VENTURE CAPITAL IN MOBILE

1H12 Update

Rajeev Chand Managing Director Head of Research August 15, 2012

VC in Mobile$3.9 Billion in 1H12

VC Investments in Mobile
Global, 2001-1H12 Amount ($B)
7.0 $6.4 6.0 $4.9 Carrier Technology 5.0 $5.4 $5.1 $4.5 $4.0 4.0 $3.1 3.0 $2.6 $2.1 2.0 $3.6 $3.0 $3.9 $6.3

1.0

0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H11 1H12
Source: Rutberg & Company Note: Excludes debt financings for venture-backed companies

VC in Mobile46% of Overall VC
Mobile VC as Percentage of Overall Tech VC(1)
2001-1H12 Percent of Overall VC
50% 45% 39.1% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H12
Source: Rutberg & Company (1) Overall tech VC based NVCA data (includes computer and peripheral, IT service, networking and equipment, semiconductor, and software sectors; excludes carrier sector)

46.3%

27.1% 25.6%

28.9% 27.5%

29.2%

17.8% 12.9%

17.8%

17.4%

16.9%

VC in Mobile4th Largest Tech R&D Organization

Mobile VC Investments vs. Tech Companies R&D Expenditures(1)
1H12 Amount ($B)
5.0

4.0

3.0

2.0

1.0

0.0 Samsung Microsoft Google Ericsson STMicro Canon Nokia Oracle Apple Cisco EMC ALU HP SAP Qualcomm Mobile VC FUJIFILM Intel IBM

Source: Rutberg & Company (1) Public companies R&D expenditures as reported for last six month period.

VC in Mobile$1B in Consumer Apps

Mobile VC Investments by Sector
Global, 1H12

Semiconductor $0.3B Carrier $0.4B

CE Device Component $573MM $116MM

Infrastructure $1.3B Device $0.7B

Enterprise Media Telecom $653MM $426MM $235MM

Consumer Enterprise Telecom

$1,009MM $176MM $4MM

Application $1.2B

1H2012 = $3.9 billion

Source: Rutberg & Company

VC in MobileBy Sector over Time

Percent of Mobile VC Dollars by Sector over Time
Global, 2005-1H12
% Total 30% 20% 10% 0% 2005 2006 2007 2008 2009 2010 2011 1H12 % Total 20% 15% 10% 5% 0% 2005 2006 2007 2008 2009 2010 2011 1H12 10% 0% 2005 2006 2007 2008 2009 2010 2011 1H12

Consumer Application

% Total 10% 8% 6% 4% 2% 0%

Telecom Application

% Total 8% 6% 4% 2% 0%

Enterprise Application

2005 2006 2007 2008 2009 2010 2011 1H12 % Total 30% 20%

2005 2006 2007 2008 2009 2010 2011 1H12 % Total 20% 15% 10% 5% 0% 2005 2006 2007 2008 2009 2010 2011 1H12

Media Infrastructure

Telecom Infrastructure

Enterprise Infrastructure

% Total 20% 15% 10% 5% 0%

Device

% Total 40% 30% 20% 10% 0%

Carrier

% Total 20% 15% 10% 5% 0%

Semiconductor

2005 2006 2007 2008 2009 2010 2011 1H12 Source: Rutberg & Company

2005 2006 2007 2008 2009 2010 2011 1H12

2005 2006 2007 2008 2009 2010 2011 1H12

VC in Mobile1H12 Cluster Map

Consumer Apps $1B Commerce and Payments $526MM

Advertising $246MM Enterprise $609MM

Video $202MM

Device $636MM mHealth $129MM

Source: Rutberg & Company

VC in Mobile2012YTD Private Company Metrics (Selected)

$6 billion in run rate payments, 2m merchants

1.3 billion messages per day, +30% in 5 months

40m users, 70,000 stations

93.5 billion monthly impressions, +251% YoY

1 billion downloads, 200m MAUs

20m users, +100% in 6 months

100m rewards/month, 50% re-engagement

34m users, 1.4m premium

18m registered users, +80% in 6 months

13m users reading 200m stories per month

70m users, 1m per week

45m users in 18 months

15m active users, 4m pay subscribers

600% YoY growth in enterprise customers

400m downloads, 115m MAUs

Source: Rutberg & Company, company press releases and publicly disclosed statements

VC in Mobile61% of Deals are $5MM or Less

VC in Mobile by Round Size(1)
2005-1H12 % of Deals
100% 90% 80% 70% 60% 50% 40% 30%
>$20MM

Selected Early Stage Investments

1H12

(Acquired by Facebook)

20% 10% 0%

$10-$20MM $5-$10MM <=$5MM

(Acquired by Autodesk)

2005 2006 2007 2008 2009 2010 2011 1H12

Source: Rutberg & Company (1) Excludes deals where amount was not disclosed

VC in MobileLargest Investments
Top 25 VC Investments in Mobile
1H12
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Company Xiaomi Tech Sistema Shyam Sonos Lianlian Pay Linkem Quantenna Evernote Skybox Imaging LifeStreet Media AnchorFree SecureKey(1) Foursquare SoundCloud SmartDrive Systems Row 44 Ddmap.com MobileIron Path Tango Komli Media Viddy(1) Boku SpiderCloud Magnum(1) Quikr Location Beijing, China Gurgaon, India Santa Barbara, CA Hangzhou, China Rome, Italy Fremont, CA Mountain View, CA Mountain View, CA San Carlos, CA Mountain View, CA Toronto, Canada New York, NY Berlin, Germany San Diego, CA Westlake Village, CA Shanghai, China Sunnyvale, CA San Francisco, CA Palo Alto, CA Mumbai, India Venice, CA San Francisco, CA San Jose, CA Milpitas, CA Mumbai, India Sector Device Carrier Device Carrier Carrier Semiconductor Application Infrastructure Infrastructure Application Infrastructure Application Application Infrastructure Carrier Application Infrastructure Application Application Infrastructure Application Application Infrastructure Semiconductor Application Subsector Handset Network operator Wireless home music system Mobile payment Wireless broadband 802.11n semiconductor Notes application Satellite imagery Mobile advertising WiFi security Mobile payments security LBS application Music application Fleet management In-flight service Mobile map Mobile device management Social network Video calling Mobile advertising Social video app Mobile payments Indoor wireless connectivity Wireless video broadcast Mobile classifieds Most Recent Date 6/28/2012 1/12/2012 6/19/2012 1/18/2012 5/21/2012 4/17/2012 5/3/2012 4/18/2012 5/3/2012 5/22/2012 5/18/2012 3/1/2012 1/2/2012 6/19/2012 6/12/2012 6/22/2012 5/30/2012 4/13/2012 4/19/2012 6/12/2012 5/14/2012 3/15/2012 4/6/2012 6/19/2012 5/22/2012 Amount ($MM) 216.0 158.0 135.0 125.0 90.3 79.0 70.0 70.0 66.0 52.0 50.2 50.0 50.0 47.0 45.0 40.0 40.0 40.0 40.0 39.0 36.4 35.0 35.0 32.8 32.0

Source: Rutberg & Company (1) Represents companies with multiple announcements in 1H12; date is listed as of the most recent announcement, and amounts are aggregated for the half-year

Thank You

Rutberg & Company Research Contact Information

Rajeev Chand Managing Director Head of Research rchand@rutbergco.com Nick Mayberry Senior Equity Research Associate nmayberry@rutbergco.com Kyle Spraker Equity Data Associate kspraker@rutbergco.com

Rutberg & CompanyAnnual Events

SAN FRANCISCO Future:Mobile June 18-19, 2012 Westin Market Street San Francisco, California

RANCHO PALOS VERDES Wireless Influencers October 21-23, 2012 Terranea Resort Rancho Palos Verdes, California

LONDON Rutberg Summit: London April 16-18, 2013 Claridges Hotel London, England

Rutberg & CompanyInvestment Banking

Barry A. Newman Senior Advisor Office: (415) 371-1186 bnewman@rutbergco.com

Robert C. Harris Vice Chairman, Investment Banking Office: (415) 371-1186 rharris@rutbergco.com Bryan B. Rutberg Chief Executive Officer Office: (415) 371-1186 brutberg@rutbergco.com

Joseph S. Sanborn Managing Director, Head of M&A Office: (617) 262-6694 jsanborn@rutbergco.com

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