agc sales technology report jul2016

Sales Technology A l w a y s B e C l o s i n g

Introduction to Sales Technology

The sales process for B2B companies is changing as customer buying habits change. Readily available online information enables customers to research and learn the details of specific products and services without interacting with a salesperson. The connected and empowered buyer is driven not only by the proliferation of information but also by a behavioral change in which they prefer to find information and identify alternatives on their own. According to Forrester Research ”today’s buyers might be anywhere from two-thirds to 90% through their journey before they reach out to the vendor”.

To be successful in today’s customer-empowered environment, sales teams need to arm themselves with the best tools to convert clients once they do become interested in the product. In response, Sales Technology has evolved beyond just traditional CRM. Top performing sales teams are leveraging cutting edge technology to focus their sales efforts on the best prospects, arm themselves with the most up to date and relevant sales material, and reduce manual or repetitive tasks. Sales Technology enables sales teams to accelerate the sales cycle by doing things smarter, better and faster, and, ultimately, close more and higher quality deals. It also takes some of the uncertainty out of the sales function by enabling clear, repeatable processes, optimized by actionable data insights.

A company’s success literally depends on the performance of their sales people and it is no surprise that executives are keen to have their sales teams humming at peak performance. This is driving significant growth in the $16.6B Sales Technology market and fueling hundreds of start-ups and strong strategic interest from buyers.

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Sales Technology Empowers Sales

Teams to be More Efficient and Effective

Massive $16.6 Billion U.S. Market (excluding CRM)

Where Sales Technology Fits in the Conversion Funnel

“The first rule of any technology…is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” – Bill Gates

Sales Technology promises to do for the sales function what Marketing Technology has done for the marketing function – drive greater efficiency, effectiveness, and intelligence. Whether finding the best prospects, optimizing communications, or streamlining sales collateral, Sales Technology is becoming an invaluable tool for maximizing sales team performance.

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Awareness

Interest

Consideration

Intent

Evaluation

Decision

Purchase

Leads

Prospects

Customers

MARKETING

TECHNOLOGY

SALES

TECHNOLOGY

Classification

Near-Term

Prospects

Marketing / Sales Functions

Advertising, Search, Social,

Outbound Prospecting, Content

Marketing, Event Marketing

Website Tracking, Optimization,

Email Marketing, Lead Scoring, CRM

Quotes, Documentation

Inside Sales, Outside Sales,

Presentations

Purchase Funnel

Sales Technology is a Massive Opportunity

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Source: U.S. Census, Gartner, InsideSales

$14.6

$16.6

CRM Sales Acceleration

Total U.S. Market Size ($B) in 2015

“When you improve your product so it does the customer’s job better, then you gain market share.” – Clayton Christensen

We think of Sales Technology as comprised of both traditional CRM and Sales Acceleration (essentially, everything else) technologies. While the distinction is somewhat fuzzy as CRM suites incorporate additional functionality, Sales Acceleration as a standalone opportunity is already larger than the traditional CRM market and has the potential to grow even faster.

Key Assumptions:

5.8M sales reps in the U.S. (non-retail) in 2015

1.8% increase from U.S. census 2014 estimate of 5.7M

$2,850 sales acceleration spend per sales rep in 2015

25% increase from InsideSales’ 2013 estimate

U.S. accounts for 55.7% of the global CRM market

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Defining the Sales Technology Market

Sales Force

Management

Sales Data / Analytics

Customer Intelligence

Sales Enablement

Sales Engagement

Key Capabilities: CRM, email tools, call tools, automated engagement, sales activity logging

Tools to help sales professionals reach out to more prospects more efficiently.

Improves how sales professionals communicate with customers and ensures that messaging is on point.

Allows sales professionals to keep track of historical interaction so that communications are coherent and

consistent.

Key Capabilities: content enablement, content sharing, automated quotes / documentation

Increases the effectiveness of sales professionals by arming them with the latest sales collateral and allowing them

to easily customize for each client.

Intelligent content recommendations tactically sequenced to increase the chance of connecting with a customer at

each stage of the buying cycle.

Key Capabilities: database / list services, company intelligence, buyer insights, social prospecting

Leverages internal and external data sets to gain insight into potential prospects to streamline the qualification,

communication, and conversion process.

Provides access to pre-qualified leads or helps identify leads using social networking and other channels.

Key Capabilities: pipeline management, data visualization, predictive analytics, interaction analytics

Analyzes leads and historical sales activity in order to provide actionable insights that allow sales professionals to

focus sales efforts on highest value targets.

Identifies, models, and predicts sales trends and outcomes while aiding sales management in understanding where

salespeople can improve.

Key Capabilities: onboarding, coaching, compensation, sales gamification, performance management

Helps sales managers formulate and implement sales strategies and effectively manage sales people.

Provides tools and reward systems to train and encourage sales professionals and drive friendly competition that

creates an incentive based atmosphere.

Clearly outlines sales objectives and ensures that compensation is aligned with company goals.

Source: AGC Partners

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Representative Sales Technology Companies

Sales Force

Management

Sales Data / Analytics

Customer Intelligence

Sales Enablement

Sales Engagement

DISCLAIMER: This is only a representative list and may not include all relevant companies. If your company is not on the list and would like to be added for future

publications, please kindly shoot us a note at [email protected] and we would be happy to consider adding.


“Every problem is a gift – without problems we would not grow.” – Anthony Robbins

The sales process is unpredictable and inefficient. Sales Technologies take some of the burden off of sales people by standardizing and automating processes and addressing critical pain points.

Addressing Key Industry Pain Points

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Sales Problem Sales Technology Value Proposition

Poor insight into the quality of

leads and where they should be

spending time.

Align marketing and sales goals to improve collaboration.

Leverage machine learning to optimize lead generation for highest ROI customers.

Predictive analytics to help prioritize leads.

Non-linear buying process of

potential customers caused by

channel fragmentation.

360-degree view of the customer, including online activity, response to marketing campaigns, past

communication history, etc.

Multi-channel orchestration to ensure coherent messaging across calls, emails and other communications.

Time consuming tasks such as

managing accounts and tracking

and reporting sales activity.

Quote generation tools with visibility into the latest product and pricing information.

Automated logging of sales activity and generation of actionable reports on performance.

Outreach notifications and reminders.

Poor access to updated and

relevant sales collateral.

Cloud-based repository of latest sales collateral accessible from any device.

Automatic syncing of sales collateral with latest marketing campaigns.

Sales collateral organized and optimized based on client type and funnel stage.

Difficult managing sales team

performance and turn-over.

Get greater visibility into pipeline and forecasts making sales more predictable.

Clear, repeatable sales processes, optimized through scientific analysis, to help salespeople take some of

the guesswork out of their jobs.

Surprising Inefficiencies in the Sales Process

8

% of Sales Reps That

Think they Spend

Too Much Time on

Data Entry

Source: ToutApp

% of Sales Reps That

Give up After One

Follow-up

Source: Scripted

% of the Buyer's

Journey Completed

Before Talking to a

Sales Rep

Source: CEB

% of Sales Reps Time

Spent Actively

Selling

Source: CSO Insights

% of Missed Deals

Due to Sales Reps

not Finding or

Leveraging Internal

Resources

Source: Qvidian

% Improvement in

Close Rates when

Sales and Marketing

are Aligned

Source: Marketo

% of Prospects that

Feel their Sales Rep

is not Prepared for

the First Meeting

Source: IDC

% of Top Performing

Companies Using

Sales Acceleration

Technology

Source: Forbes

Insights

% of Sales Reps that

Store Customer Data

in Physical Files or

Google docs.

Source: HubSpot

“Statistics are used much like a drunk uses a lamppost: for support, not illumination.” – Vin Scully

Significant inefficiencies exist in the sales process. Considering the cost of top sales talent and the challenging nature of the role, companies are keenly focused on optimizing their sales organizations.

The Empowered Buyer

“How is it we have so much information, but know so little?” – Noam Chomsky

Customers have access to more product information than ever before. Through company websites, white papers, web videos, infographics, social content, online review sites, etc, customers may be very well informed before they ever talk to a sales person. The challenge then is for sales reps to be able to react quickly to help customers complete the purchase journey.

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Awareness

Interest

Consideration

Intent

Evaluation

Decision

Purchase

Traditional Buyer Education

Self Directed by

Customer

Discovery Channels:

- Website

- Trade Shows

- Marketing Content

Awareness

Interest

Consideration

Intent

Evaluation

Decision

Purchase

Today’s Empowered Buyer

Engages Sales Person

Engages Sales Person

Self Directed by

Customer

Discovery Channels:

- Website

- White Papers

- Web Videos

- Infographics

- Social

- Online Review Sites

- Trade Shows

- Marketing Content

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Aligning Sales and Marketing

“What about the good leads?” – Shelley Levene, Glengarry Glen Ross (1992)

The line between marketing and sales continues to blur. B2B marketing organizations are becoming revenue-generating centers, while salespeople are behaving like micro-marketers when they share content through social media channels. These two roles serve a shared purpose: to identify, attract, and close business for the company. Aligning sales and marketing functions ultimately leads to less finger pointing and better performance for both teams.

Marketing

Sales

Keeps marketing content consistent with

sales collateral to deliver coherent

messages to customers that are going

through more of the product journey

themselves.

More cooperation between marketing

teams and sales teams results in faster

conversion from lead to sale.

Analytics and transparency help avoid

finger pointing situations where sales

blames marketing for poor leads and

marketing blaming sales for not being able

to close.

ADVANTAGES OF SALES AND MARKETING ALIGNMENT

Aligns marketing and sales on shared

goals and KPIs, such as lead to close rate,

lead to opportunity rate, deal velocity,

average deal value growth, database

reach, engagement and other metrics.

Marketing gains better insight into which

leads result in the best ROI, allowing them

to optimize their marketing activities.

Sales can gain valuable intel on customer

needs and challenges through access to

marketing analytics, allowing them to tailor

their sales messages.


Private Placement Activity

Highlights

Key Takeaways:

Possible maturing in the Sales Tech sector as deal volume

declines and capital raised increases

Fall-off in both number of deals and capital raised in 2016

likely a result of tougher macro environment for financings

Key Stats:

312 total transactions (2012 – 2016YTD); declining since

peak in 2014

$3.47B total capital raised (2012 – 2016YTD); 60% CAGR

from 2012 to 2015

$8.9M median amount raised per round in 2016YTD; 28%

increase over 2015

Companies that have raised the most capital:

Domo: $545M

InsideSales.com: $225M

Apttus: $186M

Radius Intelligence: $130M

Birst: $129M

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Source: CapIQ.

Note: Total Capital Raised for deals where disclosed. Calculation for Median Amount Raised excludes transactions <$1M.

49

86 89

65

45

2012 2013 2014 2015 2016 YTD(Annualized)

Total Number of Transactions

$279

$616

$891

$1,258

$422

2012 2013 2014 2015 2016 YTD(Annualized)

Total Capital Raised ($M)

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Most Active Investors in Sales Technology

Birst, Clari, Hearsay Social, HireVue, Inkling Systems, Lattice Engines,

Mintigo

Contactually, FullContact, Mobileworks, Novus Via, Orbit, Referly,

ToutApp

6Sense, Leadspace, Narrative Science, RelateIQ, Yesware

Hearsay Social, Lattice Engines, MindTickle, Referly, SugarCRM

AppDirect, FullContact, Referly, Yesware

MindTickle, Prezi, RelateIQ, Tactile

ClearInsight, CRM Pulse, Periscope Data, SugarCRM

Ambition Solutions, Datanyze, Nimble, Yesware

Charlie Contacts, FutureSimple, LevelEleven, TinderBox

ClearInsight, ClearSlide, Discoverly, Pipedrive

Ambition Solutions, Infer, RelateIQ, Tactile

6Sense, ClearSlide, discoverOrg, InsightPool, SugarCRM

Apptus, Bigmachines, ClearInsight, CRM Pulse, Discoverly, Domo,

Insidesales.com, Introhive, LevelEleven, PersistIQ, Radius Intelligence,

Relationship Science 12

7

7

5

5

5

4

4

4

4

4

4

4

Investor Number of Investments Investments

Source: CapIQ

M&A Activity

13

Acquiror Target EV ($M)

$26,191

$2,630

$1,350

$937

$450

$392

$154

$125

$134

Highlights

Key Takeaways:

M&A activity accelerating in Sales Tech

Microsoft’s $26B acquisitions of LinkedIn the largest

transaction by far and a strong endorsement of the sector

Large marketing cloud and CRM players are the most active

acquirors of Sales Tech

Strong PE interest in the sector as leading players reach

significant size and profitability

Key Stats:

111 Total transactions from 2013 to 2016 YTD

Estimated 51 transactions for 2016; 37% CAGR from 2013

and the most active year so far

Most Active Strategic Acquirors # of Deals

Salesforce 4

Microsoft 4

Oracle 2

SAP 2

Callidus Cloud 2

Infor 2

Top 10 Sales Tech M&A Transactions

Source: CapIQ, 451 Group

Note: Top 10 list represents transactions with disclosed values.

Date

06/13/16

06/02/16

06/05/13

05/18/16

10/23/13

07/11/14

11/04/14

01/08/15

06/07/13

$300 12/23/15

About AGC

Gee is a partner at AGC Partners, focusing on Digital Media and Marketing Technology.

In his 18 years as an investment banker, Gee has completed both M&A and financing transactions for some of the

largest global technology and media companies, as well as growth companies at the leading edge of innovation.

Prior to joining AGC Partners, Gee held senior banking positions with MESA Global and Montgomery & Co. He

started his investment banking career at Salomon Brothers in the late ‘90s and later worked at Friedman Billings

Ramsey in its technology M&A team.

Gee received a B.A. from the Haas School of Business at UC Berkeley.

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Note: This document is intended to serve as an informative article only in order to further discussion, analysis and independent verification. This document is based upon sources believed

to be reliable, however, we do not guaranty the sources’ actuary. Unless otherwise indicated, AGC does not believe that the information contained herein is sufficient to serve as the basis

of an investment decision. There can be no assurance that these statements, estimates or forecasts will be attained and actual results may be materially different. This is not a solicitation

of an offer of any kind. To learn more about the company/companies that is/are the subject of this commentary, contact one of persons named herein who can give you additional

information.

AGC is a leading investment bank with a focus on providing strategic advisory services to technology

companies, helping them achieve their vision. With more than 50 investment banking professionals across

the Americas and in Europe, we provide global coverage across all products and sectors, from software and

digital media to tech-enabled services and mobile communications. Since our inception in 2003, AGC

Partners has completed more than 270 investment banking transactions for emerging growth companies.

Gee M. Leung

Partner

APPENDIX

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16

Representative Financing Activity

Source: CapIQ

Date Issuer

Amount

(US$M) Investors

04/02/15 Domo, Inc. $ 360 Glynn Capital Management, BlackRock, Inc., GGV Capital, The Capital Group Companies, Inc., Canyon Capital Advisors, LLC, Credit Suisse Group, Investment Arm

02/05/14 Domo, Inc. $ 125 Institutional Venture Partners, T. Row e Price Group, Inc., salesforce.com, inc., Fidelity Investments, TPG Grow th, GGV Capital, Morgan Stanley Investment Management Inc., Viking

Global Investors LP, Mercato Partners, Dragoneer Investment Group, LLC, Greylock Partners

09/01/15 Apttus Corporation $ 108 Kuw ait Investment Authority, K1 Investment Management, LLC, ICONIQ Capital, LLC, Salesforce Ventures

04/09/14 InsideSales.com, Inc. $ 100 Hummer Winblad Venture Partners, Kleiner Perkins Caufield & Byers, Polaris Partners, U.S. Venture Partners, EPIC Ventures, salesforce.com, inc., Polaris Partners L.P., Acadia

Woods Partners, LLC, Zetta Venture Partners

03/18/15 InsideSales.com, Inc. $ 90 Hummer Winblad Venture Partners, Kleiner Perkins Caufield & Byers, Polaris Partners, U.S. Venture Partners, Microsoft Ventures (nka:Microsoft Accelerator), Zetta Venture

Partners, Salesforce Ventures

10/13/15 Rain King Softw are, Inc. $ 67 Spectrum Equity Management, L.P.

03/17/15 Birst, Inc. $ 65 Hummer Winblad Venture Partners, Sequoia Capital, Wellington Management Group LLP, Northgate Capital Group, L.L.C., DAG Ventures, LLC

03/11/13 Domo, Inc. $ 60 Institutional Venture Partners, GGV Capital, The Founders Fund, Bezos Expeditions, LLC, Mercato Partners, BYU Cougar Capital, Greylock Partners

11/10/14 Prezi Inc. $ 57 Accel Partners, Spectrum Equity Management, L.P.

09/23/14 Radius Intelligence Inc. $ 55 Glynn Capital Management, BlueRun Ventures, Western Technology Investment, The Founders Fund, Formation8 Partners, Slow Ventures, Yuan Capital

05/19/16 Show pad BVBA $ 50 Insight Venture Partners, Hummingbird Ventures, Daw n Capital LLP

07/29/15 Radius Intelligence Inc. $ 50 Glynn Capital Management, BlueRun Ventures, The Founders Fund, Formation8 Partners, AME Cloud Ventures, Yuan Capital, Salesforce Ventures

02/27/14 ClearSlide, Inc. $ 50 Bessemer Venture Partners, Comcast Ventures, Felicis Ventures, SVB Silicon Valley Bank, Investment Arm, The Social+Capital Partnership, Greylock Partners

05/30/14 The SAVO Group Ltd. $ 49 Sterling Partners; Sapphire Ventures LLC; Goldman Sachs Private Capital Investing

06/02/15 HireVue, Inc. $ 45 Sequoia Capital; Technology Crossover Ventures; Granite Ventures, LLC; Investor Grow th Capital; Rose Park Advisors, LLC; Peterson Ventures, LLC

03/31/14 Act-On Softw are, Inc. $ 42 Norw est Venture Partners; Technology Crossover Ventures; Trinity Ventures; U.S. Venture Partners; Voyager Capital

02/02/15 Apttus Corporation $ 41 K1 Investment Management, LLC, ICONIQ Capital, LLC, Salesforce Ventures

05/25/16 Seismic Softw are, Inc. $ 40 General Atlantic LLC, JMI Equity, Jackson Square Ventures

03/25/14 RelateIQ, Inc. $ 40 Accel Partners, Kleiner Perkins Caufield & Byers, Redpoint Ventures, Felicis Ventures, Formation8 Partners, New s Corporation

08/16/13 SugarCRM Inc $ 40 Goldman Sachs Private Capital Investing

08/20/13 Birst, Inc. $ 38 Hummer Winblad Venture Partners, Sequoia Capital, Northgate Capital Group, L.L.C., DAG Ventures, LLC

17

Representative Financing Activity (cont.)

Source: CapIQ

Date Issuer

Amount

(US$M) Investors

09/17/13 Apttus Corporation $ 37 salesforce.com, inc. (NYSE:CRM); K1 Investment Management, LLC; ICONIQ Capital, LLC

12/20/12 InsideSales.com, Inc. $ 35 Hummer Winblad Venture Partners, U.S. Venture Partners

03/31/14 AppDirect, Inc. $ 35 iNovia Capital; Foundry Group; Mithril Capital Management LLC

04/04/12 SugarCRM Inc $ 33 Draper Fisher Jurvetson, New Enterprise Associates, SVB Capital, Walden International, Gold Hill Capital Management, LLC

07/17/15 InsideView Technologies, Inc. $ 33 Foundation Capital, Rembrandt Venture Partners, Big Sky Partners, Split Rock Partners, LLC, Spring Lake Equity Partners LLC, Spring Lake Equity Partners LLC

01/28/15 Relationship Science LLC $ 31 -

07/29/15 FutureSimple Inc. $ 30 Index Ventures, Tenaya Capital

06/01/15 Lattice Engines, Inc. $ 30 New Enterprise Associates, River Cities Capital Funds, Sequoia Capital, PJC Capital Management LLC, Blue Cloud Ventures

01/31/15 Axtria, Inc. $ 30 Helion Venture Partners, LLC

09/10/14 DialogTech, Inc. $ 30 Apex Venture Partners; River Cities Capital Funds; SSM Partners; Origin Ventures; New Spring Capital; Spring Mill Venture Partners; Chicagoland Entrepreneurial Center, Investment

Arm; Chicago Ventures

09/05/13 Hearsay Social, Inc. $ 30 New Enterprise Associates, Sequoia Capital

05/16/13 Relationship Science LLC $ 30 salesforce.com, inc.

11/26/14 Infer, Inc. $ 29 Redpoint Ventures

08/29/12 ClearSlide, Inc. $ 28 Bessemer Venture Partners, Felicis Ventures, Greylock Partners

05/01/12 Birst, Inc. $ 26 Hummer Winblad Venture Partners, Sequoia Capital, DAG Ventures, LLC

04/19/16 Insightly Inc. $ 25 Emergence Capital Partners, Sozo Ventures, Cloud Apps Management, LLC

11/12/14 Host Analytics, Inc. $ 25 Advanced Technology Ventures; Trident Capital, Inc.; StarVest Partners, L.P.; Centerview Capital Holdings, LLC; Next World Capital

10/01/13 HireVue, Inc. $ 25 Sequoia Capital; Granite Ventures, LLC; Investor Grow th Capital; Rose Park Advisors, LLC; Peterson Ventures, LLC; Kickstart Seed Fund

05/11/12 Badgeville, Inc. $ 25 El Dorado Ventures, InterWest Partners LLC, Norw est Venture Partners, Trinity Ventures, Webb Investment Netw ork

05/29/13 Five9, Inc. $ 22 Adams Street Partners, LLC, Hummer Winblad Venture Partners, Partech International, SAP Ventures (nka:Sapphire Ventures LLC)

02/12/15 6Sense Insights Inc. $ 20 Battery Ventures, Venrock, Bain Capital Ventures

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Source: CapIQ

Date Issuer

Amount

(US$M) Investors

12/30/14 Seismic Softw are, Inc. $ 20 JMI Equity, Jackson Square Ventures

11/03/14 ClearInsight Inc. $ 20 Atlas Venture L.P., Draper Fisher Jurvetson, NextView Ventures, Tw o Sigma Ventures

06/17/14 Clari Inc. $ 20 Sequoia Capital, Northgate Capital Group, L.L.C., Bain Capital Ventures

06/12/13 RelateIQ, Inc. $ 20 Accel Partners, Battery Ventures, Allen & Co., Thrive Capital, Formation8 Partners

11/07/12 Lattice Engines, Inc. $ 20 New Enterprise Associates, Sequoia Capital

08/12/13 InsideView Technologies, Inc. $ 19 Foundation Capital, Rembrandt Venture Partners, Emergence Capital Partners, Split Rock Partners, LLC

07/23/15 Leadspace Ltd. $ 18 Battery Ventures, JVP Media Labs, Vertex Ventures Israel

04/17/14 SpringCM Inc. $ 18 Foundation Capital, Square 1 Bank, Goff Capital, Inc.

06/27/16 SpringCM Inc. $ 18 Bluestem Capital Company, LLC, Foundation Capital, North Bridge Venture Partners, Sand Hill Finance, LLC, Wellington Financial LP, Panorama Point Partners Limited

06/22/16 Outreach, Inc. $ 18 Mayfield Fund, Trinity Ventures, FLOODGATE Fund, LP., MHS Capital, Microsoft Ventures

01/08/13 Host Analytics, Inc. $ 17 Advanced Technology Ventures; Trident Capital, Inc.; StarVest Partners, L.P.; Next World Capital

06/13/13 Inkling Systems Inc. $ 16 Sequoia Capital; Pearson plc (LSE:PSON); McGraw -Hill Education, Inc.; Sherpalo Ventures; Felicis Ventures; Kapor Capital

05/01/13 AVA.ai LLC (nka:Conversica LLC) $ 16 Kennet Partners Limited

08/30/12 Act-On Softw are, Inc. $ 16 Norw est Venture Partners; Trinity Ventures; U.S. Venture Partners; Voyager Capital

02/02/12 Leads360, Inc. (nka:Velocify, Inc.) $ 15 Rustic Canyon Partners, Volition Capital LLC

04/05/16 Mintigo Inc. $ 15 Sequoia Capital Israel

05/27/15 Yesw are, Inc. $ 15 Battery Ventures, IDG Ventures, Foundry Group, GV, Golden Venture Partners, Inc.

04/28/15 Inkling Systems Inc. $ 15 -

04/09/15 Aviso, Inc. $ 15 Scale Venture Partners; Shasta Ventures; First Round Capital; Next World Capital; Cow boy Ventures; Bloomberg Beta L.P.

03/03/15 ToutApp, Inc. $ 15 Founder Collective, Andreessen Horow itz LLC, 500 Startups, Jackson Square Ventures, Launch Fund

02/28/14 FutureSimple Inc. $ 15 RRE Ventures LLC, Index Ventures, OCA Venture Partners, LLC, Illinois Innovation Accelerator Fund, L.P., The Social+Capital Partnership, Hyde Park Venture Partners, Hyde Park

Venture Partners Fund L.P., Chicago Ventures

19


Source: CapIQ

Date Issuer

Amount

(US$M) Investors

08/21/13 Yesw are, Inc. $ 15 Battery Ventures, IDG Ventures, Foundry Group, GV, Golden Venture Partners, Inc.

09/23/14 Centage Corporation $ 14 Northgate Capital Group, L.L.C.; TVC Capital, LLC

11/11/13 Attachments.me Inc. $ 14 Yesw are, Inc.

04/08/14 NetProspex, Inc. (nka:Dun &

Bradstreet NetProspex)

$ 13 Edison Venture Fund (nka:Edison Partners), Spring Lake Equity Partners LLC, Spring Lake Equity Partners LLC

01/09/14 Radius Intelligence Inc. $ 13 BlueRun Ventures, Formation8 Partners

05/13/16 Bloomfire, Inc. $ 13 Austin Ventures

11/20/15 MindTickle Interactive Media Pvt Ltd. $ 13 Accel Partners, New Enterprise Associates, QUALCOMM Ventures

01/23/13 Radius Intelligence Inc. $ 12 BlueRun Ventures, Western Technology Investment, Comcast Ventures, American Express Company

03/22/16 HG Data Company $ 12 EPIC Ventures, Updata Partners, Rincon Venture Partners

03/03/16 Oro, Inc. $ 12 Highland Capital Partners

07/15/15 CircleBack, Inc. $ 12 Grotech Ventures, Syncom Management Company, Inc., TDF Ventures, CNF Investments LLC

07/22/14 SmartZip Analytics, Inc. $ 12 Intel Capital; Claremont Creek Ventures; Crest Capital Ventures

05/19/14 6Sense Insights Inc. $ 12 Battery Ventures, Venrock, SVB Silicon Valley Bank, Investment Arm

04/19/12 Five9, Inc. $ 12 Adams Street Partners, LLC, Hummer Winblad Venture Partners, Partech International

12/13/13 FirstRain, Inc. $ 12 -

05/31/13 Narrative Science Inc. $ 12 Battery Ventures, SAP Ventures (nka:Sapphire Ventures LLC), In-Q-Tel, Inc., In-Q-Tel, Northw estern University, Endow ment Arm, Jump Capital

03/25/14 Tactile, Inc. $ 11 Accel Partners, Redpoint Ventures

11/03/15 Contactually, Inc. $ 11 Grotech Ventures, Correlation Ventures, Point Nine Capital, Middleland Capital, Rally Ventures, Bull City Venture Partners

01/13/16 CustomerMatrix Inc. $ 11 Aster Capital Partners SAS; New fund Management S.A.; HSBC Principal Investments; True Global Ventures

03/31/15 SalesLoft, LLC $ 10 Storm Ventures LLC, Emergence Capital Partners

09/26/14 FullContact Inc. $ 10 Baird Capital Partners, Foundry Group, 500 Startups, Blue Note Ventures

20


Source: CapIQ

Date Issuer

Amount

(US$M) Investors

05/28/15 Iconixx Softw are Corporation $ 10 Ballast Point Ventures, S3 Ventures, Harbert Venture Partners, LLC

11/13/14 Narrative Science Inc. $ 10 Battery Ventures, Sapphire Ventures LLC, United Services Automobile Association, Jump Capital

10/17/13 Mintigo Inc. $ 10 Adams Street Partners, LLC, Sequoia Capital, Giza Venture Capital

08/28/13 Insightly Inc. $ 10 Emergence Capital Partners, TrueBridge Capital Partners, Sozo Ventures, Cloud Apps Management, LLC

06/26/13 The SAVO Group Ltd. $ 10 Sterling Partners, SAP Ventures (nka:Sapphire Ventures LLC), Square 1 Bank, NXT Capital Venture Finance

03/13/13 Infer, Inc. $ 10 Redpoint Ventures, Sutter Hill Ventures, Andreessen Horow itz LLC, The Social+Capital Partnership

10/24/14 Highspot, Inc. $ 10 Madrona Venture Group

01/24/13 CallMiner, Inc. $ 10 Intersouth Partners; Sigma Partners; In-Q-Tel, Inc.; Village Ventures; Hamilton Lane Advisors; Inflexion Partners

10/22/15 Periscope Data Inc. $ 10 Draper Fisher Jurvetson, Innovation Endeavors, Susa Ventures

21

Representative M&A Transaction Activity

Source: 451 Group, CapIQ.

Date Target Buyer EV ($M) Target Revs EV / Revs

06/24/16 Badgeville, Inc. Callidus Softw are Inc. (NasdaqGM:CALD) $ 8 - -

06/13/16 LinkedIn Corporation Microsoft Corporation $ 26,191 $ 3,214 8.1x

06/02/16 QlikTech Inc. [dba Qlik] Thoma Bravo LLC $ 2,630 $ 630 4.2x

05/24/16 Spiderbook, Inc. DEMANDBASE, INC. - - -

05/18/16 inContact Inc. NICE Systems Ltd. $ 937 $ 233 4.0x

05/12/16 Implisit Insights Ltd. salesforce.com, inc. - - -

05/04/16 MerchantAtlas, Inc. Adloop Media, Inc. - - -

05/02/16 ByPath SAS Kompass Incubateur, SAS - - -

05/02/16 Vertafore, Inc. Vista Equity Partners; Bain Capital Private Equity - - -

04/26/16 FPX, LLC HGGC, LLC, HGGC Fund II, L.P. - - -

04/20/16 ActionGrid, LLC And CRMCulture, LLC And Novatus, Inc. AppExtremes, Inc. - - -

04/06/16 Focus Technology Group, Inc. AGDATA LP - - -

04/01/16 Genw i Inc. Persistent Systems, Inc. - - -

03/10/16 Scanmar BV marketingQED Ltd. - - -

02/22/16 Contact Solutions, LLC Verint Systems Inc. $ 67 $ 47 1.4x

02/18/16 Docalytics Inc. Contently Inc. - - -

02/16/16 MeLLmo Inc. SAP SE (DB:SAP) - - -

02/10/16 Livecom International B.V. Artilium plc (AIM:ARTA) - - -

02/09/16 Vorex Inc. Kaseya International Shared Services Sàrl - - -

02/08/16 Transera Communications Inc. BroadSoft, Inc. (NasdaqGS:BSFT) $ 20 $ 8 2.5x

02/04/16 Configit A/S Polaris Management A/S, Polaris Private Equity IV - - -

02/02/16 Eazieer SAS Societe Reseau France Billet - - -

02/01/16 Webfortis LLC Avtex Solutions, LLC - - -

01/20/16 Efficio Solutions Inc. ShareBuilders, Inc. - - -

01/14/16 Dialed In, Inc. Quadrant 4 System Corporation - - -

01/05/16 Sales Simplicity Softw are, Inc. MiTek Industries, Inc. - - -

12/23/15 SteelBrick Holdings, Inc. salesforce.com, inc. $ 300 $ 11 27.3x

12/15/15 Storyw orks OnDemand, Inc. Insite Softw are Solutions, Inc. - - -

12/07/15 ABALON AB Visma Retail AS - - -

11/27/15 Pipedrive Inc - - - -

11/19/15 SalesTalk Technologies, LLC Pegasus Research Group, LLC - - -

11/05/15 Guaranteed Softw are Execution, Inc. The Shubert Organization, Inc. - - -

11/04/15 The Results Companies, LLC TLK Group LLC - - -

22

Representative M&A Transaction Activity (cont.)



11/03/15 Raymark Xpert Business Systems Inc. MI9 Business Intelligence Systems, Inc. - - -

10/29/15 Configure One Inc. Autodesk Inc. - - -

10/29/15 Interactive Business Information Systems, Inc. Sonata Softw are North America Inc. $ 14 - -

10/19/15 InfoNow Corporation (OTCPK:INOW) Model N, Inc. (NYSE:MODN) $ 13 - -

10/13/15 Rain King Softw are Inc. [dba RainKing] Spectrum Equity Investors $ 67 - -

10/01/15 Coretrac, Inc. Aptean, Inc. - - -

09/17/15 Contact Advantage Limited Reynolds & Reynolds Limited - - -

09/10/15 ContactUs Review s WorkWave, LLC - - -

09/03/15 VoloMetrix, Inc. Microsoft Corporation - - -

08/27/15 Fliptop, Inc. LinkedIn Corporation - - -

08/04/15 Relevate Group Inc. Data-as-a-Service - - -

08/04/15 iProfile, LLC DiscoverOrg, LLC - - -

08/03/15 Incent Games, Inc. Microsoft Corporation - - -

07/21/15 Blue Star Infotech Business Intelligence And Analytics Private Limited Blue Star Infotech Ltd. (BSE:532346) - - -

07/15/15 V System PTE. LTD. Japan PC Service Co., LTD. (NSE:6025) - - -

07/02/15 Torque Solutions (Australia) Pty Ltd Velocity Frequent Flyer Pty Ltd $ 4 - -

07/01/15 Sicon Limited, Sage Business Pinnacle Computing Ltd. - - -

05/28/15 Cloud9 Analytics, Inc. InsideSales.com, Inc. - - -

05/18/15 Go Albert SA Bertin IT - - -

05/11/15 Unicel Technologies Pvt. Ltd. mGage LLC - - -

05/06/15 White Label Intelligence Limited Logicalis Group Limited $ 3 - -

04/02/15 Refresh, Inc. LinkedIn Corporation - - -

03/31/15 arcplan Information Services GmbH Longview Solutions, Inc. $ 20 $ 12 1.7x

03/28/15 Colibrium Partners, LLC Hinduja Global Solutions Limited (BSE:532859) $ 18 $ 13 1.4x

03/09/15 HomecareCRM, LLC eHealth Solutions, Inc. - - -

03/02/15 EarthIntegrate Pageflex Inc. - - -

02/18/15 SSS Consulting, Inc. Grow thPlay, LLC - - -

02/09/15 Juggernaut LLC Aysling LLC - - -

02/05/15 Sw ingMobility, SAS Divalto-SA - - -

02/04/15 Contactive Inc. Fuze, Inc. - - -

01/13/15 Zurmo Inc. Gravity4, Inc. - - -

01/13/15 Data Intelligence Ltd. SCIO Health Analytics Inc. - - -

01/08/15 NetProspex, Inc. (nka:Dun & Bradstreet NetProspex) The Dun & Bradstreet Corporation $ 125 $ 20 6.3x

23




12/24/14 LeadLedger LLC Datanyze, Inc. - - -

12/22/14 Clarus Agency, LLC Inmar, Inc. - - -

12/01/14 Acompli Inc. Microsoft Corporation - - -

11/18/14 MarketNet Services, LLC - - - -

11/18/14 BranchOut, Inc. 1-PAGE LIMITED $ 5 - -

11/17/14 Sw arm Solutions, Inc. Groupon, Inc. (NasdaqGS:GRPN) $ 11 - -

11/06/14 Decision Street, LLC Cvent, Inc. $ 4 - -

11/04/14 MetrixLab BV Macromill, Inc. $ 154 - -

11/03/14 Social Agent Limited Unchained Apps Limited - - -

08/14/14 SalesLogix, N.A., LLC Infor, Inc. $ 30 - -

07/11/14 RelateIQ, Inc. salesforce.com, inc. $ 392 - -

06/20/14 LiveLOOK, Inc. Oracle Corporation - - -

06/19/14 Aito Technologies Oy EXFO Inc (TSX:EXF) - - -

06/03/14 Deloitte Analytics LLC TrialScope Inc. - - -

06/02/14 CAR Research, Inc. Loop, LLC - - -

05/27/14 Update Softw are AG Aurea Softw are FZ-LLC $ 36 $ 47 0.8x

05/21/14 Renesys Corporation Dyn Inc. - - -

05/21/14 Infinity Info Systems Corp. Genesis Corporation - - -

05/09/14 DealerSocket, Inc. Vista Equity Partners - - -

05/06/14 Uptivity Inc. inContact, Inc. (NasdaqCM:SAAS) $ 41 $ 21 2.0x

03/25/14 Softw are Management, Inc. simpleview , inc. - - -

02/05/14 LeadRocket, Inc. Callidus Softw are Inc. [dba CallidusCloud] $ 3 - -

01/28/14 StoryQuest Inc. The SAVO Group Ltd. - - -

01/16/14 Lundalogik AB Monterro Holdings AB - - -

01/13/14 Visicom Inc. AFS Technologies, Inc. - - -

12/12/13 Compete IT Limited Access UK Limited - - -

10/31/13 ARG Interactive, LLC Ellie Mae, Inc. (NYSE:ELLI) $ 5 - -

10/24/13 Cameleon Softw are PROS Holdings, Inc. $ 30 $ 15 2.0x

10/23/13 BigMachines, Inc. Oracle Corporation $ 450 $ 60 7.5x

06/18/13 Standard Analytics LLC dunnhumby Limited - - -

06/12/13 InfoCube AB Jeeves Information Systems AB - - -

06/12/13 N2O Marketing, LLC ReviMedia, Inc. - - -

06/07/13 EdgeSpring, Inc. salesforce.com, inc. $ 134 - -

24




06/06/13 Incential Softw are, Inc. IMS Health Incorporated - - -

06/06/13 Qforma Inc. SkilaMederi - - -

05/02/13 PerTrac Financial Solutions, LLC, PerTrac CMS Backstop Solutions Group, LLC - - -

04/23/13 TDCI, Inc. Infor Global Solutions, Inc. - - -

04/05/13 M.SaaS Pte Ltd. M.Tech Products Pte., Ltd. - - -

04/03/13 SetLogik, Inc. ReachForce, Inc. - - -

03/11/13 Ladbrokes Israel Ltd. Ladbrokes PLC (LSE:LAD) - - -

02/04/13 WorkDigital Ltd. DHI Group, Inc. (NYSE:DHX) $ 20 - -

01/29/13 UTOPY, Inc. Genesys Telecommunications Laboratories, Inc. - - -

01/28/13 Angoss Softw are Corp. Peterson Partners LP $ 8 $ 7 1.2x

01/17/13 Mynet Japan Inc., CRM Business for Mobile Devices Yahoo Japan Corporation (TSE:4689) $ 4 - -

01/05/13 hybris GmbH SAP AG (nka:SAP SE) $ 1,350 $ 109 12.4x