Technology Sector Update: Marketing and Advertising 4Q 2015

Technology Sector Update: Marketing and Advertising 4Q 2015

Member FINRA

2

New technologies are driving customer adoption of both MarTech and AdTech as marketing departments emerge as a competitive differentiator for enterprises Rapid Adoption – Marketers are rapidly adopting both point solutions and platforms as advertising technologies enable

new ways of conducting business and acquiring customers

Metrics Matter – Metrics continue to grow in importance – attribution and conversion metrics drive marketer’s decisions – both for which technologies to buy and to properly evaluate spend and ROI across all marketing tactics

Marketing moves up the funnel with significant efficiency improvements Rather than targeting large audiences and then spending significant time and resources whittling them down, emerging

technologies and analytics are becoming accurate enough to effectively disrupt the traditional sales funnel model

Marketers expand beyond retargeting by investing and spending on understanding intent and marketing higher in the funnel as opposed to “preaching to the converted”

M&A activity remains strong for the near future, driven by: Traditional buyers building out their marketing platforms, stacks or data assets

New categories of buyers continue to emerge, including marketing agencies adopting technology, data providers levering their data assets into new markets, telcos and media

Lowering valuation expectations – investors in crowded sectors of digital marketing recognizing a solid exit is better than no exit

Funding is both available at higher scale, and scarce at lower scale Companies that have demonstrated business models with solid margins and ability to scale will continue to find funding

available for growth

However, companies seeking series A and B rounds with limited traction or proof points will likely struggle finding attractive capital and valuations

Key Themes We are Watching in 2016

3

Capital Markets – U.S. Marketing and Advertising companies continue to outpace their international counterparts and outperform the NASDAQ, S&P 500 and MSCI Europe indexes

Trading Multiples – U.S. Marketing and Advertising companies are trading at a median LTM revenue multiple of 1.0x, while International Marketing and Advertising companies are trading at a median LTM revenue multiple of 3.9x

M&A Activity – M&A activity stayed close to pace in 4Q 2015, with 53 deals compared to 55 deals in 3Q 2015, after it had dropped in 1Q 2015 and 2Q 2015, with 42 deals and 40 deals respectively, although aggregate transaction increase substantially. Notable recent transactions include Rubicon’s acquisition of Chango ($100M), Oracle’s acquisition of Datalogix ($1.1B), Twitter’s acquisition of TellApart ($532M), BlueFocus’ acquisition of Domob Network Technology ($289M), AOL’s acquisition of Millennial Media ($248M), and Endurance International’s acquisition of Constant Contact ($1.1B)

Investment Activity – Investment volume and aggregate values rose in 4Q 2015 to 64 investments and $622M in value, from 60 investments and $456M in value in 3Q 2015. Notable recent investments include Kahuna ($45M), Demandbase ($30M), Panshi ($200M), Lattice Engines ($28M), Magnetic Media ($25M), and SteelHouse ($49M)

Executive Summary

4

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

Capital Markets Performance Since 2013, U.S. Marketing and Advertising companies (+106.6%) have outperformed the NASDAQ (+60.9%), S&P 500 (+39.8%), and MSCI Europe (+2.8%) indexes, along with their international counterparts (+52.2%)

NASDAQ: +60.9%

MSCI Europe: +2.8%

S&P 500: +39.8%

Int'l. Marketing and Advertising Companies: +52.2%

Source: Capital IQ; refer to public comps for constituents

U.S. Marketing and Advertising Companies: +106.6%

5

6.3x

5.0x

2.9x

5.6x

2.0x

0.6x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0xLTM Revenue Multiple

Marketing and Advertising Comparable Public Companies

International Marketing and Advertising Companies

U.S. Marketing and Advertising Companies

6.6x

5.4x

1.5x

4.1x

6.4x

2.2x

3.7x

1.0x 0.3x 0.5x 1.0x

0.1x 0.3x 0.3x 0.2x 0.0x

2.0x

4.0x

6.0x

8.0xLTM Revenue Multiple

Median: 1.0x

Median: 3.9x

Source: Capital IQ; companies arranged by descending enterprise value

6

Public Trading Comparables: Marketing and Advertising Tech

_______ Source: Capital IQ

Trading Metrics($ in millions, except per share data) Stock

Price 52-Week Price Range Market Enterprise EV / Revenue EV / EBITDACompany Ticker 12/31/15 Low High Cap. Value LTM CY 2015E CY 2016E LTM CY 2015E CY 2016E

U.S. COMPANIESGoogle NasdaqGS:GOOGL $778.01 $490.91 $798.69 $539,129 $476,714 6.6x 6.5x 5.7x 20.5x 16.0x 13.6xYahoo! NasdaqGS:YHOO 33.26 27.20 50.78 31,545 26,913 5.4x 6.7x 7.0x NM 29.1x 30.9xIAC/InterActive NasdaqGS:IACI 60.05 58.30 84.66 4,764 4,969 1.5x 1.5x 1.5x 12.1x 10.3x 8.6xcomScore NasdaqGS:SCOR 41.15 36.91 65.00 1,598 1,487 4.1x 4.0x 3.5x NM 16.2x 14.5xMarketo NasdaqGS:MKTO 28.71 23.17 35.63 1,345 1,239 6.4x 5.9x 4.5x NM NM NMConstant Contact NasdaqGS:CTCT 29.24 22.75 43.18 973 792 2.2x 2.1x 1.9x 17.4x 10.9x 8.6xRubicon Project NYSE:RUBI 16.45 13.08 20.59 798 718 3.7x 2.9x 2.1x NM 16.4x 13.0xJive Software NasdaqGS:JIVE 4.08 3.51 6.33 310 203 1.0x 1.0x 1.0x NM 33.4x 20.6xRocketFuel NasdaqGS:FUEL 3.49 2.80 16.82 150 151 0.3x 0.3x 0.3x NM NM 15.6xQuinStreet NasdaqGS:QNST 4.29 4.23 6.83 193 148 0.5x 0.5x 0.5x NM 16.0x 10.2xMarin Software NYSE:MRIN 3.58 3.04 8.62 133 103 1.0x 1.0x 0.9x NM NM NMReachLocal NasdaqGS:RLOC 1.65 0.55 3.62 49 57 0.1x 0.1x 0.2x NM NM 3.5xMarchex NasdaqGS:MCHX 3.89 3.51 5.32 161 52 0.3x 0.4x 0.4x 7.8x 3.4x 4.7xSizmek NasdaqGS:SZMK 3.65 3.47 8.47 108 43 0.3x NM NM 5.0x NM NMMaxPoint NYSE:MXPT 1.71 1.32 11.24 46 24 0.2x 0.3x 0.3x NM NM NM

High 6.6x 6.7x 7.0x 20.5x 33.4x 30.9xMean 2.3x 2.4x 2.1x 12.6x 16.9x 13.1x

Median 1.0x 1.3x 1.2x 12.1x 16.0x 13.0xLow 0.1x 0.1x 0.2x 5.0x 3.4x 3.5x

INTERNATIONAL COMPANIESBaidu NasdaqGS:BIDU 189.04 100.00 234.67 65,486 60,900 6.3x 5.9x 4.6x 24.1x 26.6x 20.1xYahoo! Japan TSE:4689 4.11 3.28 4.80 23,434 19,657 5.0x 5.0x 3.4x 8.7x 9.9x 9.4xRakuten TSE:4755 11.67 11.21 19.93 16,624 16,695 2.9x 2.8x 2.4x 13.0x 13.0x 10.5xYandex NasdaqGS:YNDX 15.72 9.94 21.36 5,029 4,847 5.6x 5.9x 5.5x 18.4x 17.1x 15.1xCriteo NasdaqGS:CRTO 39.60 28.09 57.30 2,631 2,333 2.0x 4.5x 3.4x 23.2x 17.3x 12.5xMatomy LSE:MTMY 1.54 1.33 3.61 144 159 0.6x 0.6x 0.4x 8.2x 6.1x 4.1x

High 6.3x 5.9x 5.5x 24.1x 26.6x 20.1xMean 3.7x 4.1x 3.3x 15.9x 15.0x 12.0x

Median 3.9x 4.8x 3.4x 15.7x 15.1x 11.5xLow 0.6x 0.6x 0.4x 8.2x 6.1x 4.1x

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Public Operating Comparables: Marketing and Advertising Tech

_______ Source: Capital IQ

Operating Metrics($ in millions, except per share data)

LTM Revenue Growth LTM Revenue EBITDACompany Ticker As Of '14A-'15E '15E-'16E GM LTM CY 2015E CY 2016E LTM CY 2015E CY 2016E

U.S. COMPANIESGoogle NasdaqGS:GOOGL Sep 2015 11% 14% 63% $71,763 $73,403 $83,825 $23,304 $29,722 $35,080Yahoo! NasdaqGS:YHOO Sep 2015 (12%) (5%) 64% 4,948 4,042 3,854 477 926 872IAC/InterActive NasdaqGS:IACI Sep 2015 4% 2% 75% 3,213 3,248 3,299 410 482 580comScore NasdaqGS:SCOR Sep 2015 13% 16% 69% 361 371 431 23 92 103 Marketo NasdaqGS:MKTO Sep 2015 40% 32% 65% 194 210 277 (57) NA NAConstant Contact NasdaqGS:CTCT Sep 2015 11% 14% 73% 362 369 420 45 73 92 Rubicon Project NYSE:RUBI Sep 2015 98% 36% 78% 196 248 337 (7) 44 55 Jive Software NasdaqGS:JIVE Sep 2015 9% 6% 63% 193 195 208 (23) 6 10 RocketFuel NasdaqGS:FUEL Sep 2015 12% 4% 41% 476 457 476 (54) NA 10 QuinStreet NasdaqGS:QNST Sep 2015 6% 12% 11% 285 292 326 (2) 9 14 Marin Software NYSE:MRIN Sep 2015 8% 6% 63% 107 107 113 (27) NA 0ReachLocal NasdaqGS:RLOC Sep 2015 (19%) (5%) 44% 403 384 365 (28) NA 16 Marchex NasdaqGS:MCHX Sep 2015 (19%) (1%) 46% 148 147 146 7 15 11 Sizmek NasdaqGS:SZMK Sep 2015 (1) NA 63% 166 NA NA 9 NA NAMaxPoint NYSE:MXPT Sep 2015 (22%) 13% 50% 138 84 94 (13) NA NA

INTERNATIONAL COMPANIESBaidu NasdaqGS:BIDU Sep 2015 32% 26% 67% 9,711 10,375 13,112 2,525 2,291 3,025Yahoo! Japan TSE:4689 Sep 2015 (31%) 45% 76% 3,960 3,944 5,710 2,260 1,988 2,085Rakuten TSE:4755 Sep 2015 18% 17% 16% 5,755 5,905 6,882 1,288 1,288 1,593Yandex NasdaqGS:YNDX Sep 2015 (1%) 9% 72% 859 816 888 264 283 322Criteo NasdaqGS:CRTO Sep 2015 40% 31% 36% 1,188 515 677 101 135 186Matomy LSE:MTMY Jun 2015 6% 39% 23% 255 275 383 19 26 38

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Marketing and Advertising M&A Reaches New Heights

_______ Source: 451 Group; includes transactions with disclosed, estimated, undisclosed transaction values Top 3 acquisitions with disclosed transaction values

Average LTM Revenue Multiple 2013 2014 2015 6.1x 4.9x 1.9x

Top 3 Acquisitions by Quarter ($M) – Target / Acquirer 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

Channel Intel / Google ($125)

ExactTarget / Salesforce ($2,500)

DG (assets) / Extreme Reach

($485)

Responsys / Oracle

($1,607)

Valassis / Harland Clarke

($1,947)

Vocus / GTCR

($413)

Conversant / ADS

($2,216)

Datalogix / Oracle

($1,100)

eXelate / Nielsen ($195)

TellApart / Twitter ($532)

DT (assets) / Stroeer ($331)

Cons. Contact / Endurance Intl.

($1,100) AfterDownload /

ironSource ($28)

Hybris / SAP

($1,341)

Adap.tv / AOL

($465)

Dealer.com / DealerTrack

($987)

BlueKai / Oracle ($320)

Adconion / Amobee ($209)

LiveRail / Facebook

($382)

BrightRoll / Yahoo! ($640)

Chango / Rubicon ($100)

Domob / BlueFocus

($289)

Mil. Media / AOL

($248)

ShopperTrak / Tyco

($175) Akamai (asset) / MediaMath

($25)

Neolane / Adobe ($600)

Locu / GoDaddy

($70)

Aggregate / NeuStar ($119)

FreeWheel / Comcast ($320)

Adometry / Google ($150)

[x+1] / Rocket Fuel

($230)

Videoplaza / Ooyala ($80)

Yashi / Nexstar

($33)

Bronto / NetSuite ($200)

Unruly Media / News Corp

($90)

Undertone / Perion ($130)

9

Top Acquirers in Marketing and Advertising Market

Buyer # Acquisitions Total Value ($M) Targets

Google 8 1,025.0 Admeld, Adometry, Channel Intelligence, Incentive Targeting, mDialog, Red Hot Labs, Wildfire, Zave Networks

Yahoo! 8 975.5 5to1.com, AdMovate, Brightroll, Flurry, Interclick, Luminate, Palaran, Ztelic

Adobe 7 1,178.0 Auditude, comScore (assets), Demdex, Efficient Frontier, Neolane, Search Discovery, Tumri

Oracle 6 4,408.7 BlueKai, Datalogix, Eloqua, Involver, Responsys, Vitrue

Facebook 5 382.0 LiveRail, Microsoft Corporation (Atlas Advertiser Suite Assets), Onavo, Pryte, Threadsy

Top Acquirers by Volume – Five or More Acquisitions, 2011 – Present

Buyer Total Value ($M) Targets

Oracle 4,408.7 BlueKai, Datalogix, Eloqua, Involver, Responsys, Vitrue

Salesforce 3,515.0 Buddy Media, ExactTarget, Radian6

Alliance Data Systems 2,300.0 Conversant

Harland Clarke 1,947.0 Valassis

SAP AG 1,381.0 Hybris, KXEN, SeeWhy

Adobe 1,178.0 Auditude, Demdex, Efficient Frontier, Neolane, Search Discovery, Tumri

Endurance International 1,100.0 Constant Contact

DealerTrack Holdings 1,048.5 ClickMotive, Dealer Dot Com

Google 1,025.0 Admeld, Adometry, Channel Intelligence, Incentive Targeting, mDialog, Red Hot Labs, Wildfire, Zave Networks

Yahoo! 975.5 5to1.com, AdMovate, Brightroll, Flurry, Interclick, Luminate, Palaran, Ztelic

DG 597.6 EyeWonder, MediaMind Technologies, Peer39, Republic Project

Twitter 532.6 AdGrok, RestEngine, TellApart

IBM 500.1 Now Factory, The Silverpop Systems, Tealeaf Technology, Inc.

Top Acquirers by Total Transaction Value – $450M or More, 2011 – Present

_______ Source: 451 Group

10

Marketing and Advertising Market: M&A Case Study

On November 2nd, 2015

ACQUIRED

Transaction Overview: $1.1B acquisition of Constant Contact by Endurance International Group

- All cash offer for an enterprise value of $919M - $32.00 per share, representing a 23% premium

Constant Contact had $353.5M LTM revenue and $50.6M LTM EBITDA at the time of acquisition, representing a 2.6x revenue multiple and 18.2x EBITDA multiple Millennial Media was not profitable at the time of the transaction

Target Description: Provides email marketing and online survey creation, campaign management and delivery software-as-a-service (SaaS) for businesses. Also provides social media marketing and monitoring SaaS

Transaction Commentary: “[Constant Contact’s] focus on the customer and product development complements our offerings for small business services, and expands our ability to address the needs of SMBs,” said Hari Ravichandran, CEO of Endurance International "Joining the Endurance family of brands will allow us to extend our reach and be a better partner to small businesses across the globe,” said Gail Goodman, CEO of Constant Contact

_______ Source: 451 Group, Press Release

11

Marketing and Advertising Investment Declining Slightly

_______ Source: PitchBook; includes transactions with disclosed, estimated, undisclosed transaction values Top 3 investments with disclosed investment values

Top 3 Investments by Quarter ($M) 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

AppNexus ($75)

Brand Ntwk ($68)

Droga5 ($225)

Komli Media ($30)

Appforma ($80)

Campaign Monitor ($250)

AppNexus ($85)

AppNexus ($110)

Red Ventures ($250)

Panshi ($200)

Kahuna ($45)

iPinYou ($78)

Infusionsoft ($60)

BrightEdge ($43)

Videology ($68)

BrightTag ($27)

Turn ($80)

MediaMath ($176)

Hootsuite ($60)

Matomy Media ($82)

Harbor City ($100)

Lattice Engines ($28.3)

Emarsys ($33)

Siteimprove ($55)

AVITO.ru ($50)

MarketShare ($38)

SugarCRM ($40)

Vungle ($19)

Integral Ad ($30)

AdRoll ($70)

xAd ($50)

Infusionsoft ($55)

Volusion ($55)

Magnetic ($25)

Demandbase ($30)

SteelHouse ($49)

# Investments

71

85

63

45

59

71

61

53

65 65 60

64

$519 $488 $554

$268

$459

$1,071

$478 $462

$827

$458 $456

$622

0

10

20

30

40

50

60

70

80

90

$0

$200

$400

$600

$800

$1,000

$1,200

1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015

$ in millions

Investment Volume Investment Value ($M)

12

Top Investors in Marketing and Advertising Market

_______ Source: PitchBook; number of investments may include follow-on investments in same target

Investor Investments Targets

500 Startups 31 AdStage, BackType, Boostable, BrandCont, Capseo, Central Mayoreo, Conekta, Crowdrally, Ginzamarkets, Iterable, LocBox, MarketVibe, Newswhip Media, OwnLocal, PostRocket, Privy, Regresa Pronto, Samba Ads, ShareRoot, Skimbit, Spinnakr, Unbounce Marketing, Vid Network, Virool, Vungle

First Round Capital 22 33Across, Altruik, AppNexus, DoubleVerify, Elicit, Flurry, Handshakez, Jirafe, Moat, Nomi, Say Media, SinglePlatform, Solve Media, VigLink

Greycroft Partners 22 33Across, Custora, Elicit, Media Armor, Molio, Netsertive, Nomi, Performance Horizon Group, Radiate Media, Resonate Networks, Skimbit, SteelHouse, TagMan

SV Angel 21 Booshaka, Boostable, Custora, Heap, Moat, Nomi, NowSpots, Pipewise, SocialFlow, SteelHouse, TellApart, TT Labs, Tubular Labs, Vungle, WibiData, Wish, Yext

Draper Fisher Jurvetson 19 4INFO, AdXpose, Flurry, ignitAd, InsightSquared, iSocket, Komli Media, PubMatic, Servio, StrikeAd, SugarCRM, Tremor Video, Virool, Yodle

Sequoia Capital 19 AgilOne, Dianping.com, Flite, HubSpot, Innovid, Kahuna, Kenshoo, Kontera Technologies, Lattice Engines, Taykey

Accel Partners 18 AdRoll, AVITO.ru, BEBB India, ChargeBee, Collective, Dealer.com, Genius.com, HootSuite, LocBox, MoPub, myThings, Nomi, OpenX Software, Origami Logic, YuMe

Battery Ventures 17 BrightEdge Technologies, ExactTarget, Kontagent, Lotame Solutions, Marketo, Smarter Remarketer, Sprinklr, Tapad, Tealium

Intel Capital 15 [x+1], BrightEdge Technologies, Delivery Agent, HookLogic, Movable Inc, SmartZip Analytics, Sprinklr, Vizury, YuMe, Zamplus Technology

New Enterprise Associates 15 BloomReach, Compass Labs, Lattice Engines, Millennial Media, RezNext Global, Say Media, Spare5, SugarCRM, TrackMaven, Videology, WibiData

Atlas Venture 12 Bluetrain Mobile, DataXu, InsightSquared, Integral Ad Science, Overdog, Privy, Unbounce Marketing

Bertelsmann Digital Media Investments 12 Adomic, Content Fleet, CrowdTwist, Deal United, Regiohelden, Semasio, SensorTower, Skimbit

Y Combinator 11 AdGrok, BackType, Boostable, Custora, Heap, LocalOn, Orankl, Reebee, TT Labs, Virool

SoftTech VC 10 iSocket, Kahuna, Rapleaf, StrikeAd, TurnHere, VigLink, Vungle

Top Investors by Volume, 2011 – Present

13

Top Seed and Series A Investors in Marketing and Advertising


500 Startups 26 AdStage, BackType Boostable, Capseo, Central Mayoreo, Conekta, Crowdrally ,Iterable, LocBox, MarketVibe, PostRocket, Privy, Regresa Pronto, Samba Ads, ShareRoot, Spinnakr, Unbounce Marketing, Vid Network, Virool, Vungle

SV Angel 14 Booshaka, Boostable, Custora, Heap, Moat, Nomi, NowSpots, Pipewise, SocialFlow, TT Labs, Tubular Labs, Vungle

RRE Ventures 11 Bloglovin, BlueTrain Mobile, Deepomatic, ividence, Klaviyo, Pontiflex, Say Media, SinglePlatform, SocialFlow, Yieldbot

Y Combinator 11 AdGrok, BackType, Boostable, Custora, Heap, LocalOn, Orankl, Reebee, TT Labs, Virool

First Round Capital 10 Altruik, Elicit, Handshakez, Jirafe, Moat, Nomi, Say Media, SinglePlatform, Solve Media

TechStars 10 AdYapper, Bizible, inRentive, MarketVibe, Mavrck, Mobintent, Simple Energy, SimpleRelevance, Splashscore

Lerer Hippeau Ventures 8 Bloglovin, Bottlenose, Brandtale, Fuisz Media, GraphEffect, Moat, Tubular Labs

Greycroft Partners 7 Custora, Elicit, Media Armor, Molio, Nomi, TagMan

Betaworks 6 Bloglovin, Namo Media, SocialFlow, Teleportd

Atlas Venture 5 Bluetrain Mobile, InsightSquared, Privy, Unbounce Marketing

CommonAngels 5 InsightSquared, Linkable Networks, Yieldbot

Draper Associates 5 Autopilot, MomentFeed, Vungle

ff Venture Capital 5 Bottlenose, Elicit, Movable Inc, Parse.ly

Founder Collective 5 BackType, Custora, GraphEffect, Moat, ThriveHive



14

Top Series B and C Investors in Marketing and Advertising


Greycroft Partners 10 Netsertive, Performance Horizon Group, Resonate Networks, Skimbit, SteelHouse, TagMan

Sequoia Capital 10 AgilOne, Dianping.com, Flite, Innovid, Kahuna, Lattice Engines, Taykey

Battery Ventures 8 BrightEdge Technologies, Kontagent, Sprinklr, Tapad, Tealium

Lightspeed Venture Partners 8 BloomReach, Dianping.com, Evariant, Eyeviewdigital, MediaV, MyBuys, Origami Logic

First Round Capital 7 33Across, DoubleVerify, Moat, Solve Media, VigLink

Intel Capital 7 BrightEdge Technologies, HookLogic, Movable Inc, SmartZip Analytics, Sprinklr, Vizury

New Enterprise Associates 6 BloomReach, Compass Labs, Lattice Engines, TrackMaven, Videology, WibiData

Redpoint Ventures 6 55social, Adap.tv, nadco, Intent Media, The Miaozhen Systems

Baird Capital 5 BrightTag, ClickFuel, eDo Interactive, WordStream

Draper Fisher Jurvetson 5 ignitAd, InsightSquared, iSocket, Servio

Ignition Partners 5 Dianping.com, Moz, Visible Technologies



15

Top Series D+ Investors in Marketing and Advertising


Norwest Venture Partners 8 Act-On Software, Komli Media, True[x] Media, Turn

Draper Fisher Jurvetson 7 4INFO, AdXpose, Flurry, Komli Media, PubMatic, SugarCRM, Tremor Video, Yodle

Accel Partners 5 AdRoll, Genius.com, OpenX Software, YuMe

Battery Ventures 5 BrightEdge Technologies, Lotame, Marketo, Sprinklr, Tealium

Focus Ventures 5 Delivery Agent, Marin Software, Turn

Institutional Venture Partners 5 AdRoll, Buddy Media, Marketo, xAd, Yext

Menlo Ventures 5 DataXu, Flurry, YuMe

SAP Ventures 5 Criteo, Marin Software, OpenX Software, Tremor Video

Crosslink Capital 4 Flurry, Marin Software

First Round Capital 4 33Across, AppNexus, Flurry

Intel Capital 4 BrightEdge Technologies, Delivery Agent, Sprinklr, YuMe

Panorama Capital 4 33Across, JiWire, Zoove

Scale Venture Partners 4 BrightRoll, Demandbase, HubSpot

Trident Capital 4 BrightRoll, JiWire, Turn



16

On December 10th, 2015

INVESTED IN

Transaction Overview: $49M of Series C venture funding from lead investor Mercato Partners. Staley Capital and SVB also participated The round includes a $10M debt portion Puts pre-money valuation at $150M

Target Description Provider of a data-driven advertising software. The company provides a remarketing platform for advertisers to target and reach their visitors and customers. It also delivers and displays advertising data given by its customers, including logos, graphic files, links and other advertising materials through its advertisement delivery system

Transaction Commentary: “For us this is a great validation that what we’re doing in terms of disrupting the marketplace is working, not just for us but for advertisers,” said Patrizio Spagnoletto, Chief Marketing Officer at the company. “It sets us up for continued disruption early next year” To date, Steelhouse has seen year-over-year growth of over 155 percent and anticipates it will end 2015 with a run rate of $130 million. According to Spagnoletto, the latest round of funding will be used for product development, hiring and marketing

Marketing and Advertising Investment Case Study

_______ Source: PitchBook, LA Business Journal

17

15+ Years of Marketing and Advertising Tech Sector Success

IPO

Lead Manager

IPO

Lead Manager

IPO

Lead Manager

HAS ACQUIRED

Fairness Opinion to the Buyer

IPO

Co-Manager

HAS BEEN ACQUIRED BY

Financial Advisor to the Seller

_______ Certain transactions executed by Headwaters TMT bankers at prior firms














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and back-to-back M&A Advisor TMT Deal of the Year awards




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the Seller

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OF THE YEAR






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HAS ACQUIRED

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19

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