Siemer & associates e commerce report spring 2013

Embedded Specialized Accomplished

Spring 2013

eCommerce Report

2 Spring 2013

Siemer eCommerce Report

Table of Contents

Section I Summary Observations

Section II Industry Snapshot

Section III Industry Sector Analysis

Section IV mCommerce

Section V Public Comparables and M&A Transactions

SUMMARY OBSERVATIONS

4 Spring 2013


Summary Observations In order to attract consumers to shop at their store/platform, both offline and online retailers are focusing on:

— Maximizing the mobile shopping experience, which is leading them to seek mobile application and technology acquisitions

— Moving towards ―omni-channel‖ retailing, concentrating on offering comprehensive services through all available shopping

mediums

— Increasing leverage of in-store assets. Retailers with primarily brick-and-mortar operations are offering ship-to-store, ship-

from-store and in-store pick-up on eCommerce transactions

Global eCommerce still exhibits strong, long-run growth potential with worldwide eCommerce penetration rates

projected to increase substantially in the coming years

— Unique subsectors have begun to develop within the eCommerce industry, allowing for more streamlined analysis of different

eCommerce models

Both strategic and financial buyers remain acquisitive but will retain a narrow focus on specific subsectors

— The eCommerce sector will see moderate growth in M&A activity over the next 12-18 months as large retailers progressively

adopt online platforms and many competing startups consolidate to expand their product offering

5 Spring 2013


Mogreet Case Study

Mogreet Acquired by

payvia in May 2013

Mogreet is a leading mobile marketing company, providing mobile video

and rich media messaging capabilities.

S&A was retained by Mogreet as its exclusive financial advisor to

evaluate strategic alternatives for the Company. S&A conducted a highly

targeted solicitation process and approached a select group of potential

acquirers deemed to be a strong strategic fit.

S&A introduced Mogreet to payvia. payvia has the largest direct carrier

connected messaging and mobile payments platform in the U.S.,

covering 120mm unique mobile users and processing billions of mobile

messages every year.

payvia’s mobile payments and authentication platform works with

merchants and developers to integrate a customized smart checkout

experience.

Mogreet’s mobile video marketing platform, which delivers high quality

video to virtually any mobile phone, will provide payvia’s clients with

tools to drive customer acquisition and revenue generation.

The combined entity will be the only fully integrated end-to-end product

solution for mobile engagement and payments to enterprises of all

sizes.

Leveraging its strong relationships and expertise in the mobile space,

S&A generated a "home run" outcome for Mogreet and found the perfect

partner for the business to scale its technology.

has been acquired by

INDUSTRY SNAPSHOT

7 Spring 2013


Source: Wall Street Research

Overview Global eCommerce spending in 2012 reached $820.5bn as retailers made shopping online easier and as marketers

efficiently managed their platforms with real-time user behavior and data analytics

Global eCommerce penetration increased from 4.0% in 2008 to 6.5% in 2012 and is anticipated to reach 9.3% by

2016, driven by high-growth emerging markets and the decline of specialty retail stores in developed markets

With only a 6.5% penetration rate in 2012, global eCommerce retail sales will continue to grow four times faster than

traditional retail

― While traditional retail categories such as food, drugs, club stores and apparel will remain largely undisrupted by the impact of

online distribution, media and electronic sectors will increasingly shift that direction

― The introduction of the grocery delivery service Amazon Fresh by Amazon, however, poses a threat to traditional retail

categories if challenges such as produce spoilage can be addressed on a large scale

― The ability to offer low prices, broad selection, increased convenience and innovations in logistics and fulfillment will likely lead

to higher sales growth but also, potentially, lower margins

Mobile eCommerce comprises only 12.0% of eCommerce revenue, but it is is growing faster than expected, as

consumers are becoming more comfortable transacting on mobile platforms and are increasingly ―showrooming,‖ or

trying products at the store prior to buying them online

― Tablets account for 70.0% of mobile eCommerce and are expected to be a key driver of growth

The marketplace for M&A activity will continue to grow as the industry matures

― Financial buyers are aggressively looking for deals while strategic buyers are being extremely selective as they seek out

product and brand compatibility/extensions and technological scalability to complement their existing platforms

8 Spring 2013



eCommerce Revenue and Market Growth eCommerce has been one of the fastest growing industries globally with an 18.7% CAGR from 2008 to 2012 due to

increased mobile usage, broadband Internet access and improvements in online payment security

Amazon and eBay are the two main players in the industry, even though they only comprise 14.5% of the US market

share

With low barriers to entry, many players are investing heavily in advertising and offering additional services such as

free shipping and social commerce to distinguish themselves and drive margin growth

― Nordstrom plans to invest $1.0bn (one third of its capital expenditures) into online efforts over the next five years, including

leveraging its acquisition of HauteLook

In order to remain successful in the future, eCommerce companies will need to focus on controlling their inventory,

quickly adopting new technologies, providing superior after-sales service and building a loyal customer base to

ensure repeat business

Global eCommerce Revenue US eCommerce Market Share

2.4%

12.1%

85.5%

eBay Amazon Other

$572.5 $680.6

$820.5

$963.0

18.9% 18.9%

20.6% 17.4%

0.0%

10.0%

20.0%

30.0%

$0.0

$200.0

$400.0

$600.0

$800.0

$1,000.0

2010A 2011A 2012A 2013E

Gro

wth

Rat

e

Sal

es (

in b

illio

ns

of

$US

D)

Revenue Growth

9 Spring 2013


Global eCommerce Penetration Rates in 2012


eCommerce still has a long runway for growth and is anticipated to reach 9.3% global penetration by 2016 driven

by high-growth emerging markets and the decline of specialty retail stores in developed markets

U.S.

Population: 311.7mm

Penetration (2012): 10.1%


Brazil

Population: 196.7mm



Russia

Population: 142.8mm



China

Population: 1,345.9mm



France

Population: 64.4mm



Japan

Population: 127.8mm



Italy

Population: 60.8mm



Germany

Population: 81.7mm



U.K.

Population: 62.7mm



Australia

Population: 22.7mm



10 Spring 2013


Consumer Preferences

Source: IBIS World, comScore

Technology and audio/video electronic products as a percentage of eCommerce revenue increased from 19.8% in

2007 to 24.5% in 2012

Research indicates that 59.0% of consumers would abandon online purchases without free or reduced shipping,

making this feature a ―must-have‖ for online retailers

―Showrooming,‖ in which consumers try out products at brick-and-mortar stores but purchase those products online,

is a growing trend in the industry

— Traditional retailers have begun utilizing price-matching offers to combat ―showrooming‖

Consumers are increasingly selecting cheaper online options over pricey department store or other retail outlet

purchases

Global eCommerce Users by Region US eCommerce Product Segmentation

793

904

1,016

1,124 1,229

1,321

-

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

2011A 2012A 2013E 2014E 2015E 2016E

Use

rs (

in m

illio

ns)

Asia-Pacific Europe North America Latin America Middle East & Africa

24.5%

14.8%

13.8% 7.2%

6.5%

5.5%

4.5%

23.2%

Computers and TVs Clothing and jewelry

Sporting goods and entertainment Furniture and home applicances

Medication and cosmetics Office equipment and supplies

Food, beverage and pet food Other

11 Spring 2013


Changing Corporate Landscape

Source: IBIS World, comScore

Traditional retailers are slowing square footage growth or closing stores, investing in eCommerce and IT initiatives,

and lowering prices to better compete online

Retailers are altering their customer acquisition strategies to target those amenable to conducting business online,

and they are moving existing customers to online-only platforms wherever possible

Many online retailers are using a diverse array of software to enhance their eCommerce business strategy

― eBay’s GSI Commerce provides an eCommerce platform that integrates with inventory management systems

Same-day delivery (SDD) is expected to have a widespread roll-out in the near term, as large eCommerce sites and

startups improve inventory management, infrastructure and delivery techniques

Walmart developed a new computing platform called Mupd8 in an effort to harness its buying power to secure its spot

as a global eCommerce leader

― Mupd8 collects video, images, location information and status updates from social media streams to determine which trending

products retailers should carry in stores or feature in online marketing

Best Buy and Target are combating ―showrooming‖ with a new price-matching policy year-round where they will

match both brick-and-mortar stores and major online retailers

Macy’s is installing online kiosks in-store to help customers scan and compare prices, and it’s transforming nearly 300

of its stores into distribution centers, to help speed up its shipping solution, as it expects to generate $2.0bn in

eCommerce sales

12 Spring 2013


Fulfillment Infrastructure is Critical


Amazon continues to build out its global infrastructure, ensuring it will be able to serve its global customers

quickly

18

23

33

40

47

16

22

36

48

49

34

45

69

88

96

0

20

40

60

80

100

120

2009A 2010A 2011A 2012A 2013E

Nu

mb

er o

f A

maz

on

Fu

lfill

men

t C

ente

rs G

lob

ally

US Rest of the World

13 Spring 2013


Mobile eCommerce (mCommerce) Has the Largest Growth Potential

Source: Forrester Research

mCommerce sales are expected to account for a larger share of total global eCommerce sales, from 27.6% in

2012 to 56.2% in 2016

160.5

212.2

448.0

20.4%

27.6%

56.2%

-20.0%

0.0%

20.0%

40.0%

60.0%

0.0

200.0

400.0

600.0

2011A 2012A 2016E

% o

f eC

om

mer

ce S

ales

Use

rs (

in m

illio

ns)

mCommerce Users mCommerce as a % of eCommerce Sales

14 Spring 2013


eCommerce Private Placement Activity Has Grown Dramatically

Source: Capital IQ, VentureDeal, Allegro

There was $739.0mm in US eCommerce funding in 2012, a 73.0% increase from the $427.0mm raised in 2011

— Square raised $200.0mm in a Series D round in September 2012 from VC and corporate investors including CrunchFund, Citi

Ventures and Rizvi Traverse Management. Just prior to the announcement, Square announced a strategic alliance with

Starbucks, which also participated in the financing round

Some notable transactions this year include:

— LivingSocial raised $110.0mm in convertible debt with warrants from Amazon and Revolution Ventures in February 2013

— 360Buy, an online retailer in China’s B2C market, raised $700.0mm in a Series F round from corporate investors in February

2013

Investments Across Categories Global eCommerce VC Funding

$185.0

$266.0

$195.0

$430.0

$630.0

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

$700.0

2008 2009 2010 2011 2012

Sp

end

ing

(in

mill

ion

s o

f $U

SD

)

128.0

72.0

312.0

72.0

23.0

74.0

8.3 39.0

20.0

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

Sp

end

ing

(in

mill

ion

s o

f $U

SD

)

15 Spring 2013


Looking Ahead Into eCommerce


Global eCommerce Revenue Global eCommerce Revenue by Region

Global eCommerce, which accounted for $820.5bn in 2012, an increase of 20.6% over 2011’s total of $680.6bn, is

expected to grow at a 14.7% CAGR through 2016

B2B eCommerce will grow at a faster rate than B2C eCommerce as large online retailers like Alibaba.com continue to

improve existing platforms to provide a better experience

The adoption of mCommerce will boost industry revenue and promote significant long-run growth as the number of

smartphone buyers is expected to increase 60.0% over the next three years

Asia-Pacific companies will eventually overshadow dominant entities in North America and Europe as developing

countries experience increased Internet penetration, a burgeoning middle class that relies on online shopping,

government-driven campaigns to promote consumerism and improved infrastructure

34.7% 32.9% 31.8% 30.4% 29.2% 28.3%

18.9% 17.7% 17.1% 16.0% 15.3% 14.5%

41.9% 44.3% 46.8% 48.6% 50.5% 52.1%

2.3% 2.4% 2.3% 2.5% 2.5% 2.5%

2.1% 2.7% 1.9% 2.5% 2.6% 2.6%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

2011A 2012A 2013E 2014E 2015E 2016E

% o

f G

lob

al e

Co

mm

erce

Rev

enu

e

North America Europe Asia-Pacific Latin America Others

$820.5

$963.0

$1,116.1

$1,283.5

$1,454.2

0.0%

10.0%

20.0%

30.0%

-$100.0

$300.0

$700.0

$1,100.0

$1,500.0

2012A 2013E 2014E 2015E 2016E

Sal

es A

nn

ual

Gro

wth

Rat

e

Sal

es (

in b

illio

ns

of

$US

D)

Revenue Growth

INDIVIDUAL SECTOR ANALYSIS

17 Spring 2013


Daily Deals

Source: Wall Street Research, Yipit Data

Once darlings of the eCommerce space, daily deal companies have struggled to retain their retail customers and end

consumers

— Groupon’s market cap has plummeted since its November 2011 IPO, dropping 65.3% from $12.7bn to $4.4bn as of June

2013

— In February 2013, controversy surrounded LivingSocial as its $110.0mm in new financing was revealed to be convertible debt,

potentially wiping out the value of founder and employee shares, all in the aftermath of their 400 layoffs in late 2012

The sector is also facing rising disenchantment, as merchants complain that Groupon and other major players do little

for customer retention

Groupon and LivingSocial remain the largest players in the space, as the rest of the pack has had difficulty in

matching their customer acquisition spending

US Daily Deal Site Revenue US Daily Deal Site Market Share

53.0%

22.0%

3.0%

2.0%

20.0%

Groupon LivingSocial Travelzoo AmazonLocal Other

$1.8

$3.6 $4.4

$4.8 $5.2 $5.5

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

2011 2012 2013 2014 2015 2016

Rev

enu

es (

in b

illio

ns

of

$US

D)

18 Spring 2013


Subscription / Discovery

Source: CB Insights

The subscription eCommerce (―SubCom‖) industry pulled in $195.0mm of funding in 2012, an 81.3% increase over

the $107.7mm it raised in 2011

— SubCom peaked at 11 deals in Q2 2012 and consisted almost exclusively of early stage funding (Seed, Seed VC and Series

A deals), which is consistent with the nascency of the industry

— In 2012, there were 7 startup consolidation exits as weaker players, such as JolieBox and Foodzie, became acquisition

targets

The SubCom model began with major players such as Netflix, who provided consumers with the ability to choose

various rental items online and have them shipped straight to their doors for a monthly fee

— Newer players, such as Dollar Shave Club, have altered the traditional model by offering automatic shipments of disposable

products for a monthly fee

SubCom Stage Funding SubCom M&A Activity

35.0%

20.0% 20.0% 20.0%

5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Seed Series A Series B Series C Series D+

% o

f D

eals

by

Ro

un

d

1

2 2 2

1 1

3

0

1

2

3

4

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

Nu

mb

er o

f D

eals

19 Spring 2013


Social eCommerce Global social eCommerce sales are expected to grow from $10.0bn in 2012 to $30.0bn in 2015, as users increasingly

get more comfortable with purchasing products based on their friends’ recommendations

Facebook has become the preferred platform for brands and retailers to promote their products by getting users to

―Like‖ the brand page and share it with their friends

— Businesses are increasingly utilizing Facebook to increase social engagement with customers and keep loyal customers

updated with the latest sales and products

Another prominent trend in social eCommerce is retailers including social sharing and functionality on their own

websites

Global Social eCommerce Revenue Facebook’s Market Share in Social Commerce

Source: Trefis

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

2011A 2012A 2013E 2014E 2015E 2016E 2017E 2018E 2019E

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2011A 2012A 2013E 2014E 2015E 2016E 2017E 2018E 2019E

% o

f S

oci

al C

om

mer

ce M

arke

t

Rev

enu

e (i

n b

illio

ns

of

$US

D)

20 Spring 2013


Vertically Integrated Niche Brands By making unique products that can’t be found elsewhere, these pure play e-tailors can still thrive – even when

surrounded by large incumbents such as Amazon

Because vertically-integrated commerce is only profitable on a large scale, funding requirements for niche brands are

high and may be risky for investors

The sector faces a potential problem with customers not being able to try products prior to purchasing, but the

introduction of ―showrooming‖ is proving to be an effective solution

Niche eCommerce businesses will likely focus on solving their online-only problems in the coming years

This sector is estimated to have produced over $1.0bn in revenue in 2012

Niche eCommerce Complaints Sector Strengths and Drivers

Source: Ericsson ConsumerLab, Tech-tips

73.0%

39.0% 34.0%

12.0% 11.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Can't see,touch or try

things

Have to waitto receivepurchases

Worry aboutpaymentsecurity

Lack ofcustomerservice

Too muchchoice

% A

gre

ein

g

72.0% 66.0%

58.0% 52.0%

31.0% 25.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Avoidcrowds

Moreconvenient

Avoid lines Easier tocompare

prices

Bettervariety

Gas prices

% A

gre

ein

g

21 Spring 2013


Vertically Integrated Niche Brands Major player NastyGal has experienced rapid growth, from $28.0mm in 2011 to more than $120.0mm last year

Key player Fab.com is currently over 12.0mm users strong

– Last year, the company saw $150.0mm in revenue and revealed in February that sales were up by nearly

300.0% in January 2013 over January 2012

Digital marketers are focusing heavily on spreading exposure to online-only brands to combat concerns over their

ability to reach a large enough audience

Digital Marketers’ Top Priorities Key Player UV Growth

Source: AngelList, MarketingCharts.com, Compete

245

375 439

617

0

100

200

300

400

500

600

700

Dec-12 Jan-13 Feb-13 Mar-13

Nastygal.com Monthly Unique Visitors

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Content marketing

Conversion rate optimization

Social media engagement

Targeting and personalization

Content optimization

Mobile optimization

Brand building

Joining up online and offline data

Marketing automation

Video marketing

Social media analytics2012

2013

19% 9%

21% 11%

15% 11%

24% 24%

32% 26%

29% 30%

39% 31%

37% N/A

39% 38%

34% 39%

29% 39%

Un

iqu

e V

isit

ors

(in

th

ou

san

ds)

22 Spring 2013


Consumer Service / Sharing Forbes estimates that consumers will spend $3.5bn on the sharing economy this year and refers to the trend as a

―disruptive economic force‖

Major player Airbnb is now in more than 8,000 cities and growing at a staggering 45.0% monthly growth rate

This sector’s development is affecting other industries as well, because as consumers begin consuming 10.0% less

and peer sharing 10.0% more, the effect on margins of traditional corporations will be disproportionately greater

Some consumers still find themselves hesitant to embrace the sharing economy, due to a variety of safety concerns

Traditional service firms have begun to realize the importance of the sharing economy, as seen in Avis’ $500.0mm

purchase of Zipcar, to better compete against Hertz and Enterprise and the rise of car sharing in populated cities

Altimeter analyzed 200 global Sharing Economy startups and found that 37.0% had been funded by VCs

– Those 74 companies raised an average of $28.0mm each, representing a total of over $2.0bn in just a few short years

Consumer Barriers to Sharing Airbnb Growth

Source: CampbellMithun

30.0%

23.0% 14.0%

12.0%

12.0%

9.0%

What I lend will get lost or stolen I might not trust others in the network

My privacy might be compromised Not worth the effort

The goods/services will be poor quality Other

0.365 105 526 1,261

15,768

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2008 2009 2010 2011 2012

Bo

oki

ng

rat

es (

in t

ho

usa

nd

s)

23 Spring 2013


Rent Versus Own This sector has become especially popular in the fashion and accessory category, thanks to key players Rent the

Runway and Bag Borrow or Steal

— Rent the Runway has over 3.0mm members and 170 designer brands, and it recently introduced the first-ever online social

shopping platform – Our Runway – which allows women to shop based on user-generated photos of real women with similar

body types

— Bag Borrow or Steal has also adopted aspects of the SubCom model by offering jewelry subscriptions ranging from $25 to

$795 per month

Future Rental Growth Rental Model Variations


$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

2008A 2010A 2012A 2014E 2016E

Brick and Mortar NetflixKiosks Transactional Digital RentalsVOD

Ren

tal r

even

ues

(in

bill

ion

s o

f $U

SD

)

24 Spring 2013


Flash Sales / Private Sales Major flash sales players, such as Beyond the Rack, Gilt Groupe and Hautelook, offer a small amount of discounted

products and services to members for a short period time, disrupting the traditional consumer-driven shopping model

Wayfair, which operates a variety of home goods eCommerce sites and does more than $600.0mm in gross revenue,

raised $36.0mm in 2012, bringing its total funding to more than $200.0mm

Nordstrom’s $180.0mm purchase of HauteLook in 2011 represents the first time that a traditional retailer has acquired

a company specializing in online private sales

Recent funding rounds (and implied valuations) show that many VCs seem undeterred by Groupon’s November 2012

IPO, which has shed more than 76% in market cap year-to-date

— VCs view the daily deals business model, which primarily serves as a traffic driver for third party businesses, in a different

light from that of eCommerce companies that have consumer-facing sales operations

Unique Visitors for Flash Sale Sites Customer Lifetime Value Growth

Source: comScore

2237 2185

1137 1118 1098 903

785 638 545

0

500

1000

1500

2000

2500 Q2 2012

Un

iqu

e vi

sito

rs (

in t

ho

usa

nd

s)

94.0%

143.0% 150.0%

385.0%

0.0%

50.0%

100.0%

150.0%

200.0%

250.0%

300.0%

350.0%

400.0%

450.0%

Traditional onlineretail

Daily deals Group buying Flash sales

25 Spring 2013


Customization (Design-It-Yourself) Mass customization ventures are attractive to VCs not just because they’re seeing tremendous growth, but also due

to the realization that scalable build-to-order supply chain models are also very cost-effective

Zazzle, a mass customization vendor, reports that it has 20.0mm unique visitors per month, 31.0bn unique products

available and has grown 1,600.0% in traffic and 900.0% in sales in the past four years

Utilization of customers’ personal information is controversial, but a new report from eCommerce optimization

company, Monetate, says that 75.0% of consumers want retailers to use personal information to customize shopping

experiences

Co-creation companies typically become cash-flow positive quickly because they are often just providing the

marketplace that facilitates the sale

Customization eCommerce Growth eCommerce Personalization Mapping

Source: Harvard Business School Research, Internet Retailer

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

2010 2011 2012

US Online Retailers Using Customization Techniques

Curation Source

Per

son

aliz

atio

n o

f S

KU

s sh

ow

n

Machine Human

Gen

eric

U

niq

ue

Decent customer experience, low cost Good customer experience, high cost

Not personal, low cost

Customers following tastemakers,

medium cost

32.6%

50.0%

64.0%

26 Spring 2013


Marketplace / Re-Commerce Companies like Poshmark, Twice and Threadflip, as well as local players Tradesy and Shop.hers, are offering new

twists on the yard sale with a more intimate experience than online mega-malls like eBay provide

Major player Twice monetizes by buying clothing at 1/3 of its anticipated selling price and taking a cut of that margin

after all ancillary costs, such as shipping, are paid off

— This model has resulted in a $1.0mm revenue run-rate and strong investor demand for this round

This sector is believed to have significant opportunities for growth, as eBay’s success has made consumers more

comfortable buying used items online

Traffic Sources Poshmark Unique Vistitors

Source: TechCrunch, Compete

0

20

40

60

80

100

120

Un

iqu

e vi

sito

rs (

in t

ho

usa

nd

s)

32%

20%

27%

7%

14%

0.5%

54%

5% 3%

33%

5%

0%

50%

14%

10%

25%

1% 0%

0%

10%

20%

30%

40%

50%

60%

Direct Referrals Search Social Mail Display Ads

Threadup.com

Threadflip.com

Poshmark.com

27 Spring 2013


Online Retail Trends to Follow

Source: PricewaterhouseCoopers, BerkshireDigital

Big data will provide context-rich information needed to create more relevant and personalized shopping experiences,

ultimately resulting in higher conversion rates and increased customer loyalty

The convergence of social media, geo-location and mobile technologies will allow retailers to leverage customers’

geographic proximities, shopping history and activity on social networks to target them with contextually relevant

offers while on the move

2013 will see a greater shift in focus towards mobile, as mobile penetration increases rapidly and more mobile

devices continue to be shipped globally than PCs

In 2013, more online retailers will focus on improving their end-to-end order management process to increase

customer satisfaction with delivery and after-sales care

Content marketers are altering their approaches to focus on quality rather than quantity of advertisements, spending

more time and effort integrating content into their overall marketing plan

Worldwide online retail growth will likely be led by the Asia-Pacific region, which is projected to overtake North

America in terms of B2C eCommerce sales in 2013

28 Spring 2013


Capabilities by Retailer (as of 2012)


BOPUS* ✔ ✔ ✔ ✘ ✔ ✔ ✘ ✘

Ship to Store ✔ ✔ ✔ ✘ ✘ ✔ ✘ ✘

Ship from Store ✔ ✔ ✘ ✘ ✘ ✘ ✘ ✘ QR Codes ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Mobile Site ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Mobile App ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Testing mobile checkout ✔ ✘ ✘ ✘ ✘ ✘ ✘ ✘ Free shipping** available ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✘

Wifi available in stores ✔ ✔ ✔ ✔ ✘ ✔ ✘ ✘

Testing same-day delivery ✔ ✘ ✘ ✔ ✘ ✘ ✘ ✘ Free returns of online

purchases in store ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ *BOPUS: Buy online, pick up in store; includes reserve online, pick up in store

**with minimum purchase, customer loyalty program, through ShopRunner or promotional free shipping

MCOMMERCE

30 Spring 2013


Overview

Source: eMarketer, TechCrunch, Statista

The global mCommerce market in 2012 reached $171.5bn and is expected to increase 360.0% to $617.0bn by 2016

as market confidence and growing trust in the ease and security of mobile transactions support rapid growth

Over the next three years, the US smartphone shopper population will expand by 55.0% to comprise 155.0mm

people in 2016, or nearly half of the US population

The number of smartphone buyers will increase by 60.0% over the next three years as retailers continue to invest in

mobile storefronts and gain experience in converting mobile shoppers to buyers

Tablets are expected to play a pivotal role in the growth of mCommerce, comprising 62.0% of the segment’s total

sales this year and a projected 70.0% of mCommerce sales in 2016

Smartphone buyers are expected to spend an average of $262 on purchases made with their phones this year, a

figure that is expected to rise 12.0% over the next three years to reach $295

NFC has fallen behind other mobile payment technologies, such as QR codes and Square, but it’s expected to slowly

catch up given its high degree of security and differentiated ability to provide two-way transaction messaging

Mobile payment platforms are beginning to catch on

― To attract more customers, Square recently launched ―Square: Business in a Box,‖ a complete point-of-sale system in a single

box of equipment

― While many mobile payment providers, like iZettle and Payleven, are expanding internationally to provide credit card

solutions, mPowa is working with the new ―chip-and-pin‖ solution, which is expected to be the global standard by 2015

― Visa Europe reached an agreement to license all of Monitise’s technology because it expects that half of all payments made

in Europe will be done through mobile devices by 2020

― payvia’s May 2013 acquisition of Mogreet will provide Payvia’s clients with tools to drive customer acquisition and revenue

generation, and to help brands reach consumers

31 Spring 2013


mCommerce Revenue and Market Growth

The global mCommerce market in 2012 reached $10.9bn, an increase of 40.9% over 2011

mCommerce is currently estimated to account for 3.0% of total worldwide eCommerce and <1.0% of total retail

sales

As users spend more time on connected devices, global mCommerce spending is projected to grow at a 43.0%

CAGR between 2011 and 2014

Increasingly robust growth is expected as a result of mobile-optimized eCommerce websites and apps, mobile ―one-

click‖ payment systems, faster fulfillment and price transparency at the point-of-sale

Global Mobile Commerce Revenue Global Mobile Commerce Users

362

565

855

1,235

1,691

2,144

0

400

800

1,200

1,600

2,000

2,400

2011A 2012A 2013E 2014E 2015E 2016E

Use

rs (

in m

illio

ns)

Source: Cisco Systems, Informa Telecoms & Media

$7,716.0

$10,873.0

$15,482.0

$22,573.0

$0

$5,000

$10,000

$15,000

$20,000

$25,000

2011A 2012A 2013E 2014E

Rev

enu

e (i

n m

illio

ns

of

$US

D)

Mobile Prepaid Top-Up Remote Payments Mobile Money Transfers

Local Payments Mobile Banking

32 Spring 2013


mCommerce Trends U.S. mobile payments users are expected to grow rapidly in the coming years and reach 48.1mm by 2016,

representing a 77.9% CAGR over 2011

As users become more comfortable with payment security, the average transaction size is projected to grow,

thereby driving growth in the broader US market by an expected 225.6% CAGR to $62.2bn in 2016 from $170.0mm

in 2011

US Mobile Payment Users US Mobile Payment Transactions

Source: eMarketer

2.7

7.9

13.3

21.3

34.0

48.1

3%

7%

10%

14%

20%

26%

1% 3%

6%

9%

14%

20%

0%

5%

10%

15%

20%

25%

30%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

2011A 2012A 2013E 2014E 2015E 2016E

Use

rs (

in m

illio

ns)

Mobile Payment Users % of Smartphone Users

% of Feature Phone Users

$0.2 $0.6 $2.1

$7.5

$24.6

$62.2

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

2011A 2012A 2013E 2014E 2015E 2016E

Tra

nsa

ctio

n V

alu

e (i

n b

illio

ns

of

$US

D)

Mobile Payment Transaction Value

33 Spring 2013


mCommerce Trends

Internet & Mobile VC Investments in 2012 Mobile eCommerce Growth

Source: Allegro, IBM Online Retail Index

The advertising ecosystem is shifting from TV to online and mobile, with mobile ad spending projected to grow the

fastest at 38.0% per year over the next 5 years

mCommerce sales rose 31.0% in the first quarter of 2013 as tablet-fueled, ―couch commerce‖ is rapidly becoming the

most popular form of online shopping with the so-called ―multi-channel shopper‖

This gives eCommerce businesses multiple new channels to monetize while having an edge in revenue generation

over their physical store counterparts

Of the eCommerce retailers who do not have a mobile program today, over 66.0% expect to have an mCommerce

program in place within the next 18 months

$224.0

$49.0

$85.0

$0.0

$377.0

$15.0

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

$400.0

Internet Mobile

Series A

Series B

Further Rounds

3.7%

20.0%

31.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

In-store All eCommerce Mobile eCommerce

Q1 2013

Inve

stm

ents

(in

mill

ion

s o

f $U

SD

)

34 Spring 2013


Global Online Retailers’ mCommerce Strategies

Source: SLI Systems

Shifting consumer habits are leading retailers to build mobile platforms to further engage with customers at the

point-of-sale

Survey of Online Retailers

8.5%

17.5%

18.4%

19.7%

34.6%

40.3%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0%

No plans in the next nine months

Already have an mCommerce app

Plan to improve the site search on mCommerce site or app

Plan to build an mCommerce app

Already have an mCommerce site

Plan to build an mCommerce site

35 Spring 2013


B2B Marketers Are Focusing on Website Development

Source: eMarketer

B2B organizations plan to greatly increase digital, social and mobile marketing spending in 2013 in the hopes of

capturing new customers and creating customer loyalty

70.1%

61.9%

56.0% 55.8%

52.5%

35.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Website Development Email Marketing Social Media Online Video Search Mobile

% o

f E

xpec

ted

Fo

cus

36 Spring 2013


B2B Mobile Investment Is Expected to Increase Mobile devices will emerge as a key strategic channel for B2B eCommerce companies to market to, sell to and

service customers

88.0%

72.0%

36.0%

28.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Prioritization of Mobile Services Resource Allocation to Mobile Services Revenue From Mobile Profit From Mobile

Pro

bab

ility

of

Incr

ease

Source: eMarketer

37 Spring 2013


mCommerce Consumers Are Spending More

$13.6

$24.8

$38.8

$53.4

$71.2

$92.4

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$100.0

2011A 2012A 2013E 2014E 2015E 2016E

US

Ret

ail m

Co

mm

erce

Sal

es (

in b

illio

ns

of

$US

D)

Source: eMarketer

Consumers are increasing their mobile spending as more retailers make merchandise available through

eCommerce

38 Spring 2013


Growing NFC Market

Global Mobile NFC Users Global Mobile NFC Transaction Value

Although NFC technology has had little market exposure, companies are beginning to unlock NFC capabilities after

realizing the technology’s potential as seen through Google Wallet and comparative systems

NFC popularity has increased dramatically as major cell phone developers begin highlighting the ability of NFC

technology and as brick-and-mortar stores begin accommodating NFC payments

As NFC security issues are addressed, users are starting to leverage this technology for larger transactions, which

is expanding the size of the market to an estimated $191.0bn by 2017

With Apple’s plan to adopt NFC technology for the iPhone, global NFC users are projected to reach 107.1mm by

2016, representing a 4-year CAGR of 40.5%

27.5

45.7

73.5

107.1

0.0

20.0

40.0

60.0

80.0

100.0

120.0

2013E 2014E 2015E 2016E

Use

rs (

in m

illio

ns)

Mobile NFC Users Worldwide

Source: Yankee Group, ABI Research

$4.0

$191.0

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

2012A 2017E

Tra

nsa

ctio

n V

alu

e (i

n b

illio

ns

of

$US

D)

Mobile NFC Transaction Value Worldwide

39 Spring 2013


Looking Ahead Into the mCommerce / Payment Market

Source: Wall Street Research, Department of Commerce

US eCommerce Accelerating On Mobile Impact International mCommerce Also Accelerating

Among the five types of eCommerce – mobile at POS, mobile as POS, P2P money transfer, mobile banking and

general mCommerce – mobile banking will have the greatest immediate impact as it offers high utility for consumers

and already enjoys the greatest familiarity

Mobile at POS is still in its early stages with limited interoperability across handset models, networks, payment

cards and geographies, along with limited penetration of contactless payment terminals at retail sites

Mobile as POS provides a compelling solution for the untapped SME market as it enables card transactions for

small and mobile merchants and is agnostic with regards to existing card networks

— Carrier billing-based models provide SME’s with the ability to transact with customers that may not have access to credit

cards but have cell phone subscriptions

$136.0

$180.0 $203.0

$228.0

$255.0

$283.0

$6.0

$14.0

$25.0 $37.0

$51.0 $67.0

4.4% 4.7%

5.3% 5.9%

6.6% 7.3%

0.0%

2.0%

4.0%

6.0%

8.0%

$0.0

$100.0

$200.0

$300.0

$400.0

2010A 2011A 2012A 2013E 2014E 2015E

% o

f US

Retail

US

eC

om

mer

ce (

in b

illio

ns

of

$US

D)

Mobile U.S. Desktop eCommerce U.S. eCommerce As a % of Total Retail

$213.0 $261.0

$300.0 $336.0

$360.0

$394.0

$4.0

$11.0

$19.0

$37.0

$50.0

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

2010A 2011A 2012A 2013E 2014E 2015E

Inte

rnat

ion

al e

Co

mm

erce

(in

bill

ion

s o

f $U

SD

)

International Mobile International Desktop CommerceUS eCommerce As a % of Total Retail US Desktop eCommerce

PUBLIC AND TRANSACTION COMPARABLES

41 Spring 2013


Select eCommerce Public Comparables

Source: CapitalIQ and Siemer Proprietary Research

(figures in millions of $USD, except per share) Share Price as of Market Enterprise EV / LTM EV / CY 2013E LTM Annual

Company Name 6/6/2013 Cap (mm) Value (EV) Revenue EBITDA Revenue EBITDA Revenue Growth

Amazon.com Inc. $267.17 $121,627.3 $116,772.3 1.8x NM 1.3x 17.8x 24.5%

Angie's List, Inc. 23.09 1,341.6 1,293.6 7.3x NM 3.8x 41.9x 70.9%

eBay Inc. 51.36 66,654.5 61,768.5 4.2x 14.3x 3.2x 9.7x 17.4%

Groupon, Inc. 6.81 4,505.2 3,337.2 1.4x 24.2x 1.2x 9.4x 26.8%

Mercadolibre, Inc. 113.91 5,029.5 4,835.9 12.3x 33.8x 8.3x 22.7x 22.2%

Overstock.com Inc. 26.71 631.7 549.8 0.5x 17.0x 0.4x 11.0x 9.3%

Rakuten, Inc. 11.90 15,655.2 15,870.7 3.4x 14.6x NA NA 16.9%

Start Today Co., Ltd. 14.92 1,639.0 1,520.5 4.3x 16.6x NA NA 10.2%

Trade ME Group Ltd. 3.78 1,497.7 1,601.4 13.0x 17.8x NA NA 17.5%

Vipshop Holdings Limited 28.61 1,580.8 1,208.1 1.3x NM 0.5x 10.4x 201.0%

Vitacost.com, Inc. 8.07 271.2 241.2 0.7x NM 0.5x NM 23.0%

Mean $18,999.9 4.6x 19.8x 2.4x 17.5x 40.0%

Median $1,601.4 3.4x 17.0x 1.2x 11.0x 22.2%

42 Spring 2013


Select Online Travel Public Comparables


(figures in millions of $USD, except per share) Share Price Market Enterprise LTM Annual

Company Name as of 6/6/2013 Cap (mm) Value (EV) Revenue EBITDA Revenue EBITDA Revenue Growth

Ctrip.com International Ltd. $32.91 $4,270.7 $3,682.8 5.2x NM 4.0x 16.5x 21.0%

Expedia Inc. 54.96 7,513.9 7,053.8 1.7x 11.1x 1.4x 7.7x 19.5%

HomeAway, Inc. 29.46 2,502.2 2,187.9 7.4x NM 6.1x 20.9x 22.0%

hotel.de AG 38.64 146.1 133.0 2.2x NM NM NM 11.0%

MakeMyTrip Limited 12.86 477.9 396.2 1.7x NM 3.9x NM 16.4%

Orbitz Worldwide, Inc. 7.50 806.7 1,021.1 1.3x 9.6x 1.2x 7.0x 2.6%

priceline.com Incorporated 795.50 41,568.3 37,503.4 6.8x 18.9x 5.5x 14.7x 20.6%

Travelzoo Inc. 27.58 423.7 358.2 2.3x 12.1x 2.2x 11.2x 2.2%

Wotif.com Holdings Limited 4.98 1,054.2 910.6 6.9x 12.4x NM NM 2.2%

Mean $5,916.3 3.9x 12.8x 3.5x 13.0x 13.0%

Median $1,021.1 2.3x 12.1x 3.9x 12.9x 16.4%

EV / LTM EV / NTM

43 Spring 2013


Select Precedent eCommerce Financings


Amount

Date Company Description Investors Raised ($mm) Round

05/15/13 PFSwebDevelops and deploys interactive marketing services, global

fulfillment and logistics and high-touch customer careTrans Cosmos $14.7 NA

05/14/13 Privalia Venta DirectaAn online fashion company offering flash sales of products

from leading brands exclusively to consumers

General Atlantic; Highland Capital Partners;

Insight Venture Partners; Index Ventures;

Sofina Société Anonyme; Nauta Capital;

Caixa Capital

32.1 NA

05/13/13Namshi International

Services

Operates Namshi.com, an online shopping website for

fashion and footwear productsSummit Partners 13.0 C

05/09/13 The Hut Group An online retailer selling fast moving consumer goods Blue Coast Private Equity 15.5 NA

05/07/13 BayruAn eCommerce shopping service, primarily selling goods

from the USA to Russian customersNA 1.0 NA

05/06/13 Basico.com The first online-only premium basic apparel brand in Brazil Initial Capital 0.5 NA

05/06/13 Nuvem Shop Enables small and medium enterprises to start online stores Trindade Investimentos 1.0 NA

05/02/13 BEBEO An online store for selling clothes for kids, children and babies CM-CIC Capital Privé 2.2 B

05/02/13 MicksGarageAn online retailer for car parts and accessories (based in

Ireland)

Dublin Business Innovation Centre; NCB

Ventures; Enterprise Equity; Western

Investment Fund

3.0 NA

05/02/13 Ventas PrivadasOperates an eCommerce platform using online flash sales,

providing solutions to brands with no or little online presenceVivid Growth Group 6.0 NA

05/01/13 Voylla Retail A worldwide e-retail platform for jewelry and accessories Snow Leopard Technology Ventures 0.5 NA

04/30/13Mobly Comércio

Varejista

Operating an online retailer for furniture, home furnishings and

home accessories (based in Brazil)Cisneros Group of Companies 20.0 NA

04/28/13 Mallzee.comAllows users to create their own personal online shopping

mall that only features clothes that suit themNA 1.6 NA

04/26/13 Nettwerk Music GroupEngages in music distribution through releasing and selling

albums, as well as connecting music fans with music makersBeedie Capital Partners; HBC Investments 10.3 NA

44 Spring 2013




Amount


04/25/13BuildDirect.com

Technologies

Operates as an online wholesaler of building materials and

suppliesNA $3.8 NA

04/25/13 Bigshoebazaar India Operates a wholesale cash and carry online shoe store

QUALCOMM Ventures; Nexus Venture

Partners; Catamaran Investment; Fidelity

Growth Partners India

12.0 NA

04/24/13 Dapu.com Operates an online shopping portal for home textile items CDH Investments 4.9 NA

04/24/13 Chirpify Commerce platform allowing consumers, brands and

merchants to buy, sell, donate and transact on Twitter

NA 6.0 NA

04/22/13 Gengo Provides a platform for human translation services for Iris Capital; Intel Capital; Singapore 12.0 NA04/22/13 Fab Operates online pop-up shops that sell a variety of home,

outdoor, food, apparel and jewelry products

NA 100.0 NA

04/19/13 Poppin Online retailer offering a distinctive collection of chic yet

affordable workstyle products

Shasta Ventures; First Round Capital;

Trilogy Growth

15.0 B

04/17/13 Augment Develops an augmented reality application with a visualization

tool to show products to visitors before committing

NA 0.3 NA

04/16/13 Nosto Solutions Oy Develops an eCommerce marketing software, which enables

personalized product recommendations in real time

Open Ocean Capital; SanomaVentures 2.9 NA

04/15/13 Mallzee.com Allows users to create their own personal online shopping

mall that only features clothes that suit them

Scottish Enterprise 0.2 NA

04/15/13 20jeans.com An online retailer of apparel and accessories for men Baroda Ventures; Siemer Ventures; PLUS

Capital

1.0 NA

04/15/13 Shanghai Goushang

Network Technology

Owns and operates a consumer to business eCommerce

apparels website

CBC Capital 10.0 A

04/12/13 Biozone

Pharmaceuticals

Engages in developing and manufacturing OTC drug and

cosmetic products on behalf of third parties

NA 1.0 NA

45 Spring 2013




Amount


04/12/13 Createthe Group Provides digital campaigns, communications platforms and

commerce solutions for fashion and retail brands worldwide

NA $3.0 NA

04/11/13 BuyReply Operates an e-commerce platform that enables merchants

and consumers to buy and sell from online and offline

medium, such as TV, print, catalogs, newspapers and

magazines

Valar Ventures; Square Peg Ventures 1.0 NA

04/11/13 Crumbs Bake Shop Offers baked goods for delivery to homes and businesses

through its eCommerce division at crumbs.com

Aston Hill Asset Management; IA

Clarington Investments; Redwood Asset

Management; Front Street Investment

Management; Personal Capital

Management; Ark Mutual Funds; York

Plains Investment

10.0 NA

04/10/13 Nest Childcare

Services

Engages in the online retail of pregnancy, infant-care and

mother-care products in India

Accel Management; Tiger Global

Management; Helion Venture Partners

11.9 NA

04/10/13 TV18 Home Shopping

Network

Operates as an online and on-air retail marketing and

distribution company for a wide variety of products

Network 18 Media & Investments; Orchard

Capital Partners

30.0 NA

04/09/13 Vacation Storebuilder A SaaS eCommerce platform for property managers to

create, deploy and manage various branded vacation rental

websites

NA 0.8 NA

04/08/13 Achatdesign An online furniture distribution company (Based in France) Alliansys-Nord Creation; Alliance

Entreprendre; Turenne Capital Partenaires;

Nord Capital Partenaires

3.9 NA

04/05/13 BEBB India An eCommerce B2B portal, offering information and tools for

small and medium enterprises

Accel Management 5.8 B

04/04/13 Babyshop Online retailer of fashion products for kids and babies Verdane Capital 1.8 NA

04/04/13 Well.ca Operates as an online health, beauty and baby products store iNovia Capital 4.9 NA

46 Spring 2013




Amount


04/03/13 Real Real Operates as an online luxury resale store Canaan Partners; InterWest Partners;

e.ventures; Greycroft Partners; Novel TMT

Ventures; Panarea Capital

$14.0 B

04/03/13 Acumen Brands Operates online stores that sell outdoor apparel, work wear,

nursing scrubs and baby gear products

General Atlantic 83.2 NA

04/02/13 CareXtend An online marketplace for health and wellness products NA 1.2 NA

04/02/13 BusyLife Software Provides merchants mobile eCommerce solutions Point B Capital 1.2 NA

04/02/13 DailyLook Sells fashion and trendy clothing online GRP Partners; RRE Ventures; Novel TMT

Ventures; SV Angel

2.5 NA

04/02/13 Saatchi Online A social market platform to discover, share, exhibit, promote,

discuss and sell art online

NA 10.5 NA

04/01/13 TrendSutra Platform

Services

An Internet retail platform that offers a range of lifestyle

products

Norwest Venture Partners 8.0 B

03/29/13 Zhuhai Zhengcai

Software Technology

Develops eCommerce software for government's and

enterprises (Based in China)

Shenzhen Fortune Venture Capital

Management

1.8 NA

03/29/13 American Business

Forms

Offers various office supplies, eCommerce solutions and

marketing solutions

NA 4.0 NA

03/28/13 HealthWarehouse.com Operates as a virtual retail pharmacy and healthcare

eCommerce company that sells prescription and OTC drugs

NA 0.5 NA

03/27/13 Virtual Piggy Provides a secure service that allows children to make

purchases online in a manner that is monitored by their

parents

NA 0.6 NA

03/25/13 Warp 9 Provides eCommerce software platforms and services for the

catalog and retail industries in the United States

Wings Fund 0.1 NA

47 Spring 2013




Amount


03/22/13 Libermundi Owns and operates eCommerce websites that distribute

technical products for the house, garden and swimming pool

Entrepreneur Venture Gestion; Savoie

Angels; VIADUC 8

$0.4 C

03/21/13 LUXA A daily-deals site focusing on a higher-income demographic

by listing only premium items

JAFCO 80.4 B

03/20/13 Digital Shelf Space Builds and manages custom eCommerce sites dedicated to

fitness and sports instruction projects

Spara Acquisition One 1.5 NA

03/20/13 PeerActive An eCommerce real-time shopping community NA 1.5 NA

03/20/13 Indochino Apparel Sells men's wear, wedding wear and personalized digital gift

cards online

Highland Capital Partners; Madrona

Venture Group; Acton Capital Partners

13.2 B

03/20/13 Prime HealthChakra An e-health store that offers health care products online Sequoia Capital; Intel Capital 14.0 B

03/19/13 Videdressing Online social marketplace to buy and sell previously owned

clothing and fashion accessories

Earlybird Venture Capital; DN Capital;

Generis Capital Partners; Piton Capital

5.3 A

03/15/13 Landau Brothers Operates Chalkfly.com for buying office and school supplies

online

Detroit Venture Partners; Ludlow Ventures;

Start Garden; Bizdom; Griffon Ventures

0.8 A

03/15/13 Merchantry Provides cloud-based technology infrastructure and merchant

networks that enable media, retail and brand manufacturing

clients to launch and expand their online marketplaces

e.ventures; Greycroft Partners; Kite

Ventures

7.0 B

03/15/13 Clues Network Owns and operates a horizontal eCommerce site, India's first

and largest managed marketplace

Nexus Venture Partners; Helion Venture

Partners

10.0 C

03/12/13 ARI Network Services Engages in creating, marketing and supporting technology-

enabled solutions that help consumers, dealers, distributors

and manufacturers to service and sell goods

NA 4.5 NA

03/11/13 Organamania An online merchant that sells organic products NA 0.5 NA

03/07/13 Bayru An eCommerce shopping service, primarily selling goods

from the USA to Russian customers

NA 5.0 NA

48 Spring 2013




Amount


03/06/13 Servio Content marketing services delivering web-optimized content

and data solutions for eCommerce, publishing and big data

NA $4.3 B

03/06/13 Jumia An online retailer in Nigeria, offering clothes, shoes, watches

and accessories for men and women

Summit Partners 26.0 A

03/05/13 Wine in Black Distributes wine online (Based in Germany) e.ventures; Passion Capital Investments;

Bright Capital; Project A Ventures

6.5 B

03/05/13 hybris Operates as a vendor of multi-channel communication and

commerce software solutions

Greylock Partners; MeriTech Capital

Partners; HGGC

30.0 NA

03/01/13 Quivers Provides an online catalog solution that enables brand

manufacturers to partner with their retailers for selling online

NA 0.1 NA

03/01/13 1855 Operates as an online distributor of wines to individuals

around the world

Aphrodite 10.4 NA

02/28/13 Cunable Operates as a direct-to-consumer e-book retailer Start Garden 0.2 NA

02/28/13 SARL Mon bento Offers Japanese lunchboxes and accessories online Newfund Management 0.7 NA

02/27/13 Cocinar Sin Pensar Offers YoComoBien, a food subscription service that provides

recipes and necessary fresh ingredients to customers' doors

Caixa Capital; Instituto Valenciano de

Finanzas; Business Booster

0.3 NA

02/27/13 Box Ventures Allows purchasing of consumable lifestyle products online Vandaele Capital 0.5 NA

02/26/13 Pixafy Develops eCommerce solutions such as content

management, startup incubation and expert consulting

NA 0.5 NA

02/19/13 The Ivory Company An online home-décor company focused on curating an

assortment of home merchandise in white and ivory

NA 0.5 NA

02/19/13 Blue Apron Offers once-a-week subscription services delivering meal

ingredients to users

Bessemer Venture Partners; First Round

Capital; BoxGroup; Graph Ventures

3.0 A

02/19/13 Baby.com.br Operates an eCommerce website selling baby products NA 16.6 NA

02/18/13 Vellvette Lifestyle An online retail portal for cosmetic products for women India Quotient 0.5 A

49 Spring 2013




Amount


02/18/13 Inverted Edge Owns and operates a fashion retail website offering ready-to-

wear collections

Singapore National Research Foundation;

Accel-X; Incuvest

$1.6 A

02/18/13 Artspace.com Markets An online marketplace for users to purchase artistic works Canaan Partners 8.5 B

02/15/13 500friends Offers a loyalty marketing platform that enables eCommerce

retailers to track and reward behaviors that matter to their

brand

Fung Capital Asia Investment; CrossLink

Capital; Intel Capital

7.1 B

02/13/13 eNova Santé An online marketplace for pharmacies to sell their products NA 0.8 NA

02/11/13 BimBasket A monthly online subscription in Russia for children’s products NA 0.5 NA

02/08/13 Mavshack Provides Internet services for video-on-demand NA 0.5 NA

02/07/13 Ph-Creative Provides eCommerce web development services, such as

web design and microsites services

Enterprise Ventures; The North West Fund 0.8 NA

02/07/13 Greenweez Offers energy, water, cleaning, home, outdoor,

transportation, grocery, office, kitchen, well-being, cosmetics

and health related products online

A Plus Finance; Promelys Participations 4.0 NA

02/07/13 Valyoo Technologies Owns and operates online optical, watch and bag stores IDG Ventures India; Unilazer Ventures 10.0 B

02/06/13 Trends Brands for

Friends

An online retailer of fashion apparel (Based in Russia) Ventech; ruNet Holdings; Kite Ventures 4.0

02/01/13 HealthWarehouse.com Operates as a virtual retail pharmacy and healthcare

eCommerce company that sells prescription and OTC drugs

NA 3.5 NA

02/01/13 B. Lane An online retailer of plus size fashion apparel for women NA 18.2 NA

01/31/13 Robemall Apparels Operates zovi.com that sells apparel online in India SAIF Partners; Tiger Global Management 10.0 C

01/29/13 ConnectQuest An application that provides social networking, eCommerce

and personal and business collaboration services

NA 0.5 NA

01/25/13 nextel Business

Intelligence Solutions

Provides cloud-based business intelligence (BI) solutions for

mail-order and online retailers

Seedcamp 0.1 NA

50 Spring 2013




Amount


01/23/13 Local Orbit Provides customized websites with eCommerce, marketing

and management tools for small businesses and

organizations building local food supply chains

NA $0.1 NA

01/21/13 Bellabox Handpicks and delivers sample beauty products based on the

client's personal profile (based in Singapore)

Apex Capital Partners; Monash Private

Capital; Square Peg Ventures

1.4 A

01/18/13 iBOVIN An online platform to sell meat products Starquest Capital 0.5 A

01/18/13 My Flash Trash Operates an online jewelry boutique (based in the UK) NA 4.9 NA

01/16/13 Fanplayr A multi-channel coupon platform for eCommerce sites to

reach, influence and monetize social consumers in traditional

and social media channels

Denali Capital Managers 2.0 NA

01/16/13 UpCity A search engine optimization software and education platform

that delivers reporting and insights for small business owners

Harris Preston & Partners; Daylight

Partners; FireStarter Fund; I2A Fund

2.0 B

01/15/13 Ooberstock Offers online beverage wholesale services NA 1.0 B

01/15/13 TinyPass Operates an enterprise-level eCommerce paywall software

platform that helps sites to charge for access to content

NA 1.3 NA

01/14/13 The Hut Group A multi-website online retailer, marketing and selling fast

moving consumer goods

Artemis Fund Managers; River Island

Clothing

14.5 NA

01/13/13 Zibaba An eCommerce platform, enabling small and medium-sized

businesses to sell, share and advertise products through

Facebook

NA 3.5 NA

01/11/13 Adore Me.com Operates a lingerie website that offers intimates and hosiery

for women at affordable quality

NA 8.5 NA

01/11/13 Mister Spex Operates as an online retailer of glasses, sunglasses and

contact lenses

Scottish Equity Partners; DN Capital;

Xange Private Equity

20.8 C

01/10/13 Mavshack Provides Internet services for video-on-demand NA 0.2 NA

51 Spring 2013




Amount


01/10/13 Zalora Operates an online fashion and lifestyle retail marketplace for

men and women (based in Thailand)

Tengelmann Ventures $26.4 NA

01/09/13 Soldsie A payment system enabling merchants to monetize their

Facebook page by allowing customers to purchase through

comments

e.ventures; 500 Startups 1.0 NA

01/09/13 Dapu.com Operates an online shopping portal for home textile items NA 3.0 NA

01/07/13 Namshi International

Services

Operates Namshi.com, an online shopping website for

fashion and footwear products

Summit Partners 1.0 NA

01/07/13 Greenling Online grocery store providing the home delivery of organic

and local produce

NA 3.5 B

01/04/13 LM2 Group Retails alarm and security equipment online (based in France) NA 0.3 NA

01/04/13 Chrono Watch

Company

Operates as an importer and dealer of luxury lifestyle

timepieces for men and women in India, through its

eCommerce website

NA 1.8 A

01/04/13 Rock Paper Photo Sells music, sports, fashion and performing arts-related

photographs online

NA 3.1 NA

01/03/13 Clear Demand Delivers a price strategy optimization solution for brick and

mortar retail and eCommerce markets

NA 0.8 NA

01/01/13 Wantable Operates a website that provides women's make-up and

fashion eCommerce services

NA 0.8 NA

52 Spring 2013


Select Precedent eCommerce Transactions


(figures in millions of $USD) EV / LTM

Date Announced Target Acquirer Implied EV Revenue EBITDA

05/23/2013 BlueFly Clearlake Capital Group $7.6 0.1x NA

05/10/2013 Angeliebe Kenkou Corporation 3.0 NA NA

05/03/2013 Schmid Profi SmartGuy Group 1.4 0.1x NA

04/29/2013 Juzz1 Holdings Polaris Network 4.3 NA NA

04/17/2013 Heppo Footway Group 6.5 0.4x NA

03/04/2013 Torpedo7 The Warehouse Group 41.5 NA NA

03/01/2013 CBS Bizhub, Panpages KV Asia Capital 38.9 NA NA

01/31/2013 College Book Rental CBR Funding 3.0 NA NA

01/18/2013 Santessima E.Leclerc 0.4 NA NA

01/07/2013 Lemonline Oy Soprano Oyj 0.1 NA NA

12/27/2012 Silver.com JM Bullion 0.9 NA NA

12/05/2012 Redcats USA Charlesbank Capital, Webster Capital 525.0 NA NA

11/08/2012 Kayak Software priceline.com 701.6 2.3x 30.6x

11/07/2012 50 Below Sales & Marketing ARI Network Services 5.0 NA NA

10/31/2012 DSNR M.A.O.M. 25.7 NA NA

10/26/2012 Virgindiamond KAJIN 0.3 0.2x NA

10/25/2012 Versandapotheke DocMorris Zur Rose 32.7 0.1x NA

10/03/2012 Monnier Frères Groupe Louis Delhaize NA NA NA

09/25/2012 Beijing Redbaby Information Tech Suning Appliance 66.0 NA NA

08/31/2012 Trader's Library John Wiley & Sons 1.5 NA NA

08/24/2012 WineOnline Marketing Vida Ventures 4.8 NA NA

08/09/2012 Ediets.com As Seen On TV 12.4 0.6x NM

07/16/2012 Fosa Marketing 1 Utopia Berhad 1.0 NA NA

07/09/2012 Flying Brands Jersey Choice Marketing 4.5 0.7x NA

53 Spring 2013






06/18/2012 e-tabinet.com NCXX $10.7 15.4x NA

06/15/2012 IPEXCO Parta Dialogue NA NA NA

06/08/2012 Wuaki.TV Rakuten 18.7 NA NA

06/05/2012 Australian Natural Brands Heritage Brands 2.0 NA NA

06/04/2012 1-800 Contacts WellPoint 900.0 2.3x NA

06/04/2012 Grupa Onet Ringier Axel Springer Media 404.5 NA NA

06/02/2012 ratioform Verpackungen Takkt 254.5 2.5x 9.3x

05/31/2012 MarketNet Bridgeline Digital 1.3 0.5x NA

05/24/2012 DirectStar TV Red Ventures 105.6 NA NA

05/24/2012 PowerReviews Bazaarvoice 127.8 10.7x NM

05/21/2012 Le Bouquet Nantais Bloom Trade 0.5 0.2x NA

05/16/2012 Amadesa LivePerson 10.3 NA NA

05/08/2012 homeLOFT, Leather Groups.com Luxeyard 0.1 NA NA

05/01/2012 LovingEco JP Selects 1.0 NA NA

05/01/2012 EasyLink Services OpenText 309.5 1.7x 7.3x

04/30/2012 FlavoredCondoms.org Tastees Condoms NA NA NA

04/18/2012 Gilt Groupe Firsthand Capital Management NA NA NA

04/17/2012 Angeliebe Kenkou 3.7 0.1x NA

04/13/2012 Greners.com Growlife 0.5 NA NA

04/09/2012 Gilt Groupe Firsthand Capital Management NA NA NA

04/09/2012 UL EduNeering Underwriters Laboratories 14.5 NA NA

03/12/2012 fotokasten Elanders 12.5 0.6x NA

03/01/2012 CustomCall Data Systems Enghouse Systems 7.3 NA NA

54 Spring 2013






02/28/2012 Shouke The Net-A-Porter Group $10.5 NA NA

02/27/2012 bol.com Koninklijke Ahold 453.1 1.0x NA

02/22/2012 eOpulence Luxeyard 0.1 NA NA

02/17/2012 Monexa Solutions PenderFund Capital, Ansera Capital 4.4 NA NA

02/09/2012 eTree Marketing Private Flipkart Online Services 25.0 NA NA

02/06/2012 Adku Groupon 10.0 NA NA

01/13/2012 Buckaroo Intrum Justitia 52.4 8.0x NA

01/02/2012 Gutscheine.de Mediengruppe 3.9 0.1x NA

12/31/2011 Jump On It LivingSocial 62.3 NA NA

12/15/2011 CryptoLogic Amaya Gaming Group 16.8 0.6x 5.3x

12/07/2011 Wiggle Bridgepoint Capital Group 313.7 2.3x 19.0x

12/01/2011 Traveldoo Egencia UK 33.7 NA NA

11/28/2011 Systems@Work Pte Trustpay 77.8 NA NA

11/23/2011 EQSN iomart 3.8 NA NA

11/09/2011 RTP The Active Network 21.5 NA NA

11/08/2011 Kobo Rakuten 315.0 NA NA

10/27/2011 RueDuCommerce Alta Penthievr 106.8 0.3x 9.2x

10/01/2011 L&S Retail Ventures CafePress 15.3 NA NA

10/18/2011 SiteScanner Europe IP Label 6.2 NA NA

10/17/2011 Just Eyewear Coastal Contacts 0.6 NA NA

10/10/2011 MBL Guernsey Sainsbury's Supermarkets 1.6 NA NA

10/07/2011 Keynote DeviceAnywhere Keynote Systems 89.8 4.5x NM

10/01/2011 Fashion Walker Fashion-Co-Lab 14.3 0.1x NA

55 Spring 2013






09/30/2011 Bugeyeparts.com Citadel EFT NA NA NA

09/21/2011 Play Limited Rakuten 38.7 NA NA

09/21/2011 e-tabinet.com Fisco Capital 8.4 10.2x NA

09/19/2011 Pipfrog Soprano Oyj 0.4 NA NA

09/15/2011 Cardpool Blackhawk Network 42.3 NA NA

09/15/2011 One eCommerce Corporation Islet Sciences 0.3 NA NA

09/08/2011 Appchee Applications eBay 20.0 NA NA

09/07/2011 JigoCity FriendFinder Networks NA NA NA

09/06/2011 WineDirect WineDirect 13.5 0.7x NA

08/24/2011 Raet CVC Capital Partners 575.9 3.0x NA

08/23/2011 Nexify ePals Corporation 2.7 NA NA

08/23/2011 d&shop GS Home Shopping NM NM NM

08/23/2011 S&G Properties GNC Holdings 21.0 0.5x NA

08/08/2011 Plimus Great Hill Partners 115.0 NA NA

08/05/2011 Garden King Bradley Planters Garden Centre 2.6 NA NA

08/05/2011 Wishlist Holdings Qantas Frequent Flyer 11.5 0.4x NA

07/19/2011 Zeus Technology Riverbed Technology 140.0 NA NA

07/14/2011 Women's Apparel Group Distinctive Apparel 11.3 NA NA

07/05/2011 HOH Home Of Hardward getgoods.de 4.3 NA NA

07/05/2011 eBoutic.ch Maus Freres 25.4 0.6x NA

06/30/2011 EchoSign Adobe Systems 80.0 NA NA

06/09/2011 DigiMark Mobivity Holdings 1.5 NA NA

05/31/2011 Koovs Marketing Consulting BenefitsPLUS Media Pvt. NA NA NA

56 Spring 2013






05/27/2011 AsSeenOnTV.com As Seen On TV $2.3 NA NA

05/27/2011 CROWN JEWEL Start Today 12.4 1.5x NA

05/17/2011 Direct EDI SPS Commerce 9.8 2.2x 11.5x

05/13/2011 SGV Medical Supplies Liberator Medical Holdings 0.5 NA NA

05/13/2011 Ciashop IdeiasNet 6.1 NA NA

05/12/2011 NetShops Hyperion 1.3 NA NA

05/10/2011 FineStationery 1-800-Flowers.com 3.3 0.3x NA

04/28/2011 Tretti CDON Group 47.8 0.6x 11.8x

04/05/2011 BoaCompra Universo Online 2.8 NA NA

03/30/2011 redcoon Media-Saturn 197.0 0.4x NA

03/30/2011 CJ-LINX Mountain Peace Promotion NA NA NA

03/27/2011 GSI Commerce eBay 2,421.4 1.7x 20.5x

03/23/2011 drugstore.com Walgreen 402.8 0.8x 51.4x

03/22/2011 Partsearch Technologies Best Buy 6.4 NA NA

03/21/2011 Tiny Prints Shutterfly 357.2 4.1x NM

03/17/2011 Active Nutrition Bringwell 3.1 0.8x NA

03/09/2011 Lamfis Proguard Acquisition 0.3 0.1x NA

03/04/2011 Antidot Sudinnova, CIC Vizille Capital NA NA NA

03/03/2011 Adsparq Mobivity 7.4 NA NA

03/03/2011 eReinsure.com Lots Intermediate 37.0 NA NA

02/25/2011 China Healthcare Golden Meditech Holdings 17.9 NA NA

02/16/2011 HauteLook Nordstrom 191.7 1.9x NA

02/15/2011 Kiddicare.com Wm. Morrison Supermarkets 113.8 1.9x NA

57 Spring 2013






02/14/2011 Hocks.com HealthWarehouse.com $0.9 0.2x NA

02/14/2011 Candid Global Resources HK Aspire International 3.6 NA NA

02/10/2011 Clout Shoppe Singapore Post 0.2 NA NA

02/09/2011 Alog Data Centers do Brasil Equinix, Riverwood Capital 133.0 NA NA

02/09/2011 PlaySpan CyberSource 202.0 NA NA

02/04/2011 BetterBraces.com DJO Opco 2.1 NA NA

02/02/2011 Bajaao.com JMD Telefilms Industries 1.1 NA NA

01/31/2011 RUM21 CDON Group 1.9 1.1x NA

01/27/2011 Web Merchants Liberator 2.8 NA NA

01/20/2011 LOVEFiLM Amazon.com NA NA NA

01/14/2011 webloyalty.com Affinion 296.3 1.4x 6.4x

01/11/2011 NetOnNet Waldir AB 70.5 0.2x 25.8x

01/05/2011 Fanatics GSI Commerce 276.9 2.0x 14.5x

Mean $100.9 2.0x 16.7x

Median $11.3 0.7x 11.7x

Contact Information

Siemer & Associates, LLC ● Member FINRA/SIPC

1333 2nd Street, Suite 600

Santa Monica, CA 90401

Phone: (310) 861-2100

Fax: (310) 861-2125

www.siemer.com

Siemer & associates e commerce report spring 2013

Business

Transcript of Siemer & associates e commerce report spring 2013