2. Agenda
• Greylock
• Hype vs. reality
• Challenges and opportunities
• Venture investment
• Summary
Page 2
3. Greylock Partners
• Founded in 1965
• Menlo Park (primary) and Cambridge
• Currently investing out of Greylock 14 ($1B fund)
• Two primary areas of investment focus
• Consumer Internet
• Enterprise IT
• Invest across stages, with strong focus on early-stage
• Investors with industry operating backgrounds
Page 3
4. Asheem Chandna
• 15+ years product management, marketing, business development
•
•
•
BSEE, MS Computer Engineering – Case Western Reserve University
AT&T Bell Labs, SynOptics / Bay Networks, CoroNet / Compuware
Check Point Software ($10M -> $550M+)
• 10+ years venture capital (investing and company building)
•
•
CipherTrust (INTC), PortAuthority (WBSN), Securent (CSCO), Aruba (ARUN), Sourcefire
(CSCO), Zenprise (CTXS), Imperva (IMPV), Xsigo (ORCL)
Palo Alto Networks (PANW), Sumo Logic, AppDynamics, Delphix, Aquantia, SkyHigh, Avi
Networks, Instart Logic, Tech Process
Page 4
7. Internet of Things – a definition
“Imagine if all the objects in the world had
all the information that they needed to
function optimally.” – The Economist, 2010
• Sea change in # of sensors + actuators that
can communicate
• Massive new data sources
• Increasing automation (M2M)
Page 7
9. $1 Trillion in new revenue?
Biggest categories:
Security, Education, Industrial Automation?
Page 9
10. Another view on future revenue?
Connection Revenues from Application
Connected Car
Clinical Remote Monitoring
Assisted Living
Home and Building Security
Pay-As-You-Drive Car Insurance
New Business Models for Car Usage
Smart Meters
Traffic Management
Electric Vehicle Charging
Building Automation
2020 ($ billions)
600
350
270
250
245
225
105
100
75
40
(GSM Association of Mobile Operators)
Biggest categories: Cars, Healthcare, Security?
Page 10
12. Not a new idea…
“When wireless is perfectly applied the
whole earth will be converted into a huge
brain...and the instruments through which
we shall be able to do this will be amazingly
simple compared with our present
telephone. A man will be able to carry one
in his vest pocket.”
- Nikola Tesla, 1926
Page 12
38. Growing VC investment in IoT
$752M across 100+ deals in last year
(Q2 2012 – Q1 2013)
Page 38
39. Significant businesses starting to be built…
$370M
(market
cap)
$800M
(last
venture
valuation)
$1.5B
(last venture
valuation)
$2B
(acquisition by
Blackstone)
Page 39
40. Opportunity areas
• Software platforms
• End-to-end
•
Home automation, wearables, healthcare,
industrial, transportation
• Data and analytics
•
Transportation (self-driving, optimization)
•
Healthcare (monitoring, tele-health)
•
Utilities (climate controls, smart grid)
Page 40
41. Summary
• Billions of devices are expected to come online
rapidly, many without adequate security
• Hype ahead of reality, but industry
transforming changes are ahead
• Platform transitions will create opportunities for
many new large companies to be built
Page 41
Editor's Notes
From the associate of mobile network operators + Machina Research
Google searches (scaled to 100)
250m cars90 minutes driven on averageObviously need to centralize, categorize, correlate, visualize + understand that data