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AGC-Changing-Consumer-Shopping-Experience-Jan-2015

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DATA
January 2015
INSIGHTS
Linda Gridley, Partner
The Changing Consumer Shopping Experience:
Trends and Technologies Leadi...

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1
A Word from AGC
Increasingly, the consumer is taking control of his/her shopping experiences. He/she are proactively dec...

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2
A Word from AGC
It’s against a backdrop of all this activity that we decided to put together this report. Our goal was t...

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AGC-Changing-Consumer-Shopping-Experience-Jan-2015

  1. 1. DATA January 2015 INSIGHTS Linda Gridley, Partner The Changing Consumer Shopping Experience: Trends and Technologies Leading the Way
  2. 2. 1 A Word from AGC Increasingly, the consumer is taking control of his/her shopping experiences. He/she are proactively deciding where they want to shop, how they want to shop, and what they want to buy. They are doing their own research before, during and after their purchases and are more influenced by what their peers think than by what any “push” advertising has to say. New technologies, better access to relevant data, and more sophisticated online capabilities are enabling the consumer and allowing him/her to be in the “driver’s seat” for their shopping experience. Exploding penetration of smartphones and tablets and the use of social media are at the heart of these enabling technologies and are changing the retail environment forever. As we often like to say, “like it or not, the ‘digital genie’ isn’t going back into the bottle”. In this new environment, retailers are striving to provide the ultimate omni-channel experience for their customers. Why? Because that’s what their customers are demanding. If the retailer can’t provide an integrated, unified, flexible online/offline shopping experience for their target consumers, they know that those shoppers will go find that experience elsewhere. The problem is that offering that “ultimate” omni-channel experience is quite complicated to do in reality, especially for the traditional retailers who must deal with oversized physical stores, use or replacement of outdated technologies, and traditional (and often inflexible) business models and personnel. However, the traditional retailers must “jump in” and take the “omni-channel plunge”. Not doing so could have severe consequences to their business. The retail Industry today is a $22 trillion market worldwide and, at less than 7% of the total, ecommerce is still in its infancy. There is a huge growth opportunity ahead for omni-channel and online retail and this growth will come at the expense of less effective traditional models. Just look at what’s happened in the $300 billion+ advertising industry. Look at the spending growth in digital advertising at the expense of the shrinking budgets for traditional media such as print and radio. Finally, the new ecommerce companies are bringing massive disruption to the retail industry. They are able to build more efficient and effective business models from scratch and aren’t inhibited by outdated cultures and technologies. They embrace the fickle, price sensitive, more informed, mobile consumer and strive to figure out how to satisfy him/her. Use of data, technology and constant innovative thinking are often the key success drivers for these new companies. Finally, they are even starting to “beat the traditional retailers at their own game” by opening up highly successful, profitable brick and mortar stores.
  3. 3. 2 A Word from AGC It’s against a backdrop of all this activity that we decided to put together this report. Our goal was to lay out the key issues and trends driving the consumer’s shopping journey today and the technologies and capabilities that support it. We purposely didn’t include the changing “front end” retail models as we felt like that is a whole separate report. Instead, we tried to outline the various “back end” content, technologies, and services that are affecting this changing consumer shopping journey and the retailer’s ability to respond effectively to it. We hope you enjoy this report and find it useful. Please call us to discuss its content or to talk about any relevant investment banking opportunities that you may have. Linda Gridley Co-Head, Digital and Mobile Group Direct: (212) 400-9710 Cell: (917) 282-0395 Email: lgridley@agcpartners.com
  4. 4. 3 I. Key Trends in Retail, eCommerce, and Shopper Marketing II. Sector Overviews a) Summary b) Content/Reviews/Comparison Shopping c) Data and Data Analytics d) eCommerce Platforms e) Marketing Services f) Mobile g) Payments/Processing Services h) Promotions/Loyalty/Rewards Table of Contents
  5. 5. I. Key Trends in Retail, eCommerce, and Shopper Marketing
  6. 6. 5 Key Themes • The Consumer’s Brick and Mortar Retail Experience is Changing • Mobile Devices and Personalized Data are Key Enablers • eCommerce is Still Early - Only 6% of Total Retail • Huge Growth Opportunity Including Large, Unpenetrated Categories • Creating an Omni-channel Retail Experience is a Key CEO-level Issue for all Retailers • Offline Purchases are Influenced Heavily by Online Research and Information • Social Influences Around Consumer Shopping Decisions will Continue to Increase • Millennials Listen to Their Peers, not to “Push” Marketing • eCommerce will Become a Key Revenue Stream for Social Platforms • Lots of Disruption around POS Devices Offer Exciting Real Time Data Opportunities
  7. 7. 6 Retail is a $22Trillion Worldwide Market Worldwide ($ Trillions) ■ eCommerce ■ Traditional Retail Traditional Retail Y/Y Growth ----------------- eCommerce Y/Y Growth ----------------- eCommerce as % of total Retail 2013 2014 2015 2016 2017 2018 $26.8 5.1% 5.9% 6.7% 8.8% $21.2 $22.5 $23.9 $25.4 $28.3 6.4% 6.1% 6.4% 6.0% 5.8% 5.5% • eCommerce is Still Quite Small – Big Growth Opportunity 25.9% 22.2% 20.9% 18.6% 16.4% 13.3% Source: eMarketer
  8. 8. 7 Retail is a Very Large Advertising Category, Especially in Digital • Retail is the Largest Vertical in Terms of Digital Ad Spend • Retail Digital Ad Spend is Expected to Grow 11.1% Compounded Annually from 2013 to 2018 Source: Percolate Report: The Most Important eCommerce Charts of 2014 Revenues Shown = 2013 Data
  9. 9. 8 Source: Percolate Report: The Most Important eCommerce Charts of 2014 Revenues Shown = 2013 Data Walmart Currently Dominates the Overall Retail Industry • Amazon Ranks 9th in Terms of Revenues
  10. 10. 9 eCommerce is Starting to Penetrate all Major Product Categories Source: Business Insider, Nielsen NA 6.4 6.1 6.4 6.0 5.8 5.5 NA 25.9 22.2 20.9 18.6 16.4 13.3 • Still Early for Some Big Categories Like Grocery & Baby Supplies – Huge Growth Potential 10% 23% 13% 23% 25% 25% 19% 19% 24% 34% 30% 29% 33% 34% 34% 37% 38% 33% 44% 44% 42% 50% 10% 21% 12% 19% 15% 24% 14% 16% 21% 33% 30% 21% 35% 27% 31% 29% 35% 22% 43% 43% 30% 42% Alcoholic Drinks Flowers Baby Supplies Pet-Related Products Automotive Accessories Toys and Dolls Groceries Personal Care Cosmetics Videos, DVDs, and Games Music (Not Downloaded) Sporting Goods E-Books Computer Software Hardcopy Books Computer Hardware Event Tickets Mobile Phone Airline Tickets and Reservations Tours and Hotel Reservations Electronics Clothing, Accessories, and Shoes What People Plan To Browse And Buy Online In Q3 2014 % Of North American Consumers Browse Buy
  11. 11. 10 Source: Forrester/Accenture/Hybris Report, January 2014 Why Retail CEO’s Care About Omni-Channel Consumer Experiences • Not Surprisingly, the Consumers’ Expectations are Driving CEO’s Behavior
  12. 12. 11 Source: Forrester: “The Forrester Wave: Omni-Channel Order Management, Q3 2014” A Well Architected Omni-Channel Retail Implementation is Complex and Difficult Omni-Channel Commerce Architecture • Successful Implementation Involves many Consumer Touchpoints, Work Flows, and Sophisticated Data Management Capabilities
  13. 13. 12 Source: Forrester: “The Forrester Wave: Omni-Channel Order Management, Q3 2014” An Effective Order Management System (OMS) is Key to an Operationally Successful Omni-Channel Infrastructure • An OMS Provides Important Workflows on Key Operational Issues such as Inventory Management, Order Routing/Fulfillment, and Customer Service Order Management System Diagram
  14. 14. 13 Data/Data Analytics are Key Elements to Be Able to Provide an Omni-Channel Retail Experience Source: AGC Partners, Gridley & Co Integrated Consumer Data Platform
  15. 15. 14 Source: Business Insider, Forrester • Online Behavior Affects Offline Purchase Activity & Vice Versa • 43% of all U.S. Retail Transactions in 2014 Were In-Store Purchases Influenced by Online Behavior 9% 10% 10% 11% 11% 43% 45% 46% 47% 48% 48% 46% 44% 42% 41% E2014 E2015 E2016 E2017 E2018 US Cross-Channel Retail Sales Non-Web Influenced Offline Sales Web-Influenced Offline Sales Online Sales Total ($ Trillions) $3.2 $3.3 $3.4 $3.6 $3.7 Data/Data Analytics are Key Elements to Be Able to Provide an Omni-Channel Retail Experience
  16. 16. 15 Source: Google/IPSOS: “Digital Impact on In-Store Shopping”, October 2014 • Consumers Look for Information Before, During, and After Purchases 0% 20% 40% 60% 80% Coupon or Daily Deal… Online Video Websites/Apps Social Networking Websites/Apps Website/Apps for Retailers with… Online-Only Retailer Sites/Apps Search Engines 75% 39% 70% 71% 36% 35% 87% Before Visiting a Store 79% While Visiting a Store 35% After Visiting a Store • Search is Still the Largest Method that Consumers Use to Find Information on Products/Services Data/Data Analytics are Key Elements to Be Able to Provide an Omni-Channel Retail Experience
  17. 17. 16 Online Search Helps Drive Consumers to Stores 3 in 4 Who find local information in search results helpful are more likely to visit stores. Source: Google/IPSOS: “Digital Impact on In-Store Shopping”, October 2014 Google/IPSOS: “Understanding Consumer’s Local Search Behavior”, May 2014
  18. 18. 17 Increasing Penetration of Smartphones Greatly Expands a Consumer’s Ability to Search When Outside the Home / “On the Go” Source: Google/IPSOS: “Understanding Consumers’ Local Search Behavior”, May 2014 Business Insider, comScore 38% 34% 42% 34% 39% 50% 51% 47% 46% 28% 23% 14% 9% 7% 9% 9% 10% 7% 34% 43% 44% 57% 54% 41% 41% 43% 47% Monthly US Visitors Across Retail Websites Audience In Millions, Broken Down By Device Used Mobile Only Desktop + Mobile Desktop Only 161.7 M 103.7 M 61.2 M 44.7 M 30.2 M 26.7 M 24.1 M 22.9 M 21M • Major Retailers are Seeing that 50%-60% of their Retail Website Traffic Comes from Mobile Only or Mobile + Desktop Users
  19. 19. 18 Consumer’s Want Personalized Local Experiences • Shoppers Would be More Likely to Shop in Stores that Offer: • Consumers Search for a Variety of Local Information • Consumers Want Ads Customized to Their Location Source: Google/IPSOS: “Digital Impact on In-Store Shopping”, October 2014 Google/IPSOS: “Understanding Consumer’s Local Search Behavior”, May 2014
  20. 20. 19 Shoppers are Most Influenced By Coupons, In-Store Promotions, and Finding the Best Deal Source: Business Insider, National Retail Federation 9% 13% 15% 18% 21% 27% 9% 14% 13% 15% 17% 20% Social Media Online Advertising Email Direct Mail In-Store Promotions Coupons Percent Of US Shoppers Influenced, By Media Type Men Women
  21. 21. 20 Social Media is Developing an Important Role in the Consumer’s Shopping Experience Initially… a Communications Platform Now, an Opportunity to… Share Opinions, Influence Peer Thinking / Brand Imaging and Share Experiences Source: AGC Partners / Gridley & Co.
  22. 22. 21 Social Media Can Drive Consumer Behavior Throughout the Purchase Cycle Lead Generation (Product Discovery, Content Marketing) Middle of Funnel (Retargeting Offers, Referrals) Point of Purchase (Shopping Cart) SOCIAL MOBILE Market Research Price / Product Comparison Point of Purchase Customer Analysis and Support Brands Want to Keep Control of the Customer Experience Throughout the Purchase Cycle PURCHASE FUNNEL PURCHASE LIFECYCLE Source: AGC Partners / Gridley & Co.
  23. 23. 22 98% 94% 94% 92% 87% 86% 83% 81% 80% Facebook Is Dominant Social Influence on eCommerce Today % of Social Media Orders Attributable to Facebook Major Sources of Non-Facebook Social Media Orders, By Product Category • VERY Early Days from an Investor Perspective Source: Shopify (February, 2014). 74% 31% 29% 26% 18% 13%
  24. 24. 23 Traditional Retailers are Starting to Successfully Use Social Media to Drive Consumer Interest Source: Business Insider, Simply Measured 0 10 20 30 40 50 60 70 80 90 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 Retailers That Generate The Most Interest On Facebook During The Holidays Thanksgiving, Black Friday/Weekend, and Cyber Monday 2014 Marketplaces Mass Merchants Department Stores shares, likes, comments (left axis) # of posts (right axis)
  25. 25. 24 2012 2013 2014E 2015E 2016E 2017E 2018E Big Growth Opportunity for Mobile Commerce U.S. ($ Billions) Global ($ Billions) ■ Mobile Commerce ■ Desktop Commerce Source: Goldman Sachs, “eCommerce Expected to Accelerate Globally in 2014” 14% 32% 11% 47% 2012 2013 2014E 2015E 2016E 2017E 2018E 24% 27% $545 $638 $752 $882 $1,024 $1,179 $1,346 $179 $208 $241 $279 $320 $364 $410
  26. 26. 25 Shopping / Lifestyle is the Fastest Growing Use of Mobile Source: Flurry Analytics, Jan.6, 2015
  27. 27. 26 Consumers Use Mobile Phones to Evaluate Purchases, Creating New Marketing Opportunities Source: “Mobile In-Store Research,” Google and Shopper Marketing Council (Apr. 2013) 90% Of Smartphone Shoppers Use Their Phone for Pre-Shopping Activities Of Smartphone Shoppers Use Their Devices to Help Shop While in a Store Shoppers Use Their Smartphones to Find Information Instead of Asking Store Employees Increase in Health & Beauty 84% 1 in 3 Mobile Influences Path To Purchase Mobile Increases Median Basket Sizes Increase in Household Care Increase in Electronics Increase in Appliances 50% 34% 25%40%
  28. 28. 27 In-Store Mobile Payments are Expected to Grow Significantly Source: Business Insider, NRF 40% • Expected to Grow from 0.1% in 2013 to 15% by 2019 0.1% 2.7% 4.3% 6.7% 10.2% 15.0% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2014E 2015E 2016E 2017E 2018E 2019E $Billions FORECAST: US Mobile In-Store Payment Volume US In-Store Mobile Payment Volume % Of US In-Store Retail Volume 2233% YoY Growth 5-Year CAGR = 173%
  29. 29. 28 In-Store Mobile Payments are Expected to Grow Significantly Source: Business Insider, NRF 40% • Apple is Well Poised • 900mm+ Card Accounts on File • Successful launch of Apple Pay - 100 200 300 400 500 600 700 800 900 1,000 Q12009 Q22009 Q32009 Q42009 Q12010 Q22010 Q32010 Q42010 Q12011 Q22011 Q32011 Q42011 Q12012 Q22012 Q32012 Q42012 Q12013 Q22013 Q32013 Q42013 Q12014 Q22014 Q32014 MillionsOfAccounts *Apple = iTunes accounts. Dashed line indicates BI Intelligence estimate. **Amazon = Accounts used to make a purchase in the last year. ***PayPal = Accounts that either sent or received a payment in the last quarter. ****Braintree = Cards on file for single Payments Cards On File - Global Apple, Amazon, PayPal, And Braintree Apple* Amazon** PayPal*** Braintree**** 2.5% 6.4% 15.2% 31.1% 50.6% 65.8% 74.1% 77.7% 79.1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E FORECAST: Share Of US Retailers Who Have Implemented A Mobile Point-Of- Sale System • The Implementation of more Mobile POS Systems will also Drive Growth
  30. 30. 29 $145 $204 $239 $275 $346 $376 $413 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 MillionsOfU.S.Dollars Starbucks Mobile Payment Volume U.S. company-operated stores STARBUCKS • Mobile = 15% of all U.S. Starbucks Stores Transactions • 12m Active Users GRUBHUB • Almost 50% of Orders Come Through a Mobile Device 35% 44% 39% 48% 65% 56% 61% 52% 129,100 181,200 130,100 174,500 Q1 2013 Q1 2014 Q2 2013 Q2 2014 GrubHub/Seamless Daily Average Grubs Mobile Desktop 40% 36% Retail Success Stories in Mobile Payments Are Starting to Emerge Source: Business Insider
  31. 31. 30 Data Security is a Huge Issue Facing Retailers • Over 260m Records Related to Retailers Have Been Reported Lost, Stolen or Leaked since 2005 (a) • Recent Large Retail Data Breaches Include: (b) Data Records Lost/Stolen by Industry (a) Retail Other Technology 20% 42% Financial Services 31% 7% Source of Data Breaches (a) Other 10% Malicious Insider 54% Malicious Outsider Accidental Loss 24% 12% Source: (a) IBM Security Report, January 2014. Report include retailers’ employees, businesses and customers (b) The NY Post, October 2014
  32. 32. 31 Retail / eCommerce Logistics / Fullfillment Have Become an Increasingly Important Element in a Consumer’s Shopping Experience Source: AGC Partners • Logistics are Important Throughout the Purchase Funnel and the Issues Can Be Complex Issues to Consider Checkout ------------------------------------------------------------------------------------------------------------------------------------------ • In-Store Access to Broader Inventory Use of Mobile POS Devices • Shopping Cart Abandonment • Ease of Online Checkout Shipping • Timing & Certainty of Timing • Cost • Reliability • Out of Home Options ------------------------------------------------------------------------------------------------------------------------------------------ • Policy including costs • Ease of Use • Online vs. Offline ------------------------------------------------------------------------------------------------------------------------------------------ Customer Service • Hours • Knowledge of In-Store Associates • Access to Live Person • Access During Online Checkout • Click to Call Returns
  33. 33. 32 Source: Forrester Research, January 2014 Consumers Expect In-Store Sales Associates to Be Highly Knowledgeable and Technically Equipped
  34. 34. 33 Source: Percolate, Harris Interactive Poll Shipping Costs are Consumer’s #1 “Pet Peeve” in Their Online Shopping Experience U.S. Adult Responses to “Which of These are Among Your Biggest Online Shopping Pet Peeves?”
  35. 35. 34 Consumers are Starting to Embrace “Next Generation” In-Store Logistics Technologies and Capabilities Source: UPS/comScore Whitepaper, June 2014 % of Polled Consumers Interested “Next Generation” Logistics 36% Electronic Receipts 32% In Store Kiosks to Order Out of Stock Items 30% Electronic Shelf Labels to Scan & Learn More About the Product 25% Ability to Purchase Items in a Window Display to Same Day Delivery 24 % Mobile Checkout via Consumer’s Own Phone 24% Touch Screen or Voice Activated Sign to Internet to Receive Product Info, Make a Purchase or Order Delivery 22% POS Enabled - Roaming Sales Associates 21% In-Store Mobile Notifications 18% Greeted by Name Upon Entering a Store Based on Knowledge of Mobile Phone 17% Have an In-Store Sales Associate Make Product Recommendations Based on Knowledge of a Consumer’s Past Purchases
  36. 36. 35 Consumers are also Getting More Interested In “Next Generation” Online Technologies & Logistics Source: UPS/comScore Whitepaper, June 2014 % of Polled Consumers Interested “Next Generation” Logistics 81% Free Shipping Options 63% Provide Estimated Delivery Date & Shipping Costs Early in the Process (For Convenience) 62% Estimated or Guaranteed Delivery Date 54% Having a Variety of Payment Options, like PayPal or Google Checkout in Addition to a Credit Card 51% Remember Me – Save My Shopping Cart Items and Order Information 51% Personal Login to Save Purchasing Preferences 50% Order History, So I Can See Everything I’ve Bought 43% Flat Rate Shipping Options 37% Ability to Select Delivery Location that is Convenient to Me 35% Expedited Shipping Options so I Can Get My Purchase Faster 31% Show Me Other Items I Might be Interested In
  37. 37. 36 Shopping Cart Abandonment Remains a Big Issue in a Consumer’s Online Shopping Experience Source: UPS/comScore Whitepaper, June 2014 % of Consumers Polled Who Had Abandoned Shopping Carts Primary Reason for Abandoning Shopping Cart 58% Shipping Costs Made the Total Purchase Cost More Than Expected 57% I Was not Ready to Purchase, But Wanted to Get an Idea of the Total Cost with Shipping for Comparison Against Other Sites 55% I was not Ready to Purchase, Wanted to Save the Cart for Later 50% My Order Value Wasn’t Large Enough to Qualify for Free Shipping 37% Shipping and Handling Costs Were Listed too Late During the Checkout Process 28% I Didn’t Want to Register/Create Account Just to Make a Purchase 28% The Estimated Shipping Time was too Long for the Amount I Wanted to Pay 25% My Preferred Payment Option (i.e. Bank Transfer, Debit Card, PayPal, Google Checkout) was not Offered 24% I Wanted to Complete the Purchase, but got Distracted and Forgot 23% The Checkout Process was too Long and/or Confusing 21% I Needed the Product Within a Certain Time Frame and not Enough Shipping Options were Offered 20% I Decided to Pick it Up in Store 18% There was no Guaranteed or Estimated Delivery Date 17% I Couldn’t Remember my Username/Password and I Couldn’t Check-Out Without It 15% The Return Policy Was Not Clear • 90% of Online Shoppers Have Abandoned a Shopping Cart Purchase
  38. 38. 37 There is a Fair Amount of Consumer Dissatisfaction Around Return Policies Source: UPS/comScore Whitepaper, June 2014 % of Consumers Polled Who Have Returned Products Reason for Return 63% I Had to Pay For Return Shipping 37% It Took too Long for Me to Receive Credit/Refund 36% I Had to Pay a Restocking Fee 32% I Could not Return to a Store 24% The Return Policy Was too Restrictive 23% I Had Trouble Getting the Returned Item to the Shipping Company Specified by the Retailer 22% I Couldn’t Reach a Customer Service Representative for Help 21% I Could not Return it Via Mail Using the Carrier of my Choice 19% The Return Policy was Hard to Understand 18% I Couldn’t Find the Retailer’s Return Policy 17% I had to Fill out a Long Form • Only 50% of Consumers are Satisfied with the Ease of Making a Return and the Clarity of the Retailer’s Policies
  39. 39. 38 Key Elements Driving Future Successful Retail Experiences Source: UPS/comScore Whitepaper, June 2014 The Next Section Outlines the Private and Public Company Universes and the Recent IPO, M&A, and Private Placement Activities in the Key Content, Technology, and Services Sectors Contributing to Successful Retail Experiences. • Content/Reviews/Comparison Shopping • Data & Data Analytics • eCommerce Platforms & Delivery • Marketing Services • Mobile • Payments/Processing • Promotions/Loyalty/Rewards
  40. 40. II. Sector Overviews
  41. 41. 40 Promotions/Loyalty/Rewards Content/Reviews/Comparison Shopping Sector Marketing Services Data & Data Analytics Payments/Processing eCommerce Platforms & Delivery Mobile Summary
  42. 42. 41 Recent Retail / eCommerce Technology IPOs (2012 – 2014) Source: CapIQ; Current market data as of 1/7/15 ($ in millions) Price Performance Date Company Subsector IPO Size Day 1 Since IPO 2014 (9) Sep 18 Alibaba Platforms & Delivery $21,767 $231,439 $261,072 38% 54% Sep 24 Travelport Platforms & Delivery 480 1,268 1,949 2% 0% Aug 01 WayFair Platforms & Delivery 319 4,070 1,774 11% (26%) Apr 03 Grubhub Platforms & Delivery 193 2,529 3,095 31% 46% Mar 06 Coupons.com Promotions/Loyalty/Rewards 168 2,195 1,571 88% 23% Jan 23 Care.com Platforms & Delivery 91 723 237 43% (56%) Mar 21 Borderfree Platforms & Delivery 80 610 274 25% (46%) May 15 TrueCar Platforms & Delivery 70 715 1,562 12% 125% Dec 11 Connecture Platforms & Delivery 53 191 210 10% 21% 2014 Median $168 $1,268 $1,571 25% 21% 2013 (3) Oct 29 Criteo Data & Analytics $251 $1,957 $2,379 14% 28% Jul 18 RetailMeNot Promotions/Loyalty/Rewards 191 1,391 749 32% (34%) Apr 22 ChannelAdvisor Marketing Services 81 383 511 34% 47% 2013 Median $191 $1,391 $749 32% 28% 2012 (1) Jul 17 Trulia Platforms & Delivery $102 $583 $1,668 30% 160% 2012 Median $102 $583 $1,668 30% 160% Market Cap @ IPO Current Market Cap
  43. 43. 42 Source: CapIQ; Includes companies with >$50M Market Cap Retail / eCommerce Technology Public Companies ($ in millions) Operating Data (a) Enterprise EV / Revenue Revenue EBITDA Revenue Growth CY Gross CY Adj. EBITDA Company Value(b) (c) 2014E 2015E 2014E 2014E 14E/13A 15E/14E Margin Margin(d) Content/Reviews/Comparison Shopping The Priceline Group $54,382 6.5x 5.5x $8,398 $3,449 29% 18% 92% 49% Expedia 10,858 1.9x 1.7x 5,774 1,039 18% 14% 82% 23% TripAdvisor 10,241 8.2x 6.5x 1,243 461 23% 26% 97% 26% Zillow 3,843 11.9x 8.7x 324 51 67% 37% 91% 1% Yelp 3,540 9.4x 6.6x 376 70 67% 43% 94% 9% Trulia 1,717 6.8x 5.2x 254 24 111% 30% 82% (3%) TrueCar 1,460 7.1x 5.2x 207 9 NM 36% 92% (18%) Bankrate 1,419 2.6x 2.3x 548 138 (0%) 12% 62% 20% Orbitz 1,167 1.3x 1.2x 932 155 8% 5% 80% 16% Bazaarvoice 600 3.2x 2.9x 186 (17) 21% 13% 63% (7%) Travelzoo 117 0.8x 0.8x 145 18 5% 1% 87% 3% Data & Analytics Alliance Data Systems $29,253 5.5x 4.4x $5,303 $1,544 18% 25% 33% 30% Nielsen 22,600 3.6x 3.4x 6,318 1,855 6% 4% 59% 26% Criteo 2,132 5.9x 4.5x 361 89 68% 31% 35% 8% Comscore 1,494 4.6x 4.0x 324 73 12% 15% 70% 9% ChannelAdvisor 457 5.3x 4.1x 87 (18) 26% 28% 71% (35%) Platforms & Delivery Alibaba $254,047 21.8x 15.6x $11,652 $6,153 ND 40% 67% 33% Amazon 135,331 1.5x 1.3x 89,356 6,148 23% 18% 29% 3% eBay 67,297 3.8x 3.4x 17,922 5,797 14% 12% 68% 26% Rakuten 18,926 3.8x 3.4x 4,961 1,109 (3%) 14% 100% 24% GrubHub 2,817 11.2x 8.7x 251 75 NM 30% 65% 28% Travelport 4,280 2.0x 1.9x 2,153 537 NM 3% 40% 19% Demandware 1,711 11.0x 8.0x 155 10 28% 38% 72% (10%) WayFair 2,041 1.6x 1.3x 1,277 (68) NM 28% 24% (4%) SPS Commerce 763 6.0x 4.9x 127 17 35% 22% 69% 11% Care.com 154 1.3x 0.9x 117 (25) 65% 45% 72% (28%) Notes (a) Projections represent Wall Street estimates (b) Based on closing stock prices on January 8, 2015 (c) Calculated as Equity Value plus total debt, minority interest (at book value unless otherwise noted) and preferred stock, less cash & equivalents (d) Adjusted operating margin excludes extraordinary and non-recurring items Market Data
  44. 44. 43 Source: CapIQ; Includes companies with >$50M Market Cap Retail / eCommerce Technology Public Companies (cont’d) ($ in millions) Operating Data(a) Enterprise EV / Revenue Revenue EBITDA Revenue Growth CY Gross CY Adj. EBITDA Company Value (b) (c) 2014E 2015E 2014E 2014E 14E/13A 15E/14E Margin Margin (d) Marketing Services Omnicom $22,361 1.5x 1.4x $15,300 $2,244 2% 4% 25% 14% Publicis 15,160 1.7x 1.6x 8,689 1,559 11% 10% 35% 16% Dentsu 12,732 0.6x 0.6x 20,098 1,080 (6%) 5% 27% 5% Interpublic Group 9,737 1.3x 1.2x 7,522 972 2% 4% 35% 12% Havas 3,568 1.6x 1.5x 2,250 370 4% 2% 39% 15% MDC 1,991 1.2x 1.0x 1,676 122 36% 21% 18% 6% Harte Hanks 482 0.9x 0.8x 559 59 7% 2% 20% 11% Mobile NetElement $55 2.5x 1.7x $22 ($2) NM 45% 19% (90%) Payments & Processing NCR $8,153 1.2x 1.2x $6,585 $961 9% 4% 28% 15% Verifone 4,921 2.6x 2.4x 1,919 333 (9%) 8% 40% 11% Dealertrack 2,898 3.4x 2.8x 846 191 23% 20% 46% 17% Green Dot 286 0.5x 0.4x 604 126 4% 23% 87% 15% SPS Commerce 763 6.0x 4.9x 127 17 35% 22% 69% 11% Borderfree 151 1.2x 1.0x 127 4 NM 13% 26% (2%) Payments & Processing Groupon $4,408 1.4x 1.2x $3,177 $257 8% 14% 50% 4% Coupons.com 1,385 6.2x 4.7x 225 23 NM 31% 61% (0%) RetailMeNot 578 2.2x 1.9x 263 92 38% 16% 92% 18% Notes (a) Projections represent Wall Street estimates (b) Based on closing stock prices on January 8, 2015 (c) Calculated as Equity Value plus total debt, minority interest (at book value unless otherwise noted) and preferred stock, less cash & equivalents (d) Adjusted operating margin excludes extraordinary and non-recurring items Market Data
  45. 45. 44 Source: CapIQ, Company Websites $50M-$100M$20M-$50M Greater than $100M $10M-$20M Retail/eCommerce Technology Private Companies by Total $ Raised (2012 – 2014)
  46. 46. 45 10 Largest Retail / eCommerce Technology M&A Transactions (2012 – 2014) Jun. 2014 $4,200 ND ND Nov. 2014 3,376 2.4x 19.2x Jul. 2014 3,091 14.8x NM Jun. 2014 2,496 12.6x 41.5x Dec. 2013 1,839 0.9x 7.1x Nov. 2012 1,649 5.8x 30.6x Jun. 2013 1,350 12.4x ND Sep 2014 1,000 6.0x ND Sep 2013 800 ND ND Aug 2014 790 ND ND Date Target EV(a) Revenue ($ in Millions) EBITDA Implied Enterprise Value to LTM Acquirer Source: Capital IQ, 451 Research (a) Selection criteria based on size and publicly available information.
  47. 47. 46 Promotions/Loyalty/Rewards Content/Reviews/Comparison Shopping Sector Marketing Services Data & Data Analytics Payments/Processing eCommerce Platforms & Delivery Mobile Summary
  48. 48. 47 Content/Comparison Shopping/Reviews Private Company Universe Private Content/Comparison Shopping/Reviews Companies Source: Capital IQ, 451 Research Company Revenue $ Raised ($M) Company Description Loyalty 1. FiveStars ND $42.7 Operates a customer loyalty program 2. Cartera Commerce ND 29.8 Provides card-linked marketing solutions that increase revenue and customer loyalty for merchants, banks, card issuers, and loyalty programs 3. Belly ND 27.0 Operates a loyalty program 4. CrowdTwist ND 16.2 Operates a customer loyalty program 5. RewardsNOW ND 7.5 Provides enterprise loyalty programs for financial service providers 6. Givex ND NA Provides gift and loyalty card solutions Promotions 1. LivingSocial ND $1,126.6 Provides a local marketplace to buy and share the best things to do in a city 2. Gilt Groupe ND 236.0 Operates an online flash sale site for men, women, girls, and boys 3. Cardlytics ND 167.0 Provides card-linked marketing services and operates an advertising platform 4. Beyond the Rack ND 106.5 Operates an online shopping club for women and men 5. EDO Interactive ND 73.5 Provides an easy way to personalize offers and make them automatically available through credit or debit cards and mobile devices 6. Prodege ND 61.0 Operates a daily deal site, discount e-commerce shop, and social rewards portal 7. CouponCabin ND 54.0 Provides online coupon codes, printables, and grocery coupons 8. Wanderful Media ND 50.5 Operates local shopping sites for discovery shopping 9. Affinity Solutions ND 42.3 Develops targeted marketing, rebate rewards, experiential benefits, and editorial content 10. Linkable Networks ND 37.5 Provides a platform that turns online, mobile, email, print, TV, and radio ads into linkable savings offers tied to a consumer’s credit or debit card 11. SavingStar ND 27.4 Provides a digital grocery eCoupon rewards service for customers to redeem at grocery and drug stores 12. ID.me ND 17.8 Provides a digital identity network 13. Next Jump ND 9.0 Provides Internet-based rewards and loyalty programs 14. Yipit ND 7.6 Collects, aggregates, and recommends online daily deals 15. Vertive ND 7.0 Publishes Websites that let consumers research, compare, and purchase products and services 16. Offermatic ND 5.3 Owns and operates an online automatic savings platform 17. Lifebooker ND 4.0 Provides online access to daily deals related to beauty, health, fitness, and lifestyle products and services 18. Intelligent Clearing Network ND 2.6 Electronically validates and clears paper and digital coupons, and other incentives for grocery, drug, and mass merchant retailers 19. Instream ND NA Offers marketing services for brands and retailers 20. RevTrax ND NA Owns and operates an omnichannel promotional platform 21. Catalina Marketing ND NA Delivers advertising messaging and promotions based on shopper purchase insights via mobile phones and devices 22. 8coupons ND NA Owns and operates a platform that offers daily deals on lifestyle services, food products, and meal vouchers 23. DealRadar ND NA Operates an online marketplace for local services 24. Inmar ND NA Operates intelligent commerce networks 25. Modnique ND NA Operates as an e-commerce retailer of apparel, jewelry, shoes, handbags, watches, accessories, kids and beauty products by organizing sale events 26. Slickdeals ND NA Owns and operates an online portal that enables shopping deal searching solutions
  49. 49. 48 Content/Comparison Shopping/Reviews Summary M&A Transactions (2012 – 2014) Sources: Company filings, CapIQ, and Wall Street research. Precedent Transactions from 2012 to 2014 (a) Selection criteria based on size and publicly available information. Date Announced Target Acquirer Implied EV ($M) EV / LTM Rev Target LTM Rev 1. 11/08/12 Kayak The Priceline Group $1,649 5.8x $283 2. 05/24/12 PowerReviews Bazaarvoice 147 12.4x 12 3. 07/17/14 Citrus Lane Care.com 58 6.4x 9 4. 04/08/14 PowerReviews Viewpoints 26 NM ND 5. 03/26/14 Simplexity Wal-Mart 10 NM ND 6. 12/19/13 FanSnap SeatGeek ND NM ND 7. 02/19/14 Connexity Shopzilla (nka:Connexity) ND NM ND 8. 04/07/14 8thBridge Fluid ND NM ND 9. 01/06/14 Ador LightInTheBox ND NM ND 10. 12/04/14 Become Connexity ND NM ND 11. 01/22/14 BuyerZone.com Purch ND NM ND 12. 09/24/13 fiveby tv StumbleUpon ND NM ND 13. 11/07/12 Retrevo Shopzilla (nka:Connexity) ND NM ND 14. 05/20/13 Seamless GrubHub ND NM ND 15. 09/03/14 ShopIgniter Mixpo ND NM ND 16. 07/11/13 Zappli Shopzilla (nka:Connexity) ND NM ND
  50. 50. 49 Content/Comparison Shopping/Reviews Largest Private Company Financings (2012 – 2014) Financings >=$10M from 2012 to 2014 Source: Capital IQ, 451 Research Date Announced Target Transaction Value ($M) Investors 1. 10/31/13 DealerRater 25.0 Great Hill Partners 2. 07/21/14 Intent Media 22.7 Insight Venture Partners; Matrix Partners; Redpoint Ventures 3. 05/06/14 AM Marketplaces 15.0 Lightspeed Venture Partners; Matrix Partners India; Tiger Global Management 4. 11/07/13 OnRamp 12.0 Drive Capital
  51. 51. 50 Promotions/Loyalty/Rewards Content/Reviews/Comparison Shopping Sector Marketing Services Data & Data Analytics Payments/Processing eCommerce Platforms & Delivery Mobile Summary
  52. 52. 51 Data & Data Analytics Private Company Universe Private Data & Data Analytics Companies Source: Capital IQ, 451 Research Company Revenue $ Raised ($M) Company Description Personalization/Optimization 1. RichRelevance ND $81.8 Offers an omni-channel personalization platform 2. Strands ND 55.0 Provides online personalization solutions 3. Brickstream ND 50.5 Offers brick and mortar optimization solutions 4. MyBuys ND 50.4 Provides retailers with individual shopping interests by cross-functionally 5. Monetate ND 43.3 Provides marketing optimization solutions, services, and content resources 6. BloomReach ND 41.0 Develops a cloud marketing platform analyzing big data to help surface content 7. Baynote ND 33.7 Personalized customer experience solutions 8. HookLogic ND 23.8 Provides e-commerce performance marketing solutions to retailers 9. Simplifi ND 22.8 Provides a demand side platform that integrates search and display advertising 10. Chango ND 20.3 Connects marketers with their target audience 11. TellApart ND 17.8 Leverages data to personalize customer experience & drive omnichannel commerce 12. Maxymiser ND 14.8 Provides cloud-based testing, personalization, and cross-channel optimization 13. Certona ND 7.0 Offers a multi-channel personalization platform for brands and retailers 14. The Retail Equation ND 6.0 Provides retail real-time transaction optimization solutions for retailers 15. HappyOrNot ND ND Develops wireless point-of-experience devices 16. AccuStore ND ND Provides retail store management software and professional surveys 17. Clear Demand ND ND Delivers a price strategy optimization solution for brick and mortar retail Data 1. Quri ND $14.0 Web application that helps businesses monitor their products & promotions 2. SumAll ND 13.5 Puts online marketing and eCommerce data into one chart 3. Sagarmatha ND 3.7 Specializes on one-to-one marketing based on advanced data mining technology 4. ShopperTrak ND ND Provides shopper insights & analytics to improve retail profitability & effectiveness 5. G2 Web Services ND ND Provides customized solutions to protect client’s brand on the Internet Analytics 1. IP Commerce ND $67.8 Provides a PaaSsolution that functions as an operating system for commerce 2. RetailNext ND 59.4 Enables the collection & visualization of data about in-store customer engagement 3. Retail Solutions ND 47.7 Provides data management, business intelligence, and POS apps 4. Sojern ND 45.8 Provides a data-driven traveler engagement platform 5. NewBrandAnalytics ND 35.0 Operates a social media intelligence platform that provides tools 6. Euclid ND 28.9 Delivers actionable shopper insights to brick and mortar retailers 7. Profitero ND 9.1 Offers competitive price monitoring technology 8. Qualaroo ND 7.3 Enables marketers to target in-flow customer engagements 9. Jirafe ND 7.0 Provides e-commerce-tailored analytics that facilitate data-driven marketing 10. Revuze ND ND Engages in extracting the reviews and personalizing them to customers' needs 11. Quantum Retail Technologies ND ND Provides software for retail industry experts, technologists, and scientists 12. Tomax ND ND Develops cloud-based retail solutions 13. Buxton ND ND Provides strategic decision-making information for targeted marketing 14. Celect ND ND Designs and develops predictive analytics software 15. DS-IQ ND ND Provides shopper marketing solutions that target, activate, & optimize campaigns
  53. 53. 52 Data & Data Analytics Summary M&A Transactions (2012 – 2014) Sources: Company filings, CapIQ, and Wall Street research. Precedent Transactions from 2012 to 2014 (a) Selection criteria based on size and publicly available information. Date Announced Target Acquirer Implied EV ($M) EV / LTM Rev Target LTM Rev 1. 02/06/13 Channel Intelligence Google $125 NM ND 2. 07/21/14 Retail Decisions ACI Worldwide 94 NM ND 3. 07/15/13 AD-X Limited Criteo 12 NM ND 4. 10/29/14 Nomi Brickstream Corporation ND NM ND 5. 07/15/14 Freshplum TellApart ND NM ND 6. 05/20/14 SeeWhy SAP ND NM ND 7. 05/14/14 PivotLink SmartFocus ND NM ND 8. 03/27/14 Media Armor Nomi ND NM ND 9. 02/11/14 Spire DataLogix ND NM ND 10. 09/30/13 AdStack TellApart ND NM ND 11. 09/03/13 IP Commerce Business Unit EVO Payments International ND NM ND 12. 08/14/13 Precog RichRelevance ND NM ND 13. 07/11/13 TwentyFeet SumAll ND NM ND 14. 06/02/13 RapidBlue Solutions ShopperTrak ND NM ND 15. 05/30/13 ShopLogic BloomReach ND NM ND 16. 05/13/13 Avail Intelligence RichRelevance ND NM ND 17. 10/29/12 ReTel Technologies ShopperTrak ND NM ND 18. 09/05/12 Connection Engine DataLogix ND NM ND 19. 06/12/12 Retail Optimization Revionics ND NM ND 20. 01/16/12 Acteea PivotLink ND NM ND 21. 05/14/14 PivotLink SmartFocus ND NM ND 22. 04/10/14 AdQuantic Criteo ND NM ND 23. 12/22/14 Datalogix Oracle ND NM ND
  54. 54. 53 Data & Data Analytics Largest Private Company Financings (2012 – 2014) Financings >=$10M from 2012 to 2014 Source: Capital IQ, 451 Research Date Announced Target Transaction Value ($M) Investors 1. 05/23/14 Datalogix $45.0 Institutional Venture Partners, Wellington Management Company 2. 07/07/14 RetailNext 30.0 August Capital, StarVest; QUALCOMM; Nokia; Tyco; Commerce Ventures; American Express; Activant; Commerce Ventures 3. 05/01/12 RichRelevance 28.0 DFJ; Gray Ventures; Shea, CrossLink; Tugboat; RTP Ventures; Greylock Partners 4. 10/18/12 BloomReach 25.0 Bain Capital Ventures; Lightspeed Venture Partners; New Enterprise Associates 5. 04/18/13 Datalogix 25.0 IVP; General Catalyst; Costanoa Venture Capital 6. 06/02/14 RichRelevance 20.0 DFJ, Tugboat, CrossLink, RTP Ventures, JF Shea, Gray Ventures 7. 12/11/13 Simplifi 16.0 Contour Ventures, Frontier Capital 8. 03/31/13 RetailNext 15.0 August Capital, StarVest Partners; Nokia Growth Partners, StarVest; Commerce Ventures 9. 08/30/13 HookLogic 14.3 Intel Capital; Bain Capital Ventures 10. 11/21/12 Chango 12.0 iNovia, Extreme Ventures, Metamorphic, Rho, Mantella 11. 01/05/12 Maxymiser 12.0 Investor Growth Capital; Pentech Ventures 12. 10/02/13 Quri 10.0 Catamount Ventures Management; Matrix Partners; Simon Equity 13. 11/22/13 Sojern 10.0 Focus Ventures; Industry Ventures; Norwest Venture Partners; Triangle Peak Partners; Trident Capital
  55. 55. 54 Promotions/Loyalty/Rewards Content/Reviews/Comparison Shopping Sector Marketing Services Data & Data Analytics Payments/Processing eCommerce Platforms & Delivery Mobile Summary
  56. 56. 55 eCommerce Platforms/Marketplaces & Delivery Private Company Universe Private Platforms/Marketplaces & Delivery Companies Source: Capital IQ, 451 Research Company Revenue $ Raised ($M) Company Description Platform 1. Acquia ND $118.0 Provides products, services, and technical support for Drupal 2. Thing Daemon ND 102.0 Operates an online platform that enables to discover, collect, and buy goods 3. Jet.com ND 75.1 Offers a membership-based marketplace 4. BigCommerce ND 75.0 Operates a design/selling platform 5. Cinsay ND 69.8 Provides an interactive video-based platform 6. Live Gamer ND 55.9 Offers commerce solutions for gaming 7. Weebly ND 50.7 Operates an online website, blog, and store platform 8. MarketLive ND 40.9 Operates as a retail technology platform 9. Symphony Commerce ND 39.0 Provides an all-in-one eCommerce solution 10. Volusion ND 35.0 Offers eCommerce software and web design 11. Newgistics ND 34.6 Provides parcel and freight transportation solutions 12. Plum District ND 30.6 Offers products, activities, and inspiration for mothers 13. PrestaShop ND 14.9 Provides open-source eCommerce software 14. Wanelo ND 14.7 Operates a digital mall 15. Club W ND 13.1 Offers a personalized consumer recommendation engine and point of purchase 16. Gumroad ND 8.1 Enables content creators to sell directly to their audiences 17. Glyde Corporation ND 8.0 Operates a platform that enables users and companies to buy and sell electronics 18. BrandShop ND 7.5 Provides digital commerce solutions for brands 19. Storenvy ND 6.5 Provides an e-commerce network enabling users to shop across multiple stores 20. Spree Commerce ND 6.5 Provides an open-source e-commerce platform for stores 21. WebLinc ND 6.0 Provides an e-commerce platform for wholesale and retail brands/companies 22. AllStar Deals ND 5.7 Operates a brand advertising platform that includes analytics & e-Commerce tools 23. Soldsie ND 5.0 Provides a social commerce platform that enables purchasing through Facebook 24. Sellvana ND 5.0 Offers an open source eCommerce platform for merchants and developers 25. UniteU Technologies ND ND Provides e-commerce merchandising tools, SEO, and integration services 26. Grid Dynamics ND ND Offers an open eCommerce search platform 27. RBM Technologies ND ND Provides software-as-a-service based retail solutions 28. ComQi ND ND Provides a multi-channel message management platform 29. ShopVisible ND ND Develops e-commerce software solutions 30. Raymark ND ND Develops retail software solutions 31. Centril ND ND Operates a cloud-based platform which provides retail intelligence data 32. CORESense ND ND Provides cloud-based ecommerce & retail business management software solutions 33. Mozu ND ND Provider of enterprise ecommerce platform 34. Revmetrix ND ND Develops data intelligence software Marketplace 1. Elastic Path Software ND $13.8 Provides API-centric commerce technology, solutions, and practices 2. Shyp ND 12.7 Provides a mobile application for shipping needs 3. TonZof ND 11.0 Provides a multichannel e-commerce platform for suppliers and distributors 4. StarClub ND ND Provides ecommerce platforms and private social networks for celebrities & brands 5. ChannelNet ND ND Provides multi-channel selling solutions Delivery 1. Shopify ND $122.0 Operates a commerce platform 1. GoECart ND ND Provides on-demand ecommerce suite of applications 2. Petrosoft ND ND Provides a seamless interface from the point of sale to retail back office systems
  57. 57. 56 eCommerce Platforms/Marketplaces & Delivery Summary M&A Transactions (2012 – 2014) Sources: Company filings, CapIQ, and Wall Street research. Precedent Transactions from 2012 to 2014 (a) Selection criteria based on size and publicly available information. Date Announced Target Acquirer Implied EV ($M) EV / LTM Rev Target LTM Rev 1. 06/13/14 OpenTable The Priceline Group $2,496 12.6x $198 2. 06/05/13 hybris SAP 1,350 12.4x 109 3. 10/23/14 Digital River Siris Capital Group 646 1.7x 375 4. 06/20/13 Society6 Demand Media 90 4.8x 19 5. 06/16/14 Auctane (ShipStation) Stamps.com 76 15.0x 5 6. 07/17/14 Venda NetSuite 51 NM ND 14. 12/11/14 ShopVisible Epicor 25 NM ND 7. 01/23/14 Mainstreet Commerce Demandware 19 NM ND 8. 10/07/14 i-parcel United Parcel Service ND NM ND 9. 06/03/14 TruCentric Acquia ND NM ND 10. 02/06/14 Buy4Now MyWebGrocer ND NM ND 11. 08/01/13 Jet Cooper Shopify ND NM ND 12. 06/11/13 MyWebGrocer HGGC ND NM ND 13. 03/12/14 eCommerce Industries The Carlyle Group ND NM ND
  58. 58. 57 eCommerce Platforms/Marketplaces & Delivery Largest Private Company Financings (2012 – 2014) Financings >$10M from 2012 to 2014 Source: Capital IQ, 451 Research Date Announced Target Transaction Value ($M) Investors 1. 10/12/13 Shopify $100.0 Bessemer; Insight Venture Partners; FirstMark Capital; Felicis Ventures, Georgian Partners; OMERS Ventures 2. 12/20/12 Thing Daemon 60.0 American Express Company 3. 03/26/14 Weebly 50.0 Sequoia Capital; Tencent 4. 08/15/13 Zuora 50.0 Benchmark; Redpoint; Vulcan Capital; Index; Northgate; Shasta; Tenaya Capital, Next World Capital; Greylock Partners 5. 07/25/13 BigCommerce 40.0 Revolution Growth, Revolution Growth Fund 6. 11/16/12 Acquia 30.0 Goldman Sachs; North Bridge; Sigma Partners; Investor Growth Capital; Accolade; Tenaya Capital 7. 08/03/12 Connecture 20.0 Chrysalis Ventures; Great Point Partners 8. 09/05/12 BigCommerce 20.0 General Catalyst Partners; FLOODGATE 9. 03/22/12 Symphony Commerce 12.2 FirstMark Capital; Bain Capital Ventures; Metamorphic Ventures 10. 02/22/13 Wanelo 11.0 ND 11. 04/28/14 BrightPearl 10.1 MMC VENTURES; Quayle Munro; Notion Capital Partners
  59. 59. 58 Promotions/Loyalty/Rewards Content/Reviews/Comparison Shopping Sector Marketing Services Data & Data Analytics Payments/Processing eCommerce Platforms & Delivery Mobile Summary
  60. 60. 59 Marketing Services Private Company Universe Private Marketing Services Companies Source: Capital IQ, 451 Research Company Revenue $ Raised ($M) Company Description Software / Solutions 1. Moxie Software ND $80.0 Provides CRM software 1. Zoom Media ND 32.0 Provides targeted out-of-home advertising solutions 2. Needle ND 19.5 Customer engagement platform 3. Signpost ND 16.1 Provides CRM software 4. Experticity ND 16.0 Aggregates influential category experts, enabling brands & retailers to engage them 5. Punchtab ND 11.5 Offers omni-channel engagement and insights platform 6. MaxPoint Interactive ND 11.0 Layers offline and online data sources to help advertisers 7. Acosta ND ND Provides outsourced sales, marketing, and retail merchandising services 8. RTC ND ND Helps brands and retailers to activate their physical presence at retail globally 9. ciValue ND 0.5 Provides an innovative marketing collaboration solution for retailers and suppliers 10. Connexion Point ND ND Aligns and focuses individualized campaigns to pinpoint accuracy Social 1. Curalate ND $12.4 Provides a marketing and analytics suite for visual social media platforms 2. SocialWire ND 3.5 Recommendation engine for product ads, helping online retailers target advertising Agency 1. Fluid ND $24.0 Offers web development services 2. eFashion Solutions ND 22.3 Offers creative services including photo and video production and site design 3. Capre Group ND ND Offers marketing consulting services and specializes in shopper marketing 4. Collaborative Marketing ND ND Develops shopper marketing initiatives 5. HMT Associates ND ND Provides shopper marketing solutions for brands 6. Interbrand Design Forum ND ND Offers brand strategy, retail design, and digital retail services 7. Mars Advertising ND ND Offers international shopper marketing agency services 8. Match Marketing ND ND Offers shopper marketing solutions 9. Moosylvania Marketing ND ND Operates as an advertising & creative agency offering e-commerce services 10. So Do It ND ND Provides digital marketing services 11. T3 ND ND Operates as an advertising agency 12. The Marketing Store (HAVI) ND ND Provides shopper marketing services 13. Triad Digital Media ND ND Creates, manages, and operates online advertising and media programs 14. Two/Ten Agency ND ND Connects consumers with brands 15. Zooka Creative ND ND Provides shopper marketing services 16. FitForCommerce ND ND Provides eCommerce consulting services
  61. 61. 60 Marketing Services Summary M&A Transactions (2012 – 2014) Sources: Company filings, CapIQ, and Wall Street research. Precedent Transactions from 2012 to 2014 (a) Selection criteria based on size and publicly available information. Date Announced Target Acquirer Implied EV ($M) EV / LTM Rev Target LTM Rev 1. 06/16/14 Advantage Sales & Marketing CVC Capital Partners $4,200 NM ND 2. 11/03/14 Sapient Publicis Groupe 3,376 2.4x 1383 3. 06/11/12 Mosaic US Holdings Acosta 300 NM ND 4. 05/17/13 Acquity Group Accenture 285 2.0x 140 5. 05/28/13 WebCollage Answers Corporation 37 NM ND 6. 02/20/14 TEDEMIS Criteo 29 2.6x 11 7. 06/21/12 Brand.net Valassis Communications 18 NM ND 8. 07/28/14 Acosta Carlyle, GIC ND NM ND 9. 10/14/14 Cquotient Demandware ND NM ND 10. 04/28/14 StoreBoard Media Advantage Sales & Marketing ND NM ND 11. 07/01/14 Crown Partners Razorfish ND NM ND 12. 04/07/14 8thBridge Fluid ND NM ND 13. 03/10/14 Deem Chinasoft International ND NM ND 14. 01/06/14 BoxTop Media Advantage Sales & Marketing ND NM ND 15. 11/11/13 Circle One Marketing Match Marketing Group ND NM ND 16. 10/14/13 Tri Venture Marketing Advantage Sales & Marketing ND NM ND 17. 09/03/13 Aztec Information Services Information Resources ND NM ND 18. 08/02/13 Program Sales Advantage Sales & Marketing ND NM ND 19. 07/09/13 FreshLook Marketing Group Information Resources ND NM ND 20. 06/03/13 Pryority Food Marketing Advantage Sales & Marketing ND NM ND 21. 01/10/13 Triad Digital Media Falcon Investment Advisors ND NM ND 22. 06/25/12 Circle Street Valassis Communications ND NM ND 23. 05/19/12 Ansira KRG Capital Partners ND NM ND 24. 11/14/13 Servio CrowdSource Solutions ND NM ND 25. 06/11/13 MyWebGrocer HGGC ND NM ND 26. 12/04/14 Optaros Interpublic Group ND NM ND
  62. 62. 61 Marketing Services Largest Private Company Financings (2012 – 2014) Financings >=$10M from 2012 to 2014 Source: Capital IQ, 451 Research Date Announced Target Transaction Value ($M) Investors 1. 02/21/12 Fluid $24.0 Goldman Sachs 2. 08/28/14 eXperticity 16.0 ND 3. 02/26/13 Deem 12.5 ND 4. 11/12/13 Signpost 10.0 Spark Capital Partners; OpenView Venture Partners; Scout Ventures
  63. 63. 62 Promotions/Loyalty/Rewards Content/Reviews/Comparison Shopping Sector Marketing Services Data & Data Analytics Payments/Processing eCommerce Platforms & Delivery Mobile Summary
  64. 64. 63 Mobile Private Company Universe Private Mobile Companies Source: Capital IQ, 451 Research Company Revenue $ Raised ($M) Company Description Location Based 1. Foursquare ND $199.4 Provides a location based social network 2. Verve Wireless ND 35.5 Operates a location-based advertising platform that connects mobile ads with in-store sales 3. PlaceIQ ND 27.8 Provides location intelligence services that enable advertisers to reach mobile brand audiences for marketing activities 4. Swirl ND 14.0 Operates an in-store mobile marketing platform 5. Gravy ND 10.4 Empowers brands and businesses to know and act on their consumers' local offline experiential behavior 6. Aisle411 ND 9.7 Operates a mobile retail navigation and social shopping platform 7. Placecast ND 8.0 Provides an opt-in marketing service via mobile devices 8. Point Inside ND 4.7 Enables brick and mortar retailers to engage with mobile customers along their purchase path 9. ShopSavvy ND 7.8 Provides mobile applications for shoppers to scan the items they are shopping for 10. ScoutMob ND 8.6 Provides mobile deals for local curious customers 11. Shopular ND 6.4 Designs and develops a location based mobile shopping application which tracks deals for shopping 12. 3GVision ND NA Provides mobile barcode reading solutions and image processing technologies Payments 1. Square ND $590.5 Operates as a merchant services aggregator and mobile payments company 2. Revel Systems ND 138.8 Offers iPad POS services 3. Credorax ND 80.0 Provides online payment processing, credit card acquiring, and fraud protection services 4. Paydiant ND 49.8 Operates a mobile payment platform 5. ShopKeep POS ND 37.2 Provides a cloud-based iPad POS or checkout system for retailers 6. Coin ND 15.5 Offers a connected device that stores multiple accounts and information of swipeable cards in one place 7. CARDFREE ND 10.0 Provides a mobile payment platform 8. Plastc ND NA Provides a full-featured and secure payment device 9. Level Up ND 21.3 Offers a QR code pay-by-phone application for consumers and a terminal system for merchants 10. Mad Mobile ND NA Provides mCommerce and enterprise mobile solutions Software/Solutions 1. Deem ND $50.0 Provides Commerce-as-a-Service (CaaS) to customers, merchants, and partners 2. Netbiscuits ND 27.0 Operates a cloud platform for development and delivery of web apps 3. Branding Brand ND 18.2 Powers mobile commerce sites and apps 4. Helpshift ND 13.3 Offers a mobile customer service platform 5. Starmount ND 13.0 Provides in-store mobile software for retailers 6. Boxed ND 8.0 Operates a mobile-commerce platform that offers the discounts of warehouse club shopping 6. Jello Labs ND 7.5 Develops mobile commerce applications 7. GPShopper ND NA Integrated mobile commerce platform for retailers and brands 2. Scanbuy ND NA Develops cloud-based mobile connection and QR code scanning software solutions
  65. 65. 64 Mobile Summary M&A Transactions (2012 – 2014) Sources: Company filings, CapIQ, and Wall Street research. Precedent Transactions from 2012 to 2014 (a) Selection criteria based on size and publicly available information. Date Announced Target Acquirer Implied EV ($M) EV / LTM Rev Target LTM Rev 1. 09/27/14 shopkick SK Planet $200 7.6x $26 2. 01/31/13 mFoundry Fidelity National Information 147 NM ND 3. 03/25/14 KnowledgePath Solutions Digital Management 22 1.5x 15 4. 01/10/13 Retail Anywhere NetSuite 6 NM ND 5. 01/24/12 eCommLink Green Dot Corporation 3 NM ND 6. 05/06/14 30 Second Software Phunware ND NM ND 7. 04/10/12 AisleBuyer Intuit ND NM ND 8. 02/26/14 BookFresh Square ND NM ND 9. 08/04/14 Caviar Square ND NM ND 10. 05/29/14 Deem Hony Capital ND NM ND 11. 12/11/13 Evenly Square ND NM ND 12. 02/28/12 MoreMagic Solutions Oberthur Technologies ND NM ND 13. 10/23/12 Quofore International AFS Technologies ND NM ND 14. 02/27/12 ROAM Data Ingenico ND NM ND 15. 12/03/13 Viewfinder Square ND NM ND
  66. 66. 65 Mobile Largest Private Company Financings (2012 – 2014) Financings >=$10M from 2012 to 2014 Source: Capital IQ, 451 Research Date Announced Target Transaction Value ($M) Investors 1. 07/24/12 Square $200.0 Starbucks Corporation; Rizvi Traverse Management; Citi Ventures 2. 09/12/14 Square 150.0 GIC; Rizvi Traverse Management; Goldman Sachs 3. 12/04/13 Foursquare Labs 77.1 Draper Fisher Jurvetson; The Capital Group Companies; Draper Fisher Jurvetson Growth; Microsoft Ventures 4. 09/19/13 Deem 70.3 ND 5. 05/29/14 Deem 50.0 Hony Capital; PointGuard Ventures 6. 04/11/13 Foursquare Labs 41.0 Union Square Ventures; Spark Capital Partners; O'Reilly AlphaTech Ventures; Andreessen Horowitz 7. 04/24/14 ShopKeep POS 25.0 Canaan Partners; Contour Venture Partners; Thayer Street Partners; Tribeca Venture Partners 8. 06/19/14 InfoScout 16.0 Bain Capital Ventures; Horizon Partners; MHS Capital 9. 08/26/13 Paydiant 15.2 North Bridge; General Catalyst Partners 10. 02/10/14 PlaceIQ 15.0 Iris Capital; U.S. Venture Partners; Valhalla Partners; Harmony Partners, IA Ventures 11. 12/20/13 Paydiant 15.0 West Capital Advisors, LLC 12. 02/28/12 Verve Wireless 14.0 BlueRun Ventures; Nokia Growth 13. 04/28/14 Caviar 13.0 Tiger Global, MIX Greens 14. 12/10/13 Starmount 13.0 Kayne Anderson 15. 06/22/12 Paydiant 12.0 North Bridge; General Catalyst Partners 16. 09/11/13 Branding Brand 10.5 Insight Venture Partners; eBay Enterprise; Lead Edge Capital; CrunchFund 17. 06/24/14 Helpshift 10.0 Intel Capital; Nexus Venture Partners; True Ventures; Visionnaire Ventures 18. 10/26/12 Cardfree 10.0 Snapfinger; Restaurant Sciences
  67. 67. 66 Promotions/Loyalty/Rewards Content/Reviews/Comparison Shopping Sector Marketing Services Data & Data Analytics Payments/Processing eCommerce Platforms & Delivery Mobile Summary
  68. 68. 67 Payments & Processing Private Company Universe Private Payments & Processing Companies Source: Capital IQ, 451 Research Company Revenue $ Raised ($M) Company Description Payments 1. BlueSnap ND $205.4 Provides eCommerce transformation solutions with its SaaS/cloud e-business platform 2. 2Checkout ND 60.0 Offers online payment 3. Swipely ND 40.5 Provides an online platform of payment networks for consumers and businesses 4. WePay ND 33.9 Payments API 5. Dwolla ND 27.7 Provides online payment solutions 6. Billeo ND 15.3 Provides online shopping and bill pay services 7. Intelligent Markets ND 13.2 Designs, develops, markets, installs, and maintains order management software to broker dealers 8. Balluun ND 12.5 Operates an online business marketplace for fashion designers and retailers to connect 9. Monsoon Commerce ND 11.1 Provides inventory and multi-channel management 10. Miura Systems ND ND Provider of innovative secure electronic payments hardware Processing 1. Zuora ND $127.5 Subscription management SaaS 2. YapStone ND 55.4 Provides electronic payment processing platform solutions for online marketplaces 3. Vend ND 30.5 Provides Web-based point-of-sale (POS) software 4. Brightpearl (T27 Systems) ND 24.5 Offers an inventory and sales order management app 5. PreCash ND 10.0 Provides payment and transaction processing services 6. Shopatron ND 10.0 Offers order management services 7. Copera ND 5.0 Provides payment processing for ecommerce companies 8. flexReciepts ND ND Provides digital reciepts worldwide 9. Fanplayr ND ND Develops and operates a multi-channel coupon platform 10. MyOB ND ND Offers inventory, payroll, retail, and point of sale software to manage sales, stock, and customers in one system
  69. 69. 68 Payments & Processing Summary M&A Transactions (2012 – 2014) Sources: Company filings, CapIQ, and Wall Street research. Precedent Transactions from 2012 to 2014 (a) Selection criteria based on size and publicly available information. Date Announced Target Acquirer Implied EV ($M) EV / LTM Rev Target LTM Rev 1. 09/26/13 Braintree Payment Solutions PayPal $800 NM ND 2. 08/06/14 Brightstar SoftBank 790 NM ND 3. 10/23/14 Digital River Siris Capital Group 646 1.7x 375 4. 10/31/12 Litle & Co. Vantive 361 1.3x 285 5. 11/14/13 Innotrac Sterling Partners 108 0.9x 123 6. 11/24/14 Fifth Gear Speed Commerce 75 1.5x 50 7. 12/12/13 Lemon LifeLock 43 NM ND 8. 05/08/13 OrderMotion NetSuite 27 NM ND 9. 07/24/14 Global Merchant Advisors Optimal Payments 15 1.8x 8 10. 11/04/14 Kickserv ReachLocal 11 NM ND 11. 07/24/13 MerchantOS LightSpeed Retail ND NM ND 12. 07/17/12 Lumber Labs eBay ND NM ND 13. 04/02/12 TxVia Google ND NM ND 14. 01/14/13 Third Solutions SPINS ND NM ND 15. 03/12/14 eCommerce Industries The Carlyle Group ND NM ND 16. 01/28/13 Payvment Intuit ND NM ND 17. 11/11/14 SecureNet Payment Systems WorldPay Limited ND NM ND 18. 11/11/14 SecureNet Payment Systems WorldPay Limited ND NM ND
  70. 70. 69 Payments & Processing Largest Private Company Financings (2012 – 2014) Financings >=$10M from 2012 to 2014 Source: Capital IQ, 451 Research Date Announced Target Transaction Value ($M) Investors 1. 11/11/14 Revel Systems $75.0 Welsh, Carson, Anderson & Stowe 2. 01/24/13 2Checkout.com 60.0 Trident Capital; Chicago Growth Partners 3. 09/17/14 LightSpeed Retail 35.0 Accel Partners; iNovia Capital; Hercules Technology Growth Capital 4. 05/07/13 Viewpost IP 30.0 ND 5. 04/24/14 Shopkeep POS 25.0 Canaan Partners; Tribeca Venture Partners; TTV Capital; Contour Venture Partners; Thayer Street Partners 6. 03/25/14 Vend 25.0 Point Nine Capital; Square Peg Capital; Valar Ventures 7. 06/12/12 LightSpeed Retail 21.3 Accel Partners 8. 05/15/14 Swipely 20.0 First Round Capital; Index Ventures; Pritzker Group Venture Capital; Shasta Ventures 9. 06/04/12 SecureNet 18.0 Sterling 10. 08/30/13 Dwolla 17.0 Andreessen Horowitz; Thrive Capital; Union Square Ventures; Village Ventures 11. 01/16/14 WePay 15.0 August Capital; Highland Capital Partners; Ignition Partners; Continental Investors 12. 05/10/13 Swipely 12.0 First Round Capital; Greylock Partners; Index Ventures; Shasta Ventures 13. 12/20/12 Fortumo OU 10.0 Intel Capital; Greycroft Partners 14. 12/05/12 Shopkeep POS 10.0 Canaan Partners; Tribeca Venture Partners; TTV Capital 15. 09/30/12 Square 10.0 Sumitomo Mitsui Card
  71. 71. 70 Promotions/Loyalty/Rewards Content/Reviews/Comparison Shopping Sector Marketing Services Data & Data Analytics Payments/Processing eCommerce Platforms & Delivery Mobile Summary
  72. 72. 71 Promotions/Loyalty/Rewards Private Company Universe Private Promotions/Loyalty/Rewards Companies Source: Capital IQ, 451 Research Company Revenue $ Raised ($M) Company Description Loyalty 1. FiveStars ND $42.7 Operates a customer loyalty program 2. Cartera Commerce ND 29.8 Provides card-linked marketing solutions that increase revenue and customer loyalty for merchants, banks, card issuers, and loyalty programs 3. Belly ND 27.0 Operates a loyalty program 4. CrowdTwist ND 16.2 Operates a customer loyalty program 5. RewardsNOW ND 7.5 Provides enterprise loyalty programs for financial service providers 6. Givex ND NA Provides gift and loyalty card solutions Promotions 1. LivingSocial ND $1,126.6 Provides a local marketplace to buy and share the best things to do in a city 2. Gilt Groupe ND 236.0 Operates an online flash sale site for men, women, girls, and boys 3. Cardlytics ND 167.0 Provides card-linked marketing services and operates an advertising platform 4. Beyond the Rack ND 106.5 Operates an online shopping club for women and men 5. EDO Interactive ND 73.5 Provides an easy way to personalize offers and make them automatically available through credit or debit cards and mobile devices 6. Prodege ND 61.0 Operates a daily deal site, discount e-commerce shop, and social rewards portal 7. CouponCabin ND 54.0 Provides online coupon codes, printables, and grocery coupons 8. Wanderful Media ND 50.5 Operates local shopping sites for discovery shopping 9. Affinity Solutions ND 42.3 Develops targeted marketing, rebate rewards, experiential benefits, and editorial content 10. Linkable Networks ND 37.5 Provides a platform that turns online, mobile, email, print, TV, and radio ads into linkable savings offers tied to a consumer’s credit or debit card 11. SavingStar ND 27.4 Provides a digital grocery eCoupon rewards service for customers to redeem at grocery and drug stores 12. ID.me ND 17.8 Provides a digital identity network 13. Next Jump ND 9.0 Provides Internet-based rewards and loyalty programs 14. Yipit ND 7.6 Collects, aggregates, and recommends online daily deals 15. Vertive ND 7.0 Publishes Websites that let consumers research, compare, and purchase products and services 16. Offermatic ND 5.3 Owns and operates an online automatic savings platform 17. Lifebooker ND 4.0 Provides online access to daily deals related to beauty, health, fitness, and lifestyle products and services 18. Intelligent Clearing Network ND 2.6 Electronically validates and clears paper and digital coupons, and other incentives for grocery, drug, and mass merchant retailers 19. Instream ND NA Offers marketing services for brands and retailers 20. RevTrax ND NA Owns and operates an omnichannel promotional platform 21. Catalina Marketing ND NA Delivers advertising messaging and promotions based on shopper purchase insights via mobile phones and devices 22. 8coupons ND NA Owns and operates a platform that offers daily deals on lifestyle services, food products, and meal vouchers 23. DealRadar ND NA Operates an online marketplace for local services 24. Inmar ND NA Operates intelligent commerce networks 25. Modnique ND NA Operates as an e-commerce retailer of apparel, jewelry, shoes, handbags, watches, accessories, kids and beauty products by organizing sale events 26. Slickdeals ND NA Owns and operates an online portal that enables shopping deal searching solutions
  73. 73. 72 Promotions/Loyalty/Rewards Summary M&A Transactions (2012 – 2014) Sources: Company filings, CapIQ, and Wall Street research. Precedent Transactions from 2012 to 2014 (a) Selection criteria based on size and publicly available information. Date Announced Target Acquirer Implied EV ($M) EV / LTM Rev Target LTM Rev 1. 12/18/13 Valassis Communications Harland Clarke $1,839 0.9x $2,047 2. 09/09/14 Ebates Performance Marketing Rakuten 1,000 6.0x 167 3. 06/21/12 Savings.com Valpak Direct Marketing Systems 100 NM ND 4. 07/04/13 ABCYNE RetailMeNot 20 NM ND 5. 03/21/13 Entertainment Publications HSP Group 18 0.2x 95 6. 11/05/13 YSL Ventures RetailMeNot 18 NM ND 7. 03/12/13 Actiepagina RetailMeNot 3 NM ND 8. 11/03/14 Hopster Inmar ND NM ND 9. 10/21/14 Real Valuable Corporation Wanderful Media ND NM ND 10. 10/20/14 Perkla ID.me ND NM ND 11. 09/03/14 Millennium Process Coupon Inmar ND NM ND 12. 07/31/14 SodaHead Prodege ND NM ND 13. 04/15/14 Pickie RetailMeNot ND NM ND 14. 01/06/14 Inmar ABRY Partners ND NM ND 15. 06/14/13 Spotivate Plum District. ND NM ND 16. 11/13/12 The Associated Press, iCircular Business Unit Wanderful Media ND NM ND 17. 09/24/12 VillageVines Groupon ND NM ND 18. 05/14/12 SARL Miwim RetailMeNot ND NM ND 19. 08/17/13 ShopRunner Alibaba ND NM ND 20. 12/20/12 Bloomspot Chase Bank ND NM ND 21. 09/05/14 Cellfire Catalina Marketing Corporation ND NM ND 22. 03/03/14 Catalina Marketing Corporation Berkshire Partners ND NM ND 23. 01/27/14 ProLogic Redemption Solutions NCH Marketing Services ND NM ND 24. 02/11/14 YOU Technology Brand Services The Kroger Company ND NM ND 25. 08/21/12 ePrize Catterton Partners ND NM ND
  74. 74. 73 Promotions/Loyalty/Rewards Largest Private Company Financings (2012 – 2014) Precedent Transactions from 2012 to 2014 Source: Capital IQ, 451 Research Date Announced Target Transaction Value ($M) Investors 1. 02/19/13 LivingSocial $110.0 Amazon.com; Revolution Growth 2. 10/29/14 Cardlytics 70.0 Discovery 3. 04/30/14 Prodege 61.0 Technology Crossover Ventures 4. 05/13/14 Swagbucks 60.0 Technology Crossover Ventures 5. 11/08/12 YourCityDeals 50.0 ND 6. 05/17/13 Cardlytics 40.0 ND 7. 08/07/12 FreeMonee 34.0 Opus Capital; Pinnacle Ventures; Redpoint Ventures; Sutter Hill Ventures; The Contrarian Group 8. 09/16/14 FiveStars 26.0 Menlo Ventures; DCM; Rogers Communications; Lightspeed Venture Partners 9. 11/26/13 Beyond the Rack 24.0 BDC Venture Capital; Highland Capital Partners; iNovia Capital; Investissement Quebec; Iris Capital; Panorama Capital; Tandem 10. 06/10/13 Affinity Solutions 21.0 Chestnut Hill Ventures 11. 10/15/14 Linkable Networks 20.0 ND 12. 05/15/14 Swipely 20.0 Index Ventures; Shasta Ventures; First Round Capital; Pritzker Group Venture Capital 13. 04/28/14 Wanderful Media 14.5 E. W. Scripps; Gannett; New Media; Graham; Hearst; Lee; The McClatchy Company, MediaNews Group; Cox Media Group; Advance Digital; A. H. Belo 14. 08/02/12 FiveStars 13.9 DCM; Lightspeed Venture Partners 15. 06/05/12 Cartera Commerce 12.2 Comvest Partners; Dace Ventures; Flybridge Capital Partners; LBO Enterprises; The Venture Capital Fund of New England 16. 08/15/13 Belly 12.1 New Enterprise Associates; Cisco Investments; DAG Ventures; Andreessen Horowitz; Lightbank; 7 Ventures 17. 04/24/12 Belly 12.0 Andreessen Horowitz 18. 05/10/13 Swipely 12.0 Index Ventures; Shasta Ventures; First Round Capital; Greylock Partners 19. 02/27/14 ID.me 11.4 United Services Automobile Association; Silicon Valley Bank; K Street Capital; Blu Venture; BoxGroup 20. 09/13/12 edo interactive 16.0 Baird Venture Partners; VantagePoint Capital Partners

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