Copyright © 2010 QuantumWave Capital Confidential 1

STRATEGIES FOR GROWTH: MOBILE INTERNET IN ASTRATEGIES FOR GROWTH: MOBILE INTERNET IN A

WORLD OF INNOVATION, INVESTMENT & RETURN

Speakers

Robert Marcus

Chairman & CEO QuantumWave CapitalChairman & CEO, QuantumWave Capital

Stephen Dunbar‐Johnson

Publisher International Herald TribunePublisher, International Herald Tribune

Jean Schmitt

Managing Partner Sofinnova PartnersManaging Partner, Sofinnova Partners

Rob Coneybeer

Managing Director Shasta Vent resManaging Director, Shasta Ventures

John Malloy (Panelist)

Partner Bl eR n Vent resPartner, BlueRun Ventures

Copyright © 2010 QuantumWave Capital Confidential 3

THE MOBILE INTERNET: CHASING ALPHA ONTHE MOBILE INTERNET: CHASING ALPHA ON

COMPUTING’S FIFTH WAVE

ROBERT MARCUS, CHAIRMAN & CEO, QUANTUMWAVE CAPITAL

The Space

Mobile internet cycle the 5th technology cycle in 50 years

Launching now, ramping faster than the desktop internet

Material wealth creation to surpass earlier TMT cycles

Cycle winners generate more market cap than preceding

Most internet connectivity over mobile within 5 years

MAINFRAME MINICOMPUTER PC DESKTOP INTERNET

•1960’s•1 MM unites

•1970s•10 MM units

•1980s•100 MM units

•1990s•1 Billion units

•2000…•10 Billion units

MOBILE INTERNET

Mobile Internet Disruption

Liberalisation of walled garden systemsg y

Acceleration of the technology adoption lifecycle

Disapplication of conventional business modelspp

Disapplication of conventional valuation models

Emergence of innovative monetization methodse ge ce o o at e o et at o et ods

Disruption of complex commercialization ecosystems

Specialization, complexity requires deep technical skillSpecialization, complexity requires deep technical skill

Correlation of value drives Absolute Return

The Numbers

6 billion mobile subscribers in 2011 Strategy Analytics (January 2011)Strategy Analytics (January 2011)

2 billion internet connected usersITU (January 2011)( y )

Global mobile revenues exceed $1 trillion in 2014Gartner (October 2010) 

Annual global economic benefits of the commercial internet equal $1.5 trillion

Information Technology and Innovation Foundation (March 2010)

1 trillion connected devices by 2015IBM (February 2011)IBM (February 2011)

Decoding Mobile Internet Technology as an Asset Class

Highly accessible 6 billion subscriber global  addressable market

Robust technology demand from internet, mobile, media and entertainment sectors

Large corporates cannot design, develop, and ship products fast enough to meet customer demand

IP demand outpaces local supply, moderating buy‐versus‐build debate, driving innovation outsourcing

S ll i d h l t d ti t it lSmall is good; much accelerated time‐to‐exit cycle

Decline in IPOs powers M&A TMT to 10‐year high

Ch i Al h i l h i l lChasing Alpha is extremely technical, complex

MEDIA, THE MOBILE INTERNET,MEDIA, THE MOBILE INTERNET, DISRUPTION AND OPPORTUNITY

STEPHEN DUNBAR‐JOHNSON, PUBLISHER, INTERNATIONAL HERALD TRIBUNE

Improvised Mobile Phone Charging StationTahrir Square, Cairoq

Opposition protestorTahrir Square, Cairoq

Young Egyptian Protestors Using Social Networking Tools, Tahrir Square, Cairog q

Technology is Critical to Media Companies Transformation

WESTERN EUROPE: HEARTLAND OF MOBILEWESTERN EUROPE: HEARTLAND OF MOBILE

INNOVATION

JEAN SCHMITT, MANAGING PARTNER, SOFINNOVA PARTNERS

Mobile Innovation in Western Europe

20 years ago : invention and deployment!GSM meant “Groupe Spécial Mobile”

10 years ago : leadership and complacency!European OEMs, NEPs, MNOs were leading

Today: institutionalized stagnation and denial!Today: institutionalized stagnation and denial!European NEPs / MNOs have weak balance sheets, OEMs lost vision

TomorrowTomorrow…Western Europe supplies tech superpowers with a torrent of R&D

Nowhere to Go…

Gradual Decline

Great VisionDecline Vision

Solid Regional Business

Weak Markets,

Few BusinessExits

Disruptors Take All

Western European Innovation 

Just Do It…!

SILICON VALLEY: HEARTLAND OF INTERNETSILICON VALLEY: HEARTLAND OF INTERNETINNOVATION

ROB CONEYBEER, MANAGING DIRECTOR, SHASTA VENTURES

Europe Meets Silicon Valley

The “New Deal” from Apple

f fl t t f 30%for a flat tax of 30%...

Never talk to a carrierNever talk to a carrier

Standard contract & terms

Single OS: iPhone, iPad, & iPod Touch

Minimal code forking

Developer access to all sensors

Free developer supportFree developer support

Free promotional support

Credit card processing & settlement

Global distribution

Silicon Valley went Over The Top (OTT)

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Only 2 Mobile Platforms Matter

Mobile Apps Disrupt Every Industry

radio videoradio video

print media retail

group buying lodging

directories transportation

PANEL DISCUSSIONPANEL DISCUSSION

Copyright © 2010 QuantumWave Capital Confidential 27

M d t R b t M Ch i & CEO Q t W C it lModerator: Robert Marcus, Chairman & CEO, QuantumWave Capital

Stephen Dunbar‐Johnson, Publisher, International Herald Tribune 

Jean Schmitt, Managing Partner, Sofinnova Partners

Rob Coneybeer, Managing Director, Shasta Ventures

John Malloy, Managing General Partner, BlueRun Venturesy, g g ,

Copyright © 2010 QuantumWave Capital Confidential 29