Investing in Wearables; Smartwatchs & Wristbands

What do investors look for?

Wearable Technologies Conference Jan 2014, Munich

Nokia Growth Partners

19982005

2014

Nokia Growth Partnerswas founded in 2005 asan independent growth stage venture investor sponsored by Nokia.

Nokia has a long and successful history ofpromoting innovationthrough venturesponsorships datingback to 1998.

Today NGP’s team consistsof 12 active investors in theUS, China, India and Europewith a portfolio of 40 growth stage companies in mobile.

Nokia has invested over $1.5B in different venture funds over the years and renewed funding for NGP by $250M in 2013, making NGPs total fund $600M

SAN FRANSISCO GENEVA HELSINKI NEW DELHI BEIJING

BO ILSOEPartner

WALTER MASALINPrincipal

JOHN GARDNERPartner

ANNIE LINSenior Associate

PAUL ASELPartner

UPAL BASUPartner

ANUPAM RASTOGIPrincipal

VIVEK GOYALAnalyst

DAVID TANGPartner

LU GUOPrincipal

YAO GEAssociate

KEVIN LAUAssociate

ADTECH, DATA& ANALYTICS

EMBEDDED SYSTEMS

MOBILE CONSUMER

MOBILE ENTERPRISE

LOCAL COMMERCE

Mobile advertising network

Programmatic

Performance-based online marketing

Digital CRM data provider

Location powered online advertising

Advanced micro-optics maker

Smartphone image sensor technology

Smartphone array camers

Power integrated circuits

Securing online transactions

Online Fashion, Luxury & Lifestyle

Online coupon & deals site

In-store analytics for online & offline retail

Electronic payments &business solutions

Online classi edsadvertising platform

Classi eds site in India

Digital entertainment

Mobile language learning

Casual social games

Game monetization

Touch screen games

Online businessperformance optimization

Managed IT hosting forproducts and services

Carrier grade messagingsecurity

Cloud services

Investing in a world of mobility

Workplace

Smart Home

Personal

Connected Car

Business

services

CLOUD

Cloud enablers;Telco Security Analytics

Payments Identity Intermediation

Consumer services

ds

w

u

i

z

Investment Focus in Mobile

ADTECH, DATA & ANALYTICS

EMBEDDED SYSTEMS

MOBILE CONSUMER MOBILE ENTERPRISELOCAL COMMERCE

SAN FRANCISCO GENEVA HELSINKI NEW DELHI BEIJING

Investing in a world of wearables

Recent smartwatch & wristband deals

Company Date Funding Description Investor

Lumo Body Tech Dec-12 $5M Posture sensor Madrona, Eric Schmitt

Nest Jan-13 $80M Smart home Google, venrock, lightspeed, Shasta, InterTrust

Pebble May –13 $15M Smart watch Charles River (first raise on kickstarter)

Ouya May –13 $15M Android gaming console

KPCB, Mayfield, Shasta, InVidia

Withings Jul – 13 $30M Health tracking IdInvest, Ventech, BPI France

Netatmo Jul-13 $6M Connected weather station

Iris Capital, Angels

Jawbone Sep – 13 $100M UpFitnesstracking

Silverlake, Fortness, JP Morgan, Khosla, KPCB, Sequaio

Basis Oct – 13 $12M Smartwatch

Mayfiled, DCM, Norwest, Intel + others

SmartThings Nov –13 $12.5M Open platform for IoT

Greylock, Highland, Lerer Ventures, First Round Capital

Mocana Dec – 13 $15M IoT security GE Ventures, Shasta, Symantec, Trident

Know your market

CE wearables are a fraction of the overall consumer electronics market, which reflects the industry’s current early stage

TAM calculation2013 smartphone penetration 959 million units. 2.5bn fitness wearables market size + 100 ASP=25M units. Penetration rates of wearables to smartphone installed base/shipments today is 3%

CreditSuisse projects $30-50 bn wearablesmarket over next 5 years. Current watch market is $56bn and sunglasses $20bn.

$690 bnConsumer Electronics

$380 bnCompute (PCs, Tablets,

Smartphones)

$2-3 bnFitness

Wearables

Know your market

Source : Federation of the Swiss watch industry

Switzerland World

ASP of Watch from- China: $3- Switzerland: $739

Who will win?

“We tend to overestimate the speed of adoption and underestimate the long term impact”

The one who has

Good distributor relationships Understands the mix between Fashion and Technology Emphasizes on superior service Has a core differentiating factor Patience, passion and a great team Access to capital… (a lot of it if it’s a consumer business)

Thank You