Venture Investments in IoT

PAVEL CHERKASHIN

Investment Fund & Entrepreneurs Hub

• Early-stage venture capital ~ $100M under management (and growing)

• HQ in San Francisco, CA

• Investment stages: product prototype to go-to-market

• Key focus areas:• Artificial Intelligence / Machine Learning

• Transportation (self-driving vehicles)

• Financial services

• Internet of Things

2

HACK TEMPLECommunity Project:

• Hub for technology startups• Mission: Provide international

startups equal access to networking, knowledge and resources of Silicon Valley

• Connect entrepreneurs with global corporations for free flow of ideas and business opportunities

Selected Portfolio Companies (IoT)

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Security chips for IoT

Wearable tech with AIAI for building storylines

Analytics for retail

3D vision for self-driving cars

Autonomous fork-liftsGrowing diamonds

Satellite imagery for agriculture

CON

SUM

ERCO

RPORATE

SOFTWARE

HARDWARE

Our Dream Investments in IoT

• Communications for IoT era• Reliable point-to-multipoint radio (beyond 5G, >1Gbps,

>10Ghz)

• Affordable components for self-driving vehicles• Sensors, 3D mapping, electric power and storage,

navigation, smart city

• Decision-support systems (AI)• From consumer recommendations to enterprise

management

• New computing systems• Optical, quantum computing, grid and distributed

• Space technology• Anything that can be thrown to orbit

• Cyborg tech• Cognitive tech, bioelectronics, implantable chips

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Contact Information

Connect and share:

http://gva.capital

pavel@gva.capitalhttp://linkedin.com/in/cherkashin

Twitter: @p_cherkashin

5

Know of any projects / people / inventions in these segments?

M&A Across IoT Landscape

M&A activity in IoT has been robust over last 24 months as multiple

constituencies have sought to improve their market position

Semi

Consolidation

IoT ConnectivitySecurity

Connected Car &

Telematics

IoT / Wireless

Chipsets

IoT PaaS

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/(IoT Business)

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Observations

Tracking the

broader tech

market, IoT sector

has been active

Diverse group of

participants with

unique

perspectives and

capabilities

actively seeking to

improve position

Private equity also

participating and

building and

buying scaled

assets

Page 0

Source: 451 Research as of 12/8/16

(1) Represents Belden’s unsolicited offer announced 11/11/16

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/(1)

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Management

Business

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Leading IoT and Wireless Research

Matt Ramsay, Sr. Analyst

● Application-specific semis in wireless, IoT

and data centers

● Industry experience from AMD and Sun

Microsystems

● Selected by Institutional Investor

Magazine as Rising Star in 2015

Mike Walkley, Sr. Analyst

● Internet of Things/Connectivity Tech

● 15+ years experience, previously at RBC

Capital Markets, Raymond James

● Longest tenured coverage of IoT sector on

Wall Street, frequent sought out as

speaker for IoT industry events

Coverage Universe

Page 1

Canaccord Genuity’s tech research team covers ~300 companies globally, including more than 30 leading

IoT/Wireless companies

Money MattersJames Brehm

James Turino Mike Walkley Mike Lenoce

Michael Crawford Fred Thiel Pavel Cherkashin

Carl Ford

$0.6 $0.8 $1.1 $1.2 $1.4 $1.0

$39.9

28

34

26

4136

80

127

0

40

80

120

160

$-

$10.0

$20.0

$30.0

$40.0

2010 2011 2012 2013 2014 2015 2016Transaction Value Deal Volume ($bn)

Deal Volume & Total Disclosed Value ($bn)

M&A Activity• Notable 2016 deals:

ARM Holdings / SoftBank Group: $30.4bn Fleetmatics Group / Verizon Communications: $2.2bn Sensus / Xylem: $1.7bn Jasper Technologies / Cisco Systems: $1.4bn

$-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

$-

$500.0

$1,000.0

$1,500.0

$2,000.0

$2,500.0

2010 2011 2012 2013 2014 2015 2016

Transaction Value Av. Transaction Value

• SIGFOX raised $115m in 2015 and $160m in 2016

1822

16

34 32

93

137

0

40

80

120

160

2010 2011 2012 2013 2014 2015 2016

Deal Volume per Year Total Transaction Value* ($m)

Private Placement Activity

* Less than 10% of undisclosed transaction values

• Infineon raised $935m in debt financing and NavInfo raised $520m in 2016

• Mobileye raised $400m in 2013

2. Transmit 3. Manage 4. Analyze1. Capture

Product Embedded Hardware and Sensors

Capture, track, monitor and temporarily store target data until eventual retrieval

Network Infrastructure and Connectivity

Transmit target data to and from product and/or device to external environment for storage and analytics

Data Collection, Storage and Middleware

Manage incoming target data through computing and storage capabilities, as well as providing a platform for interoperability

Data Analytics, Control and Automation

Analyze target data to control, optimize and/or automate processes

IoT Va l u e C h a i n

©QAdvisors LLC 2017 All rights reserved.

*Based on data from Capital IQ and public sources. Companies were segmented by Q Advisors according to their primary functions as of February 2017.

Manage.Data Collection, Storage &Middleware

Analyze.Data Analytics, Control &Automation

IoT T R A N S A C T I O N H EAT M A P

Capture.Sensor-Embedded Products, Machines & Hardware

Transmit.Network Infrastructure &Connectivity

# of Deals Avg. $ Deal Size(EV)1

Capture 31 $4.1 billion

Transmit 32 $2.1 billion

Manage 32 $5.5 billion

Analyze 35 $0.4 billion

(1) Excludes 53 out of 130 total transactions with undisclosed data

Mergers and Acquisitions 2014 – YTD 2017

0

5

10

15

20

25

30

35

40

$0.0 $30.0 $60.0billions

Nu

mb

er

of

Tran

sact

ion

s

Aggregate Transaction Value

Financings (VC and PE) 2014 – YTD 2017

warm

cold warm

hot

billions

0

20

40

60

80

100

120

140

$0.0 $0.5 $1.0 $1.5 $2.0 $2.5

Nu

mb

er

of

Ro

un

ds

Aggregate Transaction Value

IoT Value Chain

# of Deals Avg. $ Round Size (Capital

Invested)1

Capture 61 $58.0 million

Transmit 31 $28.0 million

Manage 68 $64.0 million

Analyze 98 $92.0 million

(1) Excludes 16 out of 258 total transactions with undisclosed data

50

40

35

30

25

20

15

10

5

0

$0.0 $45.0 $90.0 $0.0 $2.0 $4.0

120

105

90

75

60

45

30

15

0

©QAdvisors LLC 2017 All rights reserved.

Living in the Days of Unicorns154

0

20

40

60

80

100

120

140

160

180

1 2 3 4

Series1

Series2

# of Cos

$Bs Invested

1B+ <10B <40B >40B

.5 $Trillion Invested

Questions

• Is IoT an Unlimited Market?

• What Pressures are on IoT Companies Today?

• What trends do Unicorns represent in IoT?

• Predictions for the future. Exits and Opps?