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8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 112
Global
Advertisingand MarketingTechnology
MampA and FundraisingActivity and Trends
September 2014
Julie Langley Partner UK
+44 (0) 207 514 8247 jlangleyresultsigcom
Pierre-Georges Roy Partner United States +1 646 747 6505pgroyresultsigcom
Maurice Watkins Partner United States +1 646 747 6510
mwatkinsresultsigcom
Mark Williams Director UK +44 (0) 207 514 8242mwilliamsresultsigcom
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 212
Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends2
Our predictions983161 Enterprise software vendors will continue to move not just into marketing technology but more squarely into the media end of the
advertising technology sector
983161 The largest and fastest growing US AdTech players will move more aggressively into Europe making strategic acquisitions not just fortechnology but for geographic scale and revenue
983161 The online and offline worlds will further converge as large offline players seek to leverage their increasingly valuable offline datasets andexpertise Partnerships and MampA will occur as digital marketing stacks seek to inform media buying with integration of offline data
983161 The buyer universe for AdTech and MarTech companies will continue to diversify Telcos publishers broadcasters tech infrastructurevendors and traditional data companies will become active acquirers
983161 Pan-European winners with a presence in the main European media markets will emerge
983161 The European Private Equity community will become more active in the sector as European champions reach greater scale
The advertising and marketing technologymarkets continue to evolve at paceWhilst the public markets have beenunfavourable for many AdTech andMarTech businesses so far in 2014 MampAactivity continues to flourish and if dealactivity continues at the current pace2014 will see twice the number of deals as2013 The level of MampA activity has beendriven by a number of trends
Innovation in technology and channels
Constant innovation in technology and the way consumers engagewith media has driven vast amounts of MampA as buyers seek to stayahead of a rapidly changing market Particularly hot areas haveincluded video mobile social multi-screening and online to offline
where the large digital media players such as Yahoo AOL Facebook Twitter and Google have been very active
New entrants
Interest in the sector is coming from an increasingly diverse groupof buyers Amongst the telcos Telefonica SingTel and Telstra have allmade significant acquisitions in AdTech Also broadcasters such asRTL and Comcast have made bold moves into video advertising withan eye to establishing a presence in the online as well as offline (TV)market
Emergence of pure-play buyers of scale
The rapid growth of businesses like AppNexus MediaMath and Turnwhich have raised substantial sums of growth capital has created a
pool of sizeable private buyers able to make significant acquisitionsdriven by technology geographic expansion and scale
Continued integration between enterprise software and AdTech
For a couple of years now enterprise software vendors such as Oracleand Salesforce have been very acquisitive in areas such as marketingautomation as they extend their CRM business into a broadermarketing and customer engagement suite In 2014 we have seen theenterprise software vendors move much more squarely into AdTechfor example Oraclersquos acquisition of BlueKai and we expect much moreof this kind of deal activity to occur in the future as other vendors makesimilar moves
The battle for data
Access to data to improve targeting and better understand the
customer journey has driven substantial deal activity Particularly hotthemes have included the role of offline data in closing the loop forin-store purchases omni-channel attribution as a means of betterunderstanding customer journeys and various applications of bigdata whether across mobile search or social We have also seen bothadvertisers and publishers thinking more strategically about thevalue of their first party data and how that should be leveraged (andprotected) as the eco-system evolves
All eyes on Europe
From a European perspective an exciting development has been thenumber of US and overseas players looking to Europe for technologyand innovation whether that rsquos Google buying Spiderio Twitter buyingSecondSync or Rakuten buying DC Storm Europe is well and truly
front of mind for the large US players right now and we expect 2014and beyond to see an uptick in the level of activity amongst US playerslooking to expand in Europe whether via acquisition or organically
International fundraising strengthens
Fundraising activity is strong and showing no signs of slowing oneither side of the Atlantic Investors remain committed to fundinginnovation and disruption as well as supporting successful investmentsthrough to international scale Over $3 billion of investment was madein the first half of 2014 The stage of investing reflects the fact thatparts of the market are now well established with international marketleaders and yet other areas continue to be disrupted by innovativenew entrants Hence there were several $60 million-plus late-stage pre-IPO rounds as well as over 160 seed and series A investments made
into earlier-stage disruptive entrants all within the first half of 2014 The level of funding in Europe particularly at seed series A and seriesB stage is also encouraging as is the growing interest amongst USinvestors in Europe attracted by the level of innovation ambition andtalent of founders and management teams
Itrsquos an exciting time to be working in the sector and we look forward tocontinued high levels of activity in the rest of 2014 and beyond
ForewordBy Julie Langley Partner
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 312
MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 3
Global deal volume in 2014 set to double over 2013 levels
Global MampA activity in the sector has seen a huge uplift in 2014 as theindustry has continued to grow and mature (Figure 1)
Across the spectrum of deals that have occurred the nature of MampAactivity has visibly evolved Deals are increasingly driven by the needfor scale geographic expansion access to data and new channels asthe race to be the leading global vendors in the sector heats up
Key observations
983161 The number of deals completed in H1 alone was nearly as high asin the whole of 2013 If deal activity continues at this pace ndash andactivity through July and August suggests it will ndash then deal volumein 2014 will be close to double that of 2013
983161 MarTech companies represent about 70 of overall deal volumeboth in 2013 and H1 2014 This in part reflects the high level of dealactivity undertaken by the large enterprise software vendors as theybuild out their cloud marketing suites
Part 1
MampA Activity
983161 In addition competition in the battle for client ad spend continuesto grow as new buyers ranging from social media networks(eg Twitter and LinkedIn) to telcos (eg SingTel and Telefonica)seek to enter the AdTech and MarTech sector through strategicacquisitions
983161 Deal value for AdTech is on track to double in 2014 over 2013with average deal value remaining broadly constant Deal valuefor MarTech is down on an annualised basis compared to 2013however this reflects a handful of very large deals which took placein 2013 including Oraclersquos $15 billion acquisition of Responsys andSalesforcersquos $26 billion acquisition of ExactTarget
50
40
30
20
10
0
N u m b e r o f d e a l s
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
2013 Number Value
MarTech 162 $85b
AdTech 61 $18b
Total 223 $103b
H1 2014 Number Value
MarTech 152 $22b
AdTech 57 $20b
Total 209 $42b
Global deal volume (January 2013 to June 2014) Figure 1
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Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends4
Deal activity by subsegmentAdTech
Two subsegments have experienced a significant increase in dealactivity in 2014 (Figure 2)
Video
983161 Deal activity has risen from just 7 deals in the whole of 2013 to 14deals in H1 2014 alone Activity is underpinned by the rapid rise of
video advertising which is outpacing the growth of other channels This growth is principally due to the increased revenue generatedby video ad formats compared to more traditional display bannerads Brands value the high click-through rate compared to otherdigital ad formats along with the potential for greater and moresophisticated creativity and significant user engagement
983161 The explosion of deal activity in video has continued beyond thedata captured in our analysis (which covers up to H1 2014)ndash Facebook acquired LiveRail in July and RTL acquired SpotXchangein August both driven by an increasing need to service their largebrand advertisers across this channel
983161 Given the cost of video ad creation and competition for premiuminventory video has typically been dominated to date by large
brand advertisers however technology is opening the format tosmaller advertisers YouTube has made a play to attract a greater SMEadvertiser base through its recent acquisition of self-serve video adcreation platform Directr
Data Management Platforms (DMPs)
983161 There has been significant consolidation of the largest independentDMPs in 2014 as both the enterprise software vendors and theAdTech vendors recognise that data is now a key battleground
983161 Leverage use and manipulation of both first and third party datais a high value capability underpinning omni-channel targetingaudience profiling and ultimately ROI
983161 Clients are on the one hand actively encouraging integration withtheir CRM systems and other data sources in order to drive targeted
media buying and on the other becoming increasingly concernedabout how their data is being used by third parties
983161 DMP deals have been high profile and high value ndash notable dealsinclude Oraclersquos acquisition of BlueKai Rocket Fuelrsquos acquisition of[x+1] and IgnitionOnersquos acquisition of Knotice
It is worth commenting briefly on Ad networks Although deal activityis broadly flat compared to 2013 it remains a sizeable subsegmentMany Ad networks are now focused on adding technology self-servecapability and programmatic to their business and re-inventingthemselves as DSPs and SSPs Pure-play Ad networks continue to beattractive targets where they bring scale channel expertise (eg mobile
or video) and direct premium publisher relationships
MarTech
MarTech deal activity reveals three subsegments where H1 2014 dealvolume is close to or has already surpassed 2013 levels (Figure 3)
Marketing analytics
983161 18 deals have occurred in this sub-segment and if deal activityremains at these levels the number of transactions is on track totreble in 2014 from the 12 deals in 2013
983161 Activity is driven primarily by the need to understand increasinglycomplex customer journeys not just across digital channels but alsointo the physical world Acxiomrsquos acquisition of LiveRamp is a goodexample of this trend
983161 Clients are demanding an increasingly detailed view of a customerrsquos journey to purchase in order to apportion spend across the channelslikely to generate the highest ROI Consequently marketingattribution has attracted a lot of interest with three deals alonecompleting in May 2014 (Googlersquos acquisition of Adometry Rakutenrsquosacquisition of DC Storm and AOLrsquos acquisition of Convertro) Thesetransactions enable the acquirers to bring their channels togetherinto a more coherent omni-channel proposition
Mobile983161 Mobile does of course cut across many of the subsegments in both
AdTech and MarTech In our categorisation this subsegment refersprimarily to mobile marketing automation and messaging mobileloyalty and voucher businesses and mobile payments technologies There have been 43 deals in H1 2014 already close to matching the45 deals seen in the whole of 2013
983161 Whilst mobile payment technologies might more conventionally beconsidered to fall within financial technology there are increasinglyclose ties between payment mechanisms and mobile as a means toclose the online to offline loop and as another channel for customerengagement
983161 Deal activity has also been high around innovations in mobile
marketing automation and in-app messaging (for exampleResponsysrsquo acquisition of Push IO)
Social
983161 The increasing impact of social media on consumer decision-making has been well documented and areas such as analyticsand customer reviews continue to drive considerable deal activityHowever the role of social has also increased in other aspects of thesales and marketing channel such as customer care and sales
983161 One clear trend in 2014 has been the rise of social mediarsquos impact onB2B marketing and sales ndash and we have started to see a number ofdeals driven by the rise of ldquosocial sellingrdquo in the B2B channel
983161 Deals in H1 2014 include Lithiumrsquos acquisition of Klout Bazaarvoicersquos
acquisition of FeedMagnet Twitterrsquos acquisition of Mesagraph andCallidusrsquo acquisition of LeadRocket
Video
DSP Ad network
AdTech deals by subsegment Figure 2
Measurement and optimisation
Ad server DMP
Ad creation SSP
Ad exchange
Agency buying desk
7
11
1410
5
2
4
52 1
2013
14
11
8
7
5
5
32 2
H1 2014
MarTech deals by subsegment Figure 3
Mobile Social
eCommerce
Marketing analytics Marketing Automation
Marketing management
Website amp SEO CRM
Crowd sourcing technology
45
31
20
12
14
19
129
2013
43
3618
18
13
13
8 2
1
H1 2014
8102019 m a and Fundraising Activity and Trends 2014
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 5
Landmark deals and a diverse buyer landscape
AdTech
Date Buyer Target Deal value($m)
Description
Aug-13 ExtremeReach
DG (TVbusiness)
490 T V ad distribution
Feb-14 Oracle Bluekai 4201 DMP
Aug-13 AOL AdapTV 405 Programmatic videoplatform
Sep-13 Twitter Mopub 350 Mobile ad exchange
Jun-14 OperaSoftware
AdColony 350 Mobile video ad platform
Mar-14 Comcast FreeWheel 3202 Video ad server
Jun-14 SingTel Adconion 235 Ad network
Aug-13 Millennial
Media
Jumptap 237 Mobile ad network
Jan-14 TiVo Digitalsmiths 135 Video search
Oct-13 Neustar AggregateKnowledge
119 DMP
1 Estimated deal value of $420m (451 Research)2 Estimated deal value of $320m (TechCrunch)
MarTech
Date Buyer Target Deal value($m)
Description
Jun-13 Salesforce ExactTarget 2616 Marketing automation
Dec-13 NCR Digital Insight 1650 Online payments
Dec-13 Oracle Responsys 1523 Marketing automation
Sep-13 Ebay Braintree 800 Mobile payments
Jun-13 Adobe Neolane 617 Marketing automation
Apr-14 GTCR Vocus 467 PR software
May-14 Intuit Check 360 Mobile payments
May-14 Acxiom LiveRamp 310 Data on-boarding
Dec-13 Apple Topsy 2403 Social analytics
Feb-14 Lithium Klout 200 Social influence analytics
3 Estimated deal value of $240m (451 Research)
Premium for market leaders and category killers
A review of the largest deals (by announced or estimated deal value)reveals a substantial difference in scale between the largest MarTechand AdTech transactions (Figure 4) This difference is largely due to therelative size of the MarTech businesses rather than necessarily higherrevenue multiples Indeed many of the largest AdTech and MarTechdeals were valued at 8-10x revenues
In some cases however there is a premium for the SaaS basedrevenue model of certain MarTech businesses such as ExactTargetand Responsys which have long term customer contracts and highrevenue visibility This contrasts with the more transaction-orientedrevenue model of many AdTech players
There are a significant number of common themes that run throughthese large deals Buyers place a premium on disruptive technologyand scale (both in terms of geographic presence and revenue) as wellas scarcity There is a clear premium for ldquocategory ki llerrdquo businesses
In addition many of the largest or highest multiple deals are pursuantto a commercial partnership between the buyer and the seller ndash oncea buyer has fully understood the true commercial value of an offeringand has begun to integrate it within its existing stack the appetite foracquisition significantly increases and the buyer is able to properlyvalue the synergy potential
Top 10 deals in 2013 and H1 2014 (where deal value has been disclosed or estimated) Figure 4
Telcos and broadcasters join the diverse buyer universe
Our review of deal activity reinforces the diversity of interest in thesector Players are coming at this sector from a variety of perspectivesincluding mobile operators social media networks enterprise softwarevendors pure-play AdTech and MarTech vendors as well as publishersand broadcasters
The industry continues to question if and when the major marketing
holding companies will start to heavily invest in technology WPPhas set itself apart from the wider pack in terms of its approach totechnology and recognition of its need to play in the sector Whilstnone of its deals have been large in value terms (with the exception ofPrecise which following WPPrsquos acquisition of a majority stake valuedthe business at $120 million) it has shown a willingness not just totake minority stakes but to make outright acquisitions of technologycompanies such as FusePump If the rumoured acquisition of Criteoby Publicis goes ahead this will be the largest deal by a holdingcompany in the sector to date
Private equity buyers are notable by their absence Most of the dealshave been highly strategic in nature and driven by deep-pocketedtrade buyers filling technology gaps and with the potential for
substantial synergies Whilst private equity has been increasingly activein the sector from a venture capital and growth capital perspective ithas not yet reached the stage of maturity where private equity buyersare likely to prevail against strategics in buyout situations
8102019 m a and Fundraising Activity and Trends 2014
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Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends6
International buyers are looking to Europe for innovationCountry of target H1 2014 Figure 5
16
6
22913
139
4
APAC
Middle East
Eastern Europe
Western EuropeUK
North America
South America
As the market has matured in Europe and a large number of US playershave reached substantial scale in their domestic market we expect awave of more sizeable acquisitions over the next 18 months driven byinternational expansion
European landscape dominated by smaller companies
than US
It is interesting to note that only one of the 20 deals in Figure 4 on theprevious page involved a European-headquartered target the sale ofNeolane to Adobe Adconion was founded in the UK but had relocatedits headquarters to the US
There is an evident difference in scale between the leading US andEuropean players although this does of course mirror the broader techand software market However specifically in AdTech the ability ofEuropean players to scale as quickly as their US counterparts has in partbeen impacted by the nature of the European media buying marketbuilt on an ecosystem of national buying and national publishingCompanies that are able to build a true pan-European presence willbecome prime acquisition targets
US actively looking to Europe for innovation
European sellers accounted for 44 of the total of 209 transactions inH1 2014 (Figure 5) broadly comparable as a percentage to 2013 Ofthose 44 transactions 17 were acquired by US buyers Many of thesetransactions were primarily technology buys (Figure 6) focused on
the addition of talent and point technology rather than a strategicimperative for scale or geographic expansion
Recent acquisitions by US and Asian buyers in Europe ndash selected deals Figure 6
Date Buyer Target Buyer Region Target Region Description
Jul-14 Netsuite Venda US UK eCommerce platform
Jun-14 AppNexus Alenty US France Ad viewability measurement
Jun-14 Facebook Pryte US Finland Mobile data access
May-14 Microsoft Capptain US France Mobile app management platform
May-14 Rakuten DC Storm Japan UK Tag management and attribution
Apr-14 MediaMath Tactads US France Cookieless targeting
Apr-14 Twitter SecondSync US UK Social analytics for TV
Apr-14 Twitter Mesagraph US France Social TV analytics
Mar-14 Ensighten TagMan US UK Tag management
Feb-14 Google Spiderio US UK Ad fraud identification
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 7
Part 2
Fundraising Activity
Innovation not geography raises funds
The global fundraising market continues to be strong and activity inboth the AdTech and MarTech sectors remains high In H1 2014 therewere 329 completed fundraising transactions showing strong investorappetite for innovative and disruptive technologies in the sector aswell as appetite to support many earlier investments to scale
The majority of the fundraisings were for MarTech companies This isin large part due to the broader definition we use for MarTech andprobably not significant in itself However it is worth noting that whilstthe revenue model for many AdTech businesses is media spend-drivenmany MarTech businesses are more akin to conventional SaaS modelswith long-term contracts and annual subscriptions a model withwhich investors are very comfortable The total value raised by MarTechcompanies in H1 2014 was $22 billion compared to $755 million by
AdTech companies reflecting the larger number of transactions (theaverage raise was broadly comparable across the two sectors)
What is being valued in whichever sector is innovation differentiationgrowth and the ability to scale and to create a new category Offeringswhich have achieved a certain scale but are undifferentiated and willnot be able to withstand competition from the large players once theyturn their attention to that particular market have found fundraisingmore challenging
Largest fundraisings globally in H1 2014 Figure 8
AdTech
Date Lead VC fund Target Deal value($m)
Description
Jan-14 BlackRock Turn 800 DSP
Jun-4 Spring LakeEquity Partners
MediaMath 735 DSP
Apr-14 FoundationCapital
AdRoll 700 Retargeting
Mar-14 Gaorong Capital Avazu 480 DSP Ad network
Feb-14 SAP Ventures Kaltura 470 Online videoplatform
May-14 WellingtonManagement Datalogix 450 DMP
Jun-14 SAP Ventures Krux 350 DMP
May-14 Pacific Ventures Adsame 300 Ad server
Mar-14 BDCA CPXi 300 DSP Ad network
Jan-14 August Capital Integral AdScience
300 Ad quality andvaluation
Feb-14 Hermes GrowthPartners
The Trade Desk 200 DSP
Jun-14 SJF Ventures Yieldbot 180 DSP
MarTech
Date Lead VC fund Target Deal Value($m)
Description
Apr-14 BlackRock New Relic 1000 App performancemanagement
Jun-14 New EnterpriseSoftware
Elasticsearch 700 Marketing analysisndash search
May-14 Zouk Capital iZettle 555 Mobile payments
Jun-14 Insight VenturePartners
Yext 503 Asset and contentmanagement
Jun-14 SoftBank Capital Kony 500 Mobile appPlatform
May-14 Goldman Sachs SAVO 491 Sales enablementplatform
Feb-14 Dawn Capital OrderDynamics 410 eCommerce
Apr-14 General Atlantic Squarespace 400 Website designand build
Apr-14 Mithril CapitalManagement
SilverRail 400 eCommerce
Mar-14 RedpointVentures
RelateIQ1 400 Relationshipintelligence
Jan-14 Insight VenturePartners
Ensighten 400 Tag management
Apr-14 Iconiq Capital Spinklr 400 Social media
management
1 Since acquired by Salesforce in July 2014
70
60
50
40
30
20
10
0
N u m b e r o f t
r a n s a c t i o n s
January February March April May June
H1 2014 Fundraisings Value
MarTech 261 $22b
AdTech 68 $08b
Total 329 $30b
Total fundraisings H1 2014 Figure 7
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Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends8
Fundraising activity by subsegmentMarTech
49
48
46
37
36
19
1212
2
eCommerce
Social
Mobile
Marketing analytics
CRM
Marketing automation
Marketingmanagement
Website amp SEO
Crowd sourcing technology
MarTech fundraisings H1 2014 Figure 10
eCommerce
983161 As the global adoption of online shopping continues to drive
double-digit growth in eCommerce there has been considerableinnovation both in core eCommerce platforms but also acrossanalytics personalisation payments curation and online to offline
983161 Fundraisings have ranged from large series C investmentsinto companies including OrderDynamics (formerly known aseCommera in omnichannel order management) and SilverRail (rai l-ticketing) to earlier stage rounds for companies including Sweden-based Tictail (eCommerce platform for boutique and smaller highstreet retailers) Peerius (personalisation and recommendations) andSpree Commerce (Open source eCommerce platform)
Social
983161 Mirroring the trend in MampA investors too are cognisant of the rising
influence that social media has on the decision-path to purchaseand significant amounts have been invested in the US and Europe inofferings designed to use social to enhance the sales and marketingprocess
983161 Sprinklr was the largest pure social investment in H1 raising $40million for its social software platform and Spredfast raised $325million for its social marketing platform
983161 In Europe TrustPilot an online review platform and Brandwatch asocial media monitoring and analytics solution both raised in excessof $20 million in H1 2014
AdTech
AdTech fundraisings H1 2014 Figure 9
20
10
9
6
6
5
6
42
DSP
Video
Measurement and
optimisation
DMP
SSP
Ad creation
Ad network
Ad exchange
Ad server
Video
983161 Video is the fastest growing advertising channel but has not until
now been able to provide the same level of targeting data andanalytics as display advertising and therefore itrsquos not surprising tosee the high level of investment in the sector Investment is goinginto solutions which improve data collection and analytics audienceprofiling and targeting and measurement and tracking as well asinfrastructure-based video solutions and self-serve offerings
983161 With the exception of Kaltura (an open source online videoplatform) which raised $47 million fundraisings in video have beenpredominantly earlier stage smaller funding rounds The secondlargest fundraise in the space was by Vungle a mobile video adplatform which raised $17 million
DSP
983161 Established DSPs have been responsible for some of the largestfundraisings in H1 including Turn (which raised $80 million) and
MediaMath (which raised $735 million in equity as well as putting inplace a substantial credit facility)
983161 These two companies have raised financing to continue to fundinnovation but also to fuel expansion into new geographies andmarkets MediaMath has publicly stated that one use of funds willbe to pursue international MampA and Turn is also building out itsinternational footprint
983161 With a number of large DSPs such as MediaMath Turn and DataXualready well established in the market newer entrants need to beclearly differentiated to attract funding Yieldbot and Trade Deskhave both successfully raised significant rounds ($18 million and
$20 million respectively) Yieldbot focuses on capturing real-timeconsumer intent through search keywords and Trade Desk hasdemonstrated rapid international growth
983161 The majority of investments into DSPs and certainly the largest havebeen in the US Many of the largest European DSPs have been self-financing
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 9
Fundraising by stage ndash US and EuropeHealthy fundraising market for European innovations
Whilst the number of seed and series A rounds in Europe is below thatof the US there is nonetheless a healthy market in Europe and the sizeof the rounds being closed is broadly comparable with those in the USEuropean innovators are holding their own when it comes to securingfunds
However where we see a real divergence in the two markets is in thelater stages of funding There are significantly fewer series B and Crounds by comparison to the US and no later stage rounds (ie series Donwards) have occurred in Europe in H1 2014
From our experience this reflects a couple of dynamics
983161 The culture and investment environment in Europe tends toencourage companies to move to profitability more quicklypotentially at the expense of growth As such later stage rounds aresimply not required
983161 In the US conversely there is a greater priority placed onestablishing market leadership over profitability and large well-established players continue to raise very large rounds to continueto build market share not only domestically but also overseas
However there have also been some encouragingly large series Crounds in Europe including the NEA-led $70 million investment inOpen source search and analytics engine Elasticsearch the Zouk-led$55 million investment in mobile payments platform iZettle and theDawn Capital-led $41 million round in OrderDynamics
Many US funds particularly on the East Coast continue to look veryactively at the European market and will likely step up their pace of
investment over the next 18 months Notwithstanding this increasedinterest by US investors in European opportunities in H1 2014 themost active investors in Europe were European headquartered funds orUS funds with dedicated European capital
60
50
40
30
20
10
0
80
70
60
50
40
30
20
10
0
N
u m b e r o f t r a n s a c t i o n s
A v er a g e t r an s a c t i onv al u e
( $ m )
Seed Series A Series B Series C Series D Series E Series F
US Europe
Number of transactions
Average transaction value
Fundraisings by stage H1 2014 Figure 11
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Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends10
Appendix
Selected MampA activity January 2013 ndash August 2014Date Buyer Target Buyer Region Target Region Deal Value ($m) Description
Aug-14 Rocket Fuel [x+1] US US 230 DMP and DSP
Aug-14 Sizmek Aerify US US 6 Mobile tracking amp retargeting
Aug-14 Sprinklr TBG Digital US UK 503 Social ad optimisation
Jul-14 Adknowledge TriVu Media US US na Video ad buying
Jul-14 Facebook LiveRail US US 4501 Video SSP
Jul-14 Rightster Base79 UK UK 83 YouTube audience creation
Jul-14 NetSuite Venda US UK 51 eCommerce platform
Jul-14 Yahoo Flurry US US 2502 Mobile app analytics amp monetisation
Jul-14 LinkedIn Bizo US US 175 B2B marketing platform
Jul-14 Switch Unanimis UK UK na Ad network
Jul-14 Palantir Poptip US US na Social media analytics
Jul-14 Salesforce RelateIQ US US 350 Relationship intelligence
Jul-14 RTL Group SpotXchange Germany US na Video SSP
Jun-14 Twitter TapCommerce US US 1004 Mobile retargeting
Jun-14 Singtel Adconion Singapore US Australia 235 Ad network
May-14 Rakuten DC Storm Japan UK na Tag management amp attribution
May-14 Pubmatic Mocean Mobile US US na Mobile ad server
May-14 Acxiom LiveRamp US US 310 Data on-boarding
May-14 AOL Convertro US US 101 Marketing attribution
May-14 Google Adometry US US 1505 Marketing attribution
Apr-14 Telefonica Mobclix Spain US na Mobile ad exchange
Apr-14 IBM Silverpop US US na Marketing automation
Apr-14 Dunnhumby Sociomantic UK Germany na DSP
Mar-14 IgnitionOne Knotice US US na DMP
Mar-14 Comcast FreeWheel US US 3207 Video ad server
Feb-14 Oracle BlueKai US US 4206 DMP
Jan-14 Opera Mediaworks Hunt Mobile Norway US na Mobile ad network
Dec-13 Oracle Responsys US US 1523 Marketing automation
Nov-13 Centro SiteScout US Canada 40 DSP
Sep-13 Twitter MoPub US US 350 Mobile ad exchange
Aug-13 Millennial Media Jumptap US US 237 Mobile ad network
Aug-13 AOL Adaptv US US 405 Programmatic video platform
Jul-13 Yahoo Admovate US US na Mobile ad targeting
Jun-13 Adobe Neolane US France 617 Marketing automation
Jun-13 Salesforce ExactTarget US US 2616 Marketing automation
Feb-13 Facebook Atlas Advertiser Suite US US na Ad server
1 Deal value estimated between $400 to $500m (TechCrunch)
2 Deal value estimated between $200 to 300m (TechCrunch)3 Deal estimated at under $50m (AdExchanger)
4 Estimated deal value of $100m (Recode)
5 Estimated deal value of $150m (451 Research)6 Estimate deal value of $420m (451 Research)
7 Estimated deal value of $320m (TechCrunch)
8102019 m a and Fundraising Activity and Trends 2014
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 11
Appendix
Selected Fundraising activity 2014 YTDDate Lead VC fund Target Target HQ Deal Value ($m) Description
Aug-14 Ignition Partners Xamarin USA 540 Moble app development
Aug-14 Private investors AppNexus USA 600 Ad exchange
Jul-14 Hony Capital Deem USA 500 Customer acquisition and engagement
Jul-14 Comerica mBlox USA 435 Mobile messaging
Jun-14 Softbank Capital IgnitionOne USA 300 Digital marketing suite
Jun-14 SoftBank Capital InsightVenture Partners
Kony USA 500 Moble app development
Jun-14 Deutsche Private Equity Webtrekk Germany 339 Web analytics
Jun-14 Tiger Global Management Freshdesk USA 310 Customer support software
Jun-14 DFJ SiSense Israel 300 Market analysis and business intelligence
Jun-14 SAP Ventures krux digital USA 350 DMP
Jun-14 New Enterprise Associates Elasticsearch Netherlands 700 Marketing analysis ndash search analytics
Jun-14 Insight Venture Partners Yext USA 503 Digital asset and content management
Jun-14 Spring Lake Equity Partners MediaMath USA 735 DSP
May-14 Goldman Sachs The SAVO Group USA 491 Sales enablement platform
May-14 Wellington ManagementCompany
DataLogix Holdings USA 450 DMP
May-14 Index Ventures BitPay USA 300 Bitcoin eCommerce payment
May-14 Pacific Venture Partners ampDream Capital Group
AdSame China 300 Ad server
May-14 Zouk Capital iZettle Sweden 555 Mobile payments
Apr-14 BlackRock New Relic USA 1000 App performance management
Apr-14 Tencent Sequoia Capital Weebly USA 350 Website design amp build
Apr-14 Foundation Capital Adroll USA 700 Retargeting
Apr-14 General Atlantic Squarespace USA 400 Website design amp buildApr-14 Mithril Capital Management SilverRail USA 400 eCommerce platform
Apr-14 Iconiq Capital Sprinklr USA 400 Social media management
Mar-14 Business DevelopmentCorporation of America
CPX Interactive USA 300 DSP Ad network
Mar-14 Redpoint Ventures RelateIQ1 USA 400 Relationship intelligence
Mar-14 FirstHand Technology ValueFund
Phunware USA 307 Mobile app development
Mar-14 Gaorang Capital Avazu China 480 DSP Ad network
Feb-14 Dawn Capital OrderDynamics UK 410 eCommerce platform
Feb-14 Institutional Venture Partners ZEFR USA 300 Brand and content management
Feb-14 SAP Ventures Nokia GrowthPartners Commonfund CapitalGera Ventures
Kaltura USA 470 Online video platform
Jan-14 Insight Venture Partners Ensighten USA 400 Tag management
Jan-14 BlackRock Turn USA 800 DSP
Jan-14 Lead Edge Capital Spredfast USA 325 Social media management
Jan-14 August Capital Integral Ad Science USA 300 Ad quality and valuation
1 Since acquired by Salesforce in July 2014
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Results International is a leading corporate finance advisor to marketing technology and healthcarecompanies in Europe and has advised on over 250 transactions The Company employs over 40 peopleglobally across offices in London New York and Asia and has a strong track record advising on cross-border
transactions winning MampA Cross Border Deal of the Year in the 2014 MampA Awards
Results Internationalrsquos 2014 AdTech and MarTech Deals
Disclaimer
Results International has compiled this report using data sourced from publicly availablesources and third-party tools to which it holds licensed access Results International doesnot accept any responsibility for the accuracy of the information provided Nor does ResultsInternational accept any liability for any use of the information provided in this report or anyconsequence from its use thereof
Keith Hunt
Managing Partner +44 (0) 207 514 8232keithhuntresultsigcom
Pierre-Georges Roy
Partner +1 646 747 6505pgroyresultsigcom
Mark Williams Director +44 (0) 207 514 8242mwilliamsresultsigcom
Julie Langley Partner +44 (0) 207 514 8247 jlangleyresultsigcom
Maurice Watkins
Partner +1 646 747 6510mwatkinsresultsigcom
Julia Crawley-Boevey Director +44 (0) 207 514 8239 jcrawley-boeveyresultsigcom
Jim Houghton
Partner +44 (0) 207 514 8234 jhoughtonresultsigcom
Chris Lewis Managing Director +44 (0) 207 514 8236clewisresultsigcom
has been acquired by
Results International acted forDC Storm
has been acquired by
Results International acted forWe Are Social
is joining
Results International served as
an exclusive financial adviserto Hunt
8102019 m a and Fundraising Activity and Trends 2014
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Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends2
Our predictions983161 Enterprise software vendors will continue to move not just into marketing technology but more squarely into the media end of the
advertising technology sector
983161 The largest and fastest growing US AdTech players will move more aggressively into Europe making strategic acquisitions not just fortechnology but for geographic scale and revenue
983161 The online and offline worlds will further converge as large offline players seek to leverage their increasingly valuable offline datasets andexpertise Partnerships and MampA will occur as digital marketing stacks seek to inform media buying with integration of offline data
983161 The buyer universe for AdTech and MarTech companies will continue to diversify Telcos publishers broadcasters tech infrastructurevendors and traditional data companies will become active acquirers
983161 Pan-European winners with a presence in the main European media markets will emerge
983161 The European Private Equity community will become more active in the sector as European champions reach greater scale
The advertising and marketing technologymarkets continue to evolve at paceWhilst the public markets have beenunfavourable for many AdTech andMarTech businesses so far in 2014 MampAactivity continues to flourish and if dealactivity continues at the current pace2014 will see twice the number of deals as2013 The level of MampA activity has beendriven by a number of trends
Innovation in technology and channels
Constant innovation in technology and the way consumers engagewith media has driven vast amounts of MampA as buyers seek to stayahead of a rapidly changing market Particularly hot areas haveincluded video mobile social multi-screening and online to offline
where the large digital media players such as Yahoo AOL Facebook Twitter and Google have been very active
New entrants
Interest in the sector is coming from an increasingly diverse groupof buyers Amongst the telcos Telefonica SingTel and Telstra have allmade significant acquisitions in AdTech Also broadcasters such asRTL and Comcast have made bold moves into video advertising withan eye to establishing a presence in the online as well as offline (TV)market
Emergence of pure-play buyers of scale
The rapid growth of businesses like AppNexus MediaMath and Turnwhich have raised substantial sums of growth capital has created a
pool of sizeable private buyers able to make significant acquisitionsdriven by technology geographic expansion and scale
Continued integration between enterprise software and AdTech
For a couple of years now enterprise software vendors such as Oracleand Salesforce have been very acquisitive in areas such as marketingautomation as they extend their CRM business into a broadermarketing and customer engagement suite In 2014 we have seen theenterprise software vendors move much more squarely into AdTechfor example Oraclersquos acquisition of BlueKai and we expect much moreof this kind of deal activity to occur in the future as other vendors makesimilar moves
The battle for data
Access to data to improve targeting and better understand the
customer journey has driven substantial deal activity Particularly hotthemes have included the role of offline data in closing the loop forin-store purchases omni-channel attribution as a means of betterunderstanding customer journeys and various applications of bigdata whether across mobile search or social We have also seen bothadvertisers and publishers thinking more strategically about thevalue of their first party data and how that should be leveraged (andprotected) as the eco-system evolves
All eyes on Europe
From a European perspective an exciting development has been thenumber of US and overseas players looking to Europe for technologyand innovation whether that rsquos Google buying Spiderio Twitter buyingSecondSync or Rakuten buying DC Storm Europe is well and truly
front of mind for the large US players right now and we expect 2014and beyond to see an uptick in the level of activity amongst US playerslooking to expand in Europe whether via acquisition or organically
International fundraising strengthens
Fundraising activity is strong and showing no signs of slowing oneither side of the Atlantic Investors remain committed to fundinginnovation and disruption as well as supporting successful investmentsthrough to international scale Over $3 billion of investment was madein the first half of 2014 The stage of investing reflects the fact thatparts of the market are now well established with international marketleaders and yet other areas continue to be disrupted by innovativenew entrants Hence there were several $60 million-plus late-stage pre-IPO rounds as well as over 160 seed and series A investments made
into earlier-stage disruptive entrants all within the first half of 2014 The level of funding in Europe particularly at seed series A and seriesB stage is also encouraging as is the growing interest amongst USinvestors in Europe attracted by the level of innovation ambition andtalent of founders and management teams
Itrsquos an exciting time to be working in the sector and we look forward tocontinued high levels of activity in the rest of 2014 and beyond
ForewordBy Julie Langley Partner
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 3
Global deal volume in 2014 set to double over 2013 levels
Global MampA activity in the sector has seen a huge uplift in 2014 as theindustry has continued to grow and mature (Figure 1)
Across the spectrum of deals that have occurred the nature of MampAactivity has visibly evolved Deals are increasingly driven by the needfor scale geographic expansion access to data and new channels asthe race to be the leading global vendors in the sector heats up
Key observations
983161 The number of deals completed in H1 alone was nearly as high asin the whole of 2013 If deal activity continues at this pace ndash andactivity through July and August suggests it will ndash then deal volumein 2014 will be close to double that of 2013
983161 MarTech companies represent about 70 of overall deal volumeboth in 2013 and H1 2014 This in part reflects the high level of dealactivity undertaken by the large enterprise software vendors as theybuild out their cloud marketing suites
Part 1
MampA Activity
983161 In addition competition in the battle for client ad spend continuesto grow as new buyers ranging from social media networks(eg Twitter and LinkedIn) to telcos (eg SingTel and Telefonica)seek to enter the AdTech and MarTech sector through strategicacquisitions
983161 Deal value for AdTech is on track to double in 2014 over 2013with average deal value remaining broadly constant Deal valuefor MarTech is down on an annualised basis compared to 2013however this reflects a handful of very large deals which took placein 2013 including Oraclersquos $15 billion acquisition of Responsys andSalesforcersquos $26 billion acquisition of ExactTarget
50
40
30
20
10
0
N u m b e r o f d e a l s
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
2013 Number Value
MarTech 162 $85b
AdTech 61 $18b
Total 223 $103b
H1 2014 Number Value
MarTech 152 $22b
AdTech 57 $20b
Total 209 $42b
Global deal volume (January 2013 to June 2014) Figure 1
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Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends4
Deal activity by subsegmentAdTech
Two subsegments have experienced a significant increase in dealactivity in 2014 (Figure 2)
Video
983161 Deal activity has risen from just 7 deals in the whole of 2013 to 14deals in H1 2014 alone Activity is underpinned by the rapid rise of
video advertising which is outpacing the growth of other channels This growth is principally due to the increased revenue generatedby video ad formats compared to more traditional display bannerads Brands value the high click-through rate compared to otherdigital ad formats along with the potential for greater and moresophisticated creativity and significant user engagement
983161 The explosion of deal activity in video has continued beyond thedata captured in our analysis (which covers up to H1 2014)ndash Facebook acquired LiveRail in July and RTL acquired SpotXchangein August both driven by an increasing need to service their largebrand advertisers across this channel
983161 Given the cost of video ad creation and competition for premiuminventory video has typically been dominated to date by large
brand advertisers however technology is opening the format tosmaller advertisers YouTube has made a play to attract a greater SMEadvertiser base through its recent acquisition of self-serve video adcreation platform Directr
Data Management Platforms (DMPs)
983161 There has been significant consolidation of the largest independentDMPs in 2014 as both the enterprise software vendors and theAdTech vendors recognise that data is now a key battleground
983161 Leverage use and manipulation of both first and third party datais a high value capability underpinning omni-channel targetingaudience profiling and ultimately ROI
983161 Clients are on the one hand actively encouraging integration withtheir CRM systems and other data sources in order to drive targeted
media buying and on the other becoming increasingly concernedabout how their data is being used by third parties
983161 DMP deals have been high profile and high value ndash notable dealsinclude Oraclersquos acquisition of BlueKai Rocket Fuelrsquos acquisition of[x+1] and IgnitionOnersquos acquisition of Knotice
It is worth commenting briefly on Ad networks Although deal activityis broadly flat compared to 2013 it remains a sizeable subsegmentMany Ad networks are now focused on adding technology self-servecapability and programmatic to their business and re-inventingthemselves as DSPs and SSPs Pure-play Ad networks continue to beattractive targets where they bring scale channel expertise (eg mobile
or video) and direct premium publisher relationships
MarTech
MarTech deal activity reveals three subsegments where H1 2014 dealvolume is close to or has already surpassed 2013 levels (Figure 3)
Marketing analytics
983161 18 deals have occurred in this sub-segment and if deal activityremains at these levels the number of transactions is on track totreble in 2014 from the 12 deals in 2013
983161 Activity is driven primarily by the need to understand increasinglycomplex customer journeys not just across digital channels but alsointo the physical world Acxiomrsquos acquisition of LiveRamp is a goodexample of this trend
983161 Clients are demanding an increasingly detailed view of a customerrsquos journey to purchase in order to apportion spend across the channelslikely to generate the highest ROI Consequently marketingattribution has attracted a lot of interest with three deals alonecompleting in May 2014 (Googlersquos acquisition of Adometry Rakutenrsquosacquisition of DC Storm and AOLrsquos acquisition of Convertro) Thesetransactions enable the acquirers to bring their channels togetherinto a more coherent omni-channel proposition
Mobile983161 Mobile does of course cut across many of the subsegments in both
AdTech and MarTech In our categorisation this subsegment refersprimarily to mobile marketing automation and messaging mobileloyalty and voucher businesses and mobile payments technologies There have been 43 deals in H1 2014 already close to matching the45 deals seen in the whole of 2013
983161 Whilst mobile payment technologies might more conventionally beconsidered to fall within financial technology there are increasinglyclose ties between payment mechanisms and mobile as a means toclose the online to offline loop and as another channel for customerengagement
983161 Deal activity has also been high around innovations in mobile
marketing automation and in-app messaging (for exampleResponsysrsquo acquisition of Push IO)
Social
983161 The increasing impact of social media on consumer decision-making has been well documented and areas such as analyticsand customer reviews continue to drive considerable deal activityHowever the role of social has also increased in other aspects of thesales and marketing channel such as customer care and sales
983161 One clear trend in 2014 has been the rise of social mediarsquos impact onB2B marketing and sales ndash and we have started to see a number ofdeals driven by the rise of ldquosocial sellingrdquo in the B2B channel
983161 Deals in H1 2014 include Lithiumrsquos acquisition of Klout Bazaarvoicersquos
acquisition of FeedMagnet Twitterrsquos acquisition of Mesagraph andCallidusrsquo acquisition of LeadRocket
Video
DSP Ad network
AdTech deals by subsegment Figure 2
Measurement and optimisation
Ad server DMP
Ad creation SSP
Ad exchange
Agency buying desk
7
11
1410
5
2
4
52 1
2013
14
11
8
7
5
5
32 2
H1 2014
MarTech deals by subsegment Figure 3
Mobile Social
eCommerce
Marketing analytics Marketing Automation
Marketing management
Website amp SEO CRM
Crowd sourcing technology
45
31
20
12
14
19
129
2013
43
3618
18
13
13
8 2
1
H1 2014
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 5
Landmark deals and a diverse buyer landscape
AdTech
Date Buyer Target Deal value($m)
Description
Aug-13 ExtremeReach
DG (TVbusiness)
490 T V ad distribution
Feb-14 Oracle Bluekai 4201 DMP
Aug-13 AOL AdapTV 405 Programmatic videoplatform
Sep-13 Twitter Mopub 350 Mobile ad exchange
Jun-14 OperaSoftware
AdColony 350 Mobile video ad platform
Mar-14 Comcast FreeWheel 3202 Video ad server
Jun-14 SingTel Adconion 235 Ad network
Aug-13 Millennial
Media
Jumptap 237 Mobile ad network
Jan-14 TiVo Digitalsmiths 135 Video search
Oct-13 Neustar AggregateKnowledge
119 DMP
1 Estimated deal value of $420m (451 Research)2 Estimated deal value of $320m (TechCrunch)
MarTech
Date Buyer Target Deal value($m)
Description
Jun-13 Salesforce ExactTarget 2616 Marketing automation
Dec-13 NCR Digital Insight 1650 Online payments
Dec-13 Oracle Responsys 1523 Marketing automation
Sep-13 Ebay Braintree 800 Mobile payments
Jun-13 Adobe Neolane 617 Marketing automation
Apr-14 GTCR Vocus 467 PR software
May-14 Intuit Check 360 Mobile payments
May-14 Acxiom LiveRamp 310 Data on-boarding
Dec-13 Apple Topsy 2403 Social analytics
Feb-14 Lithium Klout 200 Social influence analytics
3 Estimated deal value of $240m (451 Research)
Premium for market leaders and category killers
A review of the largest deals (by announced or estimated deal value)reveals a substantial difference in scale between the largest MarTechand AdTech transactions (Figure 4) This difference is largely due to therelative size of the MarTech businesses rather than necessarily higherrevenue multiples Indeed many of the largest AdTech and MarTechdeals were valued at 8-10x revenues
In some cases however there is a premium for the SaaS basedrevenue model of certain MarTech businesses such as ExactTargetand Responsys which have long term customer contracts and highrevenue visibility This contrasts with the more transaction-orientedrevenue model of many AdTech players
There are a significant number of common themes that run throughthese large deals Buyers place a premium on disruptive technologyand scale (both in terms of geographic presence and revenue) as wellas scarcity There is a clear premium for ldquocategory ki llerrdquo businesses
In addition many of the largest or highest multiple deals are pursuantto a commercial partnership between the buyer and the seller ndash oncea buyer has fully understood the true commercial value of an offeringand has begun to integrate it within its existing stack the appetite foracquisition significantly increases and the buyer is able to properlyvalue the synergy potential
Top 10 deals in 2013 and H1 2014 (where deal value has been disclosed or estimated) Figure 4
Telcos and broadcasters join the diverse buyer universe
Our review of deal activity reinforces the diversity of interest in thesector Players are coming at this sector from a variety of perspectivesincluding mobile operators social media networks enterprise softwarevendors pure-play AdTech and MarTech vendors as well as publishersand broadcasters
The industry continues to question if and when the major marketing
holding companies will start to heavily invest in technology WPPhas set itself apart from the wider pack in terms of its approach totechnology and recognition of its need to play in the sector Whilstnone of its deals have been large in value terms (with the exception ofPrecise which following WPPrsquos acquisition of a majority stake valuedthe business at $120 million) it has shown a willingness not just totake minority stakes but to make outright acquisitions of technologycompanies such as FusePump If the rumoured acquisition of Criteoby Publicis goes ahead this will be the largest deal by a holdingcompany in the sector to date
Private equity buyers are notable by their absence Most of the dealshave been highly strategic in nature and driven by deep-pocketedtrade buyers filling technology gaps and with the potential for
substantial synergies Whilst private equity has been increasingly activein the sector from a venture capital and growth capital perspective ithas not yet reached the stage of maturity where private equity buyersare likely to prevail against strategics in buyout situations
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Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends6
International buyers are looking to Europe for innovationCountry of target H1 2014 Figure 5
16
6
22913
139
4
APAC
Middle East
Eastern Europe
Western EuropeUK
North America
South America
As the market has matured in Europe and a large number of US playershave reached substantial scale in their domestic market we expect awave of more sizeable acquisitions over the next 18 months driven byinternational expansion
European landscape dominated by smaller companies
than US
It is interesting to note that only one of the 20 deals in Figure 4 on theprevious page involved a European-headquartered target the sale ofNeolane to Adobe Adconion was founded in the UK but had relocatedits headquarters to the US
There is an evident difference in scale between the leading US andEuropean players although this does of course mirror the broader techand software market However specifically in AdTech the ability ofEuropean players to scale as quickly as their US counterparts has in partbeen impacted by the nature of the European media buying marketbuilt on an ecosystem of national buying and national publishingCompanies that are able to build a true pan-European presence willbecome prime acquisition targets
US actively looking to Europe for innovation
European sellers accounted for 44 of the total of 209 transactions inH1 2014 (Figure 5) broadly comparable as a percentage to 2013 Ofthose 44 transactions 17 were acquired by US buyers Many of thesetransactions were primarily technology buys (Figure 6) focused on
the addition of talent and point technology rather than a strategicimperative for scale or geographic expansion
Recent acquisitions by US and Asian buyers in Europe ndash selected deals Figure 6
Date Buyer Target Buyer Region Target Region Description
Jul-14 Netsuite Venda US UK eCommerce platform
Jun-14 AppNexus Alenty US France Ad viewability measurement
Jun-14 Facebook Pryte US Finland Mobile data access
May-14 Microsoft Capptain US France Mobile app management platform
May-14 Rakuten DC Storm Japan UK Tag management and attribution
Apr-14 MediaMath Tactads US France Cookieless targeting
Apr-14 Twitter SecondSync US UK Social analytics for TV
Apr-14 Twitter Mesagraph US France Social TV analytics
Mar-14 Ensighten TagMan US UK Tag management
Feb-14 Google Spiderio US UK Ad fraud identification
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 7
Part 2
Fundraising Activity
Innovation not geography raises funds
The global fundraising market continues to be strong and activity inboth the AdTech and MarTech sectors remains high In H1 2014 therewere 329 completed fundraising transactions showing strong investorappetite for innovative and disruptive technologies in the sector aswell as appetite to support many earlier investments to scale
The majority of the fundraisings were for MarTech companies This isin large part due to the broader definition we use for MarTech andprobably not significant in itself However it is worth noting that whilstthe revenue model for many AdTech businesses is media spend-drivenmany MarTech businesses are more akin to conventional SaaS modelswith long-term contracts and annual subscriptions a model withwhich investors are very comfortable The total value raised by MarTechcompanies in H1 2014 was $22 billion compared to $755 million by
AdTech companies reflecting the larger number of transactions (theaverage raise was broadly comparable across the two sectors)
What is being valued in whichever sector is innovation differentiationgrowth and the ability to scale and to create a new category Offeringswhich have achieved a certain scale but are undifferentiated and willnot be able to withstand competition from the large players once theyturn their attention to that particular market have found fundraisingmore challenging
Largest fundraisings globally in H1 2014 Figure 8
AdTech
Date Lead VC fund Target Deal value($m)
Description
Jan-14 BlackRock Turn 800 DSP
Jun-4 Spring LakeEquity Partners
MediaMath 735 DSP
Apr-14 FoundationCapital
AdRoll 700 Retargeting
Mar-14 Gaorong Capital Avazu 480 DSP Ad network
Feb-14 SAP Ventures Kaltura 470 Online videoplatform
May-14 WellingtonManagement Datalogix 450 DMP
Jun-14 SAP Ventures Krux 350 DMP
May-14 Pacific Ventures Adsame 300 Ad server
Mar-14 BDCA CPXi 300 DSP Ad network
Jan-14 August Capital Integral AdScience
300 Ad quality andvaluation
Feb-14 Hermes GrowthPartners
The Trade Desk 200 DSP
Jun-14 SJF Ventures Yieldbot 180 DSP
MarTech
Date Lead VC fund Target Deal Value($m)
Description
Apr-14 BlackRock New Relic 1000 App performancemanagement
Jun-14 New EnterpriseSoftware
Elasticsearch 700 Marketing analysisndash search
May-14 Zouk Capital iZettle 555 Mobile payments
Jun-14 Insight VenturePartners
Yext 503 Asset and contentmanagement
Jun-14 SoftBank Capital Kony 500 Mobile appPlatform
May-14 Goldman Sachs SAVO 491 Sales enablementplatform
Feb-14 Dawn Capital OrderDynamics 410 eCommerce
Apr-14 General Atlantic Squarespace 400 Website designand build
Apr-14 Mithril CapitalManagement
SilverRail 400 eCommerce
Mar-14 RedpointVentures
RelateIQ1 400 Relationshipintelligence
Jan-14 Insight VenturePartners
Ensighten 400 Tag management
Apr-14 Iconiq Capital Spinklr 400 Social media
management
1 Since acquired by Salesforce in July 2014
70
60
50
40
30
20
10
0
N u m b e r o f t
r a n s a c t i o n s
January February March April May June
H1 2014 Fundraisings Value
MarTech 261 $22b
AdTech 68 $08b
Total 329 $30b
Total fundraisings H1 2014 Figure 7
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Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends8
Fundraising activity by subsegmentMarTech
49
48
46
37
36
19
1212
2
eCommerce
Social
Mobile
Marketing analytics
CRM
Marketing automation
Marketingmanagement
Website amp SEO
Crowd sourcing technology
MarTech fundraisings H1 2014 Figure 10
eCommerce
983161 As the global adoption of online shopping continues to drive
double-digit growth in eCommerce there has been considerableinnovation both in core eCommerce platforms but also acrossanalytics personalisation payments curation and online to offline
983161 Fundraisings have ranged from large series C investmentsinto companies including OrderDynamics (formerly known aseCommera in omnichannel order management) and SilverRail (rai l-ticketing) to earlier stage rounds for companies including Sweden-based Tictail (eCommerce platform for boutique and smaller highstreet retailers) Peerius (personalisation and recommendations) andSpree Commerce (Open source eCommerce platform)
Social
983161 Mirroring the trend in MampA investors too are cognisant of the rising
influence that social media has on the decision-path to purchaseand significant amounts have been invested in the US and Europe inofferings designed to use social to enhance the sales and marketingprocess
983161 Sprinklr was the largest pure social investment in H1 raising $40million for its social software platform and Spredfast raised $325million for its social marketing platform
983161 In Europe TrustPilot an online review platform and Brandwatch asocial media monitoring and analytics solution both raised in excessof $20 million in H1 2014
AdTech
AdTech fundraisings H1 2014 Figure 9
20
10
9
6
6
5
6
42
DSP
Video
Measurement and
optimisation
DMP
SSP
Ad creation
Ad network
Ad exchange
Ad server
Video
983161 Video is the fastest growing advertising channel but has not until
now been able to provide the same level of targeting data andanalytics as display advertising and therefore itrsquos not surprising tosee the high level of investment in the sector Investment is goinginto solutions which improve data collection and analytics audienceprofiling and targeting and measurement and tracking as well asinfrastructure-based video solutions and self-serve offerings
983161 With the exception of Kaltura (an open source online videoplatform) which raised $47 million fundraisings in video have beenpredominantly earlier stage smaller funding rounds The secondlargest fundraise in the space was by Vungle a mobile video adplatform which raised $17 million
DSP
983161 Established DSPs have been responsible for some of the largestfundraisings in H1 including Turn (which raised $80 million) and
MediaMath (which raised $735 million in equity as well as putting inplace a substantial credit facility)
983161 These two companies have raised financing to continue to fundinnovation but also to fuel expansion into new geographies andmarkets MediaMath has publicly stated that one use of funds willbe to pursue international MampA and Turn is also building out itsinternational footprint
983161 With a number of large DSPs such as MediaMath Turn and DataXualready well established in the market newer entrants need to beclearly differentiated to attract funding Yieldbot and Trade Deskhave both successfully raised significant rounds ($18 million and
$20 million respectively) Yieldbot focuses on capturing real-timeconsumer intent through search keywords and Trade Desk hasdemonstrated rapid international growth
983161 The majority of investments into DSPs and certainly the largest havebeen in the US Many of the largest European DSPs have been self-financing
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 9
Fundraising by stage ndash US and EuropeHealthy fundraising market for European innovations
Whilst the number of seed and series A rounds in Europe is below thatof the US there is nonetheless a healthy market in Europe and the sizeof the rounds being closed is broadly comparable with those in the USEuropean innovators are holding their own when it comes to securingfunds
However where we see a real divergence in the two markets is in thelater stages of funding There are significantly fewer series B and Crounds by comparison to the US and no later stage rounds (ie series Donwards) have occurred in Europe in H1 2014
From our experience this reflects a couple of dynamics
983161 The culture and investment environment in Europe tends toencourage companies to move to profitability more quicklypotentially at the expense of growth As such later stage rounds aresimply not required
983161 In the US conversely there is a greater priority placed onestablishing market leadership over profitability and large well-established players continue to raise very large rounds to continueto build market share not only domestically but also overseas
However there have also been some encouragingly large series Crounds in Europe including the NEA-led $70 million investment inOpen source search and analytics engine Elasticsearch the Zouk-led$55 million investment in mobile payments platform iZettle and theDawn Capital-led $41 million round in OrderDynamics
Many US funds particularly on the East Coast continue to look veryactively at the European market and will likely step up their pace of
investment over the next 18 months Notwithstanding this increasedinterest by US investors in European opportunities in H1 2014 themost active investors in Europe were European headquartered funds orUS funds with dedicated European capital
60
50
40
30
20
10
0
80
70
60
50
40
30
20
10
0
N
u m b e r o f t r a n s a c t i o n s
A v er a g e t r an s a c t i onv al u e
( $ m )
Seed Series A Series B Series C Series D Series E Series F
US Europe
Number of transactions
Average transaction value
Fundraisings by stage H1 2014 Figure 11
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Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends10
Appendix
Selected MampA activity January 2013 ndash August 2014Date Buyer Target Buyer Region Target Region Deal Value ($m) Description
Aug-14 Rocket Fuel [x+1] US US 230 DMP and DSP
Aug-14 Sizmek Aerify US US 6 Mobile tracking amp retargeting
Aug-14 Sprinklr TBG Digital US UK 503 Social ad optimisation
Jul-14 Adknowledge TriVu Media US US na Video ad buying
Jul-14 Facebook LiveRail US US 4501 Video SSP
Jul-14 Rightster Base79 UK UK 83 YouTube audience creation
Jul-14 NetSuite Venda US UK 51 eCommerce platform
Jul-14 Yahoo Flurry US US 2502 Mobile app analytics amp monetisation
Jul-14 LinkedIn Bizo US US 175 B2B marketing platform
Jul-14 Switch Unanimis UK UK na Ad network
Jul-14 Palantir Poptip US US na Social media analytics
Jul-14 Salesforce RelateIQ US US 350 Relationship intelligence
Jul-14 RTL Group SpotXchange Germany US na Video SSP
Jun-14 Twitter TapCommerce US US 1004 Mobile retargeting
Jun-14 Singtel Adconion Singapore US Australia 235 Ad network
May-14 Rakuten DC Storm Japan UK na Tag management amp attribution
May-14 Pubmatic Mocean Mobile US US na Mobile ad server
May-14 Acxiom LiveRamp US US 310 Data on-boarding
May-14 AOL Convertro US US 101 Marketing attribution
May-14 Google Adometry US US 1505 Marketing attribution
Apr-14 Telefonica Mobclix Spain US na Mobile ad exchange
Apr-14 IBM Silverpop US US na Marketing automation
Apr-14 Dunnhumby Sociomantic UK Germany na DSP
Mar-14 IgnitionOne Knotice US US na DMP
Mar-14 Comcast FreeWheel US US 3207 Video ad server
Feb-14 Oracle BlueKai US US 4206 DMP
Jan-14 Opera Mediaworks Hunt Mobile Norway US na Mobile ad network
Dec-13 Oracle Responsys US US 1523 Marketing automation
Nov-13 Centro SiteScout US Canada 40 DSP
Sep-13 Twitter MoPub US US 350 Mobile ad exchange
Aug-13 Millennial Media Jumptap US US 237 Mobile ad network
Aug-13 AOL Adaptv US US 405 Programmatic video platform
Jul-13 Yahoo Admovate US US na Mobile ad targeting
Jun-13 Adobe Neolane US France 617 Marketing automation
Jun-13 Salesforce ExactTarget US US 2616 Marketing automation
Feb-13 Facebook Atlas Advertiser Suite US US na Ad server
1 Deal value estimated between $400 to $500m (TechCrunch)
2 Deal value estimated between $200 to 300m (TechCrunch)3 Deal estimated at under $50m (AdExchanger)
4 Estimated deal value of $100m (Recode)
5 Estimated deal value of $150m (451 Research)6 Estimate deal value of $420m (451 Research)
7 Estimated deal value of $320m (TechCrunch)
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 11
Appendix
Selected Fundraising activity 2014 YTDDate Lead VC fund Target Target HQ Deal Value ($m) Description
Aug-14 Ignition Partners Xamarin USA 540 Moble app development
Aug-14 Private investors AppNexus USA 600 Ad exchange
Jul-14 Hony Capital Deem USA 500 Customer acquisition and engagement
Jul-14 Comerica mBlox USA 435 Mobile messaging
Jun-14 Softbank Capital IgnitionOne USA 300 Digital marketing suite
Jun-14 SoftBank Capital InsightVenture Partners
Kony USA 500 Moble app development
Jun-14 Deutsche Private Equity Webtrekk Germany 339 Web analytics
Jun-14 Tiger Global Management Freshdesk USA 310 Customer support software
Jun-14 DFJ SiSense Israel 300 Market analysis and business intelligence
Jun-14 SAP Ventures krux digital USA 350 DMP
Jun-14 New Enterprise Associates Elasticsearch Netherlands 700 Marketing analysis ndash search analytics
Jun-14 Insight Venture Partners Yext USA 503 Digital asset and content management
Jun-14 Spring Lake Equity Partners MediaMath USA 735 DSP
May-14 Goldman Sachs The SAVO Group USA 491 Sales enablement platform
May-14 Wellington ManagementCompany
DataLogix Holdings USA 450 DMP
May-14 Index Ventures BitPay USA 300 Bitcoin eCommerce payment
May-14 Pacific Venture Partners ampDream Capital Group
AdSame China 300 Ad server
May-14 Zouk Capital iZettle Sweden 555 Mobile payments
Apr-14 BlackRock New Relic USA 1000 App performance management
Apr-14 Tencent Sequoia Capital Weebly USA 350 Website design amp build
Apr-14 Foundation Capital Adroll USA 700 Retargeting
Apr-14 General Atlantic Squarespace USA 400 Website design amp buildApr-14 Mithril Capital Management SilverRail USA 400 eCommerce platform
Apr-14 Iconiq Capital Sprinklr USA 400 Social media management
Mar-14 Business DevelopmentCorporation of America
CPX Interactive USA 300 DSP Ad network
Mar-14 Redpoint Ventures RelateIQ1 USA 400 Relationship intelligence
Mar-14 FirstHand Technology ValueFund
Phunware USA 307 Mobile app development
Mar-14 Gaorang Capital Avazu China 480 DSP Ad network
Feb-14 Dawn Capital OrderDynamics UK 410 eCommerce platform
Feb-14 Institutional Venture Partners ZEFR USA 300 Brand and content management
Feb-14 SAP Ventures Nokia GrowthPartners Commonfund CapitalGera Ventures
Kaltura USA 470 Online video platform
Jan-14 Insight Venture Partners Ensighten USA 400 Tag management
Jan-14 BlackRock Turn USA 800 DSP
Jan-14 Lead Edge Capital Spredfast USA 325 Social media management
Jan-14 August Capital Integral Ad Science USA 300 Ad quality and valuation
1 Since acquired by Salesforce in July 2014
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Results International is a leading corporate finance advisor to marketing technology and healthcarecompanies in Europe and has advised on over 250 transactions The Company employs over 40 peopleglobally across offices in London New York and Asia and has a strong track record advising on cross-border
transactions winning MampA Cross Border Deal of the Year in the 2014 MampA Awards
Results Internationalrsquos 2014 AdTech and MarTech Deals
Disclaimer
Results International has compiled this report using data sourced from publicly availablesources and third-party tools to which it holds licensed access Results International doesnot accept any responsibility for the accuracy of the information provided Nor does ResultsInternational accept any liability for any use of the information provided in this report or anyconsequence from its use thereof
Keith Hunt
Managing Partner +44 (0) 207 514 8232keithhuntresultsigcom
Pierre-Georges Roy
Partner +1 646 747 6505pgroyresultsigcom
Mark Williams Director +44 (0) 207 514 8242mwilliamsresultsigcom
Julie Langley Partner +44 (0) 207 514 8247 jlangleyresultsigcom
Maurice Watkins
Partner +1 646 747 6510mwatkinsresultsigcom
Julia Crawley-Boevey Director +44 (0) 207 514 8239 jcrawley-boeveyresultsigcom
Jim Houghton
Partner +44 (0) 207 514 8234 jhoughtonresultsigcom
Chris Lewis Managing Director +44 (0) 207 514 8236clewisresultsigcom
has been acquired by
Results International acted forDC Storm
has been acquired by
Results International acted forWe Are Social
is joining
Results International served as
an exclusive financial adviserto Hunt
8102019 m a and Fundraising Activity and Trends 2014
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 3
Global deal volume in 2014 set to double over 2013 levels
Global MampA activity in the sector has seen a huge uplift in 2014 as theindustry has continued to grow and mature (Figure 1)
Across the spectrum of deals that have occurred the nature of MampAactivity has visibly evolved Deals are increasingly driven by the needfor scale geographic expansion access to data and new channels asthe race to be the leading global vendors in the sector heats up
Key observations
983161 The number of deals completed in H1 alone was nearly as high asin the whole of 2013 If deal activity continues at this pace ndash andactivity through July and August suggests it will ndash then deal volumein 2014 will be close to double that of 2013
983161 MarTech companies represent about 70 of overall deal volumeboth in 2013 and H1 2014 This in part reflects the high level of dealactivity undertaken by the large enterprise software vendors as theybuild out their cloud marketing suites
Part 1
MampA Activity
983161 In addition competition in the battle for client ad spend continuesto grow as new buyers ranging from social media networks(eg Twitter and LinkedIn) to telcos (eg SingTel and Telefonica)seek to enter the AdTech and MarTech sector through strategicacquisitions
983161 Deal value for AdTech is on track to double in 2014 over 2013with average deal value remaining broadly constant Deal valuefor MarTech is down on an annualised basis compared to 2013however this reflects a handful of very large deals which took placein 2013 including Oraclersquos $15 billion acquisition of Responsys andSalesforcersquos $26 billion acquisition of ExactTarget
50
40
30
20
10
0
N u m b e r o f d e a l s
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
2013 Number Value
MarTech 162 $85b
AdTech 61 $18b
Total 223 $103b
H1 2014 Number Value
MarTech 152 $22b
AdTech 57 $20b
Total 209 $42b
Global deal volume (January 2013 to June 2014) Figure 1
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Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends4
Deal activity by subsegmentAdTech
Two subsegments have experienced a significant increase in dealactivity in 2014 (Figure 2)
Video
983161 Deal activity has risen from just 7 deals in the whole of 2013 to 14deals in H1 2014 alone Activity is underpinned by the rapid rise of
video advertising which is outpacing the growth of other channels This growth is principally due to the increased revenue generatedby video ad formats compared to more traditional display bannerads Brands value the high click-through rate compared to otherdigital ad formats along with the potential for greater and moresophisticated creativity and significant user engagement
983161 The explosion of deal activity in video has continued beyond thedata captured in our analysis (which covers up to H1 2014)ndash Facebook acquired LiveRail in July and RTL acquired SpotXchangein August both driven by an increasing need to service their largebrand advertisers across this channel
983161 Given the cost of video ad creation and competition for premiuminventory video has typically been dominated to date by large
brand advertisers however technology is opening the format tosmaller advertisers YouTube has made a play to attract a greater SMEadvertiser base through its recent acquisition of self-serve video adcreation platform Directr
Data Management Platforms (DMPs)
983161 There has been significant consolidation of the largest independentDMPs in 2014 as both the enterprise software vendors and theAdTech vendors recognise that data is now a key battleground
983161 Leverage use and manipulation of both first and third party datais a high value capability underpinning omni-channel targetingaudience profiling and ultimately ROI
983161 Clients are on the one hand actively encouraging integration withtheir CRM systems and other data sources in order to drive targeted
media buying and on the other becoming increasingly concernedabout how their data is being used by third parties
983161 DMP deals have been high profile and high value ndash notable dealsinclude Oraclersquos acquisition of BlueKai Rocket Fuelrsquos acquisition of[x+1] and IgnitionOnersquos acquisition of Knotice
It is worth commenting briefly on Ad networks Although deal activityis broadly flat compared to 2013 it remains a sizeable subsegmentMany Ad networks are now focused on adding technology self-servecapability and programmatic to their business and re-inventingthemselves as DSPs and SSPs Pure-play Ad networks continue to beattractive targets where they bring scale channel expertise (eg mobile
or video) and direct premium publisher relationships
MarTech
MarTech deal activity reveals three subsegments where H1 2014 dealvolume is close to or has already surpassed 2013 levels (Figure 3)
Marketing analytics
983161 18 deals have occurred in this sub-segment and if deal activityremains at these levels the number of transactions is on track totreble in 2014 from the 12 deals in 2013
983161 Activity is driven primarily by the need to understand increasinglycomplex customer journeys not just across digital channels but alsointo the physical world Acxiomrsquos acquisition of LiveRamp is a goodexample of this trend
983161 Clients are demanding an increasingly detailed view of a customerrsquos journey to purchase in order to apportion spend across the channelslikely to generate the highest ROI Consequently marketingattribution has attracted a lot of interest with three deals alonecompleting in May 2014 (Googlersquos acquisition of Adometry Rakutenrsquosacquisition of DC Storm and AOLrsquos acquisition of Convertro) Thesetransactions enable the acquirers to bring their channels togetherinto a more coherent omni-channel proposition
Mobile983161 Mobile does of course cut across many of the subsegments in both
AdTech and MarTech In our categorisation this subsegment refersprimarily to mobile marketing automation and messaging mobileloyalty and voucher businesses and mobile payments technologies There have been 43 deals in H1 2014 already close to matching the45 deals seen in the whole of 2013
983161 Whilst mobile payment technologies might more conventionally beconsidered to fall within financial technology there are increasinglyclose ties between payment mechanisms and mobile as a means toclose the online to offline loop and as another channel for customerengagement
983161 Deal activity has also been high around innovations in mobile
marketing automation and in-app messaging (for exampleResponsysrsquo acquisition of Push IO)
Social
983161 The increasing impact of social media on consumer decision-making has been well documented and areas such as analyticsand customer reviews continue to drive considerable deal activityHowever the role of social has also increased in other aspects of thesales and marketing channel such as customer care and sales
983161 One clear trend in 2014 has been the rise of social mediarsquos impact onB2B marketing and sales ndash and we have started to see a number ofdeals driven by the rise of ldquosocial sellingrdquo in the B2B channel
983161 Deals in H1 2014 include Lithiumrsquos acquisition of Klout Bazaarvoicersquos
acquisition of FeedMagnet Twitterrsquos acquisition of Mesagraph andCallidusrsquo acquisition of LeadRocket
Video
DSP Ad network
AdTech deals by subsegment Figure 2
Measurement and optimisation
Ad server DMP
Ad creation SSP
Ad exchange
Agency buying desk
7
11
1410
5
2
4
52 1
2013
14
11
8
7
5
5
32 2
H1 2014
MarTech deals by subsegment Figure 3
Mobile Social
eCommerce
Marketing analytics Marketing Automation
Marketing management
Website amp SEO CRM
Crowd sourcing technology
45
31
20
12
14
19
129
2013
43
3618
18
13
13
8 2
1
H1 2014
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 5
Landmark deals and a diverse buyer landscape
AdTech
Date Buyer Target Deal value($m)
Description
Aug-13 ExtremeReach
DG (TVbusiness)
490 T V ad distribution
Feb-14 Oracle Bluekai 4201 DMP
Aug-13 AOL AdapTV 405 Programmatic videoplatform
Sep-13 Twitter Mopub 350 Mobile ad exchange
Jun-14 OperaSoftware
AdColony 350 Mobile video ad platform
Mar-14 Comcast FreeWheel 3202 Video ad server
Jun-14 SingTel Adconion 235 Ad network
Aug-13 Millennial
Media
Jumptap 237 Mobile ad network
Jan-14 TiVo Digitalsmiths 135 Video search
Oct-13 Neustar AggregateKnowledge
119 DMP
1 Estimated deal value of $420m (451 Research)2 Estimated deal value of $320m (TechCrunch)
MarTech
Date Buyer Target Deal value($m)
Description
Jun-13 Salesforce ExactTarget 2616 Marketing automation
Dec-13 NCR Digital Insight 1650 Online payments
Dec-13 Oracle Responsys 1523 Marketing automation
Sep-13 Ebay Braintree 800 Mobile payments
Jun-13 Adobe Neolane 617 Marketing automation
Apr-14 GTCR Vocus 467 PR software
May-14 Intuit Check 360 Mobile payments
May-14 Acxiom LiveRamp 310 Data on-boarding
Dec-13 Apple Topsy 2403 Social analytics
Feb-14 Lithium Klout 200 Social influence analytics
3 Estimated deal value of $240m (451 Research)
Premium for market leaders and category killers
A review of the largest deals (by announced or estimated deal value)reveals a substantial difference in scale between the largest MarTechand AdTech transactions (Figure 4) This difference is largely due to therelative size of the MarTech businesses rather than necessarily higherrevenue multiples Indeed many of the largest AdTech and MarTechdeals were valued at 8-10x revenues
In some cases however there is a premium for the SaaS basedrevenue model of certain MarTech businesses such as ExactTargetand Responsys which have long term customer contracts and highrevenue visibility This contrasts with the more transaction-orientedrevenue model of many AdTech players
There are a significant number of common themes that run throughthese large deals Buyers place a premium on disruptive technologyand scale (both in terms of geographic presence and revenue) as wellas scarcity There is a clear premium for ldquocategory ki llerrdquo businesses
In addition many of the largest or highest multiple deals are pursuantto a commercial partnership between the buyer and the seller ndash oncea buyer has fully understood the true commercial value of an offeringand has begun to integrate it within its existing stack the appetite foracquisition significantly increases and the buyer is able to properlyvalue the synergy potential
Top 10 deals in 2013 and H1 2014 (where deal value has been disclosed or estimated) Figure 4
Telcos and broadcasters join the diverse buyer universe
Our review of deal activity reinforces the diversity of interest in thesector Players are coming at this sector from a variety of perspectivesincluding mobile operators social media networks enterprise softwarevendors pure-play AdTech and MarTech vendors as well as publishersand broadcasters
The industry continues to question if and when the major marketing
holding companies will start to heavily invest in technology WPPhas set itself apart from the wider pack in terms of its approach totechnology and recognition of its need to play in the sector Whilstnone of its deals have been large in value terms (with the exception ofPrecise which following WPPrsquos acquisition of a majority stake valuedthe business at $120 million) it has shown a willingness not just totake minority stakes but to make outright acquisitions of technologycompanies such as FusePump If the rumoured acquisition of Criteoby Publicis goes ahead this will be the largest deal by a holdingcompany in the sector to date
Private equity buyers are notable by their absence Most of the dealshave been highly strategic in nature and driven by deep-pocketedtrade buyers filling technology gaps and with the potential for
substantial synergies Whilst private equity has been increasingly activein the sector from a venture capital and growth capital perspective ithas not yet reached the stage of maturity where private equity buyersare likely to prevail against strategics in buyout situations
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Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends6
International buyers are looking to Europe for innovationCountry of target H1 2014 Figure 5
16
6
22913
139
4
APAC
Middle East
Eastern Europe
Western EuropeUK
North America
South America
As the market has matured in Europe and a large number of US playershave reached substantial scale in their domestic market we expect awave of more sizeable acquisitions over the next 18 months driven byinternational expansion
European landscape dominated by smaller companies
than US
It is interesting to note that only one of the 20 deals in Figure 4 on theprevious page involved a European-headquartered target the sale ofNeolane to Adobe Adconion was founded in the UK but had relocatedits headquarters to the US
There is an evident difference in scale between the leading US andEuropean players although this does of course mirror the broader techand software market However specifically in AdTech the ability ofEuropean players to scale as quickly as their US counterparts has in partbeen impacted by the nature of the European media buying marketbuilt on an ecosystem of national buying and national publishingCompanies that are able to build a true pan-European presence willbecome prime acquisition targets
US actively looking to Europe for innovation
European sellers accounted for 44 of the total of 209 transactions inH1 2014 (Figure 5) broadly comparable as a percentage to 2013 Ofthose 44 transactions 17 were acquired by US buyers Many of thesetransactions were primarily technology buys (Figure 6) focused on
the addition of talent and point technology rather than a strategicimperative for scale or geographic expansion
Recent acquisitions by US and Asian buyers in Europe ndash selected deals Figure 6
Date Buyer Target Buyer Region Target Region Description
Jul-14 Netsuite Venda US UK eCommerce platform
Jun-14 AppNexus Alenty US France Ad viewability measurement
Jun-14 Facebook Pryte US Finland Mobile data access
May-14 Microsoft Capptain US France Mobile app management platform
May-14 Rakuten DC Storm Japan UK Tag management and attribution
Apr-14 MediaMath Tactads US France Cookieless targeting
Apr-14 Twitter SecondSync US UK Social analytics for TV
Apr-14 Twitter Mesagraph US France Social TV analytics
Mar-14 Ensighten TagMan US UK Tag management
Feb-14 Google Spiderio US UK Ad fraud identification
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 7
Part 2
Fundraising Activity
Innovation not geography raises funds
The global fundraising market continues to be strong and activity inboth the AdTech and MarTech sectors remains high In H1 2014 therewere 329 completed fundraising transactions showing strong investorappetite for innovative and disruptive technologies in the sector aswell as appetite to support many earlier investments to scale
The majority of the fundraisings were for MarTech companies This isin large part due to the broader definition we use for MarTech andprobably not significant in itself However it is worth noting that whilstthe revenue model for many AdTech businesses is media spend-drivenmany MarTech businesses are more akin to conventional SaaS modelswith long-term contracts and annual subscriptions a model withwhich investors are very comfortable The total value raised by MarTechcompanies in H1 2014 was $22 billion compared to $755 million by
AdTech companies reflecting the larger number of transactions (theaverage raise was broadly comparable across the two sectors)
What is being valued in whichever sector is innovation differentiationgrowth and the ability to scale and to create a new category Offeringswhich have achieved a certain scale but are undifferentiated and willnot be able to withstand competition from the large players once theyturn their attention to that particular market have found fundraisingmore challenging
Largest fundraisings globally in H1 2014 Figure 8
AdTech
Date Lead VC fund Target Deal value($m)
Description
Jan-14 BlackRock Turn 800 DSP
Jun-4 Spring LakeEquity Partners
MediaMath 735 DSP
Apr-14 FoundationCapital
AdRoll 700 Retargeting
Mar-14 Gaorong Capital Avazu 480 DSP Ad network
Feb-14 SAP Ventures Kaltura 470 Online videoplatform
May-14 WellingtonManagement Datalogix 450 DMP
Jun-14 SAP Ventures Krux 350 DMP
May-14 Pacific Ventures Adsame 300 Ad server
Mar-14 BDCA CPXi 300 DSP Ad network
Jan-14 August Capital Integral AdScience
300 Ad quality andvaluation
Feb-14 Hermes GrowthPartners
The Trade Desk 200 DSP
Jun-14 SJF Ventures Yieldbot 180 DSP
MarTech
Date Lead VC fund Target Deal Value($m)
Description
Apr-14 BlackRock New Relic 1000 App performancemanagement
Jun-14 New EnterpriseSoftware
Elasticsearch 700 Marketing analysisndash search
May-14 Zouk Capital iZettle 555 Mobile payments
Jun-14 Insight VenturePartners
Yext 503 Asset and contentmanagement
Jun-14 SoftBank Capital Kony 500 Mobile appPlatform
May-14 Goldman Sachs SAVO 491 Sales enablementplatform
Feb-14 Dawn Capital OrderDynamics 410 eCommerce
Apr-14 General Atlantic Squarespace 400 Website designand build
Apr-14 Mithril CapitalManagement
SilverRail 400 eCommerce
Mar-14 RedpointVentures
RelateIQ1 400 Relationshipintelligence
Jan-14 Insight VenturePartners
Ensighten 400 Tag management
Apr-14 Iconiq Capital Spinklr 400 Social media
management
1 Since acquired by Salesforce in July 2014
70
60
50
40
30
20
10
0
N u m b e r o f t
r a n s a c t i o n s
January February March April May June
H1 2014 Fundraisings Value
MarTech 261 $22b
AdTech 68 $08b
Total 329 $30b
Total fundraisings H1 2014 Figure 7
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Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends8
Fundraising activity by subsegmentMarTech
49
48
46
37
36
19
1212
2
eCommerce
Social
Mobile
Marketing analytics
CRM
Marketing automation
Marketingmanagement
Website amp SEO
Crowd sourcing technology
MarTech fundraisings H1 2014 Figure 10
eCommerce
983161 As the global adoption of online shopping continues to drive
double-digit growth in eCommerce there has been considerableinnovation both in core eCommerce platforms but also acrossanalytics personalisation payments curation and online to offline
983161 Fundraisings have ranged from large series C investmentsinto companies including OrderDynamics (formerly known aseCommera in omnichannel order management) and SilverRail (rai l-ticketing) to earlier stage rounds for companies including Sweden-based Tictail (eCommerce platform for boutique and smaller highstreet retailers) Peerius (personalisation and recommendations) andSpree Commerce (Open source eCommerce platform)
Social
983161 Mirroring the trend in MampA investors too are cognisant of the rising
influence that social media has on the decision-path to purchaseand significant amounts have been invested in the US and Europe inofferings designed to use social to enhance the sales and marketingprocess
983161 Sprinklr was the largest pure social investment in H1 raising $40million for its social software platform and Spredfast raised $325million for its social marketing platform
983161 In Europe TrustPilot an online review platform and Brandwatch asocial media monitoring and analytics solution both raised in excessof $20 million in H1 2014
AdTech
AdTech fundraisings H1 2014 Figure 9
20
10
9
6
6
5
6
42
DSP
Video
Measurement and
optimisation
DMP
SSP
Ad creation
Ad network
Ad exchange
Ad server
Video
983161 Video is the fastest growing advertising channel but has not until
now been able to provide the same level of targeting data andanalytics as display advertising and therefore itrsquos not surprising tosee the high level of investment in the sector Investment is goinginto solutions which improve data collection and analytics audienceprofiling and targeting and measurement and tracking as well asinfrastructure-based video solutions and self-serve offerings
983161 With the exception of Kaltura (an open source online videoplatform) which raised $47 million fundraisings in video have beenpredominantly earlier stage smaller funding rounds The secondlargest fundraise in the space was by Vungle a mobile video adplatform which raised $17 million
DSP
983161 Established DSPs have been responsible for some of the largestfundraisings in H1 including Turn (which raised $80 million) and
MediaMath (which raised $735 million in equity as well as putting inplace a substantial credit facility)
983161 These two companies have raised financing to continue to fundinnovation but also to fuel expansion into new geographies andmarkets MediaMath has publicly stated that one use of funds willbe to pursue international MampA and Turn is also building out itsinternational footprint
983161 With a number of large DSPs such as MediaMath Turn and DataXualready well established in the market newer entrants need to beclearly differentiated to attract funding Yieldbot and Trade Deskhave both successfully raised significant rounds ($18 million and
$20 million respectively) Yieldbot focuses on capturing real-timeconsumer intent through search keywords and Trade Desk hasdemonstrated rapid international growth
983161 The majority of investments into DSPs and certainly the largest havebeen in the US Many of the largest European DSPs have been self-financing
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 9
Fundraising by stage ndash US and EuropeHealthy fundraising market for European innovations
Whilst the number of seed and series A rounds in Europe is below thatof the US there is nonetheless a healthy market in Europe and the sizeof the rounds being closed is broadly comparable with those in the USEuropean innovators are holding their own when it comes to securingfunds
However where we see a real divergence in the two markets is in thelater stages of funding There are significantly fewer series B and Crounds by comparison to the US and no later stage rounds (ie series Donwards) have occurred in Europe in H1 2014
From our experience this reflects a couple of dynamics
983161 The culture and investment environment in Europe tends toencourage companies to move to profitability more quicklypotentially at the expense of growth As such later stage rounds aresimply not required
983161 In the US conversely there is a greater priority placed onestablishing market leadership over profitability and large well-established players continue to raise very large rounds to continueto build market share not only domestically but also overseas
However there have also been some encouragingly large series Crounds in Europe including the NEA-led $70 million investment inOpen source search and analytics engine Elasticsearch the Zouk-led$55 million investment in mobile payments platform iZettle and theDawn Capital-led $41 million round in OrderDynamics
Many US funds particularly on the East Coast continue to look veryactively at the European market and will likely step up their pace of
investment over the next 18 months Notwithstanding this increasedinterest by US investors in European opportunities in H1 2014 themost active investors in Europe were European headquartered funds orUS funds with dedicated European capital
60
50
40
30
20
10
0
80
70
60
50
40
30
20
10
0
N
u m b e r o f t r a n s a c t i o n s
A v er a g e t r an s a c t i onv al u e
( $ m )
Seed Series A Series B Series C Series D Series E Series F
US Europe
Number of transactions
Average transaction value
Fundraisings by stage H1 2014 Figure 11
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Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends10
Appendix
Selected MampA activity January 2013 ndash August 2014Date Buyer Target Buyer Region Target Region Deal Value ($m) Description
Aug-14 Rocket Fuel [x+1] US US 230 DMP and DSP
Aug-14 Sizmek Aerify US US 6 Mobile tracking amp retargeting
Aug-14 Sprinklr TBG Digital US UK 503 Social ad optimisation
Jul-14 Adknowledge TriVu Media US US na Video ad buying
Jul-14 Facebook LiveRail US US 4501 Video SSP
Jul-14 Rightster Base79 UK UK 83 YouTube audience creation
Jul-14 NetSuite Venda US UK 51 eCommerce platform
Jul-14 Yahoo Flurry US US 2502 Mobile app analytics amp monetisation
Jul-14 LinkedIn Bizo US US 175 B2B marketing platform
Jul-14 Switch Unanimis UK UK na Ad network
Jul-14 Palantir Poptip US US na Social media analytics
Jul-14 Salesforce RelateIQ US US 350 Relationship intelligence
Jul-14 RTL Group SpotXchange Germany US na Video SSP
Jun-14 Twitter TapCommerce US US 1004 Mobile retargeting
Jun-14 Singtel Adconion Singapore US Australia 235 Ad network
May-14 Rakuten DC Storm Japan UK na Tag management amp attribution
May-14 Pubmatic Mocean Mobile US US na Mobile ad server
May-14 Acxiom LiveRamp US US 310 Data on-boarding
May-14 AOL Convertro US US 101 Marketing attribution
May-14 Google Adometry US US 1505 Marketing attribution
Apr-14 Telefonica Mobclix Spain US na Mobile ad exchange
Apr-14 IBM Silverpop US US na Marketing automation
Apr-14 Dunnhumby Sociomantic UK Germany na DSP
Mar-14 IgnitionOne Knotice US US na DMP
Mar-14 Comcast FreeWheel US US 3207 Video ad server
Feb-14 Oracle BlueKai US US 4206 DMP
Jan-14 Opera Mediaworks Hunt Mobile Norway US na Mobile ad network
Dec-13 Oracle Responsys US US 1523 Marketing automation
Nov-13 Centro SiteScout US Canada 40 DSP
Sep-13 Twitter MoPub US US 350 Mobile ad exchange
Aug-13 Millennial Media Jumptap US US 237 Mobile ad network
Aug-13 AOL Adaptv US US 405 Programmatic video platform
Jul-13 Yahoo Admovate US US na Mobile ad targeting
Jun-13 Adobe Neolane US France 617 Marketing automation
Jun-13 Salesforce ExactTarget US US 2616 Marketing automation
Feb-13 Facebook Atlas Advertiser Suite US US na Ad server
1 Deal value estimated between $400 to $500m (TechCrunch)
2 Deal value estimated between $200 to 300m (TechCrunch)3 Deal estimated at under $50m (AdExchanger)
4 Estimated deal value of $100m (Recode)
5 Estimated deal value of $150m (451 Research)6 Estimate deal value of $420m (451 Research)
7 Estimated deal value of $320m (TechCrunch)
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 11
Appendix
Selected Fundraising activity 2014 YTDDate Lead VC fund Target Target HQ Deal Value ($m) Description
Aug-14 Ignition Partners Xamarin USA 540 Moble app development
Aug-14 Private investors AppNexus USA 600 Ad exchange
Jul-14 Hony Capital Deem USA 500 Customer acquisition and engagement
Jul-14 Comerica mBlox USA 435 Mobile messaging
Jun-14 Softbank Capital IgnitionOne USA 300 Digital marketing suite
Jun-14 SoftBank Capital InsightVenture Partners
Kony USA 500 Moble app development
Jun-14 Deutsche Private Equity Webtrekk Germany 339 Web analytics
Jun-14 Tiger Global Management Freshdesk USA 310 Customer support software
Jun-14 DFJ SiSense Israel 300 Market analysis and business intelligence
Jun-14 SAP Ventures krux digital USA 350 DMP
Jun-14 New Enterprise Associates Elasticsearch Netherlands 700 Marketing analysis ndash search analytics
Jun-14 Insight Venture Partners Yext USA 503 Digital asset and content management
Jun-14 Spring Lake Equity Partners MediaMath USA 735 DSP
May-14 Goldman Sachs The SAVO Group USA 491 Sales enablement platform
May-14 Wellington ManagementCompany
DataLogix Holdings USA 450 DMP
May-14 Index Ventures BitPay USA 300 Bitcoin eCommerce payment
May-14 Pacific Venture Partners ampDream Capital Group
AdSame China 300 Ad server
May-14 Zouk Capital iZettle Sweden 555 Mobile payments
Apr-14 BlackRock New Relic USA 1000 App performance management
Apr-14 Tencent Sequoia Capital Weebly USA 350 Website design amp build
Apr-14 Foundation Capital Adroll USA 700 Retargeting
Apr-14 General Atlantic Squarespace USA 400 Website design amp buildApr-14 Mithril Capital Management SilverRail USA 400 eCommerce platform
Apr-14 Iconiq Capital Sprinklr USA 400 Social media management
Mar-14 Business DevelopmentCorporation of America
CPX Interactive USA 300 DSP Ad network
Mar-14 Redpoint Ventures RelateIQ1 USA 400 Relationship intelligence
Mar-14 FirstHand Technology ValueFund
Phunware USA 307 Mobile app development
Mar-14 Gaorang Capital Avazu China 480 DSP Ad network
Feb-14 Dawn Capital OrderDynamics UK 410 eCommerce platform
Feb-14 Institutional Venture Partners ZEFR USA 300 Brand and content management
Feb-14 SAP Ventures Nokia GrowthPartners Commonfund CapitalGera Ventures
Kaltura USA 470 Online video platform
Jan-14 Insight Venture Partners Ensighten USA 400 Tag management
Jan-14 BlackRock Turn USA 800 DSP
Jan-14 Lead Edge Capital Spredfast USA 325 Social media management
Jan-14 August Capital Integral Ad Science USA 300 Ad quality and valuation
1 Since acquired by Salesforce in July 2014
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Results International is a leading corporate finance advisor to marketing technology and healthcarecompanies in Europe and has advised on over 250 transactions The Company employs over 40 peopleglobally across offices in London New York and Asia and has a strong track record advising on cross-border
transactions winning MampA Cross Border Deal of the Year in the 2014 MampA Awards
Results Internationalrsquos 2014 AdTech and MarTech Deals
Disclaimer
Results International has compiled this report using data sourced from publicly availablesources and third-party tools to which it holds licensed access Results International doesnot accept any responsibility for the accuracy of the information provided Nor does ResultsInternational accept any liability for any use of the information provided in this report or anyconsequence from its use thereof
Keith Hunt
Managing Partner +44 (0) 207 514 8232keithhuntresultsigcom
Pierre-Georges Roy
Partner +1 646 747 6505pgroyresultsigcom
Mark Williams Director +44 (0) 207 514 8242mwilliamsresultsigcom
Julie Langley Partner +44 (0) 207 514 8247 jlangleyresultsigcom
Maurice Watkins
Partner +1 646 747 6510mwatkinsresultsigcom
Julia Crawley-Boevey Director +44 (0) 207 514 8239 jcrawley-boeveyresultsigcom
Jim Houghton
Partner +44 (0) 207 514 8234 jhoughtonresultsigcom
Chris Lewis Managing Director +44 (0) 207 514 8236clewisresultsigcom
has been acquired by
Results International acted forDC Storm
has been acquired by
Results International acted forWe Are Social
is joining
Results International served as
an exclusive financial adviserto Hunt
8102019 m a and Fundraising Activity and Trends 2014
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Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends4
Deal activity by subsegmentAdTech
Two subsegments have experienced a significant increase in dealactivity in 2014 (Figure 2)
Video
983161 Deal activity has risen from just 7 deals in the whole of 2013 to 14deals in H1 2014 alone Activity is underpinned by the rapid rise of
video advertising which is outpacing the growth of other channels This growth is principally due to the increased revenue generatedby video ad formats compared to more traditional display bannerads Brands value the high click-through rate compared to otherdigital ad formats along with the potential for greater and moresophisticated creativity and significant user engagement
983161 The explosion of deal activity in video has continued beyond thedata captured in our analysis (which covers up to H1 2014)ndash Facebook acquired LiveRail in July and RTL acquired SpotXchangein August both driven by an increasing need to service their largebrand advertisers across this channel
983161 Given the cost of video ad creation and competition for premiuminventory video has typically been dominated to date by large
brand advertisers however technology is opening the format tosmaller advertisers YouTube has made a play to attract a greater SMEadvertiser base through its recent acquisition of self-serve video adcreation platform Directr
Data Management Platforms (DMPs)
983161 There has been significant consolidation of the largest independentDMPs in 2014 as both the enterprise software vendors and theAdTech vendors recognise that data is now a key battleground
983161 Leverage use and manipulation of both first and third party datais a high value capability underpinning omni-channel targetingaudience profiling and ultimately ROI
983161 Clients are on the one hand actively encouraging integration withtheir CRM systems and other data sources in order to drive targeted
media buying and on the other becoming increasingly concernedabout how their data is being used by third parties
983161 DMP deals have been high profile and high value ndash notable dealsinclude Oraclersquos acquisition of BlueKai Rocket Fuelrsquos acquisition of[x+1] and IgnitionOnersquos acquisition of Knotice
It is worth commenting briefly on Ad networks Although deal activityis broadly flat compared to 2013 it remains a sizeable subsegmentMany Ad networks are now focused on adding technology self-servecapability and programmatic to their business and re-inventingthemselves as DSPs and SSPs Pure-play Ad networks continue to beattractive targets where they bring scale channel expertise (eg mobile
or video) and direct premium publisher relationships
MarTech
MarTech deal activity reveals three subsegments where H1 2014 dealvolume is close to or has already surpassed 2013 levels (Figure 3)
Marketing analytics
983161 18 deals have occurred in this sub-segment and if deal activityremains at these levels the number of transactions is on track totreble in 2014 from the 12 deals in 2013
983161 Activity is driven primarily by the need to understand increasinglycomplex customer journeys not just across digital channels but alsointo the physical world Acxiomrsquos acquisition of LiveRamp is a goodexample of this trend
983161 Clients are demanding an increasingly detailed view of a customerrsquos journey to purchase in order to apportion spend across the channelslikely to generate the highest ROI Consequently marketingattribution has attracted a lot of interest with three deals alonecompleting in May 2014 (Googlersquos acquisition of Adometry Rakutenrsquosacquisition of DC Storm and AOLrsquos acquisition of Convertro) Thesetransactions enable the acquirers to bring their channels togetherinto a more coherent omni-channel proposition
Mobile983161 Mobile does of course cut across many of the subsegments in both
AdTech and MarTech In our categorisation this subsegment refersprimarily to mobile marketing automation and messaging mobileloyalty and voucher businesses and mobile payments technologies There have been 43 deals in H1 2014 already close to matching the45 deals seen in the whole of 2013
983161 Whilst mobile payment technologies might more conventionally beconsidered to fall within financial technology there are increasinglyclose ties between payment mechanisms and mobile as a means toclose the online to offline loop and as another channel for customerengagement
983161 Deal activity has also been high around innovations in mobile
marketing automation and in-app messaging (for exampleResponsysrsquo acquisition of Push IO)
Social
983161 The increasing impact of social media on consumer decision-making has been well documented and areas such as analyticsand customer reviews continue to drive considerable deal activityHowever the role of social has also increased in other aspects of thesales and marketing channel such as customer care and sales
983161 One clear trend in 2014 has been the rise of social mediarsquos impact onB2B marketing and sales ndash and we have started to see a number ofdeals driven by the rise of ldquosocial sellingrdquo in the B2B channel
983161 Deals in H1 2014 include Lithiumrsquos acquisition of Klout Bazaarvoicersquos
acquisition of FeedMagnet Twitterrsquos acquisition of Mesagraph andCallidusrsquo acquisition of LeadRocket
Video
DSP Ad network
AdTech deals by subsegment Figure 2
Measurement and optimisation
Ad server DMP
Ad creation SSP
Ad exchange
Agency buying desk
7
11
1410
5
2
4
52 1
2013
14
11
8
7
5
5
32 2
H1 2014
MarTech deals by subsegment Figure 3
Mobile Social
eCommerce
Marketing analytics Marketing Automation
Marketing management
Website amp SEO CRM
Crowd sourcing technology
45
31
20
12
14
19
129
2013
43
3618
18
13
13
8 2
1
H1 2014
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 5
Landmark deals and a diverse buyer landscape
AdTech
Date Buyer Target Deal value($m)
Description
Aug-13 ExtremeReach
DG (TVbusiness)
490 T V ad distribution
Feb-14 Oracle Bluekai 4201 DMP
Aug-13 AOL AdapTV 405 Programmatic videoplatform
Sep-13 Twitter Mopub 350 Mobile ad exchange
Jun-14 OperaSoftware
AdColony 350 Mobile video ad platform
Mar-14 Comcast FreeWheel 3202 Video ad server
Jun-14 SingTel Adconion 235 Ad network
Aug-13 Millennial
Media
Jumptap 237 Mobile ad network
Jan-14 TiVo Digitalsmiths 135 Video search
Oct-13 Neustar AggregateKnowledge
119 DMP
1 Estimated deal value of $420m (451 Research)2 Estimated deal value of $320m (TechCrunch)
MarTech
Date Buyer Target Deal value($m)
Description
Jun-13 Salesforce ExactTarget 2616 Marketing automation
Dec-13 NCR Digital Insight 1650 Online payments
Dec-13 Oracle Responsys 1523 Marketing automation
Sep-13 Ebay Braintree 800 Mobile payments
Jun-13 Adobe Neolane 617 Marketing automation
Apr-14 GTCR Vocus 467 PR software
May-14 Intuit Check 360 Mobile payments
May-14 Acxiom LiveRamp 310 Data on-boarding
Dec-13 Apple Topsy 2403 Social analytics
Feb-14 Lithium Klout 200 Social influence analytics
3 Estimated deal value of $240m (451 Research)
Premium for market leaders and category killers
A review of the largest deals (by announced or estimated deal value)reveals a substantial difference in scale between the largest MarTechand AdTech transactions (Figure 4) This difference is largely due to therelative size of the MarTech businesses rather than necessarily higherrevenue multiples Indeed many of the largest AdTech and MarTechdeals were valued at 8-10x revenues
In some cases however there is a premium for the SaaS basedrevenue model of certain MarTech businesses such as ExactTargetand Responsys which have long term customer contracts and highrevenue visibility This contrasts with the more transaction-orientedrevenue model of many AdTech players
There are a significant number of common themes that run throughthese large deals Buyers place a premium on disruptive technologyand scale (both in terms of geographic presence and revenue) as wellas scarcity There is a clear premium for ldquocategory ki llerrdquo businesses
In addition many of the largest or highest multiple deals are pursuantto a commercial partnership between the buyer and the seller ndash oncea buyer has fully understood the true commercial value of an offeringand has begun to integrate it within its existing stack the appetite foracquisition significantly increases and the buyer is able to properlyvalue the synergy potential
Top 10 deals in 2013 and H1 2014 (where deal value has been disclosed or estimated) Figure 4
Telcos and broadcasters join the diverse buyer universe
Our review of deal activity reinforces the diversity of interest in thesector Players are coming at this sector from a variety of perspectivesincluding mobile operators social media networks enterprise softwarevendors pure-play AdTech and MarTech vendors as well as publishersand broadcasters
The industry continues to question if and when the major marketing
holding companies will start to heavily invest in technology WPPhas set itself apart from the wider pack in terms of its approach totechnology and recognition of its need to play in the sector Whilstnone of its deals have been large in value terms (with the exception ofPrecise which following WPPrsquos acquisition of a majority stake valuedthe business at $120 million) it has shown a willingness not just totake minority stakes but to make outright acquisitions of technologycompanies such as FusePump If the rumoured acquisition of Criteoby Publicis goes ahead this will be the largest deal by a holdingcompany in the sector to date
Private equity buyers are notable by their absence Most of the dealshave been highly strategic in nature and driven by deep-pocketedtrade buyers filling technology gaps and with the potential for
substantial synergies Whilst private equity has been increasingly activein the sector from a venture capital and growth capital perspective ithas not yet reached the stage of maturity where private equity buyersare likely to prevail against strategics in buyout situations
8102019 m a and Fundraising Activity and Trends 2014
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Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends6
International buyers are looking to Europe for innovationCountry of target H1 2014 Figure 5
16
6
22913
139
4
APAC
Middle East
Eastern Europe
Western EuropeUK
North America
South America
As the market has matured in Europe and a large number of US playershave reached substantial scale in their domestic market we expect awave of more sizeable acquisitions over the next 18 months driven byinternational expansion
European landscape dominated by smaller companies
than US
It is interesting to note that only one of the 20 deals in Figure 4 on theprevious page involved a European-headquartered target the sale ofNeolane to Adobe Adconion was founded in the UK but had relocatedits headquarters to the US
There is an evident difference in scale between the leading US andEuropean players although this does of course mirror the broader techand software market However specifically in AdTech the ability ofEuropean players to scale as quickly as their US counterparts has in partbeen impacted by the nature of the European media buying marketbuilt on an ecosystem of national buying and national publishingCompanies that are able to build a true pan-European presence willbecome prime acquisition targets
US actively looking to Europe for innovation
European sellers accounted for 44 of the total of 209 transactions inH1 2014 (Figure 5) broadly comparable as a percentage to 2013 Ofthose 44 transactions 17 were acquired by US buyers Many of thesetransactions were primarily technology buys (Figure 6) focused on
the addition of talent and point technology rather than a strategicimperative for scale or geographic expansion
Recent acquisitions by US and Asian buyers in Europe ndash selected deals Figure 6
Date Buyer Target Buyer Region Target Region Description
Jul-14 Netsuite Venda US UK eCommerce platform
Jun-14 AppNexus Alenty US France Ad viewability measurement
Jun-14 Facebook Pryte US Finland Mobile data access
May-14 Microsoft Capptain US France Mobile app management platform
May-14 Rakuten DC Storm Japan UK Tag management and attribution
Apr-14 MediaMath Tactads US France Cookieless targeting
Apr-14 Twitter SecondSync US UK Social analytics for TV
Apr-14 Twitter Mesagraph US France Social TV analytics
Mar-14 Ensighten TagMan US UK Tag management
Feb-14 Google Spiderio US UK Ad fraud identification
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 7
Part 2
Fundraising Activity
Innovation not geography raises funds
The global fundraising market continues to be strong and activity inboth the AdTech and MarTech sectors remains high In H1 2014 therewere 329 completed fundraising transactions showing strong investorappetite for innovative and disruptive technologies in the sector aswell as appetite to support many earlier investments to scale
The majority of the fundraisings were for MarTech companies This isin large part due to the broader definition we use for MarTech andprobably not significant in itself However it is worth noting that whilstthe revenue model for many AdTech businesses is media spend-drivenmany MarTech businesses are more akin to conventional SaaS modelswith long-term contracts and annual subscriptions a model withwhich investors are very comfortable The total value raised by MarTechcompanies in H1 2014 was $22 billion compared to $755 million by
AdTech companies reflecting the larger number of transactions (theaverage raise was broadly comparable across the two sectors)
What is being valued in whichever sector is innovation differentiationgrowth and the ability to scale and to create a new category Offeringswhich have achieved a certain scale but are undifferentiated and willnot be able to withstand competition from the large players once theyturn their attention to that particular market have found fundraisingmore challenging
Largest fundraisings globally in H1 2014 Figure 8
AdTech
Date Lead VC fund Target Deal value($m)
Description
Jan-14 BlackRock Turn 800 DSP
Jun-4 Spring LakeEquity Partners
MediaMath 735 DSP
Apr-14 FoundationCapital
AdRoll 700 Retargeting
Mar-14 Gaorong Capital Avazu 480 DSP Ad network
Feb-14 SAP Ventures Kaltura 470 Online videoplatform
May-14 WellingtonManagement Datalogix 450 DMP
Jun-14 SAP Ventures Krux 350 DMP
May-14 Pacific Ventures Adsame 300 Ad server
Mar-14 BDCA CPXi 300 DSP Ad network
Jan-14 August Capital Integral AdScience
300 Ad quality andvaluation
Feb-14 Hermes GrowthPartners
The Trade Desk 200 DSP
Jun-14 SJF Ventures Yieldbot 180 DSP
MarTech
Date Lead VC fund Target Deal Value($m)
Description
Apr-14 BlackRock New Relic 1000 App performancemanagement
Jun-14 New EnterpriseSoftware
Elasticsearch 700 Marketing analysisndash search
May-14 Zouk Capital iZettle 555 Mobile payments
Jun-14 Insight VenturePartners
Yext 503 Asset and contentmanagement
Jun-14 SoftBank Capital Kony 500 Mobile appPlatform
May-14 Goldman Sachs SAVO 491 Sales enablementplatform
Feb-14 Dawn Capital OrderDynamics 410 eCommerce
Apr-14 General Atlantic Squarespace 400 Website designand build
Apr-14 Mithril CapitalManagement
SilverRail 400 eCommerce
Mar-14 RedpointVentures
RelateIQ1 400 Relationshipintelligence
Jan-14 Insight VenturePartners
Ensighten 400 Tag management
Apr-14 Iconiq Capital Spinklr 400 Social media
management
1 Since acquired by Salesforce in July 2014
70
60
50
40
30
20
10
0
N u m b e r o f t
r a n s a c t i o n s
January February March April May June
H1 2014 Fundraisings Value
MarTech 261 $22b
AdTech 68 $08b
Total 329 $30b
Total fundraisings H1 2014 Figure 7
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Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends8
Fundraising activity by subsegmentMarTech
49
48
46
37
36
19
1212
2
eCommerce
Social
Mobile
Marketing analytics
CRM
Marketing automation
Marketingmanagement
Website amp SEO
Crowd sourcing technology
MarTech fundraisings H1 2014 Figure 10
eCommerce
983161 As the global adoption of online shopping continues to drive
double-digit growth in eCommerce there has been considerableinnovation both in core eCommerce platforms but also acrossanalytics personalisation payments curation and online to offline
983161 Fundraisings have ranged from large series C investmentsinto companies including OrderDynamics (formerly known aseCommera in omnichannel order management) and SilverRail (rai l-ticketing) to earlier stage rounds for companies including Sweden-based Tictail (eCommerce platform for boutique and smaller highstreet retailers) Peerius (personalisation and recommendations) andSpree Commerce (Open source eCommerce platform)
Social
983161 Mirroring the trend in MampA investors too are cognisant of the rising
influence that social media has on the decision-path to purchaseand significant amounts have been invested in the US and Europe inofferings designed to use social to enhance the sales and marketingprocess
983161 Sprinklr was the largest pure social investment in H1 raising $40million for its social software platform and Spredfast raised $325million for its social marketing platform
983161 In Europe TrustPilot an online review platform and Brandwatch asocial media monitoring and analytics solution both raised in excessof $20 million in H1 2014
AdTech
AdTech fundraisings H1 2014 Figure 9
20
10
9
6
6
5
6
42
DSP
Video
Measurement and
optimisation
DMP
SSP
Ad creation
Ad network
Ad exchange
Ad server
Video
983161 Video is the fastest growing advertising channel but has not until
now been able to provide the same level of targeting data andanalytics as display advertising and therefore itrsquos not surprising tosee the high level of investment in the sector Investment is goinginto solutions which improve data collection and analytics audienceprofiling and targeting and measurement and tracking as well asinfrastructure-based video solutions and self-serve offerings
983161 With the exception of Kaltura (an open source online videoplatform) which raised $47 million fundraisings in video have beenpredominantly earlier stage smaller funding rounds The secondlargest fundraise in the space was by Vungle a mobile video adplatform which raised $17 million
DSP
983161 Established DSPs have been responsible for some of the largestfundraisings in H1 including Turn (which raised $80 million) and
MediaMath (which raised $735 million in equity as well as putting inplace a substantial credit facility)
983161 These two companies have raised financing to continue to fundinnovation but also to fuel expansion into new geographies andmarkets MediaMath has publicly stated that one use of funds willbe to pursue international MampA and Turn is also building out itsinternational footprint
983161 With a number of large DSPs such as MediaMath Turn and DataXualready well established in the market newer entrants need to beclearly differentiated to attract funding Yieldbot and Trade Deskhave both successfully raised significant rounds ($18 million and
$20 million respectively) Yieldbot focuses on capturing real-timeconsumer intent through search keywords and Trade Desk hasdemonstrated rapid international growth
983161 The majority of investments into DSPs and certainly the largest havebeen in the US Many of the largest European DSPs have been self-financing
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 9
Fundraising by stage ndash US and EuropeHealthy fundraising market for European innovations
Whilst the number of seed and series A rounds in Europe is below thatof the US there is nonetheless a healthy market in Europe and the sizeof the rounds being closed is broadly comparable with those in the USEuropean innovators are holding their own when it comes to securingfunds
However where we see a real divergence in the two markets is in thelater stages of funding There are significantly fewer series B and Crounds by comparison to the US and no later stage rounds (ie series Donwards) have occurred in Europe in H1 2014
From our experience this reflects a couple of dynamics
983161 The culture and investment environment in Europe tends toencourage companies to move to profitability more quicklypotentially at the expense of growth As such later stage rounds aresimply not required
983161 In the US conversely there is a greater priority placed onestablishing market leadership over profitability and large well-established players continue to raise very large rounds to continueto build market share not only domestically but also overseas
However there have also been some encouragingly large series Crounds in Europe including the NEA-led $70 million investment inOpen source search and analytics engine Elasticsearch the Zouk-led$55 million investment in mobile payments platform iZettle and theDawn Capital-led $41 million round in OrderDynamics
Many US funds particularly on the East Coast continue to look veryactively at the European market and will likely step up their pace of
investment over the next 18 months Notwithstanding this increasedinterest by US investors in European opportunities in H1 2014 themost active investors in Europe were European headquartered funds orUS funds with dedicated European capital
60
50
40
30
20
10
0
80
70
60
50
40
30
20
10
0
N
u m b e r o f t r a n s a c t i o n s
A v er a g e t r an s a c t i onv al u e
( $ m )
Seed Series A Series B Series C Series D Series E Series F
US Europe
Number of transactions
Average transaction value
Fundraisings by stage H1 2014 Figure 11
8102019 m a and Fundraising Activity and Trends 2014
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Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends10
Appendix
Selected MampA activity January 2013 ndash August 2014Date Buyer Target Buyer Region Target Region Deal Value ($m) Description
Aug-14 Rocket Fuel [x+1] US US 230 DMP and DSP
Aug-14 Sizmek Aerify US US 6 Mobile tracking amp retargeting
Aug-14 Sprinklr TBG Digital US UK 503 Social ad optimisation
Jul-14 Adknowledge TriVu Media US US na Video ad buying
Jul-14 Facebook LiveRail US US 4501 Video SSP
Jul-14 Rightster Base79 UK UK 83 YouTube audience creation
Jul-14 NetSuite Venda US UK 51 eCommerce platform
Jul-14 Yahoo Flurry US US 2502 Mobile app analytics amp monetisation
Jul-14 LinkedIn Bizo US US 175 B2B marketing platform
Jul-14 Switch Unanimis UK UK na Ad network
Jul-14 Palantir Poptip US US na Social media analytics
Jul-14 Salesforce RelateIQ US US 350 Relationship intelligence
Jul-14 RTL Group SpotXchange Germany US na Video SSP
Jun-14 Twitter TapCommerce US US 1004 Mobile retargeting
Jun-14 Singtel Adconion Singapore US Australia 235 Ad network
May-14 Rakuten DC Storm Japan UK na Tag management amp attribution
May-14 Pubmatic Mocean Mobile US US na Mobile ad server
May-14 Acxiom LiveRamp US US 310 Data on-boarding
May-14 AOL Convertro US US 101 Marketing attribution
May-14 Google Adometry US US 1505 Marketing attribution
Apr-14 Telefonica Mobclix Spain US na Mobile ad exchange
Apr-14 IBM Silverpop US US na Marketing automation
Apr-14 Dunnhumby Sociomantic UK Germany na DSP
Mar-14 IgnitionOne Knotice US US na DMP
Mar-14 Comcast FreeWheel US US 3207 Video ad server
Feb-14 Oracle BlueKai US US 4206 DMP
Jan-14 Opera Mediaworks Hunt Mobile Norway US na Mobile ad network
Dec-13 Oracle Responsys US US 1523 Marketing automation
Nov-13 Centro SiteScout US Canada 40 DSP
Sep-13 Twitter MoPub US US 350 Mobile ad exchange
Aug-13 Millennial Media Jumptap US US 237 Mobile ad network
Aug-13 AOL Adaptv US US 405 Programmatic video platform
Jul-13 Yahoo Admovate US US na Mobile ad targeting
Jun-13 Adobe Neolane US France 617 Marketing automation
Jun-13 Salesforce ExactTarget US US 2616 Marketing automation
Feb-13 Facebook Atlas Advertiser Suite US US na Ad server
1 Deal value estimated between $400 to $500m (TechCrunch)
2 Deal value estimated between $200 to 300m (TechCrunch)3 Deal estimated at under $50m (AdExchanger)
4 Estimated deal value of $100m (Recode)
5 Estimated deal value of $150m (451 Research)6 Estimate deal value of $420m (451 Research)
7 Estimated deal value of $320m (TechCrunch)
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1112
MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 11
Appendix
Selected Fundraising activity 2014 YTDDate Lead VC fund Target Target HQ Deal Value ($m) Description
Aug-14 Ignition Partners Xamarin USA 540 Moble app development
Aug-14 Private investors AppNexus USA 600 Ad exchange
Jul-14 Hony Capital Deem USA 500 Customer acquisition and engagement
Jul-14 Comerica mBlox USA 435 Mobile messaging
Jun-14 Softbank Capital IgnitionOne USA 300 Digital marketing suite
Jun-14 SoftBank Capital InsightVenture Partners
Kony USA 500 Moble app development
Jun-14 Deutsche Private Equity Webtrekk Germany 339 Web analytics
Jun-14 Tiger Global Management Freshdesk USA 310 Customer support software
Jun-14 DFJ SiSense Israel 300 Market analysis and business intelligence
Jun-14 SAP Ventures krux digital USA 350 DMP
Jun-14 New Enterprise Associates Elasticsearch Netherlands 700 Marketing analysis ndash search analytics
Jun-14 Insight Venture Partners Yext USA 503 Digital asset and content management
Jun-14 Spring Lake Equity Partners MediaMath USA 735 DSP
May-14 Goldman Sachs The SAVO Group USA 491 Sales enablement platform
May-14 Wellington ManagementCompany
DataLogix Holdings USA 450 DMP
May-14 Index Ventures BitPay USA 300 Bitcoin eCommerce payment
May-14 Pacific Venture Partners ampDream Capital Group
AdSame China 300 Ad server
May-14 Zouk Capital iZettle Sweden 555 Mobile payments
Apr-14 BlackRock New Relic USA 1000 App performance management
Apr-14 Tencent Sequoia Capital Weebly USA 350 Website design amp build
Apr-14 Foundation Capital Adroll USA 700 Retargeting
Apr-14 General Atlantic Squarespace USA 400 Website design amp buildApr-14 Mithril Capital Management SilverRail USA 400 eCommerce platform
Apr-14 Iconiq Capital Sprinklr USA 400 Social media management
Mar-14 Business DevelopmentCorporation of America
CPX Interactive USA 300 DSP Ad network
Mar-14 Redpoint Ventures RelateIQ1 USA 400 Relationship intelligence
Mar-14 FirstHand Technology ValueFund
Phunware USA 307 Mobile app development
Mar-14 Gaorang Capital Avazu China 480 DSP Ad network
Feb-14 Dawn Capital OrderDynamics UK 410 eCommerce platform
Feb-14 Institutional Venture Partners ZEFR USA 300 Brand and content management
Feb-14 SAP Ventures Nokia GrowthPartners Commonfund CapitalGera Ventures
Kaltura USA 470 Online video platform
Jan-14 Insight Venture Partners Ensighten USA 400 Tag management
Jan-14 BlackRock Turn USA 800 DSP
Jan-14 Lead Edge Capital Spredfast USA 325 Social media management
Jan-14 August Capital Integral Ad Science USA 300 Ad quality and valuation
1 Since acquired by Salesforce in July 2014
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1212
Results International is a leading corporate finance advisor to marketing technology and healthcarecompanies in Europe and has advised on over 250 transactions The Company employs over 40 peopleglobally across offices in London New York and Asia and has a strong track record advising on cross-border
transactions winning MampA Cross Border Deal of the Year in the 2014 MampA Awards
Results Internationalrsquos 2014 AdTech and MarTech Deals
Disclaimer
Results International has compiled this report using data sourced from publicly availablesources and third-party tools to which it holds licensed access Results International doesnot accept any responsibility for the accuracy of the information provided Nor does ResultsInternational accept any liability for any use of the information provided in this report or anyconsequence from its use thereof
Keith Hunt
Managing Partner +44 (0) 207 514 8232keithhuntresultsigcom
Pierre-Georges Roy
Partner +1 646 747 6505pgroyresultsigcom
Mark Williams Director +44 (0) 207 514 8242mwilliamsresultsigcom
Julie Langley Partner +44 (0) 207 514 8247 jlangleyresultsigcom
Maurice Watkins
Partner +1 646 747 6510mwatkinsresultsigcom
Julia Crawley-Boevey Director +44 (0) 207 514 8239 jcrawley-boeveyresultsigcom
Jim Houghton
Partner +44 (0) 207 514 8234 jhoughtonresultsigcom
Chris Lewis Managing Director +44 (0) 207 514 8236clewisresultsigcom
has been acquired by
Results International acted forDC Storm
has been acquired by
Results International acted forWe Are Social
is joining
Results International served as
an exclusive financial adviserto Hunt
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 512
MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 5
Landmark deals and a diverse buyer landscape
AdTech
Date Buyer Target Deal value($m)
Description
Aug-13 ExtremeReach
DG (TVbusiness)
490 T V ad distribution
Feb-14 Oracle Bluekai 4201 DMP
Aug-13 AOL AdapTV 405 Programmatic videoplatform
Sep-13 Twitter Mopub 350 Mobile ad exchange
Jun-14 OperaSoftware
AdColony 350 Mobile video ad platform
Mar-14 Comcast FreeWheel 3202 Video ad server
Jun-14 SingTel Adconion 235 Ad network
Aug-13 Millennial
Media
Jumptap 237 Mobile ad network
Jan-14 TiVo Digitalsmiths 135 Video search
Oct-13 Neustar AggregateKnowledge
119 DMP
1 Estimated deal value of $420m (451 Research)2 Estimated deal value of $320m (TechCrunch)
MarTech
Date Buyer Target Deal value($m)
Description
Jun-13 Salesforce ExactTarget 2616 Marketing automation
Dec-13 NCR Digital Insight 1650 Online payments
Dec-13 Oracle Responsys 1523 Marketing automation
Sep-13 Ebay Braintree 800 Mobile payments
Jun-13 Adobe Neolane 617 Marketing automation
Apr-14 GTCR Vocus 467 PR software
May-14 Intuit Check 360 Mobile payments
May-14 Acxiom LiveRamp 310 Data on-boarding
Dec-13 Apple Topsy 2403 Social analytics
Feb-14 Lithium Klout 200 Social influence analytics
3 Estimated deal value of $240m (451 Research)
Premium for market leaders and category killers
A review of the largest deals (by announced or estimated deal value)reveals a substantial difference in scale between the largest MarTechand AdTech transactions (Figure 4) This difference is largely due to therelative size of the MarTech businesses rather than necessarily higherrevenue multiples Indeed many of the largest AdTech and MarTechdeals were valued at 8-10x revenues
In some cases however there is a premium for the SaaS basedrevenue model of certain MarTech businesses such as ExactTargetand Responsys which have long term customer contracts and highrevenue visibility This contrasts with the more transaction-orientedrevenue model of many AdTech players
There are a significant number of common themes that run throughthese large deals Buyers place a premium on disruptive technologyand scale (both in terms of geographic presence and revenue) as wellas scarcity There is a clear premium for ldquocategory ki llerrdquo businesses
In addition many of the largest or highest multiple deals are pursuantto a commercial partnership between the buyer and the seller ndash oncea buyer has fully understood the true commercial value of an offeringand has begun to integrate it within its existing stack the appetite foracquisition significantly increases and the buyer is able to properlyvalue the synergy potential
Top 10 deals in 2013 and H1 2014 (where deal value has been disclosed or estimated) Figure 4
Telcos and broadcasters join the diverse buyer universe
Our review of deal activity reinforces the diversity of interest in thesector Players are coming at this sector from a variety of perspectivesincluding mobile operators social media networks enterprise softwarevendors pure-play AdTech and MarTech vendors as well as publishersand broadcasters
The industry continues to question if and when the major marketing
holding companies will start to heavily invest in technology WPPhas set itself apart from the wider pack in terms of its approach totechnology and recognition of its need to play in the sector Whilstnone of its deals have been large in value terms (with the exception ofPrecise which following WPPrsquos acquisition of a majority stake valuedthe business at $120 million) it has shown a willingness not just totake minority stakes but to make outright acquisitions of technologycompanies such as FusePump If the rumoured acquisition of Criteoby Publicis goes ahead this will be the largest deal by a holdingcompany in the sector to date
Private equity buyers are notable by their absence Most of the dealshave been highly strategic in nature and driven by deep-pocketedtrade buyers filling technology gaps and with the potential for
substantial synergies Whilst private equity has been increasingly activein the sector from a venture capital and growth capital perspective ithas not yet reached the stage of maturity where private equity buyersare likely to prevail against strategics in buyout situations
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 612
Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends6
International buyers are looking to Europe for innovationCountry of target H1 2014 Figure 5
16
6
22913
139
4
APAC
Middle East
Eastern Europe
Western EuropeUK
North America
South America
As the market has matured in Europe and a large number of US playershave reached substantial scale in their domestic market we expect awave of more sizeable acquisitions over the next 18 months driven byinternational expansion
European landscape dominated by smaller companies
than US
It is interesting to note that only one of the 20 deals in Figure 4 on theprevious page involved a European-headquartered target the sale ofNeolane to Adobe Adconion was founded in the UK but had relocatedits headquarters to the US
There is an evident difference in scale between the leading US andEuropean players although this does of course mirror the broader techand software market However specifically in AdTech the ability ofEuropean players to scale as quickly as their US counterparts has in partbeen impacted by the nature of the European media buying marketbuilt on an ecosystem of national buying and national publishingCompanies that are able to build a true pan-European presence willbecome prime acquisition targets
US actively looking to Europe for innovation
European sellers accounted for 44 of the total of 209 transactions inH1 2014 (Figure 5) broadly comparable as a percentage to 2013 Ofthose 44 transactions 17 were acquired by US buyers Many of thesetransactions were primarily technology buys (Figure 6) focused on
the addition of talent and point technology rather than a strategicimperative for scale or geographic expansion
Recent acquisitions by US and Asian buyers in Europe ndash selected deals Figure 6
Date Buyer Target Buyer Region Target Region Description
Jul-14 Netsuite Venda US UK eCommerce platform
Jun-14 AppNexus Alenty US France Ad viewability measurement
Jun-14 Facebook Pryte US Finland Mobile data access
May-14 Microsoft Capptain US France Mobile app management platform
May-14 Rakuten DC Storm Japan UK Tag management and attribution
Apr-14 MediaMath Tactads US France Cookieless targeting
Apr-14 Twitter SecondSync US UK Social analytics for TV
Apr-14 Twitter Mesagraph US France Social TV analytics
Mar-14 Ensighten TagMan US UK Tag management
Feb-14 Google Spiderio US UK Ad fraud identification
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 712
MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 7
Part 2
Fundraising Activity
Innovation not geography raises funds
The global fundraising market continues to be strong and activity inboth the AdTech and MarTech sectors remains high In H1 2014 therewere 329 completed fundraising transactions showing strong investorappetite for innovative and disruptive technologies in the sector aswell as appetite to support many earlier investments to scale
The majority of the fundraisings were for MarTech companies This isin large part due to the broader definition we use for MarTech andprobably not significant in itself However it is worth noting that whilstthe revenue model for many AdTech businesses is media spend-drivenmany MarTech businesses are more akin to conventional SaaS modelswith long-term contracts and annual subscriptions a model withwhich investors are very comfortable The total value raised by MarTechcompanies in H1 2014 was $22 billion compared to $755 million by
AdTech companies reflecting the larger number of transactions (theaverage raise was broadly comparable across the two sectors)
What is being valued in whichever sector is innovation differentiationgrowth and the ability to scale and to create a new category Offeringswhich have achieved a certain scale but are undifferentiated and willnot be able to withstand competition from the large players once theyturn their attention to that particular market have found fundraisingmore challenging
Largest fundraisings globally in H1 2014 Figure 8
AdTech
Date Lead VC fund Target Deal value($m)
Description
Jan-14 BlackRock Turn 800 DSP
Jun-4 Spring LakeEquity Partners
MediaMath 735 DSP
Apr-14 FoundationCapital
AdRoll 700 Retargeting
Mar-14 Gaorong Capital Avazu 480 DSP Ad network
Feb-14 SAP Ventures Kaltura 470 Online videoplatform
May-14 WellingtonManagement Datalogix 450 DMP
Jun-14 SAP Ventures Krux 350 DMP
May-14 Pacific Ventures Adsame 300 Ad server
Mar-14 BDCA CPXi 300 DSP Ad network
Jan-14 August Capital Integral AdScience
300 Ad quality andvaluation
Feb-14 Hermes GrowthPartners
The Trade Desk 200 DSP
Jun-14 SJF Ventures Yieldbot 180 DSP
MarTech
Date Lead VC fund Target Deal Value($m)
Description
Apr-14 BlackRock New Relic 1000 App performancemanagement
Jun-14 New EnterpriseSoftware
Elasticsearch 700 Marketing analysisndash search
May-14 Zouk Capital iZettle 555 Mobile payments
Jun-14 Insight VenturePartners
Yext 503 Asset and contentmanagement
Jun-14 SoftBank Capital Kony 500 Mobile appPlatform
May-14 Goldman Sachs SAVO 491 Sales enablementplatform
Feb-14 Dawn Capital OrderDynamics 410 eCommerce
Apr-14 General Atlantic Squarespace 400 Website designand build
Apr-14 Mithril CapitalManagement
SilverRail 400 eCommerce
Mar-14 RedpointVentures
RelateIQ1 400 Relationshipintelligence
Jan-14 Insight VenturePartners
Ensighten 400 Tag management
Apr-14 Iconiq Capital Spinklr 400 Social media
management
1 Since acquired by Salesforce in July 2014
70
60
50
40
30
20
10
0
N u m b e r o f t
r a n s a c t i o n s
January February March April May June
H1 2014 Fundraisings Value
MarTech 261 $22b
AdTech 68 $08b
Total 329 $30b
Total fundraisings H1 2014 Figure 7
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 812
Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends8
Fundraising activity by subsegmentMarTech
49
48
46
37
36
19
1212
2
eCommerce
Social
Mobile
Marketing analytics
CRM
Marketing automation
Marketingmanagement
Website amp SEO
Crowd sourcing technology
MarTech fundraisings H1 2014 Figure 10
eCommerce
983161 As the global adoption of online shopping continues to drive
double-digit growth in eCommerce there has been considerableinnovation both in core eCommerce platforms but also acrossanalytics personalisation payments curation and online to offline
983161 Fundraisings have ranged from large series C investmentsinto companies including OrderDynamics (formerly known aseCommera in omnichannel order management) and SilverRail (rai l-ticketing) to earlier stage rounds for companies including Sweden-based Tictail (eCommerce platform for boutique and smaller highstreet retailers) Peerius (personalisation and recommendations) andSpree Commerce (Open source eCommerce platform)
Social
983161 Mirroring the trend in MampA investors too are cognisant of the rising
influence that social media has on the decision-path to purchaseand significant amounts have been invested in the US and Europe inofferings designed to use social to enhance the sales and marketingprocess
983161 Sprinklr was the largest pure social investment in H1 raising $40million for its social software platform and Spredfast raised $325million for its social marketing platform
983161 In Europe TrustPilot an online review platform and Brandwatch asocial media monitoring and analytics solution both raised in excessof $20 million in H1 2014
AdTech
AdTech fundraisings H1 2014 Figure 9
20
10
9
6
6
5
6
42
DSP
Video
Measurement and
optimisation
DMP
SSP
Ad creation
Ad network
Ad exchange
Ad server
Video
983161 Video is the fastest growing advertising channel but has not until
now been able to provide the same level of targeting data andanalytics as display advertising and therefore itrsquos not surprising tosee the high level of investment in the sector Investment is goinginto solutions which improve data collection and analytics audienceprofiling and targeting and measurement and tracking as well asinfrastructure-based video solutions and self-serve offerings
983161 With the exception of Kaltura (an open source online videoplatform) which raised $47 million fundraisings in video have beenpredominantly earlier stage smaller funding rounds The secondlargest fundraise in the space was by Vungle a mobile video adplatform which raised $17 million
DSP
983161 Established DSPs have been responsible for some of the largestfundraisings in H1 including Turn (which raised $80 million) and
MediaMath (which raised $735 million in equity as well as putting inplace a substantial credit facility)
983161 These two companies have raised financing to continue to fundinnovation but also to fuel expansion into new geographies andmarkets MediaMath has publicly stated that one use of funds willbe to pursue international MampA and Turn is also building out itsinternational footprint
983161 With a number of large DSPs such as MediaMath Turn and DataXualready well established in the market newer entrants need to beclearly differentiated to attract funding Yieldbot and Trade Deskhave both successfully raised significant rounds ($18 million and
$20 million respectively) Yieldbot focuses on capturing real-timeconsumer intent through search keywords and Trade Desk hasdemonstrated rapid international growth
983161 The majority of investments into DSPs and certainly the largest havebeen in the US Many of the largest European DSPs have been self-financing
8102019 m a and Fundraising Activity and Trends 2014
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MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 9
Fundraising by stage ndash US and EuropeHealthy fundraising market for European innovations
Whilst the number of seed and series A rounds in Europe is below thatof the US there is nonetheless a healthy market in Europe and the sizeof the rounds being closed is broadly comparable with those in the USEuropean innovators are holding their own when it comes to securingfunds
However where we see a real divergence in the two markets is in thelater stages of funding There are significantly fewer series B and Crounds by comparison to the US and no later stage rounds (ie series Donwards) have occurred in Europe in H1 2014
From our experience this reflects a couple of dynamics
983161 The culture and investment environment in Europe tends toencourage companies to move to profitability more quicklypotentially at the expense of growth As such later stage rounds aresimply not required
983161 In the US conversely there is a greater priority placed onestablishing market leadership over profitability and large well-established players continue to raise very large rounds to continueto build market share not only domestically but also overseas
However there have also been some encouragingly large series Crounds in Europe including the NEA-led $70 million investment inOpen source search and analytics engine Elasticsearch the Zouk-led$55 million investment in mobile payments platform iZettle and theDawn Capital-led $41 million round in OrderDynamics
Many US funds particularly on the East Coast continue to look veryactively at the European market and will likely step up their pace of
investment over the next 18 months Notwithstanding this increasedinterest by US investors in European opportunities in H1 2014 themost active investors in Europe were European headquartered funds orUS funds with dedicated European capital
60
50
40
30
20
10
0
80
70
60
50
40
30
20
10
0
N
u m b e r o f t r a n s a c t i o n s
A v er a g e t r an s a c t i onv al u e
( $ m )
Seed Series A Series B Series C Series D Series E Series F
US Europe
Number of transactions
Average transaction value
Fundraisings by stage H1 2014 Figure 11
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1012
Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends10
Appendix
Selected MampA activity January 2013 ndash August 2014Date Buyer Target Buyer Region Target Region Deal Value ($m) Description
Aug-14 Rocket Fuel [x+1] US US 230 DMP and DSP
Aug-14 Sizmek Aerify US US 6 Mobile tracking amp retargeting
Aug-14 Sprinklr TBG Digital US UK 503 Social ad optimisation
Jul-14 Adknowledge TriVu Media US US na Video ad buying
Jul-14 Facebook LiveRail US US 4501 Video SSP
Jul-14 Rightster Base79 UK UK 83 YouTube audience creation
Jul-14 NetSuite Venda US UK 51 eCommerce platform
Jul-14 Yahoo Flurry US US 2502 Mobile app analytics amp monetisation
Jul-14 LinkedIn Bizo US US 175 B2B marketing platform
Jul-14 Switch Unanimis UK UK na Ad network
Jul-14 Palantir Poptip US US na Social media analytics
Jul-14 Salesforce RelateIQ US US 350 Relationship intelligence
Jul-14 RTL Group SpotXchange Germany US na Video SSP
Jun-14 Twitter TapCommerce US US 1004 Mobile retargeting
Jun-14 Singtel Adconion Singapore US Australia 235 Ad network
May-14 Rakuten DC Storm Japan UK na Tag management amp attribution
May-14 Pubmatic Mocean Mobile US US na Mobile ad server
May-14 Acxiom LiveRamp US US 310 Data on-boarding
May-14 AOL Convertro US US 101 Marketing attribution
May-14 Google Adometry US US 1505 Marketing attribution
Apr-14 Telefonica Mobclix Spain US na Mobile ad exchange
Apr-14 IBM Silverpop US US na Marketing automation
Apr-14 Dunnhumby Sociomantic UK Germany na DSP
Mar-14 IgnitionOne Knotice US US na DMP
Mar-14 Comcast FreeWheel US US 3207 Video ad server
Feb-14 Oracle BlueKai US US 4206 DMP
Jan-14 Opera Mediaworks Hunt Mobile Norway US na Mobile ad network
Dec-13 Oracle Responsys US US 1523 Marketing automation
Nov-13 Centro SiteScout US Canada 40 DSP
Sep-13 Twitter MoPub US US 350 Mobile ad exchange
Aug-13 Millennial Media Jumptap US US 237 Mobile ad network
Aug-13 AOL Adaptv US US 405 Programmatic video platform
Jul-13 Yahoo Admovate US US na Mobile ad targeting
Jun-13 Adobe Neolane US France 617 Marketing automation
Jun-13 Salesforce ExactTarget US US 2616 Marketing automation
Feb-13 Facebook Atlas Advertiser Suite US US na Ad server
1 Deal value estimated between $400 to $500m (TechCrunch)
2 Deal value estimated between $200 to 300m (TechCrunch)3 Deal estimated at under $50m (AdExchanger)
4 Estimated deal value of $100m (Recode)
5 Estimated deal value of $150m (451 Research)6 Estimate deal value of $420m (451 Research)
7 Estimated deal value of $320m (TechCrunch)
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1112
MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 11
Appendix
Selected Fundraising activity 2014 YTDDate Lead VC fund Target Target HQ Deal Value ($m) Description
Aug-14 Ignition Partners Xamarin USA 540 Moble app development
Aug-14 Private investors AppNexus USA 600 Ad exchange
Jul-14 Hony Capital Deem USA 500 Customer acquisition and engagement
Jul-14 Comerica mBlox USA 435 Mobile messaging
Jun-14 Softbank Capital IgnitionOne USA 300 Digital marketing suite
Jun-14 SoftBank Capital InsightVenture Partners
Kony USA 500 Moble app development
Jun-14 Deutsche Private Equity Webtrekk Germany 339 Web analytics
Jun-14 Tiger Global Management Freshdesk USA 310 Customer support software
Jun-14 DFJ SiSense Israel 300 Market analysis and business intelligence
Jun-14 SAP Ventures krux digital USA 350 DMP
Jun-14 New Enterprise Associates Elasticsearch Netherlands 700 Marketing analysis ndash search analytics
Jun-14 Insight Venture Partners Yext USA 503 Digital asset and content management
Jun-14 Spring Lake Equity Partners MediaMath USA 735 DSP
May-14 Goldman Sachs The SAVO Group USA 491 Sales enablement platform
May-14 Wellington ManagementCompany
DataLogix Holdings USA 450 DMP
May-14 Index Ventures BitPay USA 300 Bitcoin eCommerce payment
May-14 Pacific Venture Partners ampDream Capital Group
AdSame China 300 Ad server
May-14 Zouk Capital iZettle Sweden 555 Mobile payments
Apr-14 BlackRock New Relic USA 1000 App performance management
Apr-14 Tencent Sequoia Capital Weebly USA 350 Website design amp build
Apr-14 Foundation Capital Adroll USA 700 Retargeting
Apr-14 General Atlantic Squarespace USA 400 Website design amp buildApr-14 Mithril Capital Management SilverRail USA 400 eCommerce platform
Apr-14 Iconiq Capital Sprinklr USA 400 Social media management
Mar-14 Business DevelopmentCorporation of America
CPX Interactive USA 300 DSP Ad network
Mar-14 Redpoint Ventures RelateIQ1 USA 400 Relationship intelligence
Mar-14 FirstHand Technology ValueFund
Phunware USA 307 Mobile app development
Mar-14 Gaorang Capital Avazu China 480 DSP Ad network
Feb-14 Dawn Capital OrderDynamics UK 410 eCommerce platform
Feb-14 Institutional Venture Partners ZEFR USA 300 Brand and content management
Feb-14 SAP Ventures Nokia GrowthPartners Commonfund CapitalGera Ventures
Kaltura USA 470 Online video platform
Jan-14 Insight Venture Partners Ensighten USA 400 Tag management
Jan-14 BlackRock Turn USA 800 DSP
Jan-14 Lead Edge Capital Spredfast USA 325 Social media management
Jan-14 August Capital Integral Ad Science USA 300 Ad quality and valuation
1 Since acquired by Salesforce in July 2014
8102019 m a and Fundraising Activity and Trends 2014
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Results International is a leading corporate finance advisor to marketing technology and healthcarecompanies in Europe and has advised on over 250 transactions The Company employs over 40 peopleglobally across offices in London New York and Asia and has a strong track record advising on cross-border
transactions winning MampA Cross Border Deal of the Year in the 2014 MampA Awards
Results Internationalrsquos 2014 AdTech and MarTech Deals
Disclaimer
Results International has compiled this report using data sourced from publicly availablesources and third-party tools to which it holds licensed access Results International doesnot accept any responsibility for the accuracy of the information provided Nor does ResultsInternational accept any liability for any use of the information provided in this report or anyconsequence from its use thereof
Keith Hunt
Managing Partner +44 (0) 207 514 8232keithhuntresultsigcom
Pierre-Georges Roy
Partner +1 646 747 6505pgroyresultsigcom
Mark Williams Director +44 (0) 207 514 8242mwilliamsresultsigcom
Julie Langley Partner +44 (0) 207 514 8247 jlangleyresultsigcom
Maurice Watkins
Partner +1 646 747 6510mwatkinsresultsigcom
Julia Crawley-Boevey Director +44 (0) 207 514 8239 jcrawley-boeveyresultsigcom
Jim Houghton
Partner +44 (0) 207 514 8234 jhoughtonresultsigcom
Chris Lewis Managing Director +44 (0) 207 514 8236clewisresultsigcom
has been acquired by
Results International acted forDC Storm
has been acquired by
Results International acted forWe Are Social
is joining
Results International served as
an exclusive financial adviserto Hunt
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 612
Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends6
International buyers are looking to Europe for innovationCountry of target H1 2014 Figure 5
16
6
22913
139
4
APAC
Middle East
Eastern Europe
Western EuropeUK
North America
South America
As the market has matured in Europe and a large number of US playershave reached substantial scale in their domestic market we expect awave of more sizeable acquisitions over the next 18 months driven byinternational expansion
European landscape dominated by smaller companies
than US
It is interesting to note that only one of the 20 deals in Figure 4 on theprevious page involved a European-headquartered target the sale ofNeolane to Adobe Adconion was founded in the UK but had relocatedits headquarters to the US
There is an evident difference in scale between the leading US andEuropean players although this does of course mirror the broader techand software market However specifically in AdTech the ability ofEuropean players to scale as quickly as their US counterparts has in partbeen impacted by the nature of the European media buying marketbuilt on an ecosystem of national buying and national publishingCompanies that are able to build a true pan-European presence willbecome prime acquisition targets
US actively looking to Europe for innovation
European sellers accounted for 44 of the total of 209 transactions inH1 2014 (Figure 5) broadly comparable as a percentage to 2013 Ofthose 44 transactions 17 were acquired by US buyers Many of thesetransactions were primarily technology buys (Figure 6) focused on
the addition of talent and point technology rather than a strategicimperative for scale or geographic expansion
Recent acquisitions by US and Asian buyers in Europe ndash selected deals Figure 6
Date Buyer Target Buyer Region Target Region Description
Jul-14 Netsuite Venda US UK eCommerce platform
Jun-14 AppNexus Alenty US France Ad viewability measurement
Jun-14 Facebook Pryte US Finland Mobile data access
May-14 Microsoft Capptain US France Mobile app management platform
May-14 Rakuten DC Storm Japan UK Tag management and attribution
Apr-14 MediaMath Tactads US France Cookieless targeting
Apr-14 Twitter SecondSync US UK Social analytics for TV
Apr-14 Twitter Mesagraph US France Social TV analytics
Mar-14 Ensighten TagMan US UK Tag management
Feb-14 Google Spiderio US UK Ad fraud identification
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 712
MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 7
Part 2
Fundraising Activity
Innovation not geography raises funds
The global fundraising market continues to be strong and activity inboth the AdTech and MarTech sectors remains high In H1 2014 therewere 329 completed fundraising transactions showing strong investorappetite for innovative and disruptive technologies in the sector aswell as appetite to support many earlier investments to scale
The majority of the fundraisings were for MarTech companies This isin large part due to the broader definition we use for MarTech andprobably not significant in itself However it is worth noting that whilstthe revenue model for many AdTech businesses is media spend-drivenmany MarTech businesses are more akin to conventional SaaS modelswith long-term contracts and annual subscriptions a model withwhich investors are very comfortable The total value raised by MarTechcompanies in H1 2014 was $22 billion compared to $755 million by
AdTech companies reflecting the larger number of transactions (theaverage raise was broadly comparable across the two sectors)
What is being valued in whichever sector is innovation differentiationgrowth and the ability to scale and to create a new category Offeringswhich have achieved a certain scale but are undifferentiated and willnot be able to withstand competition from the large players once theyturn their attention to that particular market have found fundraisingmore challenging
Largest fundraisings globally in H1 2014 Figure 8
AdTech
Date Lead VC fund Target Deal value($m)
Description
Jan-14 BlackRock Turn 800 DSP
Jun-4 Spring LakeEquity Partners
MediaMath 735 DSP
Apr-14 FoundationCapital
AdRoll 700 Retargeting
Mar-14 Gaorong Capital Avazu 480 DSP Ad network
Feb-14 SAP Ventures Kaltura 470 Online videoplatform
May-14 WellingtonManagement Datalogix 450 DMP
Jun-14 SAP Ventures Krux 350 DMP
May-14 Pacific Ventures Adsame 300 Ad server
Mar-14 BDCA CPXi 300 DSP Ad network
Jan-14 August Capital Integral AdScience
300 Ad quality andvaluation
Feb-14 Hermes GrowthPartners
The Trade Desk 200 DSP
Jun-14 SJF Ventures Yieldbot 180 DSP
MarTech
Date Lead VC fund Target Deal Value($m)
Description
Apr-14 BlackRock New Relic 1000 App performancemanagement
Jun-14 New EnterpriseSoftware
Elasticsearch 700 Marketing analysisndash search
May-14 Zouk Capital iZettle 555 Mobile payments
Jun-14 Insight VenturePartners
Yext 503 Asset and contentmanagement
Jun-14 SoftBank Capital Kony 500 Mobile appPlatform
May-14 Goldman Sachs SAVO 491 Sales enablementplatform
Feb-14 Dawn Capital OrderDynamics 410 eCommerce
Apr-14 General Atlantic Squarespace 400 Website designand build
Apr-14 Mithril CapitalManagement
SilverRail 400 eCommerce
Mar-14 RedpointVentures
RelateIQ1 400 Relationshipintelligence
Jan-14 Insight VenturePartners
Ensighten 400 Tag management
Apr-14 Iconiq Capital Spinklr 400 Social media
management
1 Since acquired by Salesforce in July 2014
70
60
50
40
30
20
10
0
N u m b e r o f t
r a n s a c t i o n s
January February March April May June
H1 2014 Fundraisings Value
MarTech 261 $22b
AdTech 68 $08b
Total 329 $30b
Total fundraisings H1 2014 Figure 7
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 812
Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends8
Fundraising activity by subsegmentMarTech
49
48
46
37
36
19
1212
2
eCommerce
Social
Mobile
Marketing analytics
CRM
Marketing automation
Marketingmanagement
Website amp SEO
Crowd sourcing technology
MarTech fundraisings H1 2014 Figure 10
eCommerce
983161 As the global adoption of online shopping continues to drive
double-digit growth in eCommerce there has been considerableinnovation both in core eCommerce platforms but also acrossanalytics personalisation payments curation and online to offline
983161 Fundraisings have ranged from large series C investmentsinto companies including OrderDynamics (formerly known aseCommera in omnichannel order management) and SilverRail (rai l-ticketing) to earlier stage rounds for companies including Sweden-based Tictail (eCommerce platform for boutique and smaller highstreet retailers) Peerius (personalisation and recommendations) andSpree Commerce (Open source eCommerce platform)
Social
983161 Mirroring the trend in MampA investors too are cognisant of the rising
influence that social media has on the decision-path to purchaseand significant amounts have been invested in the US and Europe inofferings designed to use social to enhance the sales and marketingprocess
983161 Sprinklr was the largest pure social investment in H1 raising $40million for its social software platform and Spredfast raised $325million for its social marketing platform
983161 In Europe TrustPilot an online review platform and Brandwatch asocial media monitoring and analytics solution both raised in excessof $20 million in H1 2014
AdTech
AdTech fundraisings H1 2014 Figure 9
20
10
9
6
6
5
6
42
DSP
Video
Measurement and
optimisation
DMP
SSP
Ad creation
Ad network
Ad exchange
Ad server
Video
983161 Video is the fastest growing advertising channel but has not until
now been able to provide the same level of targeting data andanalytics as display advertising and therefore itrsquos not surprising tosee the high level of investment in the sector Investment is goinginto solutions which improve data collection and analytics audienceprofiling and targeting and measurement and tracking as well asinfrastructure-based video solutions and self-serve offerings
983161 With the exception of Kaltura (an open source online videoplatform) which raised $47 million fundraisings in video have beenpredominantly earlier stage smaller funding rounds The secondlargest fundraise in the space was by Vungle a mobile video adplatform which raised $17 million
DSP
983161 Established DSPs have been responsible for some of the largestfundraisings in H1 including Turn (which raised $80 million) and
MediaMath (which raised $735 million in equity as well as putting inplace a substantial credit facility)
983161 These two companies have raised financing to continue to fundinnovation but also to fuel expansion into new geographies andmarkets MediaMath has publicly stated that one use of funds willbe to pursue international MampA and Turn is also building out itsinternational footprint
983161 With a number of large DSPs such as MediaMath Turn and DataXualready well established in the market newer entrants need to beclearly differentiated to attract funding Yieldbot and Trade Deskhave both successfully raised significant rounds ($18 million and
$20 million respectively) Yieldbot focuses on capturing real-timeconsumer intent through search keywords and Trade Desk hasdemonstrated rapid international growth
983161 The majority of investments into DSPs and certainly the largest havebeen in the US Many of the largest European DSPs have been self-financing
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 912
MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 9
Fundraising by stage ndash US and EuropeHealthy fundraising market for European innovations
Whilst the number of seed and series A rounds in Europe is below thatof the US there is nonetheless a healthy market in Europe and the sizeof the rounds being closed is broadly comparable with those in the USEuropean innovators are holding their own when it comes to securingfunds
However where we see a real divergence in the two markets is in thelater stages of funding There are significantly fewer series B and Crounds by comparison to the US and no later stage rounds (ie series Donwards) have occurred in Europe in H1 2014
From our experience this reflects a couple of dynamics
983161 The culture and investment environment in Europe tends toencourage companies to move to profitability more quicklypotentially at the expense of growth As such later stage rounds aresimply not required
983161 In the US conversely there is a greater priority placed onestablishing market leadership over profitability and large well-established players continue to raise very large rounds to continueto build market share not only domestically but also overseas
However there have also been some encouragingly large series Crounds in Europe including the NEA-led $70 million investment inOpen source search and analytics engine Elasticsearch the Zouk-led$55 million investment in mobile payments platform iZettle and theDawn Capital-led $41 million round in OrderDynamics
Many US funds particularly on the East Coast continue to look veryactively at the European market and will likely step up their pace of
investment over the next 18 months Notwithstanding this increasedinterest by US investors in European opportunities in H1 2014 themost active investors in Europe were European headquartered funds orUS funds with dedicated European capital
60
50
40
30
20
10
0
80
70
60
50
40
30
20
10
0
N
u m b e r o f t r a n s a c t i o n s
A v er a g e t r an s a c t i onv al u e
( $ m )
Seed Series A Series B Series C Series D Series E Series F
US Europe
Number of transactions
Average transaction value
Fundraisings by stage H1 2014 Figure 11
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1012
Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends10
Appendix
Selected MampA activity January 2013 ndash August 2014Date Buyer Target Buyer Region Target Region Deal Value ($m) Description
Aug-14 Rocket Fuel [x+1] US US 230 DMP and DSP
Aug-14 Sizmek Aerify US US 6 Mobile tracking amp retargeting
Aug-14 Sprinklr TBG Digital US UK 503 Social ad optimisation
Jul-14 Adknowledge TriVu Media US US na Video ad buying
Jul-14 Facebook LiveRail US US 4501 Video SSP
Jul-14 Rightster Base79 UK UK 83 YouTube audience creation
Jul-14 NetSuite Venda US UK 51 eCommerce platform
Jul-14 Yahoo Flurry US US 2502 Mobile app analytics amp monetisation
Jul-14 LinkedIn Bizo US US 175 B2B marketing platform
Jul-14 Switch Unanimis UK UK na Ad network
Jul-14 Palantir Poptip US US na Social media analytics
Jul-14 Salesforce RelateIQ US US 350 Relationship intelligence
Jul-14 RTL Group SpotXchange Germany US na Video SSP
Jun-14 Twitter TapCommerce US US 1004 Mobile retargeting
Jun-14 Singtel Adconion Singapore US Australia 235 Ad network
May-14 Rakuten DC Storm Japan UK na Tag management amp attribution
May-14 Pubmatic Mocean Mobile US US na Mobile ad server
May-14 Acxiom LiveRamp US US 310 Data on-boarding
May-14 AOL Convertro US US 101 Marketing attribution
May-14 Google Adometry US US 1505 Marketing attribution
Apr-14 Telefonica Mobclix Spain US na Mobile ad exchange
Apr-14 IBM Silverpop US US na Marketing automation
Apr-14 Dunnhumby Sociomantic UK Germany na DSP
Mar-14 IgnitionOne Knotice US US na DMP
Mar-14 Comcast FreeWheel US US 3207 Video ad server
Feb-14 Oracle BlueKai US US 4206 DMP
Jan-14 Opera Mediaworks Hunt Mobile Norway US na Mobile ad network
Dec-13 Oracle Responsys US US 1523 Marketing automation
Nov-13 Centro SiteScout US Canada 40 DSP
Sep-13 Twitter MoPub US US 350 Mobile ad exchange
Aug-13 Millennial Media Jumptap US US 237 Mobile ad network
Aug-13 AOL Adaptv US US 405 Programmatic video platform
Jul-13 Yahoo Admovate US US na Mobile ad targeting
Jun-13 Adobe Neolane US France 617 Marketing automation
Jun-13 Salesforce ExactTarget US US 2616 Marketing automation
Feb-13 Facebook Atlas Advertiser Suite US US na Ad server
1 Deal value estimated between $400 to $500m (TechCrunch)
2 Deal value estimated between $200 to 300m (TechCrunch)3 Deal estimated at under $50m (AdExchanger)
4 Estimated deal value of $100m (Recode)
5 Estimated deal value of $150m (451 Research)6 Estimate deal value of $420m (451 Research)
7 Estimated deal value of $320m (TechCrunch)
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1112
MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 11
Appendix
Selected Fundraising activity 2014 YTDDate Lead VC fund Target Target HQ Deal Value ($m) Description
Aug-14 Ignition Partners Xamarin USA 540 Moble app development
Aug-14 Private investors AppNexus USA 600 Ad exchange
Jul-14 Hony Capital Deem USA 500 Customer acquisition and engagement
Jul-14 Comerica mBlox USA 435 Mobile messaging
Jun-14 Softbank Capital IgnitionOne USA 300 Digital marketing suite
Jun-14 SoftBank Capital InsightVenture Partners
Kony USA 500 Moble app development
Jun-14 Deutsche Private Equity Webtrekk Germany 339 Web analytics
Jun-14 Tiger Global Management Freshdesk USA 310 Customer support software
Jun-14 DFJ SiSense Israel 300 Market analysis and business intelligence
Jun-14 SAP Ventures krux digital USA 350 DMP
Jun-14 New Enterprise Associates Elasticsearch Netherlands 700 Marketing analysis ndash search analytics
Jun-14 Insight Venture Partners Yext USA 503 Digital asset and content management
Jun-14 Spring Lake Equity Partners MediaMath USA 735 DSP
May-14 Goldman Sachs The SAVO Group USA 491 Sales enablement platform
May-14 Wellington ManagementCompany
DataLogix Holdings USA 450 DMP
May-14 Index Ventures BitPay USA 300 Bitcoin eCommerce payment
May-14 Pacific Venture Partners ampDream Capital Group
AdSame China 300 Ad server
May-14 Zouk Capital iZettle Sweden 555 Mobile payments
Apr-14 BlackRock New Relic USA 1000 App performance management
Apr-14 Tencent Sequoia Capital Weebly USA 350 Website design amp build
Apr-14 Foundation Capital Adroll USA 700 Retargeting
Apr-14 General Atlantic Squarespace USA 400 Website design amp buildApr-14 Mithril Capital Management SilverRail USA 400 eCommerce platform
Apr-14 Iconiq Capital Sprinklr USA 400 Social media management
Mar-14 Business DevelopmentCorporation of America
CPX Interactive USA 300 DSP Ad network
Mar-14 Redpoint Ventures RelateIQ1 USA 400 Relationship intelligence
Mar-14 FirstHand Technology ValueFund
Phunware USA 307 Mobile app development
Mar-14 Gaorang Capital Avazu China 480 DSP Ad network
Feb-14 Dawn Capital OrderDynamics UK 410 eCommerce platform
Feb-14 Institutional Venture Partners ZEFR USA 300 Brand and content management
Feb-14 SAP Ventures Nokia GrowthPartners Commonfund CapitalGera Ventures
Kaltura USA 470 Online video platform
Jan-14 Insight Venture Partners Ensighten USA 400 Tag management
Jan-14 BlackRock Turn USA 800 DSP
Jan-14 Lead Edge Capital Spredfast USA 325 Social media management
Jan-14 August Capital Integral Ad Science USA 300 Ad quality and valuation
1 Since acquired by Salesforce in July 2014
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1212
Results International is a leading corporate finance advisor to marketing technology and healthcarecompanies in Europe and has advised on over 250 transactions The Company employs over 40 peopleglobally across offices in London New York and Asia and has a strong track record advising on cross-border
transactions winning MampA Cross Border Deal of the Year in the 2014 MampA Awards
Results Internationalrsquos 2014 AdTech and MarTech Deals
Disclaimer
Results International has compiled this report using data sourced from publicly availablesources and third-party tools to which it holds licensed access Results International doesnot accept any responsibility for the accuracy of the information provided Nor does ResultsInternational accept any liability for any use of the information provided in this report or anyconsequence from its use thereof
Keith Hunt
Managing Partner +44 (0) 207 514 8232keithhuntresultsigcom
Pierre-Georges Roy
Partner +1 646 747 6505pgroyresultsigcom
Mark Williams Director +44 (0) 207 514 8242mwilliamsresultsigcom
Julie Langley Partner +44 (0) 207 514 8247 jlangleyresultsigcom
Maurice Watkins
Partner +1 646 747 6510mwatkinsresultsigcom
Julia Crawley-Boevey Director +44 (0) 207 514 8239 jcrawley-boeveyresultsigcom
Jim Houghton
Partner +44 (0) 207 514 8234 jhoughtonresultsigcom
Chris Lewis Managing Director +44 (0) 207 514 8236clewisresultsigcom
has been acquired by
Results International acted forDC Storm
has been acquired by
Results International acted forWe Are Social
is joining
Results International served as
an exclusive financial adviserto Hunt
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 712
MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 7
Part 2
Fundraising Activity
Innovation not geography raises funds
The global fundraising market continues to be strong and activity inboth the AdTech and MarTech sectors remains high In H1 2014 therewere 329 completed fundraising transactions showing strong investorappetite for innovative and disruptive technologies in the sector aswell as appetite to support many earlier investments to scale
The majority of the fundraisings were for MarTech companies This isin large part due to the broader definition we use for MarTech andprobably not significant in itself However it is worth noting that whilstthe revenue model for many AdTech businesses is media spend-drivenmany MarTech businesses are more akin to conventional SaaS modelswith long-term contracts and annual subscriptions a model withwhich investors are very comfortable The total value raised by MarTechcompanies in H1 2014 was $22 billion compared to $755 million by
AdTech companies reflecting the larger number of transactions (theaverage raise was broadly comparable across the two sectors)
What is being valued in whichever sector is innovation differentiationgrowth and the ability to scale and to create a new category Offeringswhich have achieved a certain scale but are undifferentiated and willnot be able to withstand competition from the large players once theyturn their attention to that particular market have found fundraisingmore challenging
Largest fundraisings globally in H1 2014 Figure 8
AdTech
Date Lead VC fund Target Deal value($m)
Description
Jan-14 BlackRock Turn 800 DSP
Jun-4 Spring LakeEquity Partners
MediaMath 735 DSP
Apr-14 FoundationCapital
AdRoll 700 Retargeting
Mar-14 Gaorong Capital Avazu 480 DSP Ad network
Feb-14 SAP Ventures Kaltura 470 Online videoplatform
May-14 WellingtonManagement Datalogix 450 DMP
Jun-14 SAP Ventures Krux 350 DMP
May-14 Pacific Ventures Adsame 300 Ad server
Mar-14 BDCA CPXi 300 DSP Ad network
Jan-14 August Capital Integral AdScience
300 Ad quality andvaluation
Feb-14 Hermes GrowthPartners
The Trade Desk 200 DSP
Jun-14 SJF Ventures Yieldbot 180 DSP
MarTech
Date Lead VC fund Target Deal Value($m)
Description
Apr-14 BlackRock New Relic 1000 App performancemanagement
Jun-14 New EnterpriseSoftware
Elasticsearch 700 Marketing analysisndash search
May-14 Zouk Capital iZettle 555 Mobile payments
Jun-14 Insight VenturePartners
Yext 503 Asset and contentmanagement
Jun-14 SoftBank Capital Kony 500 Mobile appPlatform
May-14 Goldman Sachs SAVO 491 Sales enablementplatform
Feb-14 Dawn Capital OrderDynamics 410 eCommerce
Apr-14 General Atlantic Squarespace 400 Website designand build
Apr-14 Mithril CapitalManagement
SilverRail 400 eCommerce
Mar-14 RedpointVentures
RelateIQ1 400 Relationshipintelligence
Jan-14 Insight VenturePartners
Ensighten 400 Tag management
Apr-14 Iconiq Capital Spinklr 400 Social media
management
1 Since acquired by Salesforce in July 2014
70
60
50
40
30
20
10
0
N u m b e r o f t
r a n s a c t i o n s
January February March April May June
H1 2014 Fundraisings Value
MarTech 261 $22b
AdTech 68 $08b
Total 329 $30b
Total fundraisings H1 2014 Figure 7
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 812
Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends8
Fundraising activity by subsegmentMarTech
49
48
46
37
36
19
1212
2
eCommerce
Social
Mobile
Marketing analytics
CRM
Marketing automation
Marketingmanagement
Website amp SEO
Crowd sourcing technology
MarTech fundraisings H1 2014 Figure 10
eCommerce
983161 As the global adoption of online shopping continues to drive
double-digit growth in eCommerce there has been considerableinnovation both in core eCommerce platforms but also acrossanalytics personalisation payments curation and online to offline
983161 Fundraisings have ranged from large series C investmentsinto companies including OrderDynamics (formerly known aseCommera in omnichannel order management) and SilverRail (rai l-ticketing) to earlier stage rounds for companies including Sweden-based Tictail (eCommerce platform for boutique and smaller highstreet retailers) Peerius (personalisation and recommendations) andSpree Commerce (Open source eCommerce platform)
Social
983161 Mirroring the trend in MampA investors too are cognisant of the rising
influence that social media has on the decision-path to purchaseand significant amounts have been invested in the US and Europe inofferings designed to use social to enhance the sales and marketingprocess
983161 Sprinklr was the largest pure social investment in H1 raising $40million for its social software platform and Spredfast raised $325million for its social marketing platform
983161 In Europe TrustPilot an online review platform and Brandwatch asocial media monitoring and analytics solution both raised in excessof $20 million in H1 2014
AdTech
AdTech fundraisings H1 2014 Figure 9
20
10
9
6
6
5
6
42
DSP
Video
Measurement and
optimisation
DMP
SSP
Ad creation
Ad network
Ad exchange
Ad server
Video
983161 Video is the fastest growing advertising channel but has not until
now been able to provide the same level of targeting data andanalytics as display advertising and therefore itrsquos not surprising tosee the high level of investment in the sector Investment is goinginto solutions which improve data collection and analytics audienceprofiling and targeting and measurement and tracking as well asinfrastructure-based video solutions and self-serve offerings
983161 With the exception of Kaltura (an open source online videoplatform) which raised $47 million fundraisings in video have beenpredominantly earlier stage smaller funding rounds The secondlargest fundraise in the space was by Vungle a mobile video adplatform which raised $17 million
DSP
983161 Established DSPs have been responsible for some of the largestfundraisings in H1 including Turn (which raised $80 million) and
MediaMath (which raised $735 million in equity as well as putting inplace a substantial credit facility)
983161 These two companies have raised financing to continue to fundinnovation but also to fuel expansion into new geographies andmarkets MediaMath has publicly stated that one use of funds willbe to pursue international MampA and Turn is also building out itsinternational footprint
983161 With a number of large DSPs such as MediaMath Turn and DataXualready well established in the market newer entrants need to beclearly differentiated to attract funding Yieldbot and Trade Deskhave both successfully raised significant rounds ($18 million and
$20 million respectively) Yieldbot focuses on capturing real-timeconsumer intent through search keywords and Trade Desk hasdemonstrated rapid international growth
983161 The majority of investments into DSPs and certainly the largest havebeen in the US Many of the largest European DSPs have been self-financing
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 912
MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 9
Fundraising by stage ndash US and EuropeHealthy fundraising market for European innovations
Whilst the number of seed and series A rounds in Europe is below thatof the US there is nonetheless a healthy market in Europe and the sizeof the rounds being closed is broadly comparable with those in the USEuropean innovators are holding their own when it comes to securingfunds
However where we see a real divergence in the two markets is in thelater stages of funding There are significantly fewer series B and Crounds by comparison to the US and no later stage rounds (ie series Donwards) have occurred in Europe in H1 2014
From our experience this reflects a couple of dynamics
983161 The culture and investment environment in Europe tends toencourage companies to move to profitability more quicklypotentially at the expense of growth As such later stage rounds aresimply not required
983161 In the US conversely there is a greater priority placed onestablishing market leadership over profitability and large well-established players continue to raise very large rounds to continueto build market share not only domestically but also overseas
However there have also been some encouragingly large series Crounds in Europe including the NEA-led $70 million investment inOpen source search and analytics engine Elasticsearch the Zouk-led$55 million investment in mobile payments platform iZettle and theDawn Capital-led $41 million round in OrderDynamics
Many US funds particularly on the East Coast continue to look veryactively at the European market and will likely step up their pace of
investment over the next 18 months Notwithstanding this increasedinterest by US investors in European opportunities in H1 2014 themost active investors in Europe were European headquartered funds orUS funds with dedicated European capital
60
50
40
30
20
10
0
80
70
60
50
40
30
20
10
0
N
u m b e r o f t r a n s a c t i o n s
A v er a g e t r an s a c t i onv al u e
( $ m )
Seed Series A Series B Series C Series D Series E Series F
US Europe
Number of transactions
Average transaction value
Fundraisings by stage H1 2014 Figure 11
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1012
Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends10
Appendix
Selected MampA activity January 2013 ndash August 2014Date Buyer Target Buyer Region Target Region Deal Value ($m) Description
Aug-14 Rocket Fuel [x+1] US US 230 DMP and DSP
Aug-14 Sizmek Aerify US US 6 Mobile tracking amp retargeting
Aug-14 Sprinklr TBG Digital US UK 503 Social ad optimisation
Jul-14 Adknowledge TriVu Media US US na Video ad buying
Jul-14 Facebook LiveRail US US 4501 Video SSP
Jul-14 Rightster Base79 UK UK 83 YouTube audience creation
Jul-14 NetSuite Venda US UK 51 eCommerce platform
Jul-14 Yahoo Flurry US US 2502 Mobile app analytics amp monetisation
Jul-14 LinkedIn Bizo US US 175 B2B marketing platform
Jul-14 Switch Unanimis UK UK na Ad network
Jul-14 Palantir Poptip US US na Social media analytics
Jul-14 Salesforce RelateIQ US US 350 Relationship intelligence
Jul-14 RTL Group SpotXchange Germany US na Video SSP
Jun-14 Twitter TapCommerce US US 1004 Mobile retargeting
Jun-14 Singtel Adconion Singapore US Australia 235 Ad network
May-14 Rakuten DC Storm Japan UK na Tag management amp attribution
May-14 Pubmatic Mocean Mobile US US na Mobile ad server
May-14 Acxiom LiveRamp US US 310 Data on-boarding
May-14 AOL Convertro US US 101 Marketing attribution
May-14 Google Adometry US US 1505 Marketing attribution
Apr-14 Telefonica Mobclix Spain US na Mobile ad exchange
Apr-14 IBM Silverpop US US na Marketing automation
Apr-14 Dunnhumby Sociomantic UK Germany na DSP
Mar-14 IgnitionOne Knotice US US na DMP
Mar-14 Comcast FreeWheel US US 3207 Video ad server
Feb-14 Oracle BlueKai US US 4206 DMP
Jan-14 Opera Mediaworks Hunt Mobile Norway US na Mobile ad network
Dec-13 Oracle Responsys US US 1523 Marketing automation
Nov-13 Centro SiteScout US Canada 40 DSP
Sep-13 Twitter MoPub US US 350 Mobile ad exchange
Aug-13 Millennial Media Jumptap US US 237 Mobile ad network
Aug-13 AOL Adaptv US US 405 Programmatic video platform
Jul-13 Yahoo Admovate US US na Mobile ad targeting
Jun-13 Adobe Neolane US France 617 Marketing automation
Jun-13 Salesforce ExactTarget US US 2616 Marketing automation
Feb-13 Facebook Atlas Advertiser Suite US US na Ad server
1 Deal value estimated between $400 to $500m (TechCrunch)
2 Deal value estimated between $200 to 300m (TechCrunch)3 Deal estimated at under $50m (AdExchanger)
4 Estimated deal value of $100m (Recode)
5 Estimated deal value of $150m (451 Research)6 Estimate deal value of $420m (451 Research)
7 Estimated deal value of $320m (TechCrunch)
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1112
MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 11
Appendix
Selected Fundraising activity 2014 YTDDate Lead VC fund Target Target HQ Deal Value ($m) Description
Aug-14 Ignition Partners Xamarin USA 540 Moble app development
Aug-14 Private investors AppNexus USA 600 Ad exchange
Jul-14 Hony Capital Deem USA 500 Customer acquisition and engagement
Jul-14 Comerica mBlox USA 435 Mobile messaging
Jun-14 Softbank Capital IgnitionOne USA 300 Digital marketing suite
Jun-14 SoftBank Capital InsightVenture Partners
Kony USA 500 Moble app development
Jun-14 Deutsche Private Equity Webtrekk Germany 339 Web analytics
Jun-14 Tiger Global Management Freshdesk USA 310 Customer support software
Jun-14 DFJ SiSense Israel 300 Market analysis and business intelligence
Jun-14 SAP Ventures krux digital USA 350 DMP
Jun-14 New Enterprise Associates Elasticsearch Netherlands 700 Marketing analysis ndash search analytics
Jun-14 Insight Venture Partners Yext USA 503 Digital asset and content management
Jun-14 Spring Lake Equity Partners MediaMath USA 735 DSP
May-14 Goldman Sachs The SAVO Group USA 491 Sales enablement platform
May-14 Wellington ManagementCompany
DataLogix Holdings USA 450 DMP
May-14 Index Ventures BitPay USA 300 Bitcoin eCommerce payment
May-14 Pacific Venture Partners ampDream Capital Group
AdSame China 300 Ad server
May-14 Zouk Capital iZettle Sweden 555 Mobile payments
Apr-14 BlackRock New Relic USA 1000 App performance management
Apr-14 Tencent Sequoia Capital Weebly USA 350 Website design amp build
Apr-14 Foundation Capital Adroll USA 700 Retargeting
Apr-14 General Atlantic Squarespace USA 400 Website design amp buildApr-14 Mithril Capital Management SilverRail USA 400 eCommerce platform
Apr-14 Iconiq Capital Sprinklr USA 400 Social media management
Mar-14 Business DevelopmentCorporation of America
CPX Interactive USA 300 DSP Ad network
Mar-14 Redpoint Ventures RelateIQ1 USA 400 Relationship intelligence
Mar-14 FirstHand Technology ValueFund
Phunware USA 307 Mobile app development
Mar-14 Gaorang Capital Avazu China 480 DSP Ad network
Feb-14 Dawn Capital OrderDynamics UK 410 eCommerce platform
Feb-14 Institutional Venture Partners ZEFR USA 300 Brand and content management
Feb-14 SAP Ventures Nokia GrowthPartners Commonfund CapitalGera Ventures
Kaltura USA 470 Online video platform
Jan-14 Insight Venture Partners Ensighten USA 400 Tag management
Jan-14 BlackRock Turn USA 800 DSP
Jan-14 Lead Edge Capital Spredfast USA 325 Social media management
Jan-14 August Capital Integral Ad Science USA 300 Ad quality and valuation
1 Since acquired by Salesforce in July 2014
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1212
Results International is a leading corporate finance advisor to marketing technology and healthcarecompanies in Europe and has advised on over 250 transactions The Company employs over 40 peopleglobally across offices in London New York and Asia and has a strong track record advising on cross-border
transactions winning MampA Cross Border Deal of the Year in the 2014 MampA Awards
Results Internationalrsquos 2014 AdTech and MarTech Deals
Disclaimer
Results International has compiled this report using data sourced from publicly availablesources and third-party tools to which it holds licensed access Results International doesnot accept any responsibility for the accuracy of the information provided Nor does ResultsInternational accept any liability for any use of the information provided in this report or anyconsequence from its use thereof
Keith Hunt
Managing Partner +44 (0) 207 514 8232keithhuntresultsigcom
Pierre-Georges Roy
Partner +1 646 747 6505pgroyresultsigcom
Mark Williams Director +44 (0) 207 514 8242mwilliamsresultsigcom
Julie Langley Partner +44 (0) 207 514 8247 jlangleyresultsigcom
Maurice Watkins
Partner +1 646 747 6510mwatkinsresultsigcom
Julia Crawley-Boevey Director +44 (0) 207 514 8239 jcrawley-boeveyresultsigcom
Jim Houghton
Partner +44 (0) 207 514 8234 jhoughtonresultsigcom
Chris Lewis Managing Director +44 (0) 207 514 8236clewisresultsigcom
has been acquired by
Results International acted forDC Storm
has been acquired by
Results International acted forWe Are Social
is joining
Results International served as
an exclusive financial adviserto Hunt
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 812
Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends8
Fundraising activity by subsegmentMarTech
49
48
46
37
36
19
1212
2
eCommerce
Social
Mobile
Marketing analytics
CRM
Marketing automation
Marketingmanagement
Website amp SEO
Crowd sourcing technology
MarTech fundraisings H1 2014 Figure 10
eCommerce
983161 As the global adoption of online shopping continues to drive
double-digit growth in eCommerce there has been considerableinnovation both in core eCommerce platforms but also acrossanalytics personalisation payments curation and online to offline
983161 Fundraisings have ranged from large series C investmentsinto companies including OrderDynamics (formerly known aseCommera in omnichannel order management) and SilverRail (rai l-ticketing) to earlier stage rounds for companies including Sweden-based Tictail (eCommerce platform for boutique and smaller highstreet retailers) Peerius (personalisation and recommendations) andSpree Commerce (Open source eCommerce platform)
Social
983161 Mirroring the trend in MampA investors too are cognisant of the rising
influence that social media has on the decision-path to purchaseand significant amounts have been invested in the US and Europe inofferings designed to use social to enhance the sales and marketingprocess
983161 Sprinklr was the largest pure social investment in H1 raising $40million for its social software platform and Spredfast raised $325million for its social marketing platform
983161 In Europe TrustPilot an online review platform and Brandwatch asocial media monitoring and analytics solution both raised in excessof $20 million in H1 2014
AdTech
AdTech fundraisings H1 2014 Figure 9
20
10
9
6
6
5
6
42
DSP
Video
Measurement and
optimisation
DMP
SSP
Ad creation
Ad network
Ad exchange
Ad server
Video
983161 Video is the fastest growing advertising channel but has not until
now been able to provide the same level of targeting data andanalytics as display advertising and therefore itrsquos not surprising tosee the high level of investment in the sector Investment is goinginto solutions which improve data collection and analytics audienceprofiling and targeting and measurement and tracking as well asinfrastructure-based video solutions and self-serve offerings
983161 With the exception of Kaltura (an open source online videoplatform) which raised $47 million fundraisings in video have beenpredominantly earlier stage smaller funding rounds The secondlargest fundraise in the space was by Vungle a mobile video adplatform which raised $17 million
DSP
983161 Established DSPs have been responsible for some of the largestfundraisings in H1 including Turn (which raised $80 million) and
MediaMath (which raised $735 million in equity as well as putting inplace a substantial credit facility)
983161 These two companies have raised financing to continue to fundinnovation but also to fuel expansion into new geographies andmarkets MediaMath has publicly stated that one use of funds willbe to pursue international MampA and Turn is also building out itsinternational footprint
983161 With a number of large DSPs such as MediaMath Turn and DataXualready well established in the market newer entrants need to beclearly differentiated to attract funding Yieldbot and Trade Deskhave both successfully raised significant rounds ($18 million and
$20 million respectively) Yieldbot focuses on capturing real-timeconsumer intent through search keywords and Trade Desk hasdemonstrated rapid international growth
983161 The majority of investments into DSPs and certainly the largest havebeen in the US Many of the largest European DSPs have been self-financing
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 912
MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 9
Fundraising by stage ndash US and EuropeHealthy fundraising market for European innovations
Whilst the number of seed and series A rounds in Europe is below thatof the US there is nonetheless a healthy market in Europe and the sizeof the rounds being closed is broadly comparable with those in the USEuropean innovators are holding their own when it comes to securingfunds
However where we see a real divergence in the two markets is in thelater stages of funding There are significantly fewer series B and Crounds by comparison to the US and no later stage rounds (ie series Donwards) have occurred in Europe in H1 2014
From our experience this reflects a couple of dynamics
983161 The culture and investment environment in Europe tends toencourage companies to move to profitability more quicklypotentially at the expense of growth As such later stage rounds aresimply not required
983161 In the US conversely there is a greater priority placed onestablishing market leadership over profitability and large well-established players continue to raise very large rounds to continueto build market share not only domestically but also overseas
However there have also been some encouragingly large series Crounds in Europe including the NEA-led $70 million investment inOpen source search and analytics engine Elasticsearch the Zouk-led$55 million investment in mobile payments platform iZettle and theDawn Capital-led $41 million round in OrderDynamics
Many US funds particularly on the East Coast continue to look veryactively at the European market and will likely step up their pace of
investment over the next 18 months Notwithstanding this increasedinterest by US investors in European opportunities in H1 2014 themost active investors in Europe were European headquartered funds orUS funds with dedicated European capital
60
50
40
30
20
10
0
80
70
60
50
40
30
20
10
0
N
u m b e r o f t r a n s a c t i o n s
A v er a g e t r an s a c t i onv al u e
( $ m )
Seed Series A Series B Series C Series D Series E Series F
US Europe
Number of transactions
Average transaction value
Fundraisings by stage H1 2014 Figure 11
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1012
Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends10
Appendix
Selected MampA activity January 2013 ndash August 2014Date Buyer Target Buyer Region Target Region Deal Value ($m) Description
Aug-14 Rocket Fuel [x+1] US US 230 DMP and DSP
Aug-14 Sizmek Aerify US US 6 Mobile tracking amp retargeting
Aug-14 Sprinklr TBG Digital US UK 503 Social ad optimisation
Jul-14 Adknowledge TriVu Media US US na Video ad buying
Jul-14 Facebook LiveRail US US 4501 Video SSP
Jul-14 Rightster Base79 UK UK 83 YouTube audience creation
Jul-14 NetSuite Venda US UK 51 eCommerce platform
Jul-14 Yahoo Flurry US US 2502 Mobile app analytics amp monetisation
Jul-14 LinkedIn Bizo US US 175 B2B marketing platform
Jul-14 Switch Unanimis UK UK na Ad network
Jul-14 Palantir Poptip US US na Social media analytics
Jul-14 Salesforce RelateIQ US US 350 Relationship intelligence
Jul-14 RTL Group SpotXchange Germany US na Video SSP
Jun-14 Twitter TapCommerce US US 1004 Mobile retargeting
Jun-14 Singtel Adconion Singapore US Australia 235 Ad network
May-14 Rakuten DC Storm Japan UK na Tag management amp attribution
May-14 Pubmatic Mocean Mobile US US na Mobile ad server
May-14 Acxiom LiveRamp US US 310 Data on-boarding
May-14 AOL Convertro US US 101 Marketing attribution
May-14 Google Adometry US US 1505 Marketing attribution
Apr-14 Telefonica Mobclix Spain US na Mobile ad exchange
Apr-14 IBM Silverpop US US na Marketing automation
Apr-14 Dunnhumby Sociomantic UK Germany na DSP
Mar-14 IgnitionOne Knotice US US na DMP
Mar-14 Comcast FreeWheel US US 3207 Video ad server
Feb-14 Oracle BlueKai US US 4206 DMP
Jan-14 Opera Mediaworks Hunt Mobile Norway US na Mobile ad network
Dec-13 Oracle Responsys US US 1523 Marketing automation
Nov-13 Centro SiteScout US Canada 40 DSP
Sep-13 Twitter MoPub US US 350 Mobile ad exchange
Aug-13 Millennial Media Jumptap US US 237 Mobile ad network
Aug-13 AOL Adaptv US US 405 Programmatic video platform
Jul-13 Yahoo Admovate US US na Mobile ad targeting
Jun-13 Adobe Neolane US France 617 Marketing automation
Jun-13 Salesforce ExactTarget US US 2616 Marketing automation
Feb-13 Facebook Atlas Advertiser Suite US US na Ad server
1 Deal value estimated between $400 to $500m (TechCrunch)
2 Deal value estimated between $200 to 300m (TechCrunch)3 Deal estimated at under $50m (AdExchanger)
4 Estimated deal value of $100m (Recode)
5 Estimated deal value of $150m (451 Research)6 Estimate deal value of $420m (451 Research)
7 Estimated deal value of $320m (TechCrunch)
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1112
MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 11
Appendix
Selected Fundraising activity 2014 YTDDate Lead VC fund Target Target HQ Deal Value ($m) Description
Aug-14 Ignition Partners Xamarin USA 540 Moble app development
Aug-14 Private investors AppNexus USA 600 Ad exchange
Jul-14 Hony Capital Deem USA 500 Customer acquisition and engagement
Jul-14 Comerica mBlox USA 435 Mobile messaging
Jun-14 Softbank Capital IgnitionOne USA 300 Digital marketing suite
Jun-14 SoftBank Capital InsightVenture Partners
Kony USA 500 Moble app development
Jun-14 Deutsche Private Equity Webtrekk Germany 339 Web analytics
Jun-14 Tiger Global Management Freshdesk USA 310 Customer support software
Jun-14 DFJ SiSense Israel 300 Market analysis and business intelligence
Jun-14 SAP Ventures krux digital USA 350 DMP
Jun-14 New Enterprise Associates Elasticsearch Netherlands 700 Marketing analysis ndash search analytics
Jun-14 Insight Venture Partners Yext USA 503 Digital asset and content management
Jun-14 Spring Lake Equity Partners MediaMath USA 735 DSP
May-14 Goldman Sachs The SAVO Group USA 491 Sales enablement platform
May-14 Wellington ManagementCompany
DataLogix Holdings USA 450 DMP
May-14 Index Ventures BitPay USA 300 Bitcoin eCommerce payment
May-14 Pacific Venture Partners ampDream Capital Group
AdSame China 300 Ad server
May-14 Zouk Capital iZettle Sweden 555 Mobile payments
Apr-14 BlackRock New Relic USA 1000 App performance management
Apr-14 Tencent Sequoia Capital Weebly USA 350 Website design amp build
Apr-14 Foundation Capital Adroll USA 700 Retargeting
Apr-14 General Atlantic Squarespace USA 400 Website design amp buildApr-14 Mithril Capital Management SilverRail USA 400 eCommerce platform
Apr-14 Iconiq Capital Sprinklr USA 400 Social media management
Mar-14 Business DevelopmentCorporation of America
CPX Interactive USA 300 DSP Ad network
Mar-14 Redpoint Ventures RelateIQ1 USA 400 Relationship intelligence
Mar-14 FirstHand Technology ValueFund
Phunware USA 307 Mobile app development
Mar-14 Gaorang Capital Avazu China 480 DSP Ad network
Feb-14 Dawn Capital OrderDynamics UK 410 eCommerce platform
Feb-14 Institutional Venture Partners ZEFR USA 300 Brand and content management
Feb-14 SAP Ventures Nokia GrowthPartners Commonfund CapitalGera Ventures
Kaltura USA 470 Online video platform
Jan-14 Insight Venture Partners Ensighten USA 400 Tag management
Jan-14 BlackRock Turn USA 800 DSP
Jan-14 Lead Edge Capital Spredfast USA 325 Social media management
Jan-14 August Capital Integral Ad Science USA 300 Ad quality and valuation
1 Since acquired by Salesforce in July 2014
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1212
Results International is a leading corporate finance advisor to marketing technology and healthcarecompanies in Europe and has advised on over 250 transactions The Company employs over 40 peopleglobally across offices in London New York and Asia and has a strong track record advising on cross-border
transactions winning MampA Cross Border Deal of the Year in the 2014 MampA Awards
Results Internationalrsquos 2014 AdTech and MarTech Deals
Disclaimer
Results International has compiled this report using data sourced from publicly availablesources and third-party tools to which it holds licensed access Results International doesnot accept any responsibility for the accuracy of the information provided Nor does ResultsInternational accept any liability for any use of the information provided in this report or anyconsequence from its use thereof
Keith Hunt
Managing Partner +44 (0) 207 514 8232keithhuntresultsigcom
Pierre-Georges Roy
Partner +1 646 747 6505pgroyresultsigcom
Mark Williams Director +44 (0) 207 514 8242mwilliamsresultsigcom
Julie Langley Partner +44 (0) 207 514 8247 jlangleyresultsigcom
Maurice Watkins
Partner +1 646 747 6510mwatkinsresultsigcom
Julia Crawley-Boevey Director +44 (0) 207 514 8239 jcrawley-boeveyresultsigcom
Jim Houghton
Partner +44 (0) 207 514 8234 jhoughtonresultsigcom
Chris Lewis Managing Director +44 (0) 207 514 8236clewisresultsigcom
has been acquired by
Results International acted forDC Storm
has been acquired by
Results International acted forWe Are Social
is joining
Results International served as
an exclusive financial adviserto Hunt
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 912
MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 9
Fundraising by stage ndash US and EuropeHealthy fundraising market for European innovations
Whilst the number of seed and series A rounds in Europe is below thatof the US there is nonetheless a healthy market in Europe and the sizeof the rounds being closed is broadly comparable with those in the USEuropean innovators are holding their own when it comes to securingfunds
However where we see a real divergence in the two markets is in thelater stages of funding There are significantly fewer series B and Crounds by comparison to the US and no later stage rounds (ie series Donwards) have occurred in Europe in H1 2014
From our experience this reflects a couple of dynamics
983161 The culture and investment environment in Europe tends toencourage companies to move to profitability more quicklypotentially at the expense of growth As such later stage rounds aresimply not required
983161 In the US conversely there is a greater priority placed onestablishing market leadership over profitability and large well-established players continue to raise very large rounds to continueto build market share not only domestically but also overseas
However there have also been some encouragingly large series Crounds in Europe including the NEA-led $70 million investment inOpen source search and analytics engine Elasticsearch the Zouk-led$55 million investment in mobile payments platform iZettle and theDawn Capital-led $41 million round in OrderDynamics
Many US funds particularly on the East Coast continue to look veryactively at the European market and will likely step up their pace of
investment over the next 18 months Notwithstanding this increasedinterest by US investors in European opportunities in H1 2014 themost active investors in Europe were European headquartered funds orUS funds with dedicated European capital
60
50
40
30
20
10
0
80
70
60
50
40
30
20
10
0
N
u m b e r o f t r a n s a c t i o n s
A v er a g e t r an s a c t i onv al u e
( $ m )
Seed Series A Series B Series C Series D Series E Series F
US Europe
Number of transactions
Average transaction value
Fundraisings by stage H1 2014 Figure 11
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1012
Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends10
Appendix
Selected MampA activity January 2013 ndash August 2014Date Buyer Target Buyer Region Target Region Deal Value ($m) Description
Aug-14 Rocket Fuel [x+1] US US 230 DMP and DSP
Aug-14 Sizmek Aerify US US 6 Mobile tracking amp retargeting
Aug-14 Sprinklr TBG Digital US UK 503 Social ad optimisation
Jul-14 Adknowledge TriVu Media US US na Video ad buying
Jul-14 Facebook LiveRail US US 4501 Video SSP
Jul-14 Rightster Base79 UK UK 83 YouTube audience creation
Jul-14 NetSuite Venda US UK 51 eCommerce platform
Jul-14 Yahoo Flurry US US 2502 Mobile app analytics amp monetisation
Jul-14 LinkedIn Bizo US US 175 B2B marketing platform
Jul-14 Switch Unanimis UK UK na Ad network
Jul-14 Palantir Poptip US US na Social media analytics
Jul-14 Salesforce RelateIQ US US 350 Relationship intelligence
Jul-14 RTL Group SpotXchange Germany US na Video SSP
Jun-14 Twitter TapCommerce US US 1004 Mobile retargeting
Jun-14 Singtel Adconion Singapore US Australia 235 Ad network
May-14 Rakuten DC Storm Japan UK na Tag management amp attribution
May-14 Pubmatic Mocean Mobile US US na Mobile ad server
May-14 Acxiom LiveRamp US US 310 Data on-boarding
May-14 AOL Convertro US US 101 Marketing attribution
May-14 Google Adometry US US 1505 Marketing attribution
Apr-14 Telefonica Mobclix Spain US na Mobile ad exchange
Apr-14 IBM Silverpop US US na Marketing automation
Apr-14 Dunnhumby Sociomantic UK Germany na DSP
Mar-14 IgnitionOne Knotice US US na DMP
Mar-14 Comcast FreeWheel US US 3207 Video ad server
Feb-14 Oracle BlueKai US US 4206 DMP
Jan-14 Opera Mediaworks Hunt Mobile Norway US na Mobile ad network
Dec-13 Oracle Responsys US US 1523 Marketing automation
Nov-13 Centro SiteScout US Canada 40 DSP
Sep-13 Twitter MoPub US US 350 Mobile ad exchange
Aug-13 Millennial Media Jumptap US US 237 Mobile ad network
Aug-13 AOL Adaptv US US 405 Programmatic video platform
Jul-13 Yahoo Admovate US US na Mobile ad targeting
Jun-13 Adobe Neolane US France 617 Marketing automation
Jun-13 Salesforce ExactTarget US US 2616 Marketing automation
Feb-13 Facebook Atlas Advertiser Suite US US na Ad server
1 Deal value estimated between $400 to $500m (TechCrunch)
2 Deal value estimated between $200 to 300m (TechCrunch)3 Deal estimated at under $50m (AdExchanger)
4 Estimated deal value of $100m (Recode)
5 Estimated deal value of $150m (451 Research)6 Estimate deal value of $420m (451 Research)
7 Estimated deal value of $320m (TechCrunch)
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1112
MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 11
Appendix
Selected Fundraising activity 2014 YTDDate Lead VC fund Target Target HQ Deal Value ($m) Description
Aug-14 Ignition Partners Xamarin USA 540 Moble app development
Aug-14 Private investors AppNexus USA 600 Ad exchange
Jul-14 Hony Capital Deem USA 500 Customer acquisition and engagement
Jul-14 Comerica mBlox USA 435 Mobile messaging
Jun-14 Softbank Capital IgnitionOne USA 300 Digital marketing suite
Jun-14 SoftBank Capital InsightVenture Partners
Kony USA 500 Moble app development
Jun-14 Deutsche Private Equity Webtrekk Germany 339 Web analytics
Jun-14 Tiger Global Management Freshdesk USA 310 Customer support software
Jun-14 DFJ SiSense Israel 300 Market analysis and business intelligence
Jun-14 SAP Ventures krux digital USA 350 DMP
Jun-14 New Enterprise Associates Elasticsearch Netherlands 700 Marketing analysis ndash search analytics
Jun-14 Insight Venture Partners Yext USA 503 Digital asset and content management
Jun-14 Spring Lake Equity Partners MediaMath USA 735 DSP
May-14 Goldman Sachs The SAVO Group USA 491 Sales enablement platform
May-14 Wellington ManagementCompany
DataLogix Holdings USA 450 DMP
May-14 Index Ventures BitPay USA 300 Bitcoin eCommerce payment
May-14 Pacific Venture Partners ampDream Capital Group
AdSame China 300 Ad server
May-14 Zouk Capital iZettle Sweden 555 Mobile payments
Apr-14 BlackRock New Relic USA 1000 App performance management
Apr-14 Tencent Sequoia Capital Weebly USA 350 Website design amp build
Apr-14 Foundation Capital Adroll USA 700 Retargeting
Apr-14 General Atlantic Squarespace USA 400 Website design amp buildApr-14 Mithril Capital Management SilverRail USA 400 eCommerce platform
Apr-14 Iconiq Capital Sprinklr USA 400 Social media management
Mar-14 Business DevelopmentCorporation of America
CPX Interactive USA 300 DSP Ad network
Mar-14 Redpoint Ventures RelateIQ1 USA 400 Relationship intelligence
Mar-14 FirstHand Technology ValueFund
Phunware USA 307 Mobile app development
Mar-14 Gaorang Capital Avazu China 480 DSP Ad network
Feb-14 Dawn Capital OrderDynamics UK 410 eCommerce platform
Feb-14 Institutional Venture Partners ZEFR USA 300 Brand and content management
Feb-14 SAP Ventures Nokia GrowthPartners Commonfund CapitalGera Ventures
Kaltura USA 470 Online video platform
Jan-14 Insight Venture Partners Ensighten USA 400 Tag management
Jan-14 BlackRock Turn USA 800 DSP
Jan-14 Lead Edge Capital Spredfast USA 325 Social media management
Jan-14 August Capital Integral Ad Science USA 300 Ad quality and valuation
1 Since acquired by Salesforce in July 2014
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1212
Results International is a leading corporate finance advisor to marketing technology and healthcarecompanies in Europe and has advised on over 250 transactions The Company employs over 40 peopleglobally across offices in London New York and Asia and has a strong track record advising on cross-border
transactions winning MampA Cross Border Deal of the Year in the 2014 MampA Awards
Results Internationalrsquos 2014 AdTech and MarTech Deals
Disclaimer
Results International has compiled this report using data sourced from publicly availablesources and third-party tools to which it holds licensed access Results International doesnot accept any responsibility for the accuracy of the information provided Nor does ResultsInternational accept any liability for any use of the information provided in this report or anyconsequence from its use thereof
Keith Hunt
Managing Partner +44 (0) 207 514 8232keithhuntresultsigcom
Pierre-Georges Roy
Partner +1 646 747 6505pgroyresultsigcom
Mark Williams Director +44 (0) 207 514 8242mwilliamsresultsigcom
Julie Langley Partner +44 (0) 207 514 8247 jlangleyresultsigcom
Maurice Watkins
Partner +1 646 747 6510mwatkinsresultsigcom
Julia Crawley-Boevey Director +44 (0) 207 514 8239 jcrawley-boeveyresultsigcom
Jim Houghton
Partner +44 (0) 207 514 8234 jhoughtonresultsigcom
Chris Lewis Managing Director +44 (0) 207 514 8236clewisresultsigcom
has been acquired by
Results International acted forDC Storm
has been acquired by
Results International acted forWe Are Social
is joining
Results International served as
an exclusive financial adviserto Hunt
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1012
Global Advertising and Marketing Technology MampA and Fundraising Activity and Trends10
Appendix
Selected MampA activity January 2013 ndash August 2014Date Buyer Target Buyer Region Target Region Deal Value ($m) Description
Aug-14 Rocket Fuel [x+1] US US 230 DMP and DSP
Aug-14 Sizmek Aerify US US 6 Mobile tracking amp retargeting
Aug-14 Sprinklr TBG Digital US UK 503 Social ad optimisation
Jul-14 Adknowledge TriVu Media US US na Video ad buying
Jul-14 Facebook LiveRail US US 4501 Video SSP
Jul-14 Rightster Base79 UK UK 83 YouTube audience creation
Jul-14 NetSuite Venda US UK 51 eCommerce platform
Jul-14 Yahoo Flurry US US 2502 Mobile app analytics amp monetisation
Jul-14 LinkedIn Bizo US US 175 B2B marketing platform
Jul-14 Switch Unanimis UK UK na Ad network
Jul-14 Palantir Poptip US US na Social media analytics
Jul-14 Salesforce RelateIQ US US 350 Relationship intelligence
Jul-14 RTL Group SpotXchange Germany US na Video SSP
Jun-14 Twitter TapCommerce US US 1004 Mobile retargeting
Jun-14 Singtel Adconion Singapore US Australia 235 Ad network
May-14 Rakuten DC Storm Japan UK na Tag management amp attribution
May-14 Pubmatic Mocean Mobile US US na Mobile ad server
May-14 Acxiom LiveRamp US US 310 Data on-boarding
May-14 AOL Convertro US US 101 Marketing attribution
May-14 Google Adometry US US 1505 Marketing attribution
Apr-14 Telefonica Mobclix Spain US na Mobile ad exchange
Apr-14 IBM Silverpop US US na Marketing automation
Apr-14 Dunnhumby Sociomantic UK Germany na DSP
Mar-14 IgnitionOne Knotice US US na DMP
Mar-14 Comcast FreeWheel US US 3207 Video ad server
Feb-14 Oracle BlueKai US US 4206 DMP
Jan-14 Opera Mediaworks Hunt Mobile Norway US na Mobile ad network
Dec-13 Oracle Responsys US US 1523 Marketing automation
Nov-13 Centro SiteScout US Canada 40 DSP
Sep-13 Twitter MoPub US US 350 Mobile ad exchange
Aug-13 Millennial Media Jumptap US US 237 Mobile ad network
Aug-13 AOL Adaptv US US 405 Programmatic video platform
Jul-13 Yahoo Admovate US US na Mobile ad targeting
Jun-13 Adobe Neolane US France 617 Marketing automation
Jun-13 Salesforce ExactTarget US US 2616 Marketing automation
Feb-13 Facebook Atlas Advertiser Suite US US na Ad server
1 Deal value estimated between $400 to $500m (TechCrunch)
2 Deal value estimated between $200 to 300m (TechCrunch)3 Deal estimated at under $50m (AdExchanger)
4 Estimated deal value of $100m (Recode)
5 Estimated deal value of $150m (451 Research)6 Estimate deal value of $420m (451 Research)
7 Estimated deal value of $320m (TechCrunch)
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1112
MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 11
Appendix
Selected Fundraising activity 2014 YTDDate Lead VC fund Target Target HQ Deal Value ($m) Description
Aug-14 Ignition Partners Xamarin USA 540 Moble app development
Aug-14 Private investors AppNexus USA 600 Ad exchange
Jul-14 Hony Capital Deem USA 500 Customer acquisition and engagement
Jul-14 Comerica mBlox USA 435 Mobile messaging
Jun-14 Softbank Capital IgnitionOne USA 300 Digital marketing suite
Jun-14 SoftBank Capital InsightVenture Partners
Kony USA 500 Moble app development
Jun-14 Deutsche Private Equity Webtrekk Germany 339 Web analytics
Jun-14 Tiger Global Management Freshdesk USA 310 Customer support software
Jun-14 DFJ SiSense Israel 300 Market analysis and business intelligence
Jun-14 SAP Ventures krux digital USA 350 DMP
Jun-14 New Enterprise Associates Elasticsearch Netherlands 700 Marketing analysis ndash search analytics
Jun-14 Insight Venture Partners Yext USA 503 Digital asset and content management
Jun-14 Spring Lake Equity Partners MediaMath USA 735 DSP
May-14 Goldman Sachs The SAVO Group USA 491 Sales enablement platform
May-14 Wellington ManagementCompany
DataLogix Holdings USA 450 DMP
May-14 Index Ventures BitPay USA 300 Bitcoin eCommerce payment
May-14 Pacific Venture Partners ampDream Capital Group
AdSame China 300 Ad server
May-14 Zouk Capital iZettle Sweden 555 Mobile payments
Apr-14 BlackRock New Relic USA 1000 App performance management
Apr-14 Tencent Sequoia Capital Weebly USA 350 Website design amp build
Apr-14 Foundation Capital Adroll USA 700 Retargeting
Apr-14 General Atlantic Squarespace USA 400 Website design amp buildApr-14 Mithril Capital Management SilverRail USA 400 eCommerce platform
Apr-14 Iconiq Capital Sprinklr USA 400 Social media management
Mar-14 Business DevelopmentCorporation of America
CPX Interactive USA 300 DSP Ad network
Mar-14 Redpoint Ventures RelateIQ1 USA 400 Relationship intelligence
Mar-14 FirstHand Technology ValueFund
Phunware USA 307 Mobile app development
Mar-14 Gaorang Capital Avazu China 480 DSP Ad network
Feb-14 Dawn Capital OrderDynamics UK 410 eCommerce platform
Feb-14 Institutional Venture Partners ZEFR USA 300 Brand and content management
Feb-14 SAP Ventures Nokia GrowthPartners Commonfund CapitalGera Ventures
Kaltura USA 470 Online video platform
Jan-14 Insight Venture Partners Ensighten USA 400 Tag management
Jan-14 BlackRock Turn USA 800 DSP
Jan-14 Lead Edge Capital Spredfast USA 325 Social media management
Jan-14 August Capital Integral Ad Science USA 300 Ad quality and valuation
1 Since acquired by Salesforce in July 2014
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1212
Results International is a leading corporate finance advisor to marketing technology and healthcarecompanies in Europe and has advised on over 250 transactions The Company employs over 40 peopleglobally across offices in London New York and Asia and has a strong track record advising on cross-border
transactions winning MampA Cross Border Deal of the Year in the 2014 MampA Awards
Results Internationalrsquos 2014 AdTech and MarTech Deals
Disclaimer
Results International has compiled this report using data sourced from publicly availablesources and third-party tools to which it holds licensed access Results International doesnot accept any responsibility for the accuracy of the information provided Nor does ResultsInternational accept any liability for any use of the information provided in this report or anyconsequence from its use thereof
Keith Hunt
Managing Partner +44 (0) 207 514 8232keithhuntresultsigcom
Pierre-Georges Roy
Partner +1 646 747 6505pgroyresultsigcom
Mark Williams Director +44 (0) 207 514 8242mwilliamsresultsigcom
Julie Langley Partner +44 (0) 207 514 8247 jlangleyresultsigcom
Maurice Watkins
Partner +1 646 747 6510mwatkinsresultsigcom
Julia Crawley-Boevey Director +44 (0) 207 514 8239 jcrawley-boeveyresultsigcom
Jim Houghton
Partner +44 (0) 207 514 8234 jhoughtonresultsigcom
Chris Lewis Managing Director +44 (0) 207 514 8236clewisresultsigcom
has been acquired by
Results International acted forDC Storm
has been acquired by
Results International acted forWe Are Social
is joining
Results International served as
an exclusive financial adviserto Hunt
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1112
MampA and Fundraising Activity and Trends Global Advertising and Marketing Technology 11
Appendix
Selected Fundraising activity 2014 YTDDate Lead VC fund Target Target HQ Deal Value ($m) Description
Aug-14 Ignition Partners Xamarin USA 540 Moble app development
Aug-14 Private investors AppNexus USA 600 Ad exchange
Jul-14 Hony Capital Deem USA 500 Customer acquisition and engagement
Jul-14 Comerica mBlox USA 435 Mobile messaging
Jun-14 Softbank Capital IgnitionOne USA 300 Digital marketing suite
Jun-14 SoftBank Capital InsightVenture Partners
Kony USA 500 Moble app development
Jun-14 Deutsche Private Equity Webtrekk Germany 339 Web analytics
Jun-14 Tiger Global Management Freshdesk USA 310 Customer support software
Jun-14 DFJ SiSense Israel 300 Market analysis and business intelligence
Jun-14 SAP Ventures krux digital USA 350 DMP
Jun-14 New Enterprise Associates Elasticsearch Netherlands 700 Marketing analysis ndash search analytics
Jun-14 Insight Venture Partners Yext USA 503 Digital asset and content management
Jun-14 Spring Lake Equity Partners MediaMath USA 735 DSP
May-14 Goldman Sachs The SAVO Group USA 491 Sales enablement platform
May-14 Wellington ManagementCompany
DataLogix Holdings USA 450 DMP
May-14 Index Ventures BitPay USA 300 Bitcoin eCommerce payment
May-14 Pacific Venture Partners ampDream Capital Group
AdSame China 300 Ad server
May-14 Zouk Capital iZettle Sweden 555 Mobile payments
Apr-14 BlackRock New Relic USA 1000 App performance management
Apr-14 Tencent Sequoia Capital Weebly USA 350 Website design amp build
Apr-14 Foundation Capital Adroll USA 700 Retargeting
Apr-14 General Atlantic Squarespace USA 400 Website design amp buildApr-14 Mithril Capital Management SilverRail USA 400 eCommerce platform
Apr-14 Iconiq Capital Sprinklr USA 400 Social media management
Mar-14 Business DevelopmentCorporation of America
CPX Interactive USA 300 DSP Ad network
Mar-14 Redpoint Ventures RelateIQ1 USA 400 Relationship intelligence
Mar-14 FirstHand Technology ValueFund
Phunware USA 307 Mobile app development
Mar-14 Gaorang Capital Avazu China 480 DSP Ad network
Feb-14 Dawn Capital OrderDynamics UK 410 eCommerce platform
Feb-14 Institutional Venture Partners ZEFR USA 300 Brand and content management
Feb-14 SAP Ventures Nokia GrowthPartners Commonfund CapitalGera Ventures
Kaltura USA 470 Online video platform
Jan-14 Insight Venture Partners Ensighten USA 400 Tag management
Jan-14 BlackRock Turn USA 800 DSP
Jan-14 Lead Edge Capital Spredfast USA 325 Social media management
Jan-14 August Capital Integral Ad Science USA 300 Ad quality and valuation
1 Since acquired by Salesforce in July 2014
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1212
Results International is a leading corporate finance advisor to marketing technology and healthcarecompanies in Europe and has advised on over 250 transactions The Company employs over 40 peopleglobally across offices in London New York and Asia and has a strong track record advising on cross-border
transactions winning MampA Cross Border Deal of the Year in the 2014 MampA Awards
Results Internationalrsquos 2014 AdTech and MarTech Deals
Disclaimer
Results International has compiled this report using data sourced from publicly availablesources and third-party tools to which it holds licensed access Results International doesnot accept any responsibility for the accuracy of the information provided Nor does ResultsInternational accept any liability for any use of the information provided in this report or anyconsequence from its use thereof
Keith Hunt
Managing Partner +44 (0) 207 514 8232keithhuntresultsigcom
Pierre-Georges Roy
Partner +1 646 747 6505pgroyresultsigcom
Mark Williams Director +44 (0) 207 514 8242mwilliamsresultsigcom
Julie Langley Partner +44 (0) 207 514 8247 jlangleyresultsigcom
Maurice Watkins
Partner +1 646 747 6510mwatkinsresultsigcom
Julia Crawley-Boevey Director +44 (0) 207 514 8239 jcrawley-boeveyresultsigcom
Jim Houghton
Partner +44 (0) 207 514 8234 jhoughtonresultsigcom
Chris Lewis Managing Director +44 (0) 207 514 8236clewisresultsigcom
has been acquired by
Results International acted forDC Storm
has been acquired by
Results International acted forWe Are Social
is joining
Results International served as
an exclusive financial adviserto Hunt
8102019 m a and Fundraising Activity and Trends 2014
httpslidepdfcomreaderfullm-a-and-fundraising-activity-and-trends-2014 1212
Results International is a leading corporate finance advisor to marketing technology and healthcarecompanies in Europe and has advised on over 250 transactions The Company employs over 40 peopleglobally across offices in London New York and Asia and has a strong track record advising on cross-border
transactions winning MampA Cross Border Deal of the Year in the 2014 MampA Awards
Results Internationalrsquos 2014 AdTech and MarTech Deals
Disclaimer
Results International has compiled this report using data sourced from publicly availablesources and third-party tools to which it holds licensed access Results International doesnot accept any responsibility for the accuracy of the information provided Nor does ResultsInternational accept any liability for any use of the information provided in this report or anyconsequence from its use thereof
Keith Hunt
Managing Partner +44 (0) 207 514 8232keithhuntresultsigcom
Pierre-Georges Roy
Partner +1 646 747 6505pgroyresultsigcom
Mark Williams Director +44 (0) 207 514 8242mwilliamsresultsigcom
Julie Langley Partner +44 (0) 207 514 8247 jlangleyresultsigcom
Maurice Watkins
Partner +1 646 747 6510mwatkinsresultsigcom
Julia Crawley-Boevey Director +44 (0) 207 514 8239 jcrawley-boeveyresultsigcom
Jim Houghton
Partner +44 (0) 207 514 8234 jhoughtonresultsigcom
Chris Lewis Managing Director +44 (0) 207 514 8236clewisresultsigcom
has been acquired by
Results International acted forDC Storm
has been acquired by
Results International acted forWe Are Social
is joining
Results International served as
an exclusive financial adviserto Hunt