03.01.19 sfe corporate presentation -...

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March2019

CorporatePresentation


SafeguardScientifics,Inc.

§ Foundedin1953andNYSE-listedsince1971

§ Safeguardprovidescapitalandexperiencetogrowinghealthcare,digitalmediaandtechnologybusinesses

§ Providesfinancialandmanagementsupportforexistingpartnercompanies

§ Distinguishedtrackrecordoffosteringinnovativedisruptivemarketleaders

§ Attractiveportfoliooftech-enabledcompaniesacrossseveralverticals

§ Safeguardadoptedachangeinbusinessstrategyandoperationsinearly2018

§ Usingpartnercompanymonetizationeventstorepaydebtandreturnvaluetoshareholders


TypicalPartnerCompanies

TargetCompanyProfile

Technology-drivenbusinessesinhealthcare,financialservicesordigitalmedia.

Particularfocusonenablingtechnologiesinvolving:

EnhancedSecurity

ArtificialIntelligence*

*IncludesPredictiveAnalyticsandMachineLearning

DealSize

InitialCapital: Follow-OnCapital:

$5M- $15M $5M- $10M

TotalTargetSize:

GenerallyLessThan$25M

DealStructure

Position:

TypicallyLeadFinancialSponsor

Ownership: Involvement:

20%- 50% BoardRepresentation


PartnerCompanies:KeyFacts

Holdingsat12/31/18 Proforma*

TotalCapitalDeployed $263.8M $244.7M

TotalNumberofPartnerCompanies 21 19

2018CashExitProceeds $81.3M n/a

AgewithSafeguard(number ofyearssince initialSafeguardcapitaldeployment)

5years 5years

* ThereweretwoexitsinJanuary,2019,PropellerandBrickwork,whoserespectiveamountsareexcludedfromtheseamounts.


PartnerCompanies:Overview

Healthcare FinancialServicesandOther DigitalMedia

Technology


PartnerCompanies:ByRevenueStage

InitialRevenueRevenue:Upto$1M

ExpansionRevenue:$1M- $5M

TractionRevenue:$5M- $10M

HighTractionRevenue:$10M+


PartnerCompanies:ByAge*

2- 4Years 4- 6Years 7+Years

* RepresentsnumberofyearssinceinitialSafeguardcapitaldeployment.


2019AggregatePartnerCompanyRevenueProjectedtoIncrease11%– 19%YoY

AggregatePartnerCompanyRevenue

Aggregaterevenueguidancefor2018andprioryearsreflectsrevenueonanetbasis.Safeguardreportstherevenueofitsequityandcostmethodpartnercompanies onaone-quarterlagbasis.Revenueforallyearshasbeenrevisedtoexcludecompanies thatwereexitedorimpaired.

$138M

$195M

$258M

$295M$348M

$420M-$450M

2013Actual

2014Actual

2015Actual

2016Actual

2017Actual

2018Actual

NumberofCompanies:15 17 20 21 21 2119

$379M

2019Guidance


AktanaOverview

Description DeploymentStatistics

Aktanahelpssalesandmarketingteamstransformbrandstrategyintobetterperformance.Focusedexclusivelyonthelifesciencesmarket—whichhascontributedtomulti-yeargrowthratesofmorethan100%,andrelationshipswithoverhalfoftheworld’stop15pharmaceuticalcompanies—Aktanahelpsthesecustomersimprovetheircommercialeffectiveness bydeliveringdata-driveninsightsandsuggestionsdirectlytosalesreps,coordinatingmulti-channelactions,andprovidinginsightregardingwhichstrategiesworkbestforwhichcustomersunderwhichconditions.

MarketOpportunity

Totaladdressablemarketisapproximately$2billionforpharmaandbiotechsalesrepdecisionsupport

RevenueModel

Aktanapricesitsplatformseparatelyforthedecisionsupportengine(DSE)(aka toplayer)—whichprovidessmartsuggestionsandinsightstopharmaceuticalsalesrepresentativeswithintheirworkflowtohelpthemmakebettereverydaydecisions—andtheLearningPlatform(bottomlayer).ForDSE,Aktanalicensesthesoftwarebasedonaperrepperbrandbasisaccordingtosizeandnumberofreps.FortheLearningPlatform,Aktanachargesanannualfee.

InitialDeploymentDate: June2016

Safeguard/TotalCapitalDeployed: $10.2M/$49.3M

CarryingValue(asof12/31/18): $5.3M

SafeguardOwnership: 19%Primary/16%FD

InvestmentStage: SeriesB,Series C

Co-Investors:

LeerinkTransformationPartners,Novartis(dRx),HLMVenturePartners,StarfishVentures

SafeguardBoardMember: GaryKurtzman

CompanyStatistics

MarketSegment:SalesDecisionSupport/MarketingAutomations(LifeSciences/Medtech)

Headquarters: SanFrancisco,CA

Website: www.aktana.com

CEO: DavidEhrlich

Competitors

Veeva, Salesforce,IMS,ZSAssociates,Vymo,CustomerInsourcing


ClutchOverview


Clutchisamobilecommerceplatformthatunifiesgifting,loyaltyandshoppingtobringthemostrelevantinformationtoconsumersandthemosttargetedcustomerstomerchants.TheCompanyoffersanadvancedmarketingplatformthatservesasacustomerhubdeliveringdeepintelligence,derivedfromreal-timebehaviorsandtransactionsacrossin-store,online,mobileandsocialchannels.Insightsgeneratedfromtheplatformallowbrandstounderstandcustomersatdeeperlevelsanddeliverrelevant,timelyengagementandconsistency,therebyearningcustomertrustandloyalty.

MarketOpportunity

Theconsumermanagementmarketisanemerging,multi-billiondollarindustryfocusedondeliveringtopremierbrandstheabilitytomaximizerelationshipswith,andthelifetimevalueof,theircustomers.

RevenueModel

ThemajorityofClutch’srevenueistransaction-based,whileasmallportionisviaon-boardingfees.Thepotentialclientbaseincludesanyconsumerbusinessthatusesgiftandloyaltyprograms.OnceClutchsignsaclient,theclientpaysClutchatransactionfeeforusersthatusetheloyaltyandgiftingfeaturesplatform.Theclientisincentivizedtoonboardasmanyusersontothegiftingandloyaltyplatformasitcan,becausethiswillultimatelyleadtomoretransactionsandpurchasesfortheclient.Clutchbelievestherearealsodatamonetizationopportunitiesoncetheplatformisintegrated.

InitialDeploymentDate: February2013




InvestmentStages: SeriesA,SeriesB,SeriesCinprocess

Co-Investors:NewSpringCapital,BenFranklinTechnologyPartners,Empactful

SafeguardBoardMember: SteveGrenfell

CompanyStatistics

MarketSegment: CustomerRewardsandLoyalty

Headquarters: Ambler,PA

Website: www.clutch.com

CEO: NedMoore

Competitors

eGainCorporation,Five9,Inc.,HansenTechnologies,Ltd.,MINDC.T.I,Ltd.,Salesforce.com,Inc.,Zendesk,Inc.,NetSuiteInc.,Bazaarvoice,Inc.


FlashtalkingOverview


Flashtalkingisadata-drivenadmanagementandanalyticstechnologycompanyusingdatatopersonalize advertisinginreal-time, analyzeitseffectivenessandenableoptimization thatdrivesbetter engagementandROIforsophisticated globalbrands.Withcookie-lesstracking, connected log-fileandalgorithmic attribution, Flashtalkingcoordinates, augmentsandanalyzesdatasignalstosupport clientsacrossdesktop,mobileandconnected TV.TheCompanyaimstodifferentiate itselfbyofferingboth front-end tools–campaignsetup,assetcreation, HTMLbuilders, decision trees– aswellasbackendcapabilities that,together, allowanalyticsandreporting tobeasstrongasthefront-end functions.

MarketOpportunity

U.S.internet advertisingmarketspendhitmorethan$80billion in2017,withanine-yearcompound annualgrowthrateofmorethan15%,andisexpectedtohitapproximately $115billion by2021(eMarketer).Globally, spendreachedmorethan$225billion in2017andisanticipated togrowata9%CAGRthrough 2021(eMarketer).WithSpongecell integratedinto itsplatform, Flashtalkingiswellpositioned tocontinue addressingnotonlythead-servingandtargetingsegmentsofthemarket,butalsotheDynamicCreativeOptimization (“DCO”)marketwithin thehigh-growth mobile,video,rich mediaanddisplaysub-sectors.

RevenueModel

Flashtalkingentersinto contracts withclients forcreativedelivery,mediameasurementandadvertisingeffectivenesssolutions. Throughtheir DCOsegment(augmentedwith Spongecell),theyprovideonlinemarketingservicespursuanttotheagreementswithcorporate customers andmarketingpartners.CostperThousandImpressions,Cost perClickandCostperActionrepresent thethree mostcommon waysinwhichonlineadvertisingissoldandpurchased.

InitialDeploymentDate: January2012(viaSpongecell)

Safeguard/TotalCapitalDeployed: $19.2M/na



InvestmentStage: PrivateEquity-backed

Co-Investors: TAAssociates

SafeguardBoardMember: Seatunfilled – SteveGrenfellcurrently anobserver

CompanyStatistics

MarketSegment: DigitalAdManagementandAnalytics

Headquarters: NewYork,NY

Website: www.flashtalking.com

CEO: JohnNardone

Competitors

Criteo, Google,Inc.,IACI,MarinSoftwareIncorporated, Sizmek,Inc.,Kenshoo


HooplaOverview


Hooplaprovidescloud-basedsoftwarethathelpssalesorganizationsinspireandmotivatesalesteamperformance.ItsSalesMotivationPlatformcombinesmoderngamemechanics,employeerecognition,motivationalcommunicationtoolsanddataanalyticstomakeiteasyforsalesmanagerstomotivateteamperformance.Hoopla’splatformintegrateswithenterpriseapplicationdataandprovidesbroadcast-qualityvideo(“HooplaTV”)andmobilefunctionalitytoengageemployeesinreal-time.Throughthissolution,salesmanagersdevelop,manageandoptimizecontests,competitionsandleaderboardsaroundanyCRMmetric,andbroadcastliveperformanceupdatesthroughouttheorganizationviaTV,thewebandmobilescreens.

MarketOpportunity

Hooplaisintheemployeeperformancemanagementmarket.U.S.companiesspendapproximately$5billiononemployeeperformancesoftwareandalmost$38billiononemployeeincentiveseveryyear.Hoopla’splatformtakesadvantageofdataanalyticsandadvancedgamificationtechniquestoenhanceperformance.

RevenueModel

Hooplageneratessubstantiallyallofitsrevenuefromsubscriptionfeesforitssoftware-as-a-service application.Specifically,HooplageneratesrevenuebysellingtobusinessesthatareheavilyreliantuponexpansivesalesforcesandinterestedinmonitoringandenhancingsalesperformanceoptimizationintheU.S.andEurope.

InitialDeploymentDate: December2011




InvestmentStage: SeriesB

Co-Investors: TrinityVentures,Illuminate


CompanyStatistics

MarketSegment: EmployeePerformanceManagement

Headquarters: SanJose,CA

Website: www.hoopla.net

CEO: MikeSmalls

Competitors

Salesforce.com,Inc.,TheUltimateSoftwareGroup,Inc.,eGainCorporation,CallidusSoftware,Inc.,LevelEleven,Ambition


InfoBionicOverview


InfoBionicisadigitalhealthcompanyfocusedoncreatingsuperiorpatientmonitoringsolutionsforchronicdiseasemanagementwithaninitialmarketfocusoncardiacarrhythmias.InfoBionichas510(k)clearancefromtheU.S.FoodandDrugAdministration(“FDA”)forMoMe®Kardia,awireless,remotemonitoringsystemdesignedtoaidphysiciansintheirdiagnosisofcardiacarrhythmia.MoMe®KardiaiscomprisedofawearableMoMeKardiadevicethatcanacquire,storeandsendfulldisclosureECGandotherrelateddata.Thisdataiscontinuouslytransmittedtothecloud-basedMoMeSoftwareSystemusingMoMeDeviceCommunicationProtocol.Theproprietarysoftwareanalyzesthedata,whichcanbeflaggedforphysicianreviewonaWeb-basedphysicianportal.

MarketOpportunity

Theglobaladdressablemarketformonitoringcardiacarrhythmiaandrelatedeventsisestimatedtobeapproximately$3billionworldwide,including$1billionintheU.S.

RevenueModel

OneofInfoBionic’smostdifferentiatedfeaturesisitsSaaSrevenuemodel,whichincludesanupfrontdevicesalefollowedbyamonthlysubscriptionfeeforunlimiteduseofthecompany’scloud-baseddiagnosticserviceandportal.

InitialDeploymentDate: March2014





Co-Investors:

EagleInvestments,BCBSKS,BroadviewVentures,ExcelVentureManagement,HealthTechCapital,ZaffreInvestments

SafeguardBoardMember: BrianSisko

CompanyStatistics

MarketSegment: PatientMonitoring(Cardiac)

Headquarters: Lowell,MA

Website: www.infobionic.com

CEO: StuartLong

Competitors

iRythm,BioTelemerty,AliveCor,Medi-Lynx,Zywie,Medtronic,Abbott,GEHealthcare,Philips,OSISystems


LumesisOverview


Lumesisprovidesanalysis,benchmarkingandcompliancetoolsforthemunicipalbondmarket.OnaccountofDoddFranklegislationintheearly2010sandanimplosionofthemunibondissuers,financialinstitutionshavebeenrequiredtoremoveratingsfromtheirriskandcompliancemodelsandconductbottoms-upanalysesonmunibonds,likeothercredits.However,therearenorobustcommercializedfundamentalanalysisorcompliancetoolsinthemunimarket,onlyportfoliomanagementandpricediscovertools.Lumesisfillsthisvoid.TheCompany’ssolutionsenableportfoliomanagers,investmentadvisors,complianceprofessionals,financialadvisornetworksandissuers/underwriterstoheatmapportfoliosagainstlocaleconomicscenarios,benchmarkagainstindustryindices,managetheirportfoliosagainstinternalcreditandriskmodels,andmonitorissuerdisclosures.

MarketOpportunity

Themunicipalbondmarkethasdoubledinsizeoverthepast10years.TheCompanyestimatesthatitscurrentaddressablemarkettothiscustomerbaseisapproximately$200milliononanannualbasis.

RevenueModel

Lumesislicensesfinancialsoftwareproductstothemunicipalfixedincomemarkettobeusedasanalyticalandcompliancetools.Customersbuylicensesonanenterprise/perseatperissuancebasis,usuallycoveringanannualperiod.Lumesisalsosellsdatatofinancialmarketparticipants.

InitialDeploymentDate: February2012




InvestmentStages: SeriesA,SeriesB

Co-Investors: NextStageCapital,JimAshton(JA3Partners)

SafeguardBoardMembers: BrianSisko,SteveGrenfell

CompanyStatistics

MarketSegment: FinancialAnalytics/Compliance

Headquarters: Stamford,CT

Website: www.lumesis.com

CEO: GreggBienstock

Competitors

ValueLine,Inc.,FidessaGroupplc,Reis,Inc.,Envestnet,Inc.,ForresterResearchInc.,FinancialEngines,Inc.,DAC,InvestmentTechnologyGroup,Inc.


MediaMathOverview


MediaMathisaglobaladtechnologycompanythatprovidesaplatformthatenablesadvertiserstooptimizetheirdisplayadvertisingspendacrossadexchanges(marketplacesthatconnectbuyersandsellersofdisplayads)viaanalgorithmictradingplatform.Amidstinherentinefficiencyinthemarkettoday,asbuyersattempttonavigatemultipleexchanges,theCompany’smediabuyingplatform,TerminalOne,effectivelyintegratesalloftheexchangesunderoneplatform,therebyfillingadeepdemandforintelligentbuying.ThisleadsMediaMathtobeaconduitforeverytransactionandprovidestheCompanywiththeabilitytoanalyzeeverytransaction,identifyinefficiencieswithinthemarketandultimatelyprovideanautomatedoptimizationenginetomaximizeperformanceforadagencies.TheCompanyoffersitsplatformasbothaManagedServiceandaSelf-ServiceSaaSPlatform,bothofwhichofferextensiveanalyticandreportingcapabilitiesformeasuringperformance.

MarketOpportunity

AccordingtoeMarketer,worldwidedigitaladspendingisexpectedtoreach$328billionin2019andrepresents39%oftotalpaidmediaoutlays.Spendisexpectedtoseedouble-digitgrowththroughatleast2020.

RevenueModel

MediaMath’sTerminalOneMarketingOperatingSystemenablesclientstoacquireandoptimizedigitaladvertising.MediaMathearnsrevenueasapercentageofcustomerspendthroughtheplatform.Inaddition,MediaMathgeneratesrevenuesfromservicesprovidedbasedonachievementoftargeteddeliverablesasspecifiedintheagreementswiththeircustomers.Deliverablesaretypicallybasedondeliveryofimpressions,clickstoaspecifiedwebsiteorspecifieduseractions.

InitialDeploymentDate: July2009

Safeguard/TotalCapitalDeployed: $15.5M*/$119.4M



InvestmentStages: SeriesB,SeriesC

Co-Investors:

AkamaiTechnologies,CatalystPartners,ObservatoryCapitalManagement,QEDInvestors,SpringLakeEquityPartners,VocapVentures

SafeguardBoardMember: None–BrianSiskoisanObserver

CompanyStatistics

MarketSegment: DigitalAdvertising/Marketing


Website: www.mediamath.com

CEO: JoeZawadzki

Competitors

AdobeSystems,Google,Criteo,TradeDesk,RubiconProject,Telaria

*Returned$45Mtodate.Thisnumberrepresents~60%ofourtotaldeployedcapital


meQuilibriumOverview


meQuilibriumisaHIPAA/HiTRUSTcompliant,scalableSaaSdigitalcoachingplatformthatleveragesthescienceofresiliencytodeliverclinicallyvalidatedandhighlypersonalizedemployeedevelopment,leadershipdevelopment,andtalentmanagementsolutionstoemployers,healthplans,andwellnessproviders.Thesolutionincreasesengagement,productivity,andperformanceandimprovedoutcomesinretaininganddevelopingtoptalentandmanagingstress,health,andwell-being.CurrentcustomersincludeComcast,Google,HPEnterprises,JPM,andGoldmanSachs

MarketOpportunity

TheHumanCapitalManagementsoftwaremarket,accordingtoindustryreports,wasestimatedat$14.5Bin2017,andisexpectedtogrowto$22.5Bby2023.

RevenueModel

meQuilibrium’sproductissoldasaPEPYsoftware-as-a-servicedeliveredinadesktopormobileenvironment.Mostcurrentcontractsare2-3years inlengthandeachyearistypicallypaidupfrontbycustomers.

InitialDeploymentDate: April2015





Co-Investors: HLMVenturePartners,ChrysalisVentures


CompanyStatistics

MarketSegment: HumanCapitalManagement

Headquarters: Boston,MA

Website: www.mequilibrium.com

CEO: JanBruce

Competitors

CastlightHealth(CSLT),Limeade,Happify,Headspace,Optum,SuccessFactors(SAP),Whil,others


MoxeOverview


MoxeHealthprovidesaclinicaldataclearinghouse,creatingatwo-sidedmarketplacebyfacilitatingthebi-directionalexchangeofclinical,analytic,andadministrativedatabetweenhealthsystemsandpayers.Itskeyproduct,Substrate,servesasanelectronicmedicalrecordintegrationplatform,facilitatingthereal-timeexchangeofclinical,analytic,andadministrativedatabetweenpayersandtheirprovidernetworksforriskadjustmentandotherusecases. Moxe’ssecondproduct,Convergence,createsacustomerportaldirectlyintheprovider’sEMRworkflow,allowingpayerstosharedataandactionableinsightsdirectlywithphysicians.AsMoxe’snetworkgrows,itwillbeabletocreateusecasesforpatients,providers,andpharma.

MarketOpportunity

Perindustryreports,theHealthcareITinteroperabilitymarketis$1.9Bwitha7.4%CAGRthrough2024,theHealthcareanalyticsmarketis$8.9Bwitha27%CAGRthrough2022,andthevalue-basedcare/populationhealthmanagementsoftwaremarketisexpectedtoreach$32Bby2020.

RevenueModel

Moxehaspriceditssolutiononaperhealthsystemsitebasis($22.5Kperyearpersite)andatransactionalbasis($7perpatientchartpulled).Movingforward,MoxeisimplementingPMPMpricingforpayercustomersbyhealthsystemsitetoimproverevenuepredictability.

InitialDeploymentDate: September2016




InvestmentStage: SeriesA/Bridge

Co-Investors: UPMCEnterprises


CompanyStatistics

MarketSegment: Interoperability

Headquarters: Madison,WI

Website: www.moxe.com

CEO: DanWilson

Competitors

Availity,Ciox,Experian,Innovaccer,Inovalon,McKessonCorporation,MROCorp,Navinet(NantHealth),otherinteroperabilitysolutions


NovaSomOverview


NovaSomisaleaderinobstructivesleepapneahometestingwiththeAccuSom®homesleeptest,acomprehensivelysupportedhomesleeptestthatprovidescontinuouspatientsupportandnext-daytestresultsandinterpretationforhealthcareprofessionals.TheFDA-clearedAccuSomtestissignificantlymoreconvenientandcomfortableforpatients,comparedtoin-facilitytesting.Patientsareabletotestaroundtheirownscheduleandcansleepintheirownbed,whichhelpseliminate“firstnight”effectandimprovesdatacollection.AccuSomiscurrentlycoveredformorethan150millioncommerciallyinsuredU.S.lives.NovaSomisaccreditedbytheJointCommissionasanAmbulatoryCareSleepDiagnosticCenter&TelehealthProviderandisclassifiedbyCMSasanIndependentDiagnosticTestingFacility.

MarketOpportunity

TheOSAdiagnosticmarketintheU.S.isestimatedtobeapproximately$4billionandisgrowingmorethan15%annually.Only3millionsufferersintheU.S.havebeendiagnosedtodate,outofanestimated40millionmoderatetosevereOSAsufferers.

RevenueModel

NovaSom’srevenue relatestodiagnostictestingservices.NovaSomispaidforitsservicesprimarilybycommercialinsurancecompanies,Federalthird-partyreimbursementprograms(whichincludeMedicare),clientsandpatients.





InvestmentStage: SeriesD

Co-Investors: QuakerBioVentures

SafeguardBoardMember: SteveGrenfell,BrianSisko

CompanyStatistics

MarketSegment: MedicalDiagnostics

Headquarters: GlenBurnie,MD

Website: www.novasom.com

CEO: GregStokes

Competitors

ResMed (NYSE:RMD), Alere(NYSE:LALR), Healthways(Nasdaq:HWAY);PAREXEL(Nasdaq:PRXL),CASMedicalSystems(Nasdaq:CASM),MasimoCorporation(Nasdaq:MASI),MGCDiagnosticsCorporation(Nasdaq:MGCD),BioTelemetry(Nasdaq:BEAT)


PrognosOverview


Prognosaggregates, harmonizesandanalyzesclinicaldiagnosticdataforlifesciences,diagnosticcompanies,andpayers,aimingtoimprovehealthbytrackingandpredictingdisease.ThePrognosRegistryof20billionclinicalrecordsfor185millionpatientsinover40diseaseareasenablesearlieridentificationofpatientswhocanbenefitfromenhancedtreatmentdecision-making,riskmanagement,andqualityimprovement.DuringitsresearchanddevelopmentphaseasMedivo,Prognosinvestedininnovationsexploringthepotentialofclinicaldiagnosticassetsandisnowrealizingthefullvalueofthoseassetsthroughadvancedanalyticswithover500proprietaryandlearningclinicalalgorithms.

MarketOpportunity

Prognosgenerates revenuethroughtargetingandanalyticsservices.Basedoncurrentmonetizationstrategies,theaddressablehealthcareanalyticsmarketforPrognos’productsisestimatedtoreach$10.8billion.

RevenueModel

Prognosoperatesintwoverticals– LifeSciencesandPayers.IntheLifeSciencessegment,Prognoscontractswithbiopharmafirmsforpotentialpatientidentificationsolutions.Dealsvarybycondition,butaretypicallyfor~$300-500Kperyear.InthePayersegment,Prognoscontractswithplansforvariouspopulationriskusecasesfor~$1Mannually.Prognoshasrevshareagreementswithlabstosecureaccesstothedata.

InitialDeploymentDate: November2011




InvestmentStages: SeriesB,Series C

Co-Investors:

HikmaVentures,CignaVentures,ARCAngelFund,MerckGHIF,GIS StrategicVentures(GuardianLife),HermedCapital,MaywicStrategicInv


CompanyStatistics

MarketSegment: HealthcareAnalytics/AI


Website: www.prognos.ai

CEO: SundeepBhan

Competitors

IQVIA,HealthVerity,LabCorp,Quest,SymphonyHealth


QuanticMindOverview


QuanticMindprovidesaSaaS-based,nextgenerationSearchEngineMarketing(“SEM”)platformforPaidSearchthatdevelopsadmanagementpointsolutionsusingdatascienceandmachinelearningalgorithmstoyieldbettersearchresultsforclients.“Paid”searchresultsareadvertisementsfrommarketersthathavepaidasearchenginetobelistedatthetopofasearchresultspagewhenausermakesasearchquery.QuanticMind’ssolutionenablesitsclientstoenhancetheirvisibilitytoclientcustomersgeneratingthesesearchqueries,andultimatelymaximizeadvertisingperformance.Inaddition,insightstheplatformgenerateshelpaclientdeterminetheefficiencyandeffectiveness oftheirmarketingcampaignsandmeasurecustomerinteractionwiththeirlistingsinonlinesearch.Theplatformincorporatesreal-timereportingandintegrateswithmostmajorsearchenginesglobally,includingGoogle,Yahoo!andBing.

MarketOpportunity

QuanticMindcompetesinthedigitaladvertisingmanagementsector,alarge,establishedmarketwithawell-definedcompetitorset.Themarketopportunityisestimatedatmorethan$15billionannually.

RevenueModel

QuanticMindsellsitssolutionasasoftware-as-a-service directlytoadvertisersaswellasthroughagencies.Contractsaretypicallyone-yearinlengthandbilledmonthly.Pricingisdeterminedbyatieredschedulebasedonthegrossamountofspendmanagedbytheplatform.Thisaverages toapproximately2%ofspend.


Safeguard/TotalCapitalDeployed: $12.9M/$35.5M*



InvestmentStage: SeriesB

Co-Investors: FoundationCapital,CervinVentures

SafeguardBoardMember: BrianSisko

CompanyStatistics

MarketSegment: DigitalAdManagement/PaidSearch

Headquarters: RedwoodCity,CA

Website: www.quanticmind.com

CEO: ChaitanyaChandrasekar

Competitors

Google,Marin,Adobe,Kenshoo,in-houseDIYsolutions

*Accounts forapprovedbutnotyetfully funded$4Mbridge


SonobiOverview

Description DeploymentStatisticsSonobiisanadvertisingtechnologycompanyhelpingcomScore250publishersandFortune500advertisers(intheireffortstocollaborate,createanddelivermoreeffectivecommunicationplansbybringingthesophisticationofdata-driven,algorithmicbuyingcapabilities,formerlyrelegatedtotheReal-TimeBidding(Remnant)market,totheun-disruptedpremiummarket.Thistechnologyallowspublisherstomaintaincontrolofnegotiationsaswellaspricingcontrolduringtheexecutionofsales,whileenablingbuyerstoleveragepublisheraudiencedataretrievedfromproprietaryintegrationswiththepublishers,toreachtargetedcustomers.Tosomeextent,Sonobiisthereforeamarketmaker,sittinginbetweendemandandsupply.Utilizationoftheplatformhasresultedinthediscoveryofnewpocketsofmarketopportunityforbothpublishersandadvertisers,enablingeachtomaximizetheeffectiveness oftheirinsightsandmarketpositions.

MarketOpportunity

Thepremiumonlineadvertisingmarketisanticipatedtogrowto$43billion(eMarketer),amarketinwhichprogrammatictechnologyhasnotyetbeenfullyapplied.Sonobiiswellpositionedtodevelopthisimportantadvertisingsegment,withstrongtechnology,synergisticpartnerships,ahigh-qualitypublisherbaseandagrowingpipeline.

RevenueModel

Sonobisellsdirectlytolarge,premiumpublishersandthenpartnerswithlargeadvertisersandotherdemandsideplayerssuchasMediaMathandAppNexus.Revenueisvolume-driven.Theindustryhasstandardizedapercentofspendasanacceptedpricingmodel,andSonobicurrentlycharges15%ofthespendthatgoesthroughtheplatform.

InitialDeploymentDate: May2015




InvestmentStage: SeriesA

Co-Investors: n.a.


CompanyStatistics

MarketSegment: PremiumProgrammaticAdTechnology


Website: www.sonobi.com

CEO: MichaelConnolly

Competitors

Criteo,TheRubiconProject,Inc.,Sizmek,Inc.,CasaleMedia/IndexExchange


SyapseOverview

Syapse isamulti-sidedplatformcreatingadatanetworkeffectinordertoimprovethewaycancerandotherdiseases aretreated.ThedataSyapse collectsandnetworksfromsiloedhospitalandlaboratoryenterprisesystemsandatthepointofcare(Syapse Network)allowstheCompanytoprovidesolutionsforpharma,CROs,etc.(ecosystempartners),includingrealworldevidencegeneration,identificationofpatientsforclinicaltrialsandhubservices.Syapse customersareleadinghealthcareproviders,suchDignityHealth,CHI,,HenryFord,Providence,UniversityofMiamiHealthSystemandAuroraHealthCare.CurrentecosystempartnersincludeRoche,AmgenandMedidata.


MarketOpportunity

WhileSyapse’splatformcanbeappliedtoanydiseasearea, earlycustomershavefocusedononcology.InOctober2015,OliverWymanestimatedthatthemarketopportunityforPrecisionMedicinehubsis$200billionannually.

RevenueModel

Syapsecurrentlysignsthree-yearlicenseagreementswithhealthsystems,currentlyaveraging~$600Kofannualvalue.Additionally,Syapseismonetizingpharmaandotherecosystemrelationships,AninitialcollaborationdealwithRochehasthepotentialforgreaterthan$100Mover10yearsdependingoncertainmilestonesachieved.






Co-Investors:

AmgenVentures,AscensionVentures,MerckGHIF,MedidataVentures,Roche,GEVentures,IntermountainHealthcareInnovationFund,SocialCapital


CompanyStatistics

MarketSegment: PrecisionMedicine

Headquarters: SanFrancisco,CA

Website: www.syapse.com

CEO: KenTarkoff

Competitors

FlatironHealth,Cota,TempusHealth,Concerto


T-REXOverview


T-REX isafinancial services companythat offers asecure, SaaSenterpriseanalytics, riskandportfolio management platform toglobal investmentbanks,rating agencies, andother issuers andinvestors, allowing them tofinance, securitize andmanagehistorically esoteric assetsefficiently andtransparently acrossmultiple assetclassesincluding renewables. ThroughT-REX’s secure, proprietary platform, investors, assetmanagersanddevelopers areempowered toefficiently andtransparently finance,securitize andmanagetheir assets.TheCompany provides valuation andriskanalysistools that allowusers tounveil investment opportunities forthehundreds ofbillions ofdollars ofcapital currently seekingexposure inthese sectors.

MarketOpportunity

By2021, themarketfor structured product analyticstools isexpected toexceed $1.4billion. Today, atmajor financial institutions, there arefragmented, non-standardized software solutions that arecurrently beingusedacross themajority ofassetclasses,givingT-REX alargeopportunitytostreamline operations forthese players.Assoftware spend onfinancialmarketsinfrastructure forstructured products increases, solutions foradditional assetclassesarecurrently under development.

RevenueModel

T-REX follows asubscription model, charging abasefeeof$20kannuallyper seat.Enterprise pricing isavailablefor larger clients andisnegotiatedonaper client basis.Asnew products for additional assetclasseshavebeendeveloped, T-REX isnowinthe process ofrefining its upsell planforcharging additional feesontop ofthebaseprice. Theplatform takesa%intheform ofbps/yearbasedonissued debt outstanding.

Initial Deployment Date: November 2016

Safeguard/TotalCapital Deployed: $6.0M/$24.1M

Carrying Value(asof12/31/18): $3.9M

SafeguardOwnership: 21%Primary /18%FD

Investment Stage: SeriesB

Co-Investors:Ecosystem Integrity Fund, Innogy,Partnership Fundfor NewYorkCity

SafeguardBoard Member: SteveGrenfell

CompanyStatistics

MarketSegment: Financial AssetRiskAnalytics

Headquarters: New York,NY

Website: www.trexgroup.com

CEO: Benji Cohen

Competitors

Acxiom Corporation, Apptio, Inc.,BGC Partners, Inc.,CBOE Holdings, Inc.,Determine, Inc.,E*TRADEFinancial Corporation, Global Brokerage, Inc.,Intercontinental Exchange, Inc.,IntraLinks Holdings, Inc.,InvestmentTechnology Group, Inc.,LogMeIn,Inc.,MarketAxess Holdings Inc.,TDAmeritrade Holding Corp.


TransactisOverview


Transactis isaleading provider ofelectronic billing andpayment solutions.Itscloud-based electronic bill presentment andpayment platform, BillerIQ,isawhite-labeled solution that isoffered “as-a-service,” enablingbusinesses torapidly andsecurely deliver electronic bills, invoices anddocuments aswell asaccept payments online, byphone andviamobiledevices.TheCompany goesto marketexclusively with resellers—financialinstitutions, technology companies, printers andbusiness processoutsourcers—and actsasafull-service business partner, providing acomprehensive suiteofsales, marketing, technical andoperationalsupport inconjunction with secure, configurable, white-label solutions.

MarketOpportunity

Fewerthan 25%ofbills arepresented electronically inthe U.S.;themajority of1990s-vintage technology andproducts areon-site atasinglebiller andareclient-server oriented. Thechannel-oriented model Transactisemploys features up-to-date SaaSinfrastructure andispositioned togrowwith anEBPPmarket thatisexpected toexpand ata12% CAGR through2020(Payments Industry Intelligence).

RevenueModel

Themajority ofTransactis’ revenue isderived from transaction feesbasedonbillers’ datausage, volumeofbills presented andnumber ofbillsprocessed andpaid.Transactis alsoprovides technical professional servicesrelated to theimplementation andongoing support oftheplatform toitsbiller customers. Assuch, Transactis charges billers both aone-time setupfeeaswell asamonthly maintenance fee.Thesefeesscalebasedonfeatures andfunctionality required inaddition tovolumeofbills delivered.

Initial Deployment Date: August 2014

Safeguard/TotalCapital Deployed: $14.5M/$61.2M

Carrying Value(asof12/31/18): $7.5M

SafeguardOwnership: 24%Primary /21%FD

Investment Stages: SeriesD, SeriesE

Co-Investors:

Capital One, ffVenture Capital,Fifth Third, Harland Clarke,Metamorphic Ventures, PNC,StarVest Partners, TDBank,WellsFargo

SafeguardBoard Member: Brian Sisko

CompanyStatistics

MarketSegment: Electronic Billing andPayments

Headquarters: New York,NY

Website: www.transactis.com

CEO: JoeProto

Competitors

Fiserv, Inc.,Checkfree, PaySimple, Bill.com, BillTrust


TriceOverview


TriceMedicalwasfoundedtofundamentallyimproveorthopedicdiagnostics.Tricehaspioneeredfullyintegratedcamera-enabledtechnologiesthatprovideaclinicalsolutionthatisoptimizedforthephysicians’office.TriceMedical’sFDA-approved510(k)-cleareddevice,mi-eye2,isahandheld2.2mmarthroscope,consistingofaneedlewithanintegratedcameraandalightsourcedesignedforin-officeuse.Withmi-eye2,physicianscanprovidereal-timeanalysis,effectfastertreatment,andschedulepatientsforsurgeryimmediately—resultinginquickeroutcomesforpatientsandamoreefficientprocessfordoctors.TheCompanyhasexpandeditsproprietaryplatformforuseintheneurosurgical,OB-Gyn,ENTandveterinaryspaces.

MarketOpportunity

IntheU.S.,itisestimatedthatmorethan8Morthopedic-focusedMRIexamsareconductedeachyear.Privateinsurers,whichcoverapproximately80%ofallsportsmedicineinjuries,oftenpayanaverage of$1.5-2KperMRI— implyinganaddressablemarketopportunityforTriceof~$15B.

RevenueModel

Tricesellsthemi-eyeneedles forapproximately$400perunit,whichisconsistentwiththedisposablepricepointoftheVisionScopetechnology.Thecompaniontabletisofferedforalistpriceof$1,500.

InitialDeploymentDate: July2014





Co-Investors:

CharterCapital,BioStarVentures,HealthQuestCapital,MillenniumLifeSciences,Smith&Nephew


CompanyStatistics

MarketSegment: MedicalDevice

Headquarters: Malvern,PA

Website: www.tricemedical.com

CEO: JeffO’Donnell,Sr.

Competitors

Arthrex,KarlStorz,Smith&Nephew,Stryker,DepuySynthes,CONMED,Biomet-Zimmer,J&J


WebLincOverview


WebLincdevelopsmodern,digitalcommercetechnologiesforgrowingeCommerce-focusedcompanies.WebLinc’scloudproducts,WorkareaandOrderbot,powercommercesitesfordynamic,high-growthretailers,enablingthemtorunglobal,omnichannelcommerceoperations,maximizemulti-channelrevenueandout-pacecompetition.WebLinc’shighlyscalableplatformprovidesfullbrandcontrol,depthoffeaturesandtheoperationalflexibilityneededtorundynamicretailoperationsandemployresponsivewebdesign.

MarketOpportunity

AccordingtocomScore,eCommercegrewatarateof14%YoYin2017,andthisgrowthtrendisexpectedtocontinuewellpast2020.Meanwhileofflineretailachieved3.1%YoYgrowthduringthesameperiod,onlyslightlyaheadofinflation(2%).Asthistrendcontinues,WebLincispositionedtocontinuehelpingB2BandB2Ccompaniesprovidetheomnichannelexperiencethatcustomersnowexpect.

RevenueModel

WebLincgeneratesrevenueasatech-enabledservice.TheCompanybillsaone-timefee toitsclientsduringtheprocessofmakingtheireCommercesiteslive.OncetheeCommercesiteislaunched,WebLincgenerates revenueviabothone-timehourlycustomdevelopmentservicesandmonthlycontractualservicesaswellasannuallicensefees.Mostclientspayforbulkhourspermonthorperyear.

InitialDeploymentDate: August2014




InvestmentStage: SeriesA

Co-Investors: Founders


CompanyStatistics

MarketSegment: OnlineRetailandeCommerce

Headquarters: Philadelphia,PA

Website: www.weblinc.com

CEO: DarrenHill

Competitors

OneViewGroupplc,ShopifyInc.,Zendesk,Inc.,Corporation,PFSweb,Inc.,SPSCommerce,Inc.,BroadleafCo.,Ltd.,Crexendo,Inc.,CallidusSoftwareInc.,Marketo,Inc.


ZipnosisOverview


Zipnosispartnerswithhealthsystemsnationwidetoprovideawhite-labeledvirtualcareplatform,offeringpatientsconvenientaccesstocarewhileimprovingclinicianefficiency.Zipnosisguideshealthsystemsthroughthevirtualcarejourneyandguaranteeslaunchoftheirvirtualcareplatforminjust60days.Patientsaretreatedthroughvideo,telephoneandadaptiveonlineinterviews—withavailablepharmacyandlabintegration.

MarketOpportunity

Themarketsizeforvirtualcarecanbeestimatedwiththeaddressablenumberofambulatorycarevisitsandthefeechargedforthosevisits.There are1.25BoutpatientcarevisitsintheUnitedStatesperyear,andweestimatethat1/3ofthesewillbesuitableforvirtualcare.Forthefee,weusethemoreconservativefigureof$30,sincethisisthemidpointofZipnosis’healthsystemcustomers’currentprices.Combiningthesetwonumbers– approximately400Maddressableambulatoryvisitsat$30/visit– yieldsamarketsizeofover$10billion.

RevenueModel

Zipnosis’revenuemodelisbasedonmonthlyrecurringrevenuefeespaidbyahealthsystem,notonpervisitfees.

InitialDeploymentDate: December2015




InvestmentStage: SeriesA,SeriesB

Co-Investors:

ArthurVentures,AscensionVentures,AffinityVentures,FairviewHealthServices,HydeParkVenturePartners,WaterlineVentures


CompanyStatistics

MarketSegment: Telemedicine

Headquarters: Minneapolis,MN

Website: www.zipnosis.com

CEO: JonPearce

Competitors

MDLive,DoctoronDemand,Teladoc,AmericanWell,BrightMD,Avizia,Intellivisit


SafeguardScientifics,Inc.

§ Foundedin1953andNYSE-listedsince1971

§ Safeguardprovidescapitalandexperiencetogrowinghealthcare,digitalmediaandtechnologybusinesses

§ Providesfinancialandmanagementsupportforexistingpartnercompanies

§ Distinguishedtrackrecordoffosteringinnovativedisruptivemarketleaders

§ Attractiveportfoliooftech-enabledcompaniesacrossseveralverticals

§ Safeguardadoptedachangeinbusinessstrategyandoperationsinearly2018

§ Usingpartnercompanymonetizationeventstorepaydebtandreturnvaluetoshareholders


March2019

CorporatePresentation

03.01.19 sfe corporate presentation -...

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