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1、AUSTIN LOS ANGELESMINNEAPOLIS NASHVILLESEATTLERetail TechnologyIndustry ReportQ2 2023Cascadia Capital2Executive SummaryDespite economic uncertainty,digital transformation in retail is accelerating as hybrid shopping,retail automation,smart store technology,and generative AI drive growth in retail te
2、chnologyThe global digital transformation market in retail is growing at an 19.3%CAGR and is expected to exceed$1T by 2025 1Looking at the broader economic environment,easing inflationary pressure,a resilient labor market,and strong public equities have led some economists to be cautiously optimisti
3、c that the US economy may be on a“very narrow path”to avoid a recession 2.Although a recent McKinsey survey revealed that“global executives are more positive than negative about conditions”,some economists predict a full-employment recession as job growth remains strong,but output and productivity d
4、ecrease 3,4Although US retail sales have remained resilient,June saw a mild increase of 0.2%,lower than expected as consumers continue to experience inflationary pressure 5The US labor market has cooled off with only 209K jobs added in June and a 17.3%decrease in job postings.However,demand for work
5、ers remains quite strong 6Both capital raise and M&A transaction volume remain largely subdued compared to the peaks experienced in 2021.In Q2 2023,both M&A and capital raise activity increased slightly marking a reversal for M&A volume which previously experienced a downward trend 7There were 58 M&
6、A transactions in Q2 2023 compared to 50 in Q1 2023.Capital raise volume also increased slightly with 130 transactions in Q2 2023 compared to 117 in Q1 2023Looking ahead,we expect the retail technology market to stabilize but remain below the elevated 2021 levels as growth subsidies and investors se
7、ek quality companies at a discounted valuationHowever,attractive companies with good operating metrics will continue to receive strong interest and outsized valuationsNotable M&A Transactions Include:Notable Capital Raises Include:$1.4B$435M$375M$230M$2B Series G$425M Growth Round$270M Series D$135M
8、 Growth Round1 Mordor Intelligence:Digital Transformation Market In Retail2 The Economic Times:US On Very Narrow Path To Avoid Recession3 Mckinsey:Economic Conditions Outlook During Turbulent Times4 The Wall Street Journal:Full-Employment Recession5 US Census:Monthly Sales For Retail And Food Servic
9、es6 Indeed Hiring Lab:US Labor Market Update7 Pitchbook&451 Research;includes US,Europe,and Asia;Capital Raise Transactions below$1M are excluded3Agenda1Industry Overview2Transaction Detail3Capital Raise Deep Dive4Cascadia Capital Overview5Technology Team OverviewIndustry OverviewSection I5Retail Te
10、chnology Industry Drivers&DynamicsRetail Sales Remain Resilient Despite Economic HeadwindsDespite economic headwinds and a looming recession,US retail sales have remained resilient with April and May marking a slight increase as digital sales continue to accelerate,and consumers shift their spending
11、 to value chains and discount stores$712$849$1,013$1,208$1,441$1,720202320242025202620272028Retail Technology Growth Remains ResilientGlobal Digital Transformation Market in Retail 1($in billions)Despite macro headwinds decelerating consumer spending,retail tech continues to grow driven by smart ret
12、ail,social commerce,and virtual shopping as well as continued internet penetration and growth from emerging economiesUS Retail Sales 2Seasonally AdjustedOptionality Creates A Highly Competitive Environment(1.6%)2.7%1.7%1.2%0.7%0.4%1.0%(0.4%)0.7%0.6%1.3%(1.0%)(1.1%)3.2%(1.0%)0.4%0.3%Dec-21Jan-22Feb-2
13、2Mar-22Apr-22May-22Jun-22Jul-22Aug-22Sep-22Oct-22Nov-22Dec-22Jan-23Feb-23Mar-23Apr-23May-23(0.2%)The growth in popularity of social media as well as the plethora of eCommerce options has led to a highly competitive environment where shoppers seek the best dealsWhere US Consumers Start When Shopping
14、Online 363%46%31%26%24%18%14%56%42%37%20%25%19%19%AmazonSearch EngineWFacebookYouTubeInstagramTikTokQ1 2022Q1 2023The Gap Between eCommerce And Retail Growth ShrinksDespite eCommerce sales growth historically outpacing retail by a large margin,the gap between the two is expected to subside as eComme
15、rce growth normalizesGlobal Retail and eCommerce Sales Growth 46.2%6.0%6.5%4.5%5.3%6.0%12.5%6.9%3.9%4.3%3.7%3.4%23.0%26.8%28.4%22.0%20.9%26.7%16.8%7.1%8.9%9.4%8.8%8.1%200022420252026Retail Sales GrowthRetail eCommerce Sales Growth26M+eCommerce stores globally 51 Mord
16、or Intelligence:Digital Transformation Market In Retail2 US Census:Advance Monthly Retail Trade Report3 eMarketer:Where US Consumers Start Their Search While Online Shopping4 eMarketer:Global Retail eCommerce Forecast5 Website Builder:eCommerce6Key Industry Trends Transforming Retail TechnologySmart
17、 Store TechnologyAutomationImmersive RetailHistorical Labor Shortages1243Retailers are increasing their investments in automation in order to automate repetitive tasks and reduce labor constraints.The historical labor shortages have fueled the need for automation within the retail sector 1As brick-a
18、nd-mortar retailers operate in an increasingly competitive environment where profit margins are compressing,adopting smart store technologies is vitalConsumers preference towards AR/VR shopping is expected to drive more brands to adopt the technology as the shopping experience is transformed and ben
19、efits are realized70%of retail stores plan to deploy automation by 2025Automation can generate incremental margin of 300 to 500 basis points13%expected reduction in store staff requirement due to task automation52%of all retail activities can be automated with existing technology8%2%1%4%13%10%4%9%20
20、%14%10%14%19%27%25%24%29%36%45%37%11%11%15%12%18-3435-5455-65TotalUse it regularlyUse it occasionallyHavent used but veryinterestedHavent used butsomewhat interestedHavent used and notinterestedDont know what it isInterest In Using AR/VR While Shopping,US 404008001200Despite 7 out of 10 retail execu
21、tives citing labor shortages as their biggest challenge,the number of vacant retail jobs in the US has have been steadily decreasing since Mar-22 5Retail Job Openings In The US 683%of consumers have used contactless payment in the past year 257%of respondents would choose a store with contactless pa
22、yment with all else equal 252%of returns are due to size 3Virtual fitting rooms can decrease returns by 36%31 G,McKinsey,Verizon 2 Forbes:Why Contactless Payments are Key3 Shopify:Virtual Fitting Rooms 4 Insider Intelligence:eMarketer5 St.Louis Fed:Job Openings:Retail Trade6 Deloitte:2023 Retail Ind
23、ustry Outlook7AI Popularity Has Exploded Recently As It Becomes UbiquitousArtificial Intelligence Is Poised To Transform RetailRetailers Embrace AI As They Seek To Optimize Operations$197$270$371$509$700$961$1,320$1,802520262027202820292030Apr-18Apr-19Apr-20Apr-21Apr-22Apr-23AIGoogle Sear
24、chesfor“AI”1The recent surge in AI popularity can be seen through the rapid increase in Google searches as tools like Chat GPT become common household names and penetrate even non-technical users5 daysTime To Reach One Million Users10 months2 years3.5 yearsGlobal AI Market Size 2($in billions)AI Mar
25、ket Poised for Remarkable GrowthThe rise in demand for solutions that enhance efficiency and productivity as well as the plethora of AI use cases are propelling growth in the global artificial intelligence marketRetail Use Cases For AIDemand Forecasting:Predicting consumer demand to optimize invento
26、ry managementAI-Powered Chatbots:AI chatbots deliver personalized support and boost efficiencyTargeted Product Placement:Analyzing audience behavior and targeting with tailored contentIn-Store Operations:Advanced analytics can enhance operations and product placementPercent of retailers who have see
27、n benefits from AI 3Adoption of AI technology can help retailers stay ahead in an increasingly competitive environment by gaining a competitive advantage and increasing efficiency83%Of retailers have increased their AI/ML skilled workforce in the past 12 months 359%Say AI/ML implementation has reduc
28、ed their workforce 343%Substantial Benefit32%Modest Benefit23%Too Early To Tell4%Other/No Response1 Google Trends2 Grand View Research:Global AI Market Size3 Chain Store Age:Exclusive:How Important Is AI In Retail?8Cascadias Retail Technology LandscapeCascadia divides the retail technology landscape
29、 into four distinct categories.These categories all work together to provide seamless retail experiences across both digital and physical channelsCustomer AnalyticsSubsectorsLocation Analytics&Proximity MarketingOmnichannel AnalyticsSolutions that help retailers understand customer behavior to bette
30、r tailor their marketing and merchandising strategiesCustomer Experience EnhancementSubsectorsAugmented&Virtual RealityPersonalizationPrice ComparisonSolutions that allow retailers to personalize and target their outreach to customerseCommerce EnablementSubsectorsEcommerce Platform and CartsLive Cha
31、t&ChatbotsPOS SystemsPlatforms and products that facilitate,streamline,or optimize eCommerce sellingOperations ManagementSubsectorsInventory ManagementStore ManagementSupply Chain ManagementWeb Design&ManagementSolutions that help retailers manage their physical and digital stores,inventory,operatio
32、ns and supply chains 9Global Private Equity Exits By Type 1Private Equity Exits Have Dropped SharplyAmid economic uncertainty and depressed valuations,global private equity exit activity has decreased 46%compared Q4 2021Instead,private equity firms are holding onto their investments longer and pursu
33、ing add-ons,thereby postponing exits until valuations and market conditions improveeCommerce VC Deal Activity Continues To Decreases While Deal Value Remains SteadyIn Q1 2023,eCommerce VC transaction volume decreased 57%from the previous quarter while total deal value remained steady with$3.4B in fu
34、ndingDespite historically resilient consumer spending,many eCommerce companies face headwinds from intense competition,rising customer acquisition cost,and shrinking marginsAs the timeline for a recession is pushed back further into 2023 and early 2024,we expect to see deal activity to remain relati
35、vely subdued during the remainder of the year as investors wait out a tumultuous market in hopes of a soft landing9860139162 4624824521815019383$0.0$2.0$4.0$6.0$8.0$10.0$12.0$14.0$16.0Deal Value($B)Deal CounteCommerce VC Deal Activity by Quarter 2(USD$in B
36、illions)Institutional Capital457665369602623793911Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q23Secondary SaleTrade SaleOther ExitsIPO1 S&P Global:Global Private Equity Exit Activity Slumps In Q2 20232 PitchBook10Select Retail Technology M&A TransactionsAcquisition mul
37、tiples reflect scale,business models,growth and scarcity value premium multiples are typically paid for large platforms with recurring revenue,strong growth and unique technologyTarget DescriptionSelected Market ActivityRevenue MultipleTransaction Size5.3x$549MMedian$663M3.8xCloud-based platform tha
38、t enables clients to integrate and manage their merchandise sales across multiple online channels with solutions including inventory availability,pricing optimization,and data analyticsNov 2022Acquired by$1.4B3.5xOperates an online social marketplace for apparel and accessories including both new an
39、d secondhand products for customers in the US,Canada,Australia,and IndiaJan 2023Acquired by$435M26.2xOperates as a booking,payment and management platform for international freight,supporting supply chain efficiency and agilityJan 2023Acquired by$375M4.0 xProvides enterprise robotic automation syste
40、ms and AI-based supply chain management SaaS and related APIs to businesses globallyAcquired byMar 2023July 2022$2.1B42.0 xProvides AI-based order fulfillment and logistics management SaaS and APIs for eCommerce merchants globallyAcquired byAcquired by$230M6.6xDeveloper of a trucking&freight operati
41、ons platform to improve efficiency through dispatch optimization,container tracking and real time analyticsFeb 2023Freightos represents a de-SPAC transactionSource:Pitchbook Data,451 Research11Select Retail Technology Capital RaisesTop venture capital and growth equity firms have backed Retail Techn
42、ology platforms with established product-market fit,a visionary and execution-focused leadership team,and strong growth prospects Mar 2023$270MDeveloper of a financial platform designed to create disruptive meaningful products in retail creditFeb 2023$100MOperates a wholesale cannabis marketplace pl
43、atform intended to connect retailers with brands and distributorsNov 2022$120MDeveloper of a software-as-a-service platform to digitally transform businesses throughout the food supply chain.$800MDeveloper of a buy now,pay later payment platform designed to facilitate cashless payments through insta
44、llmentsJul 2022Target DescriptionSelected Market ActivityInvestorsAmountRaisedMay 2023April 2023May 2023$135MDeveloper of a software for restaurant inventory management,automated purchasing,forecasting,food costing controls&data-driven scheduling$2BGlobal e-commerce platform focused on fast fashion
45、for women,known for its deals on clothing,shoes,jewelry and other accessories$475MOffers an online marketplace designed for delivery of groceries and other goods,allowing customers to pay for and receive purchases without needing to leave their homesSource:Pitchbook Data,451 Research12Most Active St
46、rategic BuyersStrategic M&A:Acquisitions from 2020 H1 2023Company Name#of New InvestmentsNew Investments9766554444Source:Pitchbook Data,451 Research13Company Name#of New InvestmentsNew InvestmentsMost Active Private Equity InvestorsPE:New Investments from 2020 H1 2023Source:Pitchbook Data
47、,451 ResearchIncludes control and growth equity investments above$1MTransactionDetailSection 215Retail Technology M&A OverviewRetail Technology M&A TransactionsRetail Technology M&A Activity OverviewM&A Transactions by Subsector,H1 20238%10%49%33%Customer AnalyticsCustomer ExperienceEnhancementeComm
48、erce EnablementOperations Management474969586745649490887704550580204060801001201401Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q23Customer AnalyticsCustomer Experience EnhancementeCommerce EnablementOperations ManagementMedian Multiples by Year4.3x5.2x7.3x5.6x4.8x
49、200222023*EV/RevRetail Technology M&A transaction volume increased slightly in Q2 2023,continuing the previous upward trend.However,transaction volume and M&A multiples remain subdued compared to 2022 levels as economic uncertainty impacts activity and valuationsGrowth in M&A transaction
50、volume was driven by nascent innovations as well as continued digital adoption within retailWhile M&A multiples decreased in 2023,companies with strong products and outstanding metrics still yield outsized valuations Notable recent transactions include:SoftBanks$375M acquisition of Berkshire Grey in
51、 March 2023WiseTech Globals acquisition of Envase in February 2023Source:Pitchbook Data,451 ResearchCapital raise transactions below$1M are not included*Data through July 202316Retail Technology Capital Raise OverviewRetail Technology Capital Raise TransactionsCapital Raises by Subsector,H1 20236%11
52、%46%37%Customer AnalyticsCustomer ExperienceEnhancementeCommerce EnablementOperations Management236249924926532883030001Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q23Customer AnalyticsCustomer Experience EnhancementeCommerce Enable
53、mentOperations ManagementMedian Multiples by Year*EV/Rev4.9x5.3x9.1x5.7x4.2x200222023*Retail Technology Fundraising OverviewReversing the trend from previous quarters,Retail Technology capital raise transaction volume increased slightly in Q2 2023Platforms that provide eCommerce enablemen
54、t and operations management are the top subsectors of interest for investorsCapital raise multiples have decreased substantially in 2023 and are expected to remain depressed for at least the remainder of the yearNotable recent financings include:Restaurant365s$135M growth equity round in May 2023 Sh
55、eins$2B Series G round in May 2023 Getirs$475M late-stage round in April 2023Source:Pitchbook Data,451 ResearchCapital raise transactions below$1M are not included*Data through July 202317M&A Transactions by Deal Size112527999$500M+100-50025-10010-255-$500M+100-50025-10010-255-100-5Mean/
56、MedianTransaction Size$470M/$67MMean/MedianTransaction Size$505M/$47M12%28%30%10%10%10%18%26%18%11%18%8%Source:Pitchbook Data,451 Research;data includes US,Europe,and AsiaQ2 2022 LTMQ2 2023 LTM18Capital Raise Transactions by Deal SizeQ2 2022 LTMQ2 2023 LTM57561$500M+100-50025-10010-255-10
57、1-5616$500M+100-50025-10010-255-101-5Mean/MedianTransaction Size$41M/$7MMean/MedianTransaction Size$25M/$5M1%6%16%17%40%19%1%3%11%20%48%18%Source:Pitchbook Data,451 Research;data includes US,Europe,and AsiaCapital raise transactions below$1M are not included19Customer Analytics M&A Volume
58、Customer AnalyticsTop Subsectors by Transaction Count2019 1H 2023Location Analytics&Proximity Marketing:34 Omnichannel Analytics:270450246801Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q23Location Analytics&Proximity MarketingOmnichannel Analy
59、ticsM&A deals in the Customer Analytics sector increased slightly in Q2 2023,continuing to rebound from the lows experienced in Q4 2022While transaction count continues to be subdued,especially compared to 2021,the continued increase in transactions in Q2 2023 signals that the market may have reache
60、d a low point and that continued growth could be expectedWe believe the shift in consumer purchasing behavior,driven by the pandemic,resulted in increased demand for tools that allow retailers to better understand todays complex customer journey.This trend will continue to drive interest in Customer
61、 Analytics platformsWhile we believe the long-term prospects for the sector are strong,we expect the current trend of lower-than-normal transaction activity to continue through the remainder of 2023 given the elevated interest rate environmentNotable recent transactions include:Scaleworks acquisitio
62、n of import.io,a web data and customer analytics platform that helps companies turn data into actionable insights in January 2023Verints acquisition of Qudini,a retail management and analytics platform in January 2023Retailers Focus On Omnichannel and Location Analytics Drives Demand For Customer An
63、alytics ToolsSource:Pitchbook Data,451 Research;data includes US,Europe,and AsiaCapital raise transactions below$1M are not included20Customer Analytics Capital Raise VolumeInvestment In Customer Analytics Tools Has Remained Relatively Constant Over The Past Six Quarters Customer Analytics tools hav
64、e seen consistent investment interest over the last six quarters with transaction volume continuing to remain steady in Q2 2023Customer Analytics deal activity experienced a significant decrease in volume since the peaks in 2021Despite economic headwinds,we expect Customer Analytics deal activity to
65、 continue to remain resilient with a similar volume throughout the remainder of 2023Driven by increased concern over supply chain resiliency and improving merchandising,retailers seek to leverage Omnichannel and Location Analytics to identify supplier risks,predict disruptions,and ultimately improve
66、 efficiency while reducing costNotable recent raises include Datasemblys$21M Series B round in April 2023Datasemblys hyper-local retail analytics allow retailers make decisions on price,promotion,and assortment in real time.Notable recent raises include Scanntechs 40M Later Stage VC round in January
67、 2023Customer AnalyticsTop Subsectors by Financing Count2019 1H 20234901020301Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q23Location Analytics&Proximity MarketingOmnichannel AnalyticsLocation Analytics&Proximity Marketing:40 Omnichannel Analytics:156Sou
68、rce:Pitchbook Data,451 Research;data includes US,Europe,and AsiaCapital raise transactions below$1M are not included21Customer Experience Enhancement M&A VolumeCustomer Experience EnhancementM&A Activity In The Customer Experience Sector Remains Subdued Compared To Previous QuartersTop Subsectors by
69、 Transaction Count2019 1H 2023Augmented&Virtual Reality:34 Personalization:167Price Comparison:47801Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q23Augmented&Virtual RealityPersonalizationPrice ComparisonM&A deal volume in the Custom
70、er Experience Enhancement sector has appeared to reach a low point and has remained steady in Q2 2023.Deal volume has decreased significantly compared to previous levels.However,we expect strong industry tailwinds including the increase VR/AR adoption to benefit the sector in the long termThe Custom
71、er Experience Enhancement sector benefited from pandemic-driven shifts in consumer purchaser behavior as eCommerce sales experienced a rapid acceleration and retailers looked for tools to help them address this new era of shoppingNotable recent transactions include Crownpeaks acquisition of Attraqt
72、for$72M in December 2022Attraqt is an AI-powered personalized daily shopping feed that learns a users style as they shopThis acquisition will help Pinterest drive shopping efforts,including the development of features for both shoppers and retailersNotable recent transactions include Farfetchs acqui
73、sition of Wannaby for$29M in April 2022This acquisition of Wannaby,a mobile-based AR try-on platform,will enable Fartech to expand and scale its virtual try-on capabilitiesSource:Pitchbook Data,451 Research;data includes US,Europe,and AsiaCapital raise transactions below$1M are not included22Custome
74、r Exp.Enhancement Capital Raise VolumeCapital Raise Activity In The Customer Experience Enhancement Sector StabilizesCapital raise activity in the Customer Experience Enhancement sector increased in Q2 2023,marking a reversal from trends experienced in prior quartersWe expect transaction volume to l
75、evel off throughout the remainder of 2023 as the shift towards eCommerce shopping as well as recent advancements in generative AI technology drive growth in the sectorRetailers are quickly adopting VR technology as behemoths like Amazon and Snapchat are rolling out their own VR shopping tools.Accord
76、ing to a PwC study,32%of VR users reported buying products after checking them out on VR platformsNotable recent transactions include Collovs$10M Series A round in June 2023Collovs is a virtual interior design and shopping platform designed to provide an interactive interior design experienceNotable
77、 recent transactions include Hexas$21M Series A round in March 2023Hexa is a virtual dressing platform designed to create and scale three-dimensional content for apparel eCommerce websitesCustomer Experience EnhancementTop Subsectors by Financing Count2019 1H 2023Augmented&Virtual Reality:93 Persona
78、lization:290Price Comparison:22323922225202530354045501Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q23Augmented&Virtual RealityPersonalizationPrice ComparisonSource:Pitchbook Data,451,PwC:June 2022 Global Consumer Insights Pulse Survey;data in
79、cludes US,Europe,and AsiaCapital raise transactions below$1M are not included23eCommerce Enablement M&A VolumeM&A Activity In The eCommerce Enablement Sector Continues To ReboundeCommerce EnablementTop Subsectors by Transaction Count2019 1H 2023eCommerce Platform and Carts:284POS Systems:25918212626
80、282528001Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q23POS SystemsM&A deal activity in the eCommerce Enablement sector has continued to increase in Q2 2023,disrupting the previous downward trend which started in Q2 2022Rising digital adoption
81、,increased access to internet connection,and pandemic-driven online purchasing habits have all helped to drive eCommerce growth.However,high inflation and a slowing economic environment have combined to temper overall transaction volumeFor the remainder of 2023,we expect eCommerce enablement M&A vol
82、ume to remain robust while remaining below 2022 levels as inflationary and recessionary pressures persist,causing consumers to tighten spending and acquirers to seek quality companiesNotable recent transactions include XXXLutz Groups acquisition of Home24 for$395M in April 2023Home24 is the leading
83、pure-play home&living eCommerce platform in Europe and Brazil with over 400,000 products offeredNotable recent transactions include Shift4s$45M acquisition of Focus POS in April 2023Focus POS provides restaurant POS solutions with a by-need approach and over 10,000 restaurant clients across the USSo
84、urce:Pitchbook Data,451 Research;data includes US,Europe,and AsiaCapital raise transactions below$1M are not included24eCommerce Enablement Capital Raise VolumeeCommerce Enablement Capital Raise Volume Levels OffCapital raise activity in the eCommerce Enablement sector remained relatively stable in
85、Q2 2023,marking a shift in the trend experienced in prior quartersCapital raise volume has dropped off significantly as economic uncertainty continues.Investors have become wary of putting cash to work in an unfavorable environmentWe expect capital raise activity to remain below 2021s elevated level
86、s going forward.However,we do expect the number of investments to level off throughout the remainder of 2023 as investors are pressured to put capital to workNotable recent raises include Carbon6s$66M Series A raise in May 2023Carbon6 provides a software suite for the Amazon marketplace to help onli
87、ne entrepreneurs streamline everyday operations and improve profitabilityNotable recent raises include Flatpays$15M Series A raise in June 2023Flatpay is an online payment platform and point-of-sale terminal focused on small and medium sized merchantseCommerce EnablementTop Subsectors by Financing C
88、ount2019 1H 2023eCommerce Platform and Carts:2,088POS Systems:6486542585605001Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q23POS SystemsSource:Pitchbook Data,451 Research;data includes US,Europe,and AsiaCapital raise tran
89、sactions below$1M are not included25Operations Management M&A VolumeThe Return To Physical Stores Has Helped To Driven Demand For Operations Management ToolsM&A activity in the Operations Management sector increased in Q2 2023.However,deal activity has remained relatively steady over the past four q
90、uartersThe return to physical stores and the supply crisis in early 2022 highlighted the importance of operations management solutions,providing a boost in deal activity historicallyLooking ahead,we expect transaction volume in the Operations Management sector to remain constant for the remainder of
91、 2023.However,improving economic conditions could provide potential upside as strong industry tailwinds continue to prevailNotable recent transactions include Alleaves$30M acquisition of BioTrack in February 2023BioTrack is a seed-to-sale inventory tracking software designed to aid the emerging medi
92、cal and recreational cannabis industryNotable recent transactions include Trimbles$2B acquisition of Transporeon in April 2023Transporeon is a leading cloud-based transportation management platform with with an integrated suite of best-in-class sourcing,planning,execution,monitoring and settlement t
93、oolsOperations ManagementTop Subsectors by Transaction Count2019 1H 2023Inventory Management:79Store Management:44Supply Chain Management:288252934232040501Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q23Store ManagementSupply Chain ManagementS
94、ource:Pitchbook Data,451 Research;data includes US,Europe,and AsiaCapital raise transactions below$1M are not included26Operations Management Capital Raise VolumeOperations Management Capital Raise Volume Shows Sign Of ImprovementCapital raise activity in the Operations Management sector increased i
95、n Q2 2023,marking a reversal from the previous downward trend which started in Q2 2022Retailers are increasingly turning to technology to optimize the in-store environment as well as the inventory and procurement functions.Despite these tailwinds driving growth,investment volume in the sector has re
96、mained subdued given the economic backdropLooking forward,we expect capital raise volume in the Operations Management sector to stabilize as the continued proliferation of hybrid shopping and increased calls for supply chain resiliency Notable recent raises include Simbes$29M Series B raise in July
97、2023Simbe provides a robot designed to automate retail store operations and perform repetitive and laborious tasksNotable recent raises include Radars$45M Series A raise in May 2023Radar is a real-time inventory management solution powered by RFID and enhanced by computer vision enabling inventory a
98、nalyticsOperations ManagementTop Subsectors by Financing Count2019 1H 2023Inventory Management:220Store Management:157Supply Chain Management:995657572696557666896097847405001201401Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q23Inventory ManagementStore
99、ManagementSupply Chain ManagementSource:Pitchbook Data,451 Research;data includes US,Europe,and AsiaCapital raise transactions below$1M are not includedCapital RaiseDeep DiveSection 328Breakdown of Capital Raise Transactions by SeriesCapital Raise OverviewAcross all investment stages,transaction vol
100、ume decreased in 2Q23 LTM compared to 2Q22 LTM as economic headwinds depressed overall transaction volumeThe eCommerce Enablement sector accounted for the majority of capital raise transactions across all investment stagesOperations Management was the second largest sector by transaction count acros
101、s all investment stagesAs companies in these sectors continue to mature,we expect to see a greater number of late-stage investments and M&A transactions over the coming years 322533200250300350Q2 2022 LTMQ2 2023 LTMQ2 2022 LTMQ2 2023 LTMQ2 2022 LTMQ2 2023 LTMQ2 2022 LTMQ2 2023
102、LTMSeries ASeries BSeries CSeries DCustomer AnalyticsCustomer Experience EnhancementeCommerce EnablementOperations ManagementQ2 2022 LTMQ2 2023 LTMQ2 2022 LTMQ2 2023 LTMQ2 2022 LTMQ2 2023 LTMQ2 2022 LTMQ2 2023 LTMSource:Pitchbook Data,451 Research;data includes US,Europe,and AsiaCapital raise transa
103、ctions below$1M are not included29Series A Capital Raise TransactionsSeries A ObservationsSeries A transaction volume increased in Q2 2023,marking a reversal from the previous downward trend which started in Q1 2022The broader economic headwinds have significantly impacted investment volume in early
104、-stage companies as investors have a renewed focus of profitability and financial metricseCommerce Enablement and Operations Management companies have been the target of the majority of investmentsWhile not the largest category,Customer Experience Enhancement investments has remained relatively cons
105、tant across each quarter,an indication of the growing relevance for the sector4870436659424665807674968467463224330204060801001201Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q23Customer AnalyticsCustomer Experience EnhancementeCommerce EnablementOperations ManagementSource:Pi
106、tchbook Data,451 Research;data includes US,Europe,and AsiaCapital raise transactions below$1M are not included30Series B Capital Raise TransactionsSeries B ObservationsSeries B transaction volume decreased in Q2 2023,continuing the downward trend which started in Q1 2022Although Series B transaction
107、 count reached an all time high in 2021,it has since decreased significantly as investors become more cautious and companies are conscious of compressed valuations and are waiting for the ideal time to raise their next roundSimilar to the Series A transactions,eCommerce Enablement and Operations Man
108、agement companies account for most of the Series B raises over the past three yearsBoth Operations Management and Customer Experience Enhancement platforms have seen consistent Series B investment interest over the past two years while Customer Analytics and Customer Experience Management has fluctu
109、ated 3327373535350434227201Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q23Customer AnalyticsCustomer Experience EnhancementeCommerce EnablementOperations ManagementSource:Pitchbook Data,451 Research;data includes US,Europe,and AsiaCapital raise transacti
110、ons below$1M are not included31Series C Capital Raise TransactionsSeries C ObservationsDespite a slight rebound in Q4 2022,Series C transaction volume remains subdued.However,Q2 2023 experienced a slight increase in activitySimilar to earlier stages,Operations Management have received the bulk of Se
111、ries C investmentsInvestment in Customer Analytics platforms wanes considerably post-Series B,indicating that these sectors are generally in an earlier stage of the startup lifecycle compared to other sectorsSimilar trends can be seen with Customer Experience Enhancement tools4
112、920301Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q23Customer AnalyticsCustomer Experience EnhancementeCommerce EnablementOperations ManagementSource:Pitchbook Data,451 Research;data includes US,Europe,and AsiaCapital raise transactions below$1M are not included32S
113、eries D Capital Raise TransactionsSeries D ObservationsSeries D transaction decreased slightly in Q2 2023,marking a significant drop off from the peaks experienced in 2021Operations Management tools received a noticeable amount of Series D investment in 2022,as the demand for supply chain solutions
114、increased driven by the supply chain crisis which gave a renewed focus on investment in the sectorAs observed in Series B raises,investment in Customer Analytics and Customer Experience Enhancement platforms continues to wane post Series B indicating the earlier lifecycle stage compared to other sec
115、tors5709866132048121Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q23Customer AnalyticsCustomer Experience EnhancementeCommerce EnablementOperations ManagementSource:Pitchbook Data,451 Research;data includes US,Europe,and AsiaCapital raise transactions below$1M are n
116、ot includedCascadia CapitalOverviewSection 434Cascadia Capital A National Investment Bank PlatformWe combine sub-vertical expertise,a diverse platform,and a long-term partnership approach as we seek to create exponential outcomes for our clients.National Presence,Global ReachFounded in 1999,Cascadia
117、 is the second largest independent advisory only investment bank in the US1,partnering with clients across the US to deliver outcomes globally.We have completed over 485 transactions globally and have six offices across the U.S.A Highly Specialized Team with Sub-vertical ExpertiseCascadia leverages
118、our bankers deep sub-vertical industry expertise to deliver a more highly specialized degree of knowledge,positioning and process,resulting in premium valuation in a highly efficient process.Customized Process Our commitment is to deliver a customized and unique process for each client.We integrate
119、storytelling and positioning with best-in-class financial and process rigor.Direct Long-term Partnershipto Optimize Each ClientOutcomeCascadia focuses on optimizing outcomes,not just getting deals done.Often this includes advice to go to market later when the combination of company and market elemen
120、ts are more ideal.We pride ourselves on delivering direct advice focused solely on the best interests of our clients.Growth FocusedAcross the industries we cover and products we deliver,the tie that binds us is a sole focus on serving growth companies.We know how to position growth to drive maximum
121、value in any market.Institutional Growth Financing to Better Serve Our ClientsCascadia is a growth company.In October 2022,we received a large minority growth equity investment from an institutional investor focused on financial services and are deploying this capital to expand our industry sub-vert
122、icals,add more products and services,expand our private equity coverage,and grow our geographical coverage,all to provide our clients with broader and more comprehensive value-add.Source:Select Wall Street Research35Customized,Repeatable Approach Drives Optimal Client ResultsWith bankers across the
123、nation,specialized in multiple industry verticals,we have the experience to offer industry breadth while maintaining sector depth.A dedicated resource model with comprehensive vertical expertise from Managing Director to Analyst.We know the market.We know the buyers.We know the nuances,issues,and op
124、portunities.We are thoughtful advisors who deliver a tailored process to suit the needs of our clients.We understand the differentiated strategies of the counterparties,enabling us to tailor positioning and tell them why they should uniquely be interested.We anticipate and preempt client-specific ri
125、sks and areas of concern.We have experience,industry focus and a differentiated process that drives success.Our transactions are built upon striving to deliver the best quantitative and qualitative terms with the most desirable counterparty.We do not overpromise and underdeliver.We consistently outp
126、erform our pitch range and exceed the valuation expectations of our clients.Sub-vertical Industry ExpertiseCustomizedApproachProven Results36Complementary and Integrated Investment Banking ServicesMergers&AcquisitionsCapitalMarketsStrategicAdvisoryFinancialSponsors GroupSell-Side RepresentationBuy-S
127、ide RepresentationManagement BuyoutsLeveraged BuyoutsPrivate EquityFamily OfficesInstitutional InvestorsCredit ManagersFairness OpinionsCorporate ValuationsShareholder Rights PlanningShareholder Value AnalysisStrategic Partnerships&Joint VenturesAcquisition Financing for Private Equity and Private C
128、ompaniesStructured CapitalRecapitalizationsGrowth EquityUnitrancheMezzanine/Subordinated DebtPreferred and Common Equity37We Drive ResultsCascadias most recent transactions:38Cascadia Capital Leadership TeamMeredithMannChief Financial OfficerCascadia has a distinguished team of investment banking pr
129、ofessionals with expertise in a multitude of industries and capital markets advising domestic and global clients.ScottAmesManaging DirectorFinancial Sponsor CoverageKatherineBellowsManaging DirectorBusiness DevelopmentCoreyBerseManaging Director,OperationsJamieBoydManaging DirectorEnergy Transition&
130、Climate TechMichaelButlerChairman&CEOKevinCableManaging DirectorHealthcareHughCampbellManaging DirectorBusiness Services,TechnologyJamesCartalesManaging DirectorConsumer,Retail&EcommerceTeagueCollinsManaging DirectorSoftwareErikEinwalterManaging DirectorFood,Beverage&AgribusinessCarleFeltonManaging
131、DirectorCapital MarketsKevinFrischManaging DirectorIndustrialsBryanJaffeManaging DirectorFood,Beverage&AgribusinessKerriHagenDirectorFinancial Sponsors GroupFirdausPohowallaManaging DirectorIndustrialsScottPorterManaging DirectorFood,Beverage&AgribusinessMatthew RiendeauManaging DirectorSoftwareChri
132、stianSchillerManaging DirectorGeorgeSentManaging DirectorFood,Beverage&AgribusinessJimStoneManaging DirectorBusiness Services,SoftwareAdamStormoenManaging DirectorHealthcareOwen BaldricaDirectorFood,Beverage&AgribusinessNaaman HeymanDirectorIndustrialsVitaliy MarchenkoDirectorHealthcareTechnology Te
133、amOverviewSection 540Technology OverviewDeep sub-vertical experienceOver 80 years of combined experience in Technology M&A and financingOperational and corporate development expertisePrior and current experience in operational and corporate developmentDomain expertsSpecialized knowledge of the Techn
134、ology sectorStrategic client positioningAbility to effectively position clients with suitable partners or investorRepresentative TransactionsOur Specialized,Expert TeamInfrastructure SoftwareDataSecuritySoftware Development&IT Operations Management(“DevOps”)StoragePrincipal Sector FocusApplication S
135、oftwareCompliance&eLearningFinancial TechnologyHuman Capital Management/HR TechLegal&Tax SolutionsPublic SafetySales,Marketing&SupportRetail&Commerce TechnologyTeague CollinsSales&Marketing Technology,Retail&Commerce Technology,Supply Chain TechnologyMatthew RiendeauDevOps,Cybersecurity,Data,Storage
136、Jim StonePayments/FinTech,Application Software,Legal/Compliance/Regulatory TechRonald RiveraMobility Tech,Technology,Media&Communications41Cascadias Technology Team Continues to be ActiveCascadia Has Regular Dialogue with Key Industry PlayersTeam Performance(2016 2023 YTD)Financial SponsorsStrategic
137、 Buyers Core Technology Sector Coverage$2.5BIn Transaction Value since 20168Current Live Engagements50Closed Transactions since 2016Retail&Commerce TechnologySales&Marketing TechnologyInfrastructure SoftwareFinTech and Compliance42Cascadias Retail Technology ExpertiseBarcode&Label Management Solutio
138、nAI-Driven Product Recommendation and Customer Experience EngineInfluencer Marketing Automation PlatformUGC,Ratings,Reviews,and Influencer Marketing PlatformVirtual Event Management PlatformTechnographic Intelligence Platform for Sales TeamsPredictive Analytics Marketing PlatformGo-To-Market Intelli
139、gence PlatformVideo Automation Platform for Sales and Marketing TeamsPremium B2B Wholesale MarketplaceInfluencer Product Discovery and Reviews PlatformGo-To-Market Intelligence PlatformSales Accounts Engagement PlatformDigital Asset Management PlatformDigital Customer Experience Management PlatformC
140、ontent-based,AI-Powered,Retail Product Recommendation EngineSocial Customer Feedback Management Solutiona portfolio company of a portfolio company of Go-To-Market Intelligence PlatformDeveloper-centric WordPress PluginsInfluencer Product Discovery and Reviews PlatformPerformance Marketing and Demand
141、 Generation Platform43Cascadias Retail Technology Deal LeadTeague CollinsManaging DirectorRetail&Commerce TechnologyContact:(206)436-2576Teague Collins is a Managing Director at Cascadia Capital in the firms Technology practice.He has over 17 years of investment banking and capital markets experienc
142、e,executing a variety of M&A and financing transactions for public and private companies across the equity and debt spectrum.Teague joined Cascadia from Goldman Sachs where he was a part of the Investment Banking Financing Group.Teague was responsible for originating and executing alternative debt a
143、nd equity transactions for healthcare,consumer,and technology clients.Prior to Goldman Sachs,Teague was with Morgan Stanley in the Global Investment Banking and Capital Markets group where he executed debt and equity financings,as well as M&A transactions for life sciences and technology clients.Prior to his investment banking career,Teague served as a Surface Warfare Officer in the United States Navy and completed two Middle East deployments.Teague has a B.S.from the United States Naval Academy.