J’son & Partners Consulting presents short results of the research: Global Trends in the ICT Sphere Based on Largest ICT Companies’ Venture Activities and M&A Policies.
General Market Description
According to CB insights data: total amount of venture deals was 209 bln USD in 2014, where 110 bln USD had been allocated by start-ups in ICT industry. Major investments were in the following segments:
- e- andmobilecommerce;
- financial technologies (FTech);
- e-medicine (DigitalHealth);
- software provision and services;
- advertising technologies;
- online education.
Drone’s production showed the most significant growth by number of deals – 29 deals in 2014 vs 10 deals in 2013. Marketing automatization and mobile commerce also showed an impressive increase – 45% and 44% for 2014 accordingly.
The highest number of deals had been concluded in software (Internet) and Mobile software segments in 2014. E-Commerce is also showing perspectives among other segments.
The analysis of directions by volume of deals in monetary terms showed another picture: FTech got in top list, while start-ups in the sphere of mobile software development didn’t get into TOP 3 industries.
Analysis of venture deals for 2013-2014 allowed to identify not only the most perspective ICT segments but also separate sub-segments. For example, major number of investments was allocated in the segment mobile software – companies which operate in the sphere of security and e-health. In segment software (Internet) – investments received companies that specialize in Big Data Solutions.
Brief Characteristic of Selected Segments
The volume of venture deals on this market was 5 347 mln USD in 2014, 620% growth vs 2013. Key market driver was the growth of the number of smartphones in the world (especially in such countries as China and India), and also the fact that many users have started to make purchases via mobile devices, which are always in handy, and not from stationary computers. Further increase of mobile Internet penetration only fasten the tendency to make purchases from mobile devices, and as a result, market growth for the next years, number of deals in the amount of 42% only proved this (second place among researched industries).
Venture investments on this market reached 661 mln USD with 392% growth in 2014. The only market player, which manufactures virtual reality devices is Oculus VR, but a lot of companies announced theirs market launch in 2015.
The volume of venture deals on the market was 12 194 mln USD in 2014. Volume of investments on this market grew more than threefold for 2014 – 203%. This direction is one of the most perspective and attracts investors all around the world.
The number of deals increased for 8% in 2014 – 742 deals.
Key Investments and Purchases of Largest ICT Companies and Telecom Market in 2013-2014
In terms of identification the most perspective directions in ICT, J’son & Partners Consulting’s analysts also analyzed investment policies of the largest telecom companies and funds in the world.
Vodafone Ventures – Telecommunication Industry
Mobile technologies have the major share of fund’s investments. The Fund invested 45% of funds in companies, which develop mobile technologies. Major share of companies, which received venture investments, use mobile infrastructure for increase of telecom services’ quality.
One of the most prominent venture fund’s deals can be considered the deal with Affirmed Networks. The Fund twice invested in the company, in rounds B and C. The Fund invested last time 51 mln USD in the company together with other 6 investors.
Microsoft Ventures – ICT Industry
The Fund invests mainly in mobile technologies with the focus on communication apps.
Second place by volume of fund’s investments took cloud computing. Microsoft is actively develop its own products connected to cloud computing (office apps Word, Excel, PowerPoint, and also could storage OneDrive) that is why the interest for the fund is obvious.
Among the most “loud” companies, which received investments from the Fund in the segment of mobile technologies can be named an anonymous chat Reveal (16 January 2013), app for auto exchange of photos and e-cards with family – Minutta (8 November 2013) and mobile app for communication in working groups – Zula (3 mln USD with 4 other investors, 11 June 2014).
Sequoia Capital – Venture Fund
Sequoia Capital is a private venture fund, which invests in the most perspective industries and on all stages of investments. Mostly, the fund invests in mobile technologies, e-commerce and corporate software.
Detailed Results of the Research are Presented in the Full Version of the Report: Overview of the Global Trends in ICT Based on the Largest ICT Companies’ Venture Activities and M&A Policies, 2013–2014
1. Methodology and Sources of Information
2. Largest ICT Companies’ Investment Activity
3. Quality and Quantitative Analysis of the Perspective ICT Directions Based on Analysis of Venture Deals
3.1. Analysis of Directions by Volume of Deals ($)
3.2. Analysis of Directions by Number of Deals
4. Industry Analysis of Perspective Directions
4.2. E- and Mobile Commerce
4.3. Financial Technologies
4.4. E-Medicine (Digital Health)
4.5. Software Provision and Services
4.6. Advertising Technologies
4.8. Other Directions
5. Analysis of Investment Policy of Largest Global ICT Companies
5.1. Analysis of Investment Spheres
5.2. Geographical Analysis of Investments
5.3. Analysis of Largest Global ICT Companies’ Volumes of Investments
5.4. Investment Strategy of the Largest ICT Companies, Including Venture Subsidiaries:
5.4.1 Vodafone Ventures
5.4.2. Comcast Ventures
5.4.3. Verizon Ventures
5.4.5. Google Ventures
5.4.7. Microsoft Ventures
5.4.8. Sequoia Capital
5.5. Brief Profiles of Purchased Assets
5.5.2. Oculus VR
5.5.3. Nest Labs
6. Trends and Tendencies
7. List of Companies, Mentioned in the Report
This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.