i3 1 q16 innovation-monitor-slides

Q1 2016 Innovation Monitor

Presented by i3

Sponsored by:

Industry Trends

Top Venture Deals & Corporate Investors

Exits: M&A Highlights

Contents

Global cleantech venture capital investment with Mobility Services breakout

4

Two consecutive quarters of growth in traditional sectors

Powered by Data From i3

$2.3

$2.7

$2.1

$2.2

$3.1

$2.5

$2.7

$2.7

$2.5

$2.4

$2.0

$1.9

$1.3

$2.4 $1.4

$2.1

$1.8

$2.7

$2.3

$2.1

$1.7

$3.6 $2.1

$2.5

$2.9

$2.5 $2.2

$0.7

$5.2

$1.2

$1.7

279 255

244

288 289 274

290 271

329

281 269

317 341

352

291

327 317 300

279 264 255

227

188 190

237

0

50

100

150

200

250

300

350

400

$0

$1

$2

$3

$4

$5

$6

$7

$8

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2010 2011 2012 2013 2014 2015 2016

Deal Volum

e B

illio

ns

$ - Traditional Cleantech $ - Mobility Services Total Deal Volume

Average deal size closer to 5 year average ($8.8M)

Average round sizes in clean technology venture capital*


5

$2

$3

$2

$2

$3

$4

$4

$3

$2

$3

$2

$2

$2

$1

$2

$2

$2

$2

$2

$3

$2

$3

$4

$4

$3

$14

$18 $15 $12

$19 $14

$14

$17 $12

$14 $14 $11

$7

$13

$10

$13

$11

$14

$16

$20

$13

$22

$28 $25

$13

$8

$11 $9

$8

$11 $9 $10

$10

$7 $9 $8

$6

$4

$7 $6

$8 $6

$8 $9

$11

$8

$13

$18

$14

$9

$0

$5

$10

$15

$20

$25

$30

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2010 2011 2012 2013 2014 2015 2016

Mill

ions

Seed & Series A Series B+ Overall*Excludes outlier deals above $350M

Strong quarter for later-stage deals

Deal volume comparison between early and late stage


6

128 117

76

94 99

127

110 112

96

138

0

20

40

60

80

100

120

140

160

180

200

1Q102Q103Q104Q101Q112Q113Q114Q111Q122Q123Q124Q121Q132Q133Q134Q131Q142Q143Q144Q141Q152Q153Q154Q151Q16

2010 2011 2012 2013 2014 2015 2016

Dea

l Cou

nt

Seed & Series A Series B+

Global 1Q16 cleantech venture capital investment Top geographies by deal volume

Washington, Florida, Minnesota join top states/provinces


75.9%

7

62

15 13

9 8 7 6 5 5 4 4 4 3

0

10

20

30

40

50

60

70

North America, 73%

Europe & Israel, 18.49%

Asia Pacific, 7.44%

Other, 1.28%

Corporate deals with 37% lower dollars than 2015 average

Dollars invested and volume of deals with corporate participation*


8

*Dollar totals inclusive of co-investors

$895

$1,031 $644

$822

$1,320

$841

$934

$874

$773

$1,169

$692

$770 $500

$1,113

$639

$1,138

$903 $712

$853 $649

$765

$1,355

$1,374

$1,205

$740

55

40

51 54

59

67

51

46

71

61

48 52

47

75

47

64

57

63 61

54 52 52

59

43

41

0

10

20

30

40

50

60

70

80

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2010 2011 2012 2013 2014 2015 2016

Mill

ions

$ Investment in Rounds with Corporate Participation Deals with Corporate Participation

Rate of corporate participation down 20% on 2015 average


Deal Volume with corporate participation, percentage of all deals

9

55

40 51 54

59 67

51 46

71 61

48 52 47

75

47

64 57

63 61 54 52 52

59

43 41

20%

16%

21%

19% 21%

24%

18% 17%

22% 22%

18% 17%

14%

21%

16%

20% 18%

21% 22% 21%

21%

24% 34%

22%

17%

0%

5%

10%

15%

20%

25%

30%

35%

0

10

20

30

40

50

60

70

80

1Q102Q103Q104Q101Q112Q113Q114Q111Q122Q123Q124Q121Q132Q133Q134Q131Q142Q143Q144Q141Q152Q153Q154Q151Q16

2010 2011 2012 2013 2014 2015 2016

Deals with Corporate Participation Percentage of Deal Volume with Corporate Participation

However, corporates are co-investing more often


Average number of corporate co-investors in rounds exhibiting corporate participation

10

1.27

1.48

1.29

1.35

1.27

1.31 1.29 1.28

1.26

1.35

1.25

1.32

1.36

1.42

1.48

1.1

1.15

1.2

1.25

1.3

1.35

1.4

1.45

1.5

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016YTD

Sector shares of cleantech venture capital (deals)

Powered by Data From i3 *Excluded sectors include: smart grid, industrial biotech, wind, and others

11

Percentage share of total deal volume by sector over time

16%

19%

14%

6%

12%

5%

0%

5%

10%

15%

20%

25%

2010 2011 2012 2013 2014 2015 2016 YTD

transportation

agriculture & food

energy efficiency

advanced materials

solar

energy storage

Sector shares of cleantech venture capital (dollars)

Powered by Data From i3 *Excludes outliers above $350M; Excludes sectors like smart grid, industrial biotech, wind, and others

12

Percentage share of total dollars invested by sector over time*

34%

11%

20%

9%

3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2010 2011 2012 2013 2014 2015 2016 YTD

transportation

energy efficiency

solar

agriculture & food

advanced materials

Sector shares of dollars invested


*Excludes outliers above $350M; all deals below $30M represent <1.5%

13

Dollar amount, and percentage of total, by sector

$735M 34%

$446M 20% $232M 11%

$205M 9%

$93M 4%

$76M 4%

$62M 3%

$36M 2% $30M

$18M $10M $9M $8M $4M $3M $2M

$209M 10%**

transportation

solar

energy efficiency

agriculture & food

conventional fuels

energy storage

advanced materials

smart grid

biofuels & biochemicals

water & wastewater

wind

fuel cells & hydrogen

nuclear

recycling & waste

biomass generation

hydro & marine power

other cleantech

**”Other Cleantech” includes cross-sectoral digital & IoT technologies, sustainability reporting software, and multidisciplinary project developers in solar, wind, biomass, etc.

Industry Trends



Contents

Top 1Q16 cleantech venture deals

Description Round Size Investors Company

Provider of on-demand ride services $1B General Motors, Didi Kuaidi, Janus Capital, Rakuten, Alibaba, Saudi Arabia Kingdom Holdings

Provider of solar installation and services $300M Energy Capital Partners

(Dada) Developer of a SaaS platform for last mile logistics $300M Greenwood Investment, Sequoia Capital, DST

Global

Provider of on-demand ride services $200M LetterOne

Provider of innovative renewable energy and energy efficiency financing $70M Angeleno Group, Apollo GM, Claremont Creek

Ventures, LL Funds, NGEN, Prelude Ventures

Developer of microbial plant nutrition products $56M Flagship Ventures

Developer of smart energy efficient homes $45M EDBI, Singapore Technologies Telemedia, The

Westly Group, E.ON Ventures

Developer of data management solutions for farms $41M Mitsui, Kleiner Perkins Caufield & Byers,

Osmington Inc

Developer of cloud-based interactive mapping software $40M Benchmark Capital, Index Ventures, Michael

Lynton, Tom Stafford, Yuri Milner

Developer of IoT solutions for commercial buildings $25M Tao Capital, KPCB, RockPort Capital Partners,

Draper Fisher Jurvetson (DFJ)

15

Top corporate investors in 2016

Deals Exemplary Portfolio Companies Corporate

16

3 Stratoscale, Inpria, Arrayent, Arrayent, SBA Materials, Chargifi, Prieto Battery, Ninebot, Nuovo Film, Qnovo, iZettle, Yuneec, Maana, Peloton Technology, Airware, Sigfox, others

3 Sight Machine, Motive Drilling Company, mPrest,

mPrest, Sungevity, Stem, FlexGen, Ingenu, Sensity Systems, MatterFab, Maana, eVolution Networks, Bit Stew Systems, Data Torrent, others

3 Off Grid Electric, Powerhive Solidia Technologies, Stem, Sunverge Energy, Sunfire, NanoH20, NexSteppe

2 Stratoscale, Webradar Stratoscale, Vixom, Panoramic Power, Broadlink, Streetline, Waze, A123 Systems

2 Veniam Works Platfora, Sensity Systems, Waygum, Evrythng, Control 4, Atlantis Computing, iControl Networks

2 Farmers Edge, Phytech Stem, LanzaTech, Autotalks, Sumitomo Corporation, SCI Energy,

2 Inpria, NuTonomy Jibo, Seeo, Kateeva, Inpria, NovaLED, Global Steel Exchange, Voltaix

Industry Trends



Contents

2015 cleantech M&A highlights

Acquirer Target Venture Backers Deal Size/PIC

$1B $42.09M

New Horizon Capital, GIMV, Capricorn Venture Partners, LRM

$431M N/A Company went public in 2010

$350M $1.3M

Firelake Capital Management, Acadia Woods Partners, Lux Capital

Undisclosed $18.8M

Spark Capital, Flight Ventures, AME Cloud Ventures, Initialized Capital, Maven Ventures,, Y Combinator, others…

Undisclosed $36.88M Oaktree Capital Management

Undisclosed $18M

Columbia Lake Partners, SVB, Braemar Energy Ventures, SET Ventures, Hermes GPE

Undisclosed N/A

Edison Int., KPCB, GV, Claremont Creek, Clean Pacific Ventures, Sand Hill Angels, Hitachi, ClearSky, Dominion Resources

18

Merger

i3 1 q16 innovation-monitor-slides

Data & Analytics