ITA IoT Capital Conference Presented by November 17, 2015
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IoT is a Massive Market with Exceptional Growth $500B $2 Trillion Market Segment 15% - 20% CAGR 15 50% Application Software Professional Services $50B $200B Data Services/Access Enabling Software Hardware Revenue 2015 Revenue 2025 Year to date metrics as of 11/5/2015. Source First Analysis estimates.
Substantial Private Growth Investment Activity # of Deals and Invested Capital by Year Select Institutional Investors ($ in Millions) $1,740 $1,707 $1,134 136 185 121 u 2013 2014 2015 YTD Invested Capital # of Deals Year to date metrics as of 11/5/2015. Source First Analysis research and CapitalIQ.
Investment Activity Dominated by Follow-on Rounds Institutional vs Angel Investment Size of Investment Angel / Seed Round First VC Round $15M+ $1-$5M Follow-on VC / Institutional Rounds $10-$15M $5-$10M Source First Analysis research and CapitalIQ.
M&A Activity Building - Majority of Exits Below $100 Million # of Deals and Total Enterprise Value Distribution by Transaction Size ($ in Millions) Enterprise Value # of Deals $3,835 $500M+ $2,782 $100-$500M $1,749 23 25 29 <$50M 2013 2014 2015 YTD Year to date metrics as of 11/5/2015. Source: First Analysis research and CapitalIQ.
Market Size ($B) Limited Opportunities for Public Investment in Pure Play IoT $60 $50 IoT 2025 HCIT $40 IoT $30 Marketing/ CRM $20 $10 Human Capital Fintech $0 15 20 25 30 35 Source: First Analysis research and CapitalIQ. Number of Public Companies
IoT Migrating to Solution Sales Solutions Analytics / Decision Support Historical Norm $5 - $10 per Month Bundling of IoT Components into Vertical Solutions Fleet Management Mobile Workforce Healthcare Data Aggregation $0.01 - $0.05 per GB per Month Home Security Home Automation Tags and Trackers Connectivity $0.50 - $8 per Month (Plus Overages) Automotive Personal Fitness Lifestyle and Entertainment Wearables Industrial Infrastructure Platform $0.50 - $5 per Month Oil and Gas Toys and Games App Marketplace Hardware $100 $1,000 per Unit Security Storage Big Data / Analytics Source: First Analysis research.
Ready to Ramp Vertical solutions that deliver a specific ROI for specific customers Recurring revenue models that aggregate all horizontal components Analytics tailored to deliver actionable insights Highly visual models with multiple data types incorporated Gradual extension of functionality to prevent commoditization Recurring revenue software solutions with massive growth potential, inherent profitability and defensible competitive advantage make IoT highly investable
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