More Related Content Similar to 2013 Whats Happening In Digital-- Including NYC Similar to 2013 Whats Happening In Digital-- Including NYC (20) More from Linda Gridley (20) 2013 Whats Happening In Digital-- Including NYC4. Broad Market Glance YTD 2013
Market Index Performance
60%
Key Themes in Internet/Digital Media
Performance of Internet Bellwethers
+30.5% YTD
YTD
Since 2008
44.6%
284.5%
65.2%
41.4%
4.5%
60.5%
84.5%
20%
47.9%
42.0%
40%
NA
0%
+23.6% YTD
(20%)
Strong Market Despite Headwinds
•
High unemployment: 7.2% in September
(40%)
•
Fiscal ceiling uncertainty / government
shutdown
(60%)
•
Record amount of cash on corporate balance
sheets
Jan-08 Sep-08 Jun-09 Feb-10 Nov-10 Jul-11 Apr-12 Jan-13 Sep-13
Source: PriceWaterhouse Coopers; National Venture Capital Association (2013); Capital IQ.
© 2013 Gridley & Company LLC
4
5. M&A and VC Volume Appear to Be In Line with Prior Years
M&A and Venture Funding Volume Since 1995 ($ in billions)
$45.0
$200.0
$40.0
$180.0
VC
$35.0
$160.0
M&A
$140.0
$120.0
$25.0
$100.0
$20.0
$80.0
$15.0
$60.0
$10.0
$40.0
$5.0
$20.0
$0.0
$0.0
Source: PriceWaterhouse Coopers; National Venture Capital Association (2013); Capital IQ. As of November 8, 2013.
© 2013 Gridley & Company LLC
5
M&A Volume
Venture Funding
$30.0
6. Billion Dollar Valuations with Little to No Revenue
-Are We in a Bubble?
“Big companies are scarcely growing, and interest rates remain near zero, boosting
zeal for investment opportunities in companies with high-growth potential.” -WSJ
10/27/13
“The price tag… is determined by the market, which right now
is starting to look like the housing bubble of the mid-2000s.
-NYT 10/31/13
Billion Dollar Valuations ($ millions)
M&A
Private Placement
IPO
$13,600
$4,000
$1,000
Tumblr
Waze
$0
$13
$0
$3,400
$966
Instagram
LTM Revenue
$1,100
$3,800
$1,160
Snapchat
$0
$0
Source: Capital IQ, TechCrunch, Wall Street Journal article dated 10/27/2013
© 2013 Gridley & Company LLC
Pinterest
6
Uber
$125
Rocketfuel
$107
$1,062
Twitter
$82
RetailMeNot
$145
7. Performance for Digital Media Related IPOs have been
Strong This Year
2013 YTD Internet IPOs
($ in millions, except per share figures)
Pricing
Date
Company
Market
Cap
Performance Current
@ IPO
Since IPO Market Cap
02/14/13
Xoom Corporation
$509.4
03/04/13
Professional Diversity Network LLC50.4
03/21/13
Marin Software Incorporated
05/16/13
Marketo, Inc.
05/16/13
Tableau Software, Inc.
05/22/13
$1,102.1
7.8x
NM
NM
(38.1%)
33.2
3.1x
NM
NM
432.8
(23.6%)
366.3
3.3x
NM
NM
465.2
161.5%
1,384.6
12.6x
NM
NM
1,088.0
107.9%
3,852.6
16.3x
NM
NM
ChannelAdvisor Corporation
286.6
158.8%
849.2
10.0x
NM
NM
06/26/13
Tremor Video, Inc.
494.2
(52.8%)
502.9
4.7x
NM
NM
07/18/13
RetailMeNot, Inc.
1,662.2
9.7x
24.7x
38.7x
08/06/13
YuMe, Inc.
286.2
(30.4%)
255.7
1.9x
NM
NM
08/08/13
Cvent, Inc.
812.0
53.0%
1,317.3
11.5x
111.1x
NM
09/17/13
Benefitfocus, Inc.
644.3
74.6%
1,182.3
11.1x
NM
NM
09/19/13
Rocket Fuel Inc.
942.3
30.6%
1,538.6
6.8x
NM
NM
10/30/13
Criteo SA
1,714.2
10.9%
1,901.2
NA
NA
0.0x
11/07/13
Twitter, Inc.
Mean
Median
14,162.1
72.7%
45.9%
49.9%
24,456.9
37.9x
10.5x
9.7x
NM
67.9x
67.9x
NM
19.4x
19.4x
1,054.3
71.3%
2013E Rev. 2013E EBITDA 2013E P/E
Multiples
Multiples
Multiples
46.8%
Source: Capital IQ. Prices as of November 8, 2013.
© 2013 Gridley & Company LLC
7
8. However, The IPO Market Appears To Be Rational
Relative to 1999
• Market much more selective vs. 1999 in terms of business model and growth
characteristics
1999
2013 YTD
# of IPOs
368
32
Mean first-day return
87%
26%
4 years
13 years
# that doubled in price on first day
114
1
% with <$50 million LTM Revenue (2005 dollars)
84%
22%
% that were unprofitable LTM
86%
66%
Median ratio of market value to sales, at IPO
26.5x
5.6x
Median age of company
Source: Wall Street Journal article dated 10/27/2013
© 2013 Gridley & Company LLC
8
9. Consumer Monetization Models Today Are More Easily
Understood…
Revenue Jumps When Revenue Models are
“Turned On”
Valuation tied to User Adoption
($ in Millions)
(Monthly Active Users, in Millions)
150
$317
100
Facebook
acquisition of
Instagram
$150
$106
30
10
$52
© 2013 Gridley & Company LLC
9
Aug-13
Jun-13
Apr-13
Feb-13
Dec-12
Oct-12
Aug-12
138
Jun-12
68
Apr-12
30
Feb-12
40
2012
Dec-11
12
2011
Oct-11
2
2010
Aug-11
2007
Jun-11
2006
Feb-11
2005
Dec-10
#
Users:
5
1
Apr-11
$28
$6
10. …And Higher Growth Profiles in Digital Marketing are
Coming to Market
Public Comp Universe at End of 2012
’12-’13 Revenue Growth
Average :
24.5%
Millennial Media Inc.
38.5%
ValueClick, Inc.
Constant Contact, Inc.
Bankrate, Inc.
QuinStreet, Inc.
Median:
2013E
Revenue
Multiple
Average :
24.2%
21.0%
17.2%
10.6%
-15.0%
21.0%
3.2x
3.9x
3.9x
2.3x
2.9x
0.6x
0.5x
2.5x
YuMe, Inc.
4.1x
4.1x
Marin Software Inc.
1.0x
1.0x
2.3x
2.0x
* Criteo 2013E revenue growth is based on 2013 1H run rate
© 2013 Gridley & Company LLC
117.0% 4.9x
Marketo, Inc.
2.8x
10
Twitter, Inc.
102.2%
Criteo SA*
Tremor Video, Inc.
Median:
2013E
Revenue
Multiple
62.0%
Rocket Fuel Inc.
76.1% 4.8x
ExactTarget, Inc.
ReachLocal, Inc.
2012
Revenue
Multiple
New Public Comps in 2013
’13-’14 Revenue Growth
71.6%
61.5%
33.3%
28.9%
19.3%
61.5%
NM
2.6x
12.3x
1.6x
3.1x
1.1x
2.9x
11. Key Themes in Strategic M&A and Funding Market
•
Consolidation still quiet in fragmented sectors such as Adtech
‒ Complicated cap structures with multiple layers of institutional capital
‒ Investors with different time horizons and priorities on same deals
‒ Lots of strategics holding on to cash
• M&A as a recruiting tool is here to stay – didn’t exist five years ago
‒ Yahoo, Google, Twitter, Facebook all compete with hiring talent
‒ Still primarily a B2C concept, few examples of enterprise software
companies employing this tactic
‒ From banker’s perspective, no company is too small
• VC/PE investors reluctant to triage their portfolios, believe all will be home runs
© 2013 Gridley & Company LLC
11
12. Key 2013 Digital M&A and Private Financings
Notable M&A
Target
Acquirer
Jun. 2013
May 2013
Aug. 2013
Notable Private Financings
Company
$1.1BN
Jul. 2013
$1.1BN
Aug. 2013
$405MM
Apr. 2013
Oct. 2013
$350MM
Sep. 2013
Jul. 2013
Aug. 2013
Feb. 2013
Feb. 2013
$361MM
$250MM
$225MM
$225MM
Feb. 2013
$316MM
Jun. 2013
Aug. 2013
$750MM
$261MM
$206MM
$200MM
Feb. 2013
$180MM
Jan. 2013
$68MM
$155MM
May 2013
$125MM
© 2013 Gridley & Company LLC
$75MM
Jun. 2013
12
$60MM
13. Digital Leaders Are Known to Overpay into Platform
Shifts
Desktop Chews into
Traditional Media
Internet Becomes
Scalable Transaction
Medium
Consumers Move
to Social Channels
Mobile Overtakes
Desktop for
Consuming Content
Sale Price
$1,561
$1,433
$745
$966
LTM Rev.
Multiple
NA
8.25x
18.63x(1)
NA
Sale Price
$850
$3,727
$400
$350
LTM Rev.
Multiple
NA
NA
NA
NA
$5,000
$410
$1,100
$1,000
NA
NA
73.33x(2)
NA
Sale Price
LTM Rev.
Multiple
(1) BuddyMedia rumored LTM revenue is $40 MM
(2) Tumblr’s rumored LTM revenue is $15 MM based on 2013 Q1 run rate 13
14. Internet Leaders Have and Will Continue to Make
Transformational Business Moves Through M&A
Search solutions provider
Online CD and video
retailer
Online seller-bid auction
Pay-per-click advertising
Online audio entertainment
Digital transactions
platform
Ad exchange
Mobile operating system
Online shoe and apparel
retailer
VOIP and IM client
Job search engine
Online video-sharing
website
Online daily deals
Online payment system
Web hosting
Handset manufacturing
division
Online baby product
retailer
Digital commerce services
provider
Microblog and social
network
Smartphone navigation app
Social book cataloguing
Digital payments processer
Internet radio
Social media marketing
© 2013 Gridley & Company LLC
14
15. eBay Has Systematically Built A Multi-Channel
Commerce Capability Through M&A
eBay made a series of acquisitions, most notably of PayPal, GSI Commerce, Red Laser, Zong, and Milo,
that enabled eBay to become a front-runner in the race to become the next generation in-store leader
Discover
Pay
Nearby
Retailer
Store locator
and locationbased deals
Used, online
In-store
scanner
Card-in-cloud
Online
retail
Virtual goods
Better
Merchandising
At Home
Local Retailers
/ SMB
Nearby
Used, online
Online retail
Online social retail
© 2013 Gridley & Company LLC
15
Any product
16. Growth and Scale are Primary Factors in Valuations
Today
2013E Revenue Growth Rate vs. 2013E Revenue Multiple
140%
Legend
Adtech
120%
Enterprise
$225MM
2013E Revenue Growth
Consumer Internet
100%
$124MM
$615MM
80%
$345MM
$243MM
60%
$269MM
$204MM
$10.4BN
40%
$894MM
20%
$532MM
$77MM
$175MM
0%
0.0x
$5.2BN
5.0x
10.0x
15.0x
2013E Revenue Multiple
© 2013 Gridley & Company LLC
16
20.0x
25.0x
18. Summary of 2013 Deal Trends
M&A
VC/PE Funding
•
Ad Tech
Consolidation has been needed in Adtech for five
years, still very fragmented
•
Chatter around merger discussions up; remains to
be seen if there is action
Continue to see large scale deals as mobile
applications, complimented by tech/team and tuck
in deals
•
Mobile
•
Content deal market remains quiet overall
Many VCs have moved away from Adtech, those
that remain are very selective
‒
•
Clear path to IPO
‒ New data models that create unique value
Aggressive VC market across the spectrum
Yahoo has built a large mobile team through ~20
acquisitions in past year
•
•
‒
Content
‒
•
Few buyers in the market for digital
content assets
No material change in behavior in past 3
years
Renewed excitement for vertically focused
publishers
‒
Multiple $15mm+ capital raises
•
Relatively harder to secure earlier stage funding
vs. other digital segments
•
Social
LOTS of tech & team, smaller deals
•
•
Continued premiums paid for perceived market
leaders
$50 million is the new $20 million and $20
million is the new $10 million
•
High valuations paid for experienced teams in
uncrowded markets
•
Continued investor interest in new commerce
models
•
•
eCommerce
Social moving deeper into the enterprise, opening
up the buyer universe
Most M&A focused on B2B as software
companies like IBM and Netsuite expand retail
capabilities into digital
© 2013 Gridley & Company LLC
18
‒
Rent the Runway, Birchbox, etc
20. Key Trends in Adtech
• Recent IPOs have brought new life into the Adtech community
‒ Creating urgency to get scale
‒ Establishing clarity around value for high growth advertising stories
• Noise level on Privacy/Cookie debate up; although still very exploratory in
terms of going forward models
• Category leaders getting funding, but otherwise hard market for new capital
‒ Understanding and executing on data is actually very hard!
• Convergence of marketing and advertising technologies not leading to
considerable strategic activity yet
© 2013 Gridley & Company LLC
20
21. The CMO’s Dilemma – Multiple, Disconnected Channels
Capabilities within Digital Channels Continue to Expand
Display
Mobile
• Advertising
• Marketing
• LBS
• Networks
Social
• DSPs
• Direct Sold
• Word of mouth
• Various capabilities (e.g.
retargeting)
• Paid
CMO
• Campaigns
• Owned
• Earned
Video
• Pre vs. post roll
• Networks
• Direct Sold
© 2013 Gridley & Company LLC
Email
Search
• Google vs. others
• Bid optimization
solutions
21
• Mass branding
• One-to-one (rules
based)
22. The Buy-side Value Chain – Race to Build Value
Through Use of Data
• Strategic value is moving to the middle of the value chain as the value of data
becomes better understood
Value Chain
DSP/Network
Social
Publishing
Self Serv.
Adserving
LBS
Email
Execution
Planning
Creative
Attribution
Analytics
Modeling
Optimization
Scoring
Data Mgmt
Warehouse
Normalize
Segment
Database
CRM
Workflow/Mgmt
© 2013 Gridley & Company LLC
MRM
22
Ops
MAM
24. Mobile Is the Most Important Broad Theme in 2013
Driven by A Rapid Shift in Consumer Behavior
3.0
Global Installed Base (Billions)
Desktops+Notebooks
Smartphones+Tablets
2.5
Q2:13E: Projected Inflection
Point Smartphones + Tablet
Installed Base > Total PCs
Installed Base
2.0
1.5
1.0
0.5
0.0
2009
2010
2011
2012E
2013E
2014E
2015E
Note: Notebook PCs include Netbooks. Assumes the following lifecycles: Desktop PCs – 5 years: Notebook PCs – 4 years; Smartphones – 2 years; Tablets – 2.5 years.
Source: Morgan Stanley Research, 2012.
© 2013 Gridley & Company LLC
24
25. Key Trends in Mobile
• 2013 is the year of mobile from many perspectives
‒ Positive mobile consumption trends, quickly overtaking
desktop
‒ Internet bellwethers have executed multiple large scale M&A
deals
‒ Scaled consumer adoption of vertical specific application such
as Uber and Waze
• Facebook and Twitter are educating the broader market on value of
mobile marketing
• Mobile driving much of the innovation in the payments sector today
‒ Exciting opportunity in the convergence between marketing
and payments
© 2013 Gridley & Company LLC
25
26. POS – A Major Battleground in Mobile
Market Research /
Data Analytics
Account Marketing
Digital Commerce
Consumer
Payments
eReceipts
© 2013 Gridley & Company LLC
26
27. Massive Strategic Opportunity with Mobile + Local
Higher Banner Ad CTR for Local Businesses
Rise of Localized Mobile Marketing
Local vs. National Mobile Ad Spend ($ in billions)
CTR Lift
48%
$9.9
CTR Lift
40%
$8.1
$5.8
$6.0
CTR Lift
26%
$4.5
$4.3
$3.1
$2.7
$1.7
CTR Lift
5% 41% $0.7
$1.0
<1 Mile
2011
1 to 2 Miles 2 to 5 Miles 5 to 10 Miles
$2.1
$1.2
$3.6
$2.9
$2.2
$1.5
2012
2013
National
Sources: BIA Kelsey, “From National to Local: Mobile Advertising Zeroes In,” Jan. 2013; BI Intelligence; Balihoo, “Micro Study:
National Brand Use of Digital in Local Marketing,” Oct. 30, 2012.
27
$4.1
2014
2015
Local
2016
58%
29. Change in Content Consumption Behavior Has Been a
Driving Factor in Digital Content Landscape
Browsing and Consuming Behavior
Since the 1950’s…
Gridley Has Been Observing These Trends
in Content For Several Years…
New Content Consumption Model
• The Network
• Science
• Curation
• Incentives
• Location
• Converse
• Opine
• Review
• Rank
Tweet
• Play
“Like”
• Watch
Tag
• Read
Check-in
Revenue Acclaim Loyalty Intelligence
© 2013 Gridley & Company LLC
29
30. Key Trends in Content
• Healthy valuations in content enablement (e.g. Wordpress) and big
vertical niche properties (e.g. Houzz)
• Ongoing pressure from traditional ad models has forced some innovation
in consumer acquisition/retention, revenue models,
integration/coordination across channels
‒ Deeper integration into social channels
‒ New advertising formats such as native advertising
‒ Better mobile consumption experiences
‒ More integrated use of user generated content
• Most traditional media companies still on the sidelines from an M&A
perspective
• Few good public comparable market for digital content businesses
© 2013 Gridley & Company LLC
30
32. Key Trends in Social
• Platform shift to social has created a lot of success stories and exposed a
few vulnerabilities
‒ Positive: Consumer monetization models, value of network effects
‒ Negative: Can a sustainable business be built in social media
management? eCommerce on social doesn’t work, long-term ability
to create a “platform” around users in question
• Fickle users drive consumer businesses, creating new opportunities and
risks
• Social creating positive impact across the digital ecosystem
‒ Content, commerce and mobile big beneficiaries
© 2013 Gridley & Company LLC
32
33. As the Channel Matured, Social Has Started to Have
Broad Reaching Implications
Social Will Increasingly Play a Role Across the Digital Ecosystem
Mobile
Commerce
• Mobile only
social solutions
are gaining
mass adoption,
bypassing
desktop entirely
• Developing models
that tie social
connectivity into the
path to purchase
• Solving consumer
discovery challenges
via social curation
Content
Adv/Mkt.
• Considerable inventory
controlled by social
platforms opening up
this year
• Maturing models
around advertising
in user generated
content
• Social remains a key
strategic channel for
CMOs
© 2013 Gridley & Company LLC
33
35. eCommerce has Very Strong Growth Dynamics
Digital is “10 – 50 – 100”
Forecast: US Online Retail Sales 2012 to 2017
10%
• ~10% total retail sales are eCommerce sales
50%
eBusinesses are Shifting Spending to
Commerce-Related Technologies
• Development of “omnichannel” experiences open
opportunities in mobile and marketing
• 50% total retail sales are estimated to be influenced
by digital
‒
Showrooming, research, planning
100%
• Digital has an impact on 100% of the modern
shopping experience
Source: Kantar Retail “Digital Power 2013” report
Source: Forrester Reports dated March 13, 2013 and July 25, 2013
© 2013 Gridley & Company LLC
35
36. Key Trends in eCommerce
• eCommerce tech platforms are complex and expensive
• eCommerce business models are in experimental phase
‒ Flash sales, subscription commerce, social commerce, in-store all
developing
‒ Started to see scaleable + sustainable models emerge this year
• Content + Commerce did not pane out across demographics
• Online/Offline convergence still early, but viewed as strategically
important
• eCommerce is a CEO level strategic focus
© 2013 Gridley & Company LLC
36
38. Gridley’s Guide to Digital NY
•
Unique and comprehensive report for investors, buyers and entrepreneurs looking for one place to quickly
get up to speed on New York’s exciting, explosive digital ecosystem
•
We decided to put together this report published originally in Oct. 2011 after people kept asking us about
all of the “digital momentum” in NY. There was a feeling that lots was going on, but people didn’t really
understand just what “it” was and how extensive “it” was. We aim to answer those questions here
•
Digital New York report is updated on a quarterly basis and sent to 1,500+ senior executives and investors
•
For an “easy to use” website that lays out the information in this report (and more) in a fun, creative way,
visit www.gridleyco.com or www.gridleydigitalny.com
© 2013 Gridley & Company LLC
38
39. NY’s Emergence as a Tech Hub - $7.2BN Raised Since 2006
• New York City has become a true digital media innovation center
NY Tech Investment Over Time
$1,384
$1,141
$922
$791
$688
$608
$453
2007
2008
2009
2010
2011
2012
2013YTD
(1)
Source: PriceWaterhouse Coopers “MoneyTree Report 2013”, Media & Entertainment and Software investments; Capital IQ.
(1) Gridley estimate. Includes Internet-related companies based in the New York Metropolitan area. Companies in our database either have raised at least $5 million of outside
capital or are prominent enough in the Digital NY scene to merit inclusion.
© 2013 Gridley & Company LLC
39
40. A Word About the New York Scene in 2013
• Largest financing and largest venture-backed exit ever for New Yorkbased startups
‒ In April,
raised $250 million at a ~$1.0 billion valuation
‒ In May,
purchased
for $1.1 billion
• New York is the only hub to grow its share of the VC financing market
over the past 5 years
‒ Now second in deal volume behind Silicon Valley for over two years
‒ $7.2 billion invested in Digital NY companies since 2006
• New York now a hub for seed and angel investing
‒ 34% of deals in 2012 were seed stage
‒ Angel investors like David Tisch’s Box Group, NY Angels, and Chris
Dixon have given legs to the early stage community
© 2013 Gridley & Company LLC
40
41. NY Ecosystem Has Very Different Roots and Growth
Opportunities Than Silicon Valley
Internet Services
Wall Street
Operational
Efficiencies
Leadership
Talent
Engineering
Talent
Data Services
Advertising
Key
Customers
Fashion
© 2013 Gridley & Company LLC
Creative
Talent
Strategic
Acquirers
Strategic
Partnerships
Business
Development
41
Media
42. The Past Six Years Have Shaped Much of NY’s
Digital Media and Technology Landscape
• Notable events in NY since 2007:
Development of brand
names across broad set of
verticals
/
/
Closes deal and
announces HQ move
to NY in September
($3.1 billion)
/
July
($680 million)
2007
April
2007
January
2007
is founded
September
2007
Raises series A
round
December 2007
November
2007
Raises series A
round
announces spin-offs of:
announces
acquisition
of
For $183 million
2009
Acquire
s
May 2013
American
wireless
business
for $134 billion
March 2011
June 2013
August
2008
Acquires
For $125 million
Raises series
A round
Raises Series A
round
Raises series A round
for $1.1 billion
2011
September
October
2007
Raises Series B
round
in tech VC funding
and deal quantity
January
opens a
Googleplex in
New York City
June
Mayor Bloomberg
2008
starts up city-funded
business incubator
programs
($275 million)
announces
acquisition of
leads
Raises series
A round
December
2009
September
announces
acquisition of
July 2013
2010
for $745 million
June 2011
Acquires
Mayor Bloomberg
April 2013
for $22 billion
comes to New York offers $100 million and
September
land to develop a top
2013
engineering school to
encourage tech
for $30 billion
development, to bring
Raises series D
Raises series B
New York City to the
round
round
forefront of innovation.
$250
$100
million
announces
million
acquisition of
Announces
acquisition of
42
43. Major Disruption is Happening Across All Sectors
Advertising / Marketing
eCommerce
Content
43
Finance
44. NY Area Private Digital Companies by Sector
Digital
Content
Digital
Marketing
eCommerce
Mobile
Social
SpotOn
Electric Sheep
Note: More companies illustrated on the following sector breakdown pages
44
45. NY Area Private Digital Companies by Equity
Raised (243)
$5M-$10M 67
$10M-$20M 63
$20M-$30M 37
$30M-$50M 41
$30-$50
$50M-$100M 22
$50-$100
>$100M
Sources: Capital IQ and TechCrunch, October 2013
45
13
46. “The All-Stars” - VC/PE Firms with at Least 5 NY
Area Digital Investments
“The Locals”
30
“The Satellites”
Seed
Early Stage
Growth
Source: Capital IQ, TechCrunch, public filings, and press releases
46
9
“The Outsiders”
13
47. Public Companies with a NY Area Presence by
Industry (51)
Data
eCommerce
Digital Media
9
Marketing
14
6
47
10
Traditional Media
12
48. Key Digital NY Private Financings & IPOs
Notable Fundraises
Financing
Size
IPOs
Company
IPO Size
Apr. 2013 $250MM
Jul. 2012 $120MM
$166MM
Dec. 2007
Current
Company Market Cap
Apr. 2007
Apr. 2011 $138MM
Aug. 2009 $78MM
$100MM
Sep. 2013
$2,534MM
$143MM
$610MM
$217MM
$422MM
$234MM
$34MM
$73MM
$60MM
Apr. 2010
May 2012 $150MM
May 2009 $100MM
$150MM
Oct. 2013
$77MM
$75MM
May 2012
$22MM
May 2013
Nov. 2011
$85MM
Aug. 2011
Sep. 2011
Jan. 2013
Aug. 2012
Jan. 2010
$84MM
$75MM
$91MM
Jul. 2012
$68MM
© 2013 Gridley & Company LLC
48
Acquired
49. Private Digital NY Sale Transactions >$100 million
Since January 2010 (Disclosed deals / rumored pricing available)
Date
Acquirer/Target
Source: Capital IQ, TechCrunch, public filings, and press releases. *rumored value
© 2013 Gridley & Company LLC
49
Transaction
Value ($MM)
51. Gridley Overview
Gridley & Company LLC, a New York-based boutique investment bank, provides advisory
services to companies in the Information Services industry
Gridley & Company LLC
Leading Boutique
• Sharp focus provides clients with valuable strategic insights and perspectives
• Specialize in Internet Services, Digital Media & Marketing Services, Data
Services, Financial Technology, and SaaS & Outsourcing Services
• Founded in 2001
• Headquartered in New York, NY
Strong Reputation
• Strong industry reputation on assignments led by senior bankers
• Experienced, bulge-bracket trained M&A bankers – The “A” Team
Trusted Advisor
• Thoughtful ideas – not just logical combinations
• Deliver value to buyers, sellers, and investors alike
• Broad industry network developed over 25+ years with industry leaders,
emerging growth companies, and senior investors
© 2013 Gridley & Company LLC
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52. 12+ Years of Strategic Thought Leadership
Quarterly Publications
Industry
Guides
Frequent
Industry Speaker
• Highly respected
newsletter about industry
trends and corporate
finance / M&A activity
• January Conference
• In-depth review of the
digital NY ecosystem,
including recent startups
and the firms investing in
them
© 2013 Gridley & Company LLC
Annual Gridley Hosted
Events
• Summer Networking
Event & Golf Outing
52
53. Host of Leading Annual Industry Conference for
13 years
• Bellwether event focused on our targeted industries
• Approximately 500 senior-level executives from over 300 companies
• Differentiated audience and participants vs. other conferences
• Highly personalized with Gridley arranged “1-on-1”s for clients, presenters, sponsors
• Presentations by approximately 40 private companies and industry panels addressing
timely topics
January 14, 2014
The Westin New York Grand
Central
(Invitation Only)
© 2013 Gridley & Company LLC
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54. Event History – Track Record of Finding Highly
Successful Companies Early
• 218 private companies have presented since 2004
• Over 70% have completed liquidity transactions
Selected Past Conference Presenters
© 2013 Gridley & Company LLC
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55. Selected Recent Gridley Transactions
Gridley clients include industry leaders and premier emerging growth companies
© 2013 Gridley & Company LLC
55
57. QUESTIONS?
Linda Gridley
President & CEO
212-400-9710
linda.gridley@gridleyco.com
Pratik Patel
Managing Director
212-400-9712
pratik.patel@gridleyco.com
Gridley & Company LLC
10 East 53rd Street, 24th Floor
New York, NY 10022
212.400.9720 tel
212.400.9717 fax
Twitter: @gridleyco
www.gridleyco.com