Investment trends for 2015: Where to invest your attention

January, 2015

David StarkPrincipal, OurCrowd

@starkupnation

Zack MillerPartner, OurCrowd

@newrulesinvest

Trend: Big Data

Trend: Big Data

Trend: Big Data

Trend: Big Data

Trend: Big Data

Trend: Sensorification

Car of the Future Digital Health Internet of Things

Trend: Sensors

Car of the Future Trend: Sensors

Car of the FutureTrend: Sensors

China will grow rapidly to claim a 35% share of the 120 million cars sold in 2030, accounting for revenues of $24 billion, against $21 billion for the U.S. market and $20 billion for

Europe.Source: Luxe Research

Trend: Sensors

Trend: Sensors

Making voice control work — in any sound environment

Trend: Sensors

Car of the FutureDigital Health

Internet of Things

Trend: Sensors

Trend: Sensors

Source: New York eHealth Collaborative

Trend: Sensors

Wearables —> The Quantified Self

Trend: Sensors

Trend: Sensors

Car of the Future Digital Health Internet of Things

Trend: Sensors

Trend: Sensors

There are already more than 10 billion systems connected to the Internet (IDC) and by 2020 there will be nearly 26

billion devices on the Internet of Things (Gartner).

Trend: Sensors

Trend: Sensors

New charging technologies will

power the IoT

Trend: Sensors

Source: IHS

Trend: Sensors

Trend: Sensors

Trend: Sensors

Trend: Sensors

energy hot spots

Trend: Cannabis Commerce

The legal cannabis industry is poised to grow faster than smartphones according to the Huffington Post.

Source: HuffPo

Trend: Cannabis Commerce

Legalized Cannabis industry expected to

bring in tens of billions of dollars of extra revenue per state

Trend: Cannabis Commerce

Source: TechCrunch

Venture Capital flowing to blooming

startups, sensing opportunity

Trend: Cannabis Commerce

Source: TechCrunch

Trend: Cannabis Commerce

provides natural,

pesticide-free insect repellant

Augmented RealityTrend: Reality Shifting

Trend: Reality Shifting

Augmented Reality (AR) might be the 8th mass market to evolve, following print, recording, cinema, radio, TV,

Internet, and mobile, according to industry analyst, Tomi Ahonen

AR mobile apps have already gained traction in travel/tourism, healthcare, education, manufacturing,

commerce, and entertainmentTrend: Reality Shifting

In 2009, Juniper Research reported annual revs from

mobile AR apps were < $1M

In 2015, ARCchart forecasts revs will reach $2.2B

Augmented Reality can offer much more than just an information overlay

SELLING WITH AUGMENTED REALITY• Likelihood to buy?

• 2D print display: 45% • AR: 74%

• Attitude to price?• 2D print display: average

price of £5.99 was attributed as the estimated retail value of the product

• AR: average price of £7.99

• Advertising engagement?• 2D print display: average

of 12 seconds• AR: average of 1 minute

23 seconds.Source- hiddenltd.com

Trend: Reality Shifting

"Well, we still have some work to do, but now we're ready to put on our big kid shoes and learn how to run," Google said.

Google Glass was the first to make waves among the AR wearables, but

hasn’t found product market fit. Trend: Reality Shifting

Microsoft’s entry to the market last week was met with great excitement

Trend: Reality Shifting

METATrend: Reality Shifting

Augmented Reality <—> Virtual Reality

Virtual RealityTrend: Reality Shifting

Trend: Reality Shifting

Consumer VR market is forecasted to generate over $5B in 2018, roughly 50/50 split between hardware and

software

Some people call VR “the last medium” because any subsequent medium can be invented 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 electricity and the invention of VR. Kids will think it’s funny that their ancestors used to stare at glowing rectangles hoping to suspend disbelief.– Chris Dixon

Trend: Reality Shifting

FACEBOOK paid $2 billion for Oculus to work together in “building the next computing platform and reimagining the way

people communicate.”

Trend: Reality Shifting

Trend: Unbundling

Trend: UnbundlingThe Rental/Sharing Economy

The revenue flowing through the share economy directly into people’s wallets will surpass $3.5 billion this year, with growth

exceeding 25%. Source: Forbes

Trend: Unbundling

A whole new generation of sharing economy with entirely new assets to share

Trend: Unbundling

Sharing economy is multigenerational Trend: Unbundling

Trend: Unbundling

Trend: Unbundling

Trend: Crowd Everything

Trend: The Crowd

Businesses are co-opting the crowd into their business models

“Let your power users be the voice [of your brand]. Customers these days are more willing to do this kind of work for your brand, but they want

recognition for doing it—they would like to be given that badge or stamp that says, ‘You’re the power expert in Applegate bacon.

— JD Peterson, (previous) VP Marketing, Zendesk

Marketplace lending taking on big banking

Trend: The Crowd

Crowdfinance is changing the way capital flows to people

and opportunities

Trend: The Crowd

IPODecember 2014

Trend: The Crowd

Source: Lending Club

Lending Club massively ramping loan volumes

Trend: The Crowd

51 Flavors of Crowdfinance Trend: The Crowd

OurCrowd, AngelList, CircleUp lead the equity crowdfunding pack

OurCrowd invested in ReWalk Robotics (RWLK), industry’s

first IPO

Trend: The Crowd

CYBER SECURITY

$100B market with significant growth drivers

“Cybersecurity budgets will explode in 2015 as every company, institution, and government attempts to avoid being Sony’d. VCs will pour money into this sector…and, yet, the hacks will continue because on the open internet there is no such thing as an impenetrable system.” - Fred Wilson (co-founder of Union Square Ventures)

Trend: Security

Source: IBM

• The volume, complexity and impact of attacks is growing rapidly

• Adoption of cloud services and mobile devices has erased network perimeters, rendering traditional solutions ineffective

Trend: Security

Trend: Security

Trend: Security

Trend: Bitcoin

Trend: Bitcoin

Bitcoin got off to a rough start…

Trend: Bitcoin

And still hasn’t settled downTrend: Bitcoin

Investors are more excited about the Blockchain and its potential applications

Source: Joel Monegro, USV

Trend: Bitcoin

Notable mentions

1. 2.

What is so exciting is that we are on the precipice of some major technological evolutions and looking at historical precedents provides insight for key investment areas• Internet —> Sensors/Internet of Everything•Social —> Crowd•Mobile —> AR / VR•Etc.

Summary