13. Digital Leaders Are Known to Overpay into Platform
Shifts
Desktop Chews into
Traditional Media
Internet Becomes
Scalable Transaction
Medium
Consumers Move
to Social Channels
Mobile Overtakes
Desktop for
Consuming Content
Sale Price
$1,561
$1,433
$745
$966
LTM Rev.
Multiple
NA
8.25x
18.63x(1)
NA
Sale Price
$850
$3,727
$400
$350
LTM Rev.
Multiple
NA
NA
NA
NA
$5,000
$410
$1,100
$1,000
NA
NA
73.33x(2)
NA
Sale Price
LTM Rev.
Multiple
(1) BuddyMedia rumored LTM revenue is $40 MM
(2) Tumblr’s rumored LTM revenue is $15 MM based on 2013 Q1 run rate 13
27. Massive Strategic Opportunity with Mobile + Local
Higher Banner Ad CTR for Local Businesses
Rise of Localized Mobile Marketing
Local vs. National Mobile Ad Spend ($ in billions)
CTR Lift
48%
$9.9
CTR Lift
40%
$8.1
$5.8
$6.0
CTR Lift
26%
$4.5
$4.3
$3.1
$2.7
$1.7
CTR Lift
5% 41% $0.7
$1.0
<1 Mile
2011
1 to 2 Miles 2 to 5 Miles 5 to 10 Miles
$2.1
$1.2
$3.6
$2.9
$2.2
$1.5
2012
2013
National
Sources: BIA Kelsey, “From National to Local: Mobile Advertising Zeroes In,” Jan. 2013; BI Intelligence; Balihoo, “Micro Study:
National Brand Use of Digital in Local Marketing,” Oct. 30, 2012.
27
$4.1
2014
2015
Local
2016
58%
42. The Past Six Years Have Shaped Much of NY’s
Digital Media and Technology Landscape
• Notable events in NY since 2007:
Development of brand
names across broad set of
verticals
/
/
Closes deal and
announces HQ move
to NY in September
($3.1 billion)
/
July
($680 million)
2007
April
2007
January
2007
is founded
September
2007
Raises series A
round
December 2007
November
2007
Raises series A
round
announces spin-offs of:
announces
acquisition
of
For $183 million
2009
Acquire
s
May 2013
American
wireless
business
for $134 billion
March 2011
June 2013
August
2008
Acquires
For $125 million
Raises series
A round
Raises Series A
round
Raises series A round
for $1.1 billion
2011
September
October
2007
Raises Series B
round
in tech VC funding
and deal quantity
January
opens a
Googleplex in
New York City
June
Mayor Bloomberg
2008
starts up city-funded
business incubator
programs
($275 million)
announces
acquisition of
leads
Raises series
A round
December
2009
September
announces
acquisition of
July 2013
2010
for $745 million
June 2011
Acquires
Mayor Bloomberg
April 2013
for $22 billion
comes to New York offers $100 million and
September
land to develop a top
2013
engineering school to
encourage tech
for $30 billion
development, to bring
Raises series D
Raises series B
New York City to the
round
round
forefront of innovation.
$250
$100
million
announces
million
acquisition of
Announces
acquisition of
42
43. Major Disruption is Happening Across All Sectors
Advertising / Marketing
eCommerce
Content
43
Finance
44. NY Area Private Digital Companies by Sector
Digital
Content
Digital
Marketing
eCommerce
Mobile
Social
SpotOn
Electric Sheep
Note: More companies illustrated on the following sector breakdown pages
44
45. NY Area Private Digital Companies by Equity
Raised (243)
$5M-$10M 67
$10M-$20M 63
$20M-$30M 37
$30M-$50M 41
$30-$50
$50M-$100M 22
$50-$100
>$100M
Sources: Capital IQ and TechCrunch, October 2013
45
13
46. “The All-Stars” - VC/PE Firms with at Least 5 NY
Area Digital Investments
“The Locals”
30
“The Satellites”
Seed
Early Stage
Growth
Source: Capital IQ, TechCrunch, public filings, and press releases
46
9
“The Outsiders”
13
47. Public Companies with a NY Area Presence by
Industry (51)
Data
eCommerce
Digital Media
9
Marketing
14
6
47
10
Traditional Media
12
57. QUESTIONS?
Linda Gridley
President & CEO
212-400-9710
linda.gridley@gridleyco.com
Pratik Patel
Managing Director
212-400-9712
pratik.patel@gridleyco.com
Gridley & Company LLC
10 East 53rd Street, 24th Floor
New York, NY 10022
212.400.9720 tel
212.400.9717 fax
Twitter: @gridleyco
www.gridleyco.com