Volusion ($55)
Magnetic ($25)
Demandbase ($30)
# Investments
69 71
85
63
45
59
71
61
53
65 65 60
$432 $519 $488
$554
$268 $459
$1,071
$478
$462
$827
$458 $456
0
10
20
30
40
50
60
70
80
90
$0
$200
$400
$600
$800
$1,000
$1,200
4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015
$ in millions
Investment Volume Investment Value ($M)
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Top Investors in Internet 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 Internet Advertising Market
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
13
Top Series B and C Investors in Internet Advertising Market
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
14
Top Series D+ Investors in Internet Advertising Market
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
15
On August 19h, 2015
INVESTED IN
Transaction Overview: $45 million of Series B venture funding from lead investor Tenaya Capital.
Sequoia Capital, Lumia Capital, and SoftTech VC also participated Puts pre-money valuation at $141M
Target Description Provider of an email and mobile marketing and analytics platform. The
company's platform utilizes data insights to deliver messages to consumers on the right channel, at the right time
Transaction Commentary: “The rules for marketing have changed, and so have the technology
requirements,” said Adam Marchick, co-founder and CEO of Kahuna. “With the latest evolution of the Kahuna platform, businesses will be able to augment their ability to connect meaningfully with people across all channels and devices, today and in the future. The Series B investment will enable us to further build on the platform’s capabilities to serve the evolving needs of our customers.”
“The company is just getting started, yet is already serving many of the world’s best marketers,” said Ben Boyer, managing director of Tenaya Capital. “It is a once-in-a-generation opportunity to guide the entire marketing industry through a major paradigm shift. It’s the age of ‘personal communication at scale,’ and Kahuna is front and center.”
Internet Advertising Investment Case Study
_______ Source: PitchBook, Company Press Release
16
15+ Years of Internet Advertising 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
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
HAS BEEN ACQUIRED BY
Financial Advisor to the Seller
HAS BEEN ACQUIRED BY
Financial Advisor to the Seller
HAS BEEN ACQUIRED BY
A DIVISION OF
Financial Advisor to the Seller
HAS BEEN ACQUIRED BY
Financial Advisor to the Seller
HAS BEEN ACQUIRED BY
Financial Advisor to the Seller
17
Recent Awards and Nominations
HAS BEEN ACQUIRED BY
Financial Advisor to the Seller
HAS BEEN ACQUIRED BY
Financial Advisor to the Seller
HAS BEEN ACQUIRED BY
A DIVISION OF
Financial Advisor to the Seller
HAS BEEN ACQUIRED BY
A PORTFOLIO COMPANY OF
Financial Advisor to the Seller
HAS BEEN ACQUIRED BY
A PORTFOLIO COMPANY OF
Financial Advisor to the Seller
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
2012 TMT DEAL OF THE YEAR <$100M
CONSUMER SERVICES
DEAL OF THE YEAR
2013 TMT DEAL OF THE YEAR <$100M
2014 TMT DEAL OF THE YEAR <$100M
CORPORATE / STRATEGIC ACQUISITION
OF THE YEAR
2014 ONLINE AND MOBILE TECH DEAL
OF THE YEAR
HAS BEEN ACQUIRED BY
Financial Advisor to the Seller
HAS BEEN ACQUIRED BY
Financial Advisor to the Seller
18
Contact Us
www.headwatersmb.com
John Batdorf Managing Director
Head of Software & Internet Investment Banking
Office: (415) 926-7454
Cell: (415) 847-8805 [email protected]
135 Main St
Suite 800 San Francisco, CA 94105
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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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