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New Capital Funding in 2012 Results from 2012 Cambiar Capital Funding Index™ Insight Innovation Exchange Conference June 17-19, 2013 © 2013 Cambiar, LLC. All rights reserved.

Follow the Money: The Investment Outlook in Insights by Simon Chadwick of Cambiar - Presented at the Insight Innovation eXchange North America 2013

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The market research, information and analytics industry attracted a record $1.7 billion in new inward investment in 2012. But where did it go and what are the hot trends in our industry, as seen by venture capital and private equity? In this session Simon Chadwick will present the findings of the 2012 Cambiar Capital Funding Index, the only comprehensive annual analysis of capital investment trends in our industry.

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Page 1: Follow the Money: The Investment Outlook in Insights by Simon Chadwick of Cambiar - Presented at the Insight Innovation eXchange North America 2013

© 2013 Cambiar, LLC. All rights reserved.

New Capital Funding in 2012Results from 2012 Cambiar Capital Funding Index™

Insight Innovation Exchange ConferenceJune 17-19, 2013

Page 2: Follow the Money: The Investment Outlook in Insights by Simon Chadwick of Cambiar - Presented at the Insight Innovation eXchange North America 2013

© 2013 Cambiar, LLC. All rights reserved.2

Compiling Cambiar Capital Funding Index™ (CCFI)

• New capital infusions into the “industry” from December 1, 2011 through November 30, 2012

• “Industry” being defined using broader ESOMAR definition, i.e.:– primary and secondary research, – syndicated reports (e.g. Gartner), – web and text analytics, – ethnography, – market intelligence, etc.

• Index comprised of only announced deals

• Sources include:– news feeds, – press releases, – trend sites (e.g. TechCrunch), and– trade press around the world

• “New capital” includes only funds that are newly infused into the industry

Page 3: Follow the Money: The Investment Outlook in Insights by Simon Chadwick of Cambiar - Presented at the Insight Innovation eXchange North America 2013

© 2013 Cambiar, LLC. All rights reserved.3

Snapshot of 2011 Impact

• $830 Million of funds generated came from Private Equity (PE) and Venture Capital (VC), (remainder was share flotation by IPSOS on Paris Bourse)

• 90% funded enterprises in the United States

• 50% of PE/VC funding went into Analytics as opposed to 23% for Market Research, focal areas included:

$1.1 Billion Infused into the Industry

13% Mobile 47% Social Media11% Online Video & Ad

Measurement

Page 4: Follow the Money: The Investment Outlook in Insights by Simon Chadwick of Cambiar - Presented at the Insight Innovation eXchange North America 2013

© 2013 Cambiar, LLC. All rights reserved.4

WHAT HAS CHANGED SINCE 2011

Page 5: Follow the Money: The Investment Outlook in Insights by Simon Chadwick of Cambiar - Presented at the Insight Innovation eXchange North America 2013

© 2013 Cambiar, LLC. All rights reserved.5

2011, $830 Million

2012, $1.7 Billion

Page 6: Follow the Money: The Investment Outlook in Insights by Simon Chadwick of Cambiar - Presented at the Insight Innovation eXchange North America 2013

© 2013 Cambiar, LLC. All rights reserved.6

2011, $830 Million

2012, $1.7 Billion

Page 7: Follow the Money: The Investment Outlook in Insights by Simon Chadwick of Cambiar - Presented at the Insight Innovation eXchange North America 2013

© 2013 Cambiar, LLC. All rights reserved.7

2011, $830 Million

2012, $1.7 Billion

141% Increase

Page 8: Follow the Money: The Investment Outlook in Insights by Simon Chadwick of Cambiar - Presented at the Insight Innovation eXchange North America 2013

© 2013 Cambiar, LLC. All rights reserved.8

Funding by Market Segment

Page 9: Follow the Money: The Investment Outlook in Insights by Simon Chadwick of Cambiar - Presented at the Insight Innovation eXchange North America 2013

© 2013 Cambiar, LLC. All rights reserved.9

Focus of Investment

Full Service0%

Page 10: Follow the Money: The Investment Outlook in Insights by Simon Chadwick of Cambiar - Presented at the Insight Innovation eXchange North America 2013

© 2013 Cambiar, LLC. All rights reserved.10

Market Research Analytics Platform Business Intelligence Big Data Social Media Mobile Crowdsourcing0

200000000

400000000

600000000

800000000

1000000000

1200000000

138200000

297650000

101031000

330000000

198550000

53400000

0

225667500

1047986000

103600000

50950000

357700000337960000

177226000

95200000

Category Comparison2011 (Blue) – 2012 (Red)

Page 11: Follow the Money: The Investment Outlook in Insights by Simon Chadwick of Cambiar - Presented at the Insight Innovation eXchange North America 2013

© 2013 Cambiar, LLC. All rights reserved.11

Modalities of Interest to Clients

Web Analytics

DIY Research

Proprietary Online Panels

Innovative Digital Qualitative

Social Media Listening

MROCs

Emotion measurement

Mobile

0 10 20 30 40 50 60 70 80 90

Integrated Trying Planning to try

Page 12: Follow the Money: The Investment Outlook in Insights by Simon Chadwick of Cambiar - Presented at the Insight Innovation eXchange North America 2013

© 2013 Cambiar, LLC. All rights reserved.12

Funding by Region

Page 13: Follow the Money: The Investment Outlook in Insights by Simon Chadwick of Cambiar - Presented at the Insight Innovation eXchange North America 2013

© 2013 Cambiar, LLC. All rights reserved.13

Seed A B C D$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

$450,000,000

$500,000,000

$11,810,000

$287,376,000

$468,180,000

$407,500,000

$161,400,000

Funding by Stage of Investment

Funding Stage

Page 14: Follow the Money: The Investment Outlook in Insights by Simon Chadwick of Cambiar - Presented at the Insight Innovation eXchange North America 2013

© 2013 Cambiar, LLC. All rights reserved.14

Seed A B C D0

10000000

20000000

30000000

40000000

50000000

60000000

70000000

80000000

90000000

Aver

age

(Mea

n) In

vest

men

t ($)

Funding Stage

Average Size of Investment

Page 15: Follow the Money: The Investment Outlook in Insights by Simon Chadwick of Cambiar - Presented at the Insight Innovation eXchange North America 2013

© 2013 Cambiar, LLC. All rights reserved.15

Snapshot of Who’s Investing

• 227 Investors (100 in 2011)

• 130 Investments (63 in 2011)

• 177 Private Equity and Venture Capital Investors

• 28 Individuals

• 15 Corporations

• 7 Angel Funds

9 Investors Account for 20% of

Investment Occasions

Page 16: Follow the Money: The Investment Outlook in Insights by Simon Chadwick of Cambiar - Presented at the Insight Innovation eXchange North America 2013

© 2013 Cambiar, LLC. All rights reserved.16

For More Information, Contact

Simon [email protected]

THANK YOU