Headwaters MB 2Q 2016 Technology Sector Update: Marketing & Advertising

Technology Sector Update: Marketing and Advertising2Q 2016

Executive Summary

• Capital Markets – Marketing Technology companies continue to outpace Advertising Technology companies and outperform the NASDAQ, S&P 500 and MSCI Europe indexes

• Trading Multiples – The public markets continue to discern between the business models of Marketing Technology companies and Advertising Technology companies. Marketing Technology companies are trading at a median LTM revenue multiple of 3.0x, while Advertising Technology companies are trading at a median LTM revenue multiple of 0.5x

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• M&A Activity – M&A activity declined slightly in 2Q 2016, with 33 deals compared to 36 deals in 1Q 2016, with aggregate transaction value increasing. Notable recent transactions include Salesforce’s acquisition of Demandware ($2,800M), Vista Equity’s acquisition of Marketo($1,790M), and Marlin Equity’s acquisition of Teradata’s marketing applications business ($90M)

• Investment Activity – While investment volume increased significantly, it was through smaller deals as aggregate value dropped in 2Q 2016 with 93 investments and $528M in value, from 64 investments and $577M in value in 1Q 2016. Notable recent investments include Vibes Media ($45M), Evariant ($42.3M), and Collective($34M)

Key Themes We are Watching in 2016

• New technologies are driving customer adoption of both MarTech and AdTech as marketing departments emerge as a competitive differentiator for enterprises

– Rapid Adoption – Marketers are rapidly adopting both point solutions and platforms as advertising technologies enable new ways of conducting business and acquiring customers

– Metrics Matter – Metrics continue to grow in importance – attribution and conversion metrics drive marketer’s decisions – both for which technologies to buy and to properly evaluate spend and ROI across all marketing tactics

• Marketing moves up the funnel with significant efficiency improvements

– Rather than targeting large audiences and then spending significant time and resources whittling them down, emerging technologies and analytics are becoming accurate enough to effectively disrupt the traditional sales funnel model

– Marketers expand beyond retargeting by investing and spending on understanding intent and marketing higher in the funnel as opposed to “preaching to the converted”

• M&A activity remains strong for the near future, driven by:

– Traditional buyers building out their marketing platforms, stacks or data assets

– New categories of buyers continue to emerge, including marketing agencies adopting technology, data providers levering their data assets into new markets, telcos and media

– Private equity is becoming more active and paying strategic multiples with Vista Equity’s acquisition of Marketo as a prime example

– Lowering valuation expectations – investors in crowded sectors of digital marketing recognizing a solid exit is better than no exit

• Funding is both available at higher scale, and scarce at lower scale

– Companies that have demonstrated business models with solid margins and ability to scale will continue to find funding available for growth

– However, companies seeking series A and B rounds with limited traction or proof points will likely struggle finding attractive capital and valuations

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Capital Markets Performance

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Since 2013, Marketing Technology companies (+72.3%) have outperformed the NASDAQ (+49.2%), S&P 500 (+34.8%), and MSCI Europe (-5.5%) indexes, along with Advertising Technology companies (-56.6%)

-80.00%

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

7.7x

4.0x

7.5x

1.4x 2.0x

0.9x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

LTM Revenue Multiple

Marketing and Advertising Comparable Public Companies

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Advertising Technology

Marketing Technology

1.9x 1.9x 1.9x

0.2x 0.4x 0.5x 0.5x0.2x

0.0x

2.0x

4.0x

Public Trading Comparables: Marketing and Advertising Tech

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Trading Metrics($ in millions, except per share data) Stock

Price 52-Week Price Range Market Enterprise EV / Revenue EV / EBITDA

Company Ticker 06/30/16 Low High Cap. Value LTM CY 2016E CY 2017E LTM CY 2016E CY 2017E


Salesforce NYSE:CRM $79.41 $52.60 $84.48 $54,417 $54,451 7.7x 6.6x 5.5x NM 33.3x 27.3x

Endurance International NasdaqGS:EIGI 8.99 7.45 22.37 1,267 3,244 4.0x 2.8x 2.5x 20.9x 8.2x 7.1x

Hubspot NYSE:HUBS 43.42 27.00 60.11 1,621 1,515 7.5x 5.9x 4.5x NM NA NA

Bazaarvoice NasdaqGS:BV 4.01 2.82 6.11 331 278 1.4x 1.4x 1.3x NM NM 24.6x

Brightcove NasdaqGS:BCOV 8.80 4.70 9.00 298 270 2.0x 1.8x 1.7x NM 30.5x 23.6x

Jive Software NasdaqGS:JIVE 3.76 2.84 5.49 288 178 0.9x 0.9x 1.0x NM 13.5x 11.8x

High 7.7x 6.6x 5.5x 20.9x 33.3x 27.3x

Mean 3.9x 3.2x 2.7x 20.9x 21.4x 18.9x

Median 3.0x 2.3x 2.1x 20.9x 22.0x 23.6x

Low 0.9x 0.9x 1.0x 20.9x 8.2x 7.1x


Criteo NasdaqGS:CRTO $45.92 $24.23 $57.30 $3,052 $2,682 1.9x 3.8x 3.0x 20.8x 13.2x 9.9x

Rubicon NYSE:RUBI 13.65 11.72 20.37 686 527 1.9x 1.8x 1.5x 18.6x 8.2x 6.0x

TubeMogul NasdaqGS:TUBE 11.90 9.11 16.33 448 374 1.9x 1.6x 1.4x NM NM 19.9x

Rocket Fuel NasdaqGS:FUEL 2.22 2.09 8.28 97 110 0.2x 0.2x 0.2x NM 10.4x 9.3x

YuMe NYSE:YUME 3.68 2.35 5.60 128 66 0.4x 0.4x 0.3x NM 8.0x 5.9x

MaxPoint NasdaqGM:MXPT 10.80 4.64 40.56 72 64 0.5x 0.7x 0.6x NM NA NM

Marin Software NYSE:MRIN 2.35 1.88 6.76 90 56 0.5x 0.5x 0.5x NM 37.7x 11.0x

Tremor Video NYSE:TRMR 1.84 1.29 3.08 98 41 0.2x 0.2x 0.2x NM 16.0x 3.2x

High 1.9x 3.8x 3.0x 20.8x 37.7x 19.9x

Mean 0.9x 1.2x 1.0x 19.7x 15.6x 9.3x

Median 0.5x 0.6x 0.6x 19.7x 11.8x 9.3x

Low 0.2x 0.2x 0.2x 18.6x 8.0x 3.2x

Public Operating Comparables: Marketing and Advertising Tech

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Operating Metrics($ in millions, except per share data)

LTM Revenue Growth LTM Revenue EBITDA

Company Ticker As Of '15A-'16E '16E-'17E GM LTM CY 2016E CY 2017E LTM CY 2016E CY 2017E


Salesforce NYSE:CRM Apr 2016 24% 21% 75% $7,073 $8,267 $9,971 $522 $1,635 $1,995

Endurance International NasdaqGS:EIGI Mar 2016 0% 13% 43% 801 1,157 1,311 156 398 456

Hubspot NYSE:HUBS Mar 2016 42% 30% 75% 203 259 336 (42) NA NA

Bazaarvoice NasdaqGS:BV Apr 2016 2% 7% 62% 200 201 215 (15) 4 11

Brightcove NasdaqGS:BCOV Mar 2016 9% 10% 65% 138 147 163 2 9 11

Jive Software NasdaqGS:JIVE Mar 2016 1% (5%) 63% 199 197 187 (19) 13 15


Criteo NasdaqGS:CRTO Mar 2016 (47%) 25% 36% $1,430 $708 $884 $129 $204 $272

Rubicon NYSE:RUBI Mar 2016 19% 21% 76% 281 295 357 28 64 88

TubeMogul NasdaqGS:TUBE Mar 2016 27% 20% 68% 192 229 276 (12) 7 19

Rocket Fuel NasdaqGS:FUEL Mar 2016 (0%) 3% 42% 462 461 476 (21) 11 12

YuMe NYSE:YUME Mar 2016 4% 6% 45% 172 180 191 (9) 8 11

MaxPoint NasdaqGM:MXPT Mar 2016 (32%) 6% 51% 141 96 101 (20) NA 0

Marin Software NYSE:MRIN Mar 2016 (2%) 1% 64% 109 106 108 (16) 1 5

Tremor Video NYSE:TRMR Mar 2016 6% 20% 44% 170 184 222 (12) 3 13

Marketing and Advertising M&A Volume Declines Slightly

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_______Source: 451 Group; includes transactions with disclosed, estimated, undisclosed transaction valuesTop 3 acquisitions with disclosed transaction values

Average LTM Revenue Multiple 2013 2014 20156.1x 4.9x 1.9x

Top 3 Acquisitions by Quarter ($M) – Target / Acquirer

3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

DG (assets) / Extreme

Reach($485)

Responsys / Oracle

($1,607)

Valassis / Harland Clarke

($1,947)

Vocus / GTCR($413)

Conversant / ADS

($2,216)

Datalogix / Oracle

($1,100)

eXelate / Nielsen($195)

TellApart / Twitter($532)

DT (assets) / Stroeer($331)

Cons. Contact / Endurance

Intl.($1,100)

Tapad / Telenor($360)

Demandware/ Salesforce

($2,800)

Adap.tv / AOL

($465)

Dealer.com / DealerTrack

($987)

BlueKai / Oracle($320)

Adconion / Amobee($209)

LiveRail / Facebook

($382)

BrightRoll / Yahoo!($640)

Chango / Rubicon($100)

Domob / BlueFocus

($289)

Mil. Media / AOL

($248)

ShopperTrak / Tyco

($175)

Smartclip / RTL Group

($53)

Marketo / Vista Equity

($1,790)

Locu / GoDaddy

($70)

Aggregate / NeuStar ($119)

FreeWheel / Comcast($320)

Adometry / Google($150)

[x+1] / Rocket Fuel

($230)

Videoplaza / Ooyala($80)

Yashi / Nexstar

($33)

Bronto / NetSuite

($200)

Unruly Media /

News Corp($90)

Undertone / Perion($130)

Technorati / Synacor

($3)

Teradata (assets) /

Marlin Equity($90)

34 34

51 53

41

53

42 40

55 53

36 33

$1,167

$2,865$3,049

$845

$3,305

$1,945

$389

$1,220$820

$1,706

$416

$4,730

0

10

20

30

40

50

60

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016

# Deals$ in millions Deal Volume Deal Value ($M)

Top Acquirers in Marketing and Advertising Market

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Buyer # Acquisitions Total Value ($M) Targets

Google 8 1,025.0Admeld, Adometry, Channel Intelligence, Incentive Targeting, mDialog, Red Hot Labs, Wildfire, ZaveNetworks

Yahoo! 8 975.5 5to1.com, AdMovate, Brightroll, Flurry, Interclick, Luminate, Palaran, Ztelic

Adobe 7 1,178.0 Auditude, comScore (assets), Demdex, Efficient Frontier, Neolane, Search Discovery, Tumri

Oracle 7 3,177.7 BlueKai, Crosswise, Datalogix, Eloqua, Involver, Responsys, Vitrue

Facebook 5 382.0 LiveRail, Microsoft Corp (Atlas Ad Suite), Onavo, Pryte, Threadsy (Uptake Communications)

Top Acquirers by Volume – Four or More Acquisitions, 2011 – Present

Buyer Total Value ($M) Targets

Oracle 4,458.7 BlueKai, Crosswise, Datalogix, Responsys

Salesforce 6,315.0 Demandware, ExactTarget

Alliance Data Systems 2,300.0 Conversant

Harland Clarke 1,947.0 Valassis

Vista Equity Partners 1,790.0 Digital Technology, MarketLive, Marketo, Mediaocean

SAP AG 1,381.0 Hybris, KXEN, SeeWhy

Adobe Systems 1,178.0 Auditude, comScore (assets), Demdex, Efficient Frontier, Neolane, Search Discovery, Tumri

Endurance International 1,100.0 Constant Contact

Dealertrack Holdings 1,048.5 Dealer Dot Com, ClickMotive

Google 1,025.0 Admeld, Adometry, Channel Intelligence, Incentive Targeting, mDialog, Red Hot Labs, Wildfire, Zave Networks

Yahoo 975.5 5to1.com, AdMovate, Brightroll, Flurry, Interclick, Luminate, Palaran, Ztelic

DG 597.6 EyeWonder, MediaMind, Peer39, Republic Project

AOL 539.1 Adap.tv, goviral, Vidible

Top Acquirers by Total Transaction Value – $450M or More, 2011 – Present

_______Source: 451 Group

Marketing & Advertising M&A Case Study

Transaction Overview:• $1.8B acquisition of Marketo by Vista Equity Partners

- All cash offer for an enterprise value of $1.8B- $35.25 per share, representing a 64% premium to the unaffected closing

price as of May 9, 2016• Financial metrics:

- Marketo generated $226 million in LTM revenue and an LTM EBITDA loss of $54 million at the time of acquisition, representing a 7.9x LTM revenue multiple

Target Description:• Provides marketing automation SaaS for businesses. Software provides features

for sales lead management and analytics, email and social media marketing, and marketing campaign analytics

Transaction Commentary:• "The acquisition will allow Marketo to continue to focus on customer success and to

remain the independent category leader, continuing to set the agenda for product innovation and thought leadership for the entire digital marketing industry. It will also enable us to successfully deliver on the bold vision we recently set forth - to give tomorrow's marketers and the C-suite an ultra-high-scale enterprise platform for customer engagement”, said Phil Fernandez, chairman and CEO of Marketo

• "Marketo is the clear leader in the marketing automation space and has consistently delivered innovative mission critical products to its more than 4,600 customers," said Brian Sheth, co-founder and president of Vista Equity. "Given our proven track record and focus on investing in high-growth SaaS platforms, we are thrilled to partner with Phil and the broader Marketo team to help the company accelerate innovation, growth, and excellence."

ACQUIRED

On May 31, 2016

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63

45

59

71

61

53

65 65 60

64 64

93

$554

$268

$459

$1,071

$478

$462

$827

$458 $456

$622 $577 $528

0

10

20

30

40

50

60

70

80

90

100

$0

$200

$400

$600

$800

$1,000

$1,200

3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016

$ in millions Investment Volume Investment Value ($M)

Marketing and Advertising Investment Volume Rising

_______Source: PitchBook; includes transactions with disclosed, estimated, undisclosed transaction valuesTop 3 investments with disclosed investment values

Top 3 Investments by Quarter ($M)

3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

Droga5($225)

Komli Media ($30)

Appforma($80)

CampaignMonitor($250)

AppNexus($85)

AppNexus($110)

Red Ventures($250)

Panshi($200)

Kahuna($45)

iPinYou($78)

Seat Pagine($127)

Vibes Media($45)

Videology($68)

BrightTag($27)

Turn($80)

MediaMath($176)

Hootsuite($60)

MatomyMedia

($82)

Harbor City($100)

LatticeEngines($28)

Emarsys($33)

Siteimprove($55)

Yello Mobile($73)

Evariant($42)

SugarCRM($40)

Vungle($19)

Integral Ad($30)

AdRoll($70)

xAd($50)

Infusionsoft($55)

Volusion($55)

Magnetic($25)

Demandbase($30)

SteelHouse($49)

BloomReach($56)

Collective($34)

# investments

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Top Investors in Marketing and Advertising Market

Investor Investments Targets

500 Startups 31AdStage, BackType, Boostable, BrandCont, Capseo, Central Mayoreo, Conekta, Crowdrally, Ginzamarkets, Iterable, LocBox, MarketVibe, Newswhip Media, OwnLocal, PostRocket, Privy, Regresa Pronto, Samba Ads, ShareRoot, Skimbit, Spinnakr, Unbounce Marketing, Vid Network, Virool, Vungle

Greycroft Partners 2533Across, Collective, Custora, Elicit, Media Armor, Molio, Netsertive, Nomi, Performance Horizon Group, Radiate Media, Resonate Networks, Skimbit, SteelHouse, TagMan

First Round Capital 2233Across, Altruik, AppNexus, DoubleVerify, Elicit, Flurry, Handshakez, Jirafe, Moat, Nomi, Say Media, SinglePlatform, Solve Media, VigLink

SV Angel 21Booshaka, Boostable, Custora, Heap, Moat, Nomi, NowSpots, Pipewise, SocialFlow, SteelHouse, TellApart, TT Labs, Tubular Labs, Vungle, WibiData, Wish, Yext

Accel Partners 21AdRoll, AVITO.ru, BEBB India, ChargeBee, Collective, Dealer.com, Doctolib, Genius.com, HootSuite, LocBox, MoPub, myThings, Nomi, OpenX Software, Origami Logic, Power2sme, YuMe

Sequoia Capital 21 AgilOne, Dianping.com, Flite, HubSpot, Innovid, Kahuna, Kenshoo, Kontera Technologies, Lattice Engines, Orbi, Taykey

Battery Ventures 20Appboy, Bloomreach, BrightEdge Technologies, ExactTarget, Kontagent, Lotame Solutions, Marketo, PowerInbox, Smarter Remarketer, Sprinklr, Tapad, Tealium

Draper Fisher Jurvetson 194INFO, AdXpose, Flurry, ignitAd, InsightSquared, iSocket, Komli Media, PubMatic, Servio, StrikeAd, SugarCRM, Tremor Video, Virool, Yodle

New Enterprise Associates 17BloomReach, Compass Labs, Lattice Engines, Millennial Media, Placester, RezNext Global, Say Media, Spare5, SugarCRM, TrackMaven, Videology, WibiData

TechStars 17Adhawk, AdYapper, Bizible, CrowdTwist, HYP3R, inRentive, Jebbit, MarketVibe, Mavrck, Mobintent, Rally Networks, Simple Energy, SimpleRelevance, Splashscore, Sponsokit

Intel Capital 15[x+1], BrightEdge Technologies, Delivery Agent, HookLogic, Movable Inc, SmartZip Analytics, Sprinklr, Vizury, YuMe, ZamplusTechnology

Atlas Venture 14 Bluetrain Mobile, DataXu, InsightSquared, Integral Ad Science, Overdog, Privy, Unbounce Marketing

Y Combinator 13 AdGrok, BackType, Boostable, Custora, Heap, LocalOn, Orankl, Reebee, TrendMD, TT Labs, Virool, Zenprospect

Bertelsmann Digital Media Investments

12 Adomic, Content Fleet, CrowdTwist, Deal United, Regiohelden, Semasio, SensorTower, Skimbit

Top Investors by Volume, 2011 – Present

_______Source: PitchBook; number of investments may include follow-on investments in same target

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Top Seed and Series A Investors in Marketing and Advertising


500 Startups 29AdStage, BackType, Boostable, Capseo, Central Mayoreo, Conekta, Crowdrally, Ematic Solutions, Funnely, Iterable, LocBox Labs, MarketVibe, PostRocket, Privy, Regresa Pronto, Samba Ads, ShareRoot, Spinnakr, Unbounce Marketing Solutions, Vid Network, Virool, Vungle

SV Angel 14 Booshaka, Boostable, Custora, Heap, Moat, Nomi, NowSpots, Pipewise, SocialFlow, TT Labs, Tubular Labs, Vungle

RRE Ventures 11 Bloglovin, BlueTrain Mobile, Deepomatic, ividence, Klaviyo, Pontiflex, Say Media, SinglePlatform, SocialFlow, Yieldbot

Y Combinator 11 AdGrok, BackType, Boostable, Custora, Heap, LocalOn, Orankl, Reebee, TT Labs, Virool

TechStars 11 AdYapper, Bizible, inRentive, HYP3R, MarketVibe, Mavrck, Mobintent, Simple Energy, SimpleRelevance, Splashscore

First Round Capital 10 Altruik, Elicit, Handshakez, Jirafe, Moat, Nomi, Say Media, SinglePlatform, Solve Media

Lerer Hippeau Ventures 8 Bloglovin, Bottlenose, Brandtale, Fuisz Media, GraphEffect, Moat, Tubular Labs

Greycroft Partners 7 Custora, Elicit, Media Armor, Molio, Nomi, TagMan

Betaworks 6 Bloglovin, Namo Media, SocialFlow, Teleportd

Atlas Venture 5 Bluetrain Mobile, InsightSquared, Privy, Unbounce Marketing

CommonAngels 5 InsightSquared, Linkable Networks, Yieldbot

Draper Associates 5 Autopilot, MomentFeed, Vungle

ff Venture Capital 5 Bottlenose, Elicit, Movable Inc, Parse.ly

Founder Collective 5 BackType, Custora, GraphEffect, Moat, ThriveHive



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Top Series B and C Investors in Marketing and Advertising


Greycroft Partners 11 Netsertive, Performance Horizon Group, Resonate Networks, Skimbit, SteelHouse, TagMan

Sequoia Capital 10 AgilOne, Dianping.com, Flite, Innovid, Kahuna, Lattice Engines, Taykey

Battery Ventures 9 Appboy,BrightEdge Technologies, Kontagent, Sprinklr, Tapad, Tealium

Lightspeed Venture Partners

9 BloomReach, Dianping.com, Evariant, Eyeviewdigital, MediaV, MyBuys, Origami Logic

First Round Capital 7 33Across, DoubleVerify, Moat, Solve Media, VigLink

Intel Capital 7 BrightEdge Technologies, HookLogic, Movable Inc, SmartZip Analytics, Sprinklr, Vizury

New Enterprise Associates 6 BloomReach, Compass Labs, Lattice Engines, TrackMaven, Videology, WibiData

Redpoint Ventures 6 55social, Adap.tv, nadco, Intent Media, The Miaozhen Systems

Baird Capital 5 BrightTag, ClickFuel, eDo Interactive, WordStream

Draper Fisher Jurvetson 5 ignitAd, InsightSquared, iSocket, Servio

Ignition Partners 5 Dianping.com, Moz, Visible Technologies



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Top Series D+ Investors in Marketing and Advertising


Norwest Venture Partners 8 Act-On Software, Komli Media, True[x] Media, Turn

Draper Fisher Jurvetson 7 4INFO, AdXpose, Flurry, Komli Media, PubMatic, SugarCRM, Tremor Video, Yodle

Accel Partners 6 AdRoll, Genius.com, OpenX Software, Power2sme, YuMe

Battery Ventures 6 BloomReach, BrightEdge Technologies, Lotame, Marketo, Sprinklr, Tealium

Focus Ventures 5 Delivery Agent, Marin Software, Turn

Institutional Venture Partners

5 AdRoll, Buddy Media, Marketo, xAd, Yext

Menlo Ventures 5 DataXu, Flurry, YuMe

SAP Ventures 5 Criteo, Marin Software, OpenX Software, Tremor Video

Crosslink Capital 4 Flurry, Marin Software

First Round Capital 4 33Across, AppNexus, Flurry

Intel Capital 4 BrightEdge Technologies, Delivery Agent, Sprinklr, YuMe

Panorama Capital 4 33Across, JiWire, Zoove

Scale Venture Partners 4 BrightRoll, Demandbase, HubSpot

Trident Capital 4 BrightRoll, JiWire, Turn



Page | 15

Marketing and Advertising Investment Case Study

Transaction Overview:

• $34M of later stage venture funding from lead investors Accel Partners, Columbia Partners, Greycroft Partners and Inovia Capital

• Collective currently has 405 employees

• Collective has raised $120M in funding to date

Target Description:

• Provider of an online advertising network. The company's products enable brands to control audience reach & frequency and choreograph messaging across TV, PC, tablet and smartphone devices

Transaction Commentary:

• Collective is known for its Visto product, which provides clients a single platform to manage and track all advertising activity

• The money will be put to work on the company’s new product, Visto. The recently launched platform brings additional transparency to the MarTechspace

• "With this increased investment, we will be able to accelerate the rollout of new features and functionality in the second half of 2016 and into 2017," said Collective founder and CEO Joe Apprendi

• Joe Apprendi, CEO of Collective, wants to focus on display and video ads first. With the platform, users will be able to use a single UI to target audiences and create campaigns across channels in a unified system_______

Sources: PitchBook, NY Biz Journal, TechCrunch

INVESTED IN

On June 16th, 2016

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15+ Years of Marketing and Advertising Tech Sector Success

_______Certain transactions executed by Headwaters TMT bankers at prior firms

IPO

Lead Manager

IPO

Lead Manager

IPO

Lead Manager

HAS ACQUIRED

Fairness Opinion to the Buyer

IPO

Co-Manager

HAS BEEN ACQUIRED BY

Financial Advisor tothe Seller














A DIVISION OF






Page | 17

Recent Awards and Nominations

Headwaters Technology, Media & Telecom (TMT) team has won awards for

2014 Online and Mobile Tech Deal of the Year and 2014 Consumer Services Deal of the Year

and back-to-back M&A Advisor TMT Deal of the Year awards




A DIVISION OF





A PORTFOLIO COMPANY OF


2013 TMT DEAL OF THE YEAR <$100M

CONSUMER SERVICES

DEAL OF THE YEAR

CROSS BORDER DEAL OF THE YEAR


CORPORATE / STRATEGIC ACQUISITION

OF THE YEAR

2014 ONLINE AND MOBILE TECH DEAL

OF THE YEAR






7th ANNUALINTERNATIONAL M&A AWARDS

2015 WINNER

HAS ACQUIRED

Financial Advisor tothe Buyer

Page | 18

Contact Us

www.headwatersmb.com

Page | 19

Disclaimer

Disclosure: This newsletter is a periodic compilation of certain economic and corporate information, aswell as completed and announced merger and acquisition activity. Information contained in thisnewsletter should not be construed as a recommendation to sell or buy any security. Any reference to oromission of any reference to any company in this newsletter should not be construed as arecommendation to buy, sell or take any other action with respect to any security of any such company.We are not soliciting any action with respect to any security or company based on this newsletter. Thenewsletter is published solely for the general information of clients and friends of Headwaters MB, LLC. Itdoes not take into account the particular investment objectives, financial situation, or needs of individualrecipients. Certain transactions, including those involving early stage companies, give rise to substantialrisk and are not suitable for all investors.

This newsletter is based upon information that we consider reliable, but we do not represent that it isaccurate or complete, and it should not be relied upon as such. Prediction of future events is inherentlysubject to both known and unknown risks, and other factors that may cause actual results to varymaterially. We are under no obligation to update the information contained in this newsletter. Opinionsexpressed are our present opinions only and are subject to change without notice. Additional informationis available upon request. The companies mentioned in this newsletter may be clients of Headwaters MB,LLC. The decisions to include any company in this newsletter is unrelated in all respects to any servicethat Headwaters MB, LLC may provide to such company. This newsletter may not be copied orreproduced in any form, or redistributed without the prior written consent of Headwaters MB, LLC. Theinformation contained herein should not be construed as legal advice.

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Headwaters MB 2Q 2016 Technology Sector Update: Marketing & Advertising