NGP's keynote presentation about investing in smartwatches and wristbands from the Wearable Technologies Conference in Munich January 2014.

1. Nokia Growth Partners
Investing in Wearables; Smartwatchs & Wristbands
What do investors look for?
Wearable Technologies Conference
Jan 2014, Munich

2. 1998
Nokia has a long and
successful history of
promoting innovation
through venture
sponsorships dating
back to 1998.
2014
2005
Nokia Growth Partners
was founded in 2005 as
an independent growth
stage venture investor
sponsored by Nokia.
Today NGP’s team consists
of 12 active investors in the
US, China, India and Europe
with a portfolio of 40 growth
stage companies in mobile.
Nokia has invested over $1.5B in different venture funds over the years and
renewed funding for NGP by $250M in 2013, making NGPs total fund $600M
SAN FRANSISCO
GENEVA
HELSINKI
NEW DELHI
BEIJING

3. BO ILSOE
Partner
UPAL BASU
Partner
PAUL ASEL
Partner
WALTER MASALIN
Principal
DAVID TANG
Partner
JOHN GARDNER ANNIE LIN
KEVIN LAU
Partner Senior Associate Associate
LU GUO
Principal
YAO GE
Associate
VIVEK GOYAL ANUPAM RASTOGI
Principal
Analyst

4. ADTECH, DATA
& ANALYTICS
Mobile advertising network
EMBEDDED
SYSTEMS
Advanced micro-optics
maker
MOBILE
CONSUMER
Digital entertainment
LOCAL
COMMERCE
MOBILE
ENTERPRISE
Online Fashion, Luxury &
Lifestyle
Online business
performance optimization
Online coupon & deals site
Programmatic
Smartphone image sensor
technology
Managed IT hosting for
products and services
Touch screen games
In-store analytics for online &
offline retail
Performance-based online
marketing
Smartphone array camers
Mobile language learning
Carrier grade messaging
security
Electronic payments &
business solutions
Digital CRM data provider
Power integrated circuits
Location powered online
advertising
Casual social games
Online classi eds
advertising platform
Game monetization
Securing online transactions
Classi eds site in India
Cloud services

5. Investing in a world of mobility
i
Consumer
services
u
Personal
w
CLOUD
Business
Cloud enablers;
Telco Security Analytics
Payments Identity Intermediation
z
Smart Home
d
Connected Car
services
s
Workplace

6. Investment Focus in Mobile
MOBILE CONSUMER
LOCAL COMMERCE
EMBEDDED SYSTEMS
SAN FRANCISCO
MOBILE ENTERPRISE
ADTECH,
DATA & ANALYTICS
GENEVA
HELSINKI
NEW DELHI
BEIJING

7. Investing in a world of wearables

8. Recent smartwatch & wristband
deals
Company
Date
Funding
Description
Investor
Lumo Body Tech
Dec-12
$5M
Posture sensor
Madrona, Eric Schmitt
Nest
Jan-13
$80M
Smart home
Google, venrock, lightspeed, Shasta, InterTrust
Pebble
May –13
$15M
Smart watch
Charles River (first raise on kickstarter)
Ouya
May –13
$15M
Android gaming
console
KPCB, Mayfield, Shasta, InVidia
Withings
Jul – 13
$30M
Health tracking
IdInvest, Ventech, BPI France
Netatmo
Jul-13
$6M
Connected
weather station
Iris Capital, Angels
Jawbone
Sep – 13
$100M
UpFitness
tracking
Silverlake, Fortness, JP Morgan, Khosla, KPCB, Sequaio
Basis
Oct – 13
$12M
Smart
watch
Mayfiled, DCM, Norwest, Intel + others
SmartThings
Nov –13
$12.5M
Open platform
for IoT
Greylock, Highland, Lerer Ventures, First Round Capital
Mocana
Dec – 13
$15M
IoT security
GE Ventures, Shasta, Symantec, Trident

9. Know your market
$690 bn
Consumer Electronics
$380 bn
Compute (PCs, Tablets,
Smartphones)
$2-3 bn
Fitness
Wearables
CE wearables are a fraction of the overall
consumer electronics market, which reflects
the industry’s current early stage
TAM calculation
2013 smartphone penetration 959 million
units. 2.5bn fitness wearables market size +
100 ASP=25M units. Penetration rates of
wearables to smartphone installed
base/shipments today is 3%
CreditSuisse projects $30-50 bn wearables
market over next 5 years. Current watch
market is $56bn and sunglasses $20bn.

10. Know your market
Switzerland
World
ASP of Watch from
- China: $3
- Switzerland: $739
Source : Federation of the Swiss watch industry

11. Who will win?
“We tend to overestimate the speed of adoption and
underestimate the long term impact”
The one who has






Good distributor relationships
Understands the mix between Fashion and Technology
Emphasizes on superior service
Has a core differentiating factor
Patience, passion and a great team
Access to capital… (a lot of it if it’s a consumer business)

12. Thank You