Who is Eating Whose Lunch?

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Transcription:

Who is Eating Whose Lunch? Familiar Stories Source: Jefferies LLC / April 2013.

Who is Eating Whose Lunch? Emerging Stories Source: Jefferies LLC / April 2013.

And Leading Tech Companies Are Also Vulnerable When Underlying Technology Platforms Shift Source: Jefferies LLC / April 2013.

The Enterprise Strikes Back!! Largest Enterprise and Consumer Technology IPO s Performance January 2011 - Present Source: Jefferies LLC / April 2013.

Largest Internet and Software Technology IPO s Performance January 2011 - Present Source: Jefferies LLC / April 2013.

Venture Capital Backed Technology Private Company Exits Acquisitions of North American Private Sellers

Percentage Breakdown of Venture Backed Liquidity Events: IPO vs. M&A M&As Remained Primary Source of Liquidity in 2012 Source: National Venture Capital Association.

IPO Activity, 12 Years After The Bubble, Is Nowhere Close To Pre-Bubble Levels A Structural Change?

Recently Priced TMT IPOs in 2010, 2011, 2012, and 2013 Since 2010 there have been 146 IPOs in TMT, with 37.0% of these IPOs having priced above the offering range Source: Jefferies LLC / April 2013.

Number of Deals Allocated by Selected Industries Source: Dow Jones Venture Source.

IT Deal Flow and Investment Stabilized in 2011 Equity Investment in Information Technology Companies Source: Dow Jones Venture Source.

The VC Industry is Rightsizing New capital commitments ($ billions): $135 $74 $6 $3 $9 $7 $12 $14 $17 $25 $43 $50 $15 $13 $22 $36 $36 $33 $27 $17 $14 $20 $20 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 Last year, new capital commitments were close to 1997 levels (adjusted for inflation) 2012 NVCA Yearbook. Capital Managed is inflation adjusted to 2012 dollars.

Startups can experiment easily and quickly Customers A startup can experiment at the top of the stack Startups Number of Open APIs Web & Application Server 9,000 Startups don t have to build their entire infrastructure anymore Increasingly Pervasive APIs Databases Document Store Compute and Storage Infrastructure 4,676 2,647 1,116 1,628 105 352 601 '05 '06 '07 '08 '09 '10 '11 '12 Programmable web.

The Education Revolution Disappearing Venture investment in education companies classroom walls $500 $ millions invested 100 Learning from $400 75 big data analytics $300 Democratizing $200 # of Deals 50 educational content $100 25 Campuses becoming global institutions $0 '07 '08 '09 '10 '11 0 GSV Advisors.

Big Data is Transforming Infrastructure Data Visualization Business Intelligence Application Layer Data Warehouse Database Storage Networking

Nearly All Major Industries Offer Software Investment Opportunities Education $2,200B Legal $585B Defense $700B Financial Services $10,000B Music $130B Recruiting $130B Publishing $28B Energy - $5,000B Healthcare $4,500B Nonprofit $1,100B Agriculture $5,000B Telecom $4,700B Real Estate $6,600B Automotive $2,600B Travel $1,200B Insurance $4,100B

The results are clear. Portfolio Company Transformation (Average EBITDA Margin Across Portfolio) Note: Slide represents Vista Equity Partners software platform companies. Past performance and results are not necessarily indicative of future results. Please also see Important Disclosures for important information on prior Vista funds performance. Line represents all current and exited investments.

EBITDA Continues to Grow Even During the Recession

Multiple Steps Are Required to Boost Profitability (1) PF EBITDA is based on projected PF EBITDA at the time of add-on acquisition as identified in investment model Note: Includes all current Vista platform companies acquired before 12/31/2010 Note: LTM 12/31/12 Note: Please also see Important Disclosures with respect to projections and prior performance of the Vista funds.

Equities rally in 2013 Equity indices in major countries Index (January 1, 2010 = 100) 140 U.S. 130 Eurozone 120 110 100 U.K. 90 80 Japan 70 2010 2011 2012 2013 Note: U.S. (S&P 500), Eurozone (German DAX), UK (FTSE 100), Japan (Topix). Source: Bloomberg.

Major equity indices in local currency Previous DJIA peak = 100 120 100 80 60 40 Dow Jones Nikkei 225 Euro Stoxx 50 Shanghai A Share 20 Oct-07 Nov-08 Dec-09 Jan-11 Feb-12 Mar-13 Source: Datastream.

2.3B Global Internet Users in 2011 Majority of Growth Driven by Emerging Markets 2011 Internet Users (M) % Population Penetration 600 513 79% 500 400 300 49% 245 48% 43% 200 100 61 36 37 0 38% 37% 35% 28% 23% 121 42 34 45 55 10% USA Turkey Iran Russia China Mexico Philippines Nigeria Indonesia India 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 08-11 Adds (M): 15 11 14 16 215 19 28 21 37 69 11 Y/Y Growth: 1% 26% NA 3% 12% 19% 44% NA 22% 38% Source: KP, United Nations/International Telecommunications union, Internetworldstats.com as of 12/11

Emerging Markets are Creating Internet Leaders Market USA Emerging Markets ecommerce Search Social Networking Travel Jobs Real Estate