Mobile Enterprise Trends 2016 Midyear Review by Emergence Capital

1. Mobile Enterprise Trends 2016 Midyear Review

2. Mobile Enterprise Trends 2016 Midyear Review The first half of 2016 saw a continued increase in activity in the mobile enterprise market. Between major mobile enterprise announcements from the likes of Apple, Google, Microsoft, Oracle, and SAP — and an uptick in company creation and venture activity in the space — it is becoming increasingly clear that mobile is the next major platform in business. At Emergence Capital, we have been studying and publishing on the mobile enterprise space for over three years, and continue to be extremely excited about what mobile can do for businesses of all types and sizes. In our view, mobile makes two things possible in business. First, mobile makes existing applications better by making them more accessible. In fact, as a result of end user demand, there are very few enterprise applications today that don’t have a companion mobile app. Second, and perhaps more importantly, mobile makes it feasible to build applications for “deskless” workers that have never had the benefit of a computer at work to help them be more productive. Deskless workers comprise 80% of the world’s workforce and can be found in industries such as construction, healthcare, manufacturing, and retail. Imagine how much value can be created for this part of the working world when they can move away from manual and paper-based processes and instead use mobile based technology to get their jobs done. At Emergence, we believe there will be many billion-dollar mobile enterprise companies created to address the deskless worker population. We hope you enjoy our 2016 Mobile Enterprise Trends Midyear Review. We look forward to your feedback and to being part of the continuing dialogue about the impact of mobile on enterprise. The Emergence Capital Team

3. Key Mobile Enterprise Industry Announcements 1H 2016 January 26, 2016 — Google Glass sharpens focus on enterprise. InformationWeek reports that Google is beginning to more seriously target enterprise applications with its Glass platform. The article mentions healthcare, manufacturing, and energy as industries that Google is seeing interest in from developers. February 19, 2016 — Oracle and Samsung partner to create mobile enterprise solutions. The goal of this partnership is to bring mobile capabilities to a wide range of Oracle software solutions. Additionally, the two companies are collaborating on plugins for Apache Cordova, a business- centric mobile app development framework. February 24, 2016 — AppConﬁg announced to simplify integration of enterprise device management tools into mobile apps. The coalition of AirWatch, IBM, JAMF, and MobileIron aims to make it easier for app developers to tie into mobility management solutions. Box, Cisco, Oracle, Salesforce, and Workday are supporting this initiative. May 5, 2016 — SAP announces partnership with Apple. This announcement came two years after a similar deal was announced between IBM and Apple. SAP will work with Apple to bring iOS-based devices into its customer base. The two companies will also partner to develop 100 mobile enterprise apps. May 25, 2016 — Microsoft streamlines mobile business to focus on enterprise. Microsoft has decided to dedicate its mobile efforts to enterprise rather than consumer markets. In conjunction with this announcement, Microsoft cut 1,850 jobs and said it would take a writedown of $950 million.

4. Overview of Mobile Enterprise Funding Activity 1H 2016 • 28 companies were added to the mobile enterprise landscape in the first half of 2016. This brings the total number of companies on the landscape to 341, an increase of 9% versus our last landscape update in the fall of 2015. • Venture funding of mobile enterprise companies increased 14% to $370MM in the first half of 2016 versus the same period in 2015. While this may not seem like amazing growth, overall U.S. venture funding decreased by 1% in 1H 2016 versus 1H 2015 according to CrunchBase. • Several mobile enterprise segments have seen significant funding growth this year. These include horizontal segments such as sales/marketing and HR — as well as industry-specific areas including education and restaurants. Interestingly, two mobile enterprise segments that have seen very strong funding over the past several years, healthcare and communication, have so far seen less investment activity this year than they did in 2015. • Mobile enterprise financing activity skewed more toward growth-stage rounds than early stage rounds in the first half of 2016. As a sign that there are a growing number of mobile enterprise companies that are gaining scale, more dollars went into Series B-D rounds than Seed and Series A rounds in the first half of 2016. • A growing number of major venture firms are beginning to build mobile enterprise portfolios. Additionally, several of these firms now have multiple mobile enterprise investments.

5. Mobile Enterprise Landscape As of 1H 2016 H O R I Z O N T A L V E R T I C A L BANKING/ INSURANCE GOVERNMENT OTHER VERTICALSEDUCATION HEALTHCARE REAL ESTATE/CONSTRUCT. RESTAURANTS ACCOUNTING, FINANCE, ITSALES, MARKETING & SERVICE PAYMENTS HOSPITALITY CONTENT COMMUNICATION TASK MANAGEMENT & CALENDAR MOBILE FORMS EVENTS & CONTACTS OrderAhead HR & RECRUITNG BI & ANALYTICS ACQUIRED RETAIL TRANSPORTATION MANUFACTURING KURADO PRODUCTIVITY NeverEa tAlone

6. $100MM $200MM $300MM $400MM $500MM $600MM $700MM $800MM Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mobile Enterprise Venture Funding 2015 and 1H 2016 2016  $370MM 2015  $805MM Source: CrunchBase, Emergence Capital analysis Venture funding of mobile enterprise companies increased 14% to $370MM in the first half of 2016 versus the same period in 2015.

7. Largest Mobile Enterprise Venture Rounds 1H 2016 Provider of mobile content  management solutions  $50MM Series C Provider of mobile communication  solutions for classrooms  $21MM Series B Provider of mobile workforce  solutions for healthcare  $18MM Series D Provider of smartglass-based  productivity solutions for doctors  $17MM Series A-2 Provider of mobile workforce  scheduling solutions  $15MM Series B Provider of tablet-based loyalty  solutions for retailers  $50MM Series C Provider of mobile task assignment  and tracking solutions  $20MM Series B Provider of mobile load matching  solutions for the trucking industry  $16MM Series A Source: CrunchBase, Emergence Capital analysis

8. Top Mobile Enterprise Funding Categories 1H 2016 Sales, marketing, and service Mobile applications that help companies promote  themselves and service their customers $64MM 1,200% vs 1H 2015 Restaurants Mobile applications used by restaurants to help  them manage their businesses $51MM 39% vs 1H 2015 HR and recruiting Mobile applications used to attract and track  applicants and to manage existing employees $49MM 93% vs 1H 2015 Education Mobile applications that facilitate instructor and student collaboration $36MM No investment in 1H 2015 Healthcare Mobile applications used by healthcare workers to simplify workflow and improve information access $35MM 9% vs 1H 2015 Communication Mobile applications used to communicate with  workers on the go $32MM 45% vs 1H 2015 Source: CrunchBase, Emergence Capital analysis

9. Mobile Enterprise Venture Funding by Series By Dollars Invested, 1H 2016 vs. 1H 2015 16% 30% 54% Seed and Series A Series B Series C Series D+ 7% 28% 28% 38% 1H 2015 1H 2016 Source: CrunchBase, Emergence Capital analysis Mobile enterprise financing activity skewed more toward growth-stage rounds than early stage rounds in the first half of 2016.

10. Key Venture Investors in Mobile Enterprise Companies 1H 2016 Key venture firms that led at least one financing in a mobile enterprise company in 1H 2016. Source: CrunchBase, Emergence Capital analysis (2) (3) (2) Number of 1H 2016 mobile enterprise investments is shown in parentheses. (1) (1) (1) (1) (1) (1) (1) (1) (1)