NEWSLETTER
SPRING 2014
TCV INVESTMENT APPROACH
With over 40 investment professionals and nearly $10 billion of capital raised since inception across eight funds, TCV is one of the largest
growth equity firms focused solely on technology and technology-enabled services companies. We are active, long-term investors who stay
involved with and continue to invest in our portfolio companies through their IPOs and beyond.
We invest across all areas of technology and services including:
• Internet
• Financial Services
• Communications
• Healthcare IT
• Financial Technology
• Infrastructure
• Software
• Mobile Technology
• Semiconductors
• Business Services
• Information Services
• Government IT
TCV invests in both private and public companies. We make equity investments of up to $300M with proceeds being used for:
• Growth capital
• Acquisitions
• Shareholder liquidity
• Minority recapitalizations
• Majority recapitalizations
• Leveraged buyouts
TCV VIII ANNOUNCEMENT
Technology Crossover Ventures Announces $2.23 Billion Growth Equity Fund
Palo Alto, CA
March 19, 2014 – Technology Crossover Ventures (TCV), a leading provider of growth equity for premier technology companies, announced today the closing of
TCV VIII, a $2.23 billion fund. With this fund, the firm’s capital raised since inception totals nearly $10 billion.
TCV VIII will continue to execute on Technology Crossover Venture’s core strategy of providing growth equity capital to market-leading technology companies,
with a focus on the Internet, business and financial services, infrastructure, and software markets. The fund will be invested by TCV’s team of more than 40
investment professionals, one of the largest teams focused on growth equity investments in technology.
“We appreciate the continued support of our limited partners, whose strong participation in TCV VIII highlights our long track record in backing some of the
world’s leading technology companies and entrepreneurs,” said Jay Hoag, a founding general partner of TCV.
“With this new pool of capital from our limited partners,” said Jake Reynolds, a general partner of TCV, “our team looks forward to expanding on our mission of
generating strong investment returns by identifying world-class entrepreneurs and helping them grow their businesses.”
The investors in TCV VIII include public and private pension funds from North America, Europe and Asia, university endowments, financial institutions, family
offices, and technology entrepreneurs.
RECENT INVESTMENTS
ExtraHop Closes $41 Million in Series C Funding to Establish New Enterprise IT Category
Seattle, WA
May 29, 2014 – ExtraHop, the global leader in real-time wire data analytics for IT operational intelligence, today announced that it has closed a $41 million round
of Series C financing. The round was led by Technology Crossover Ventures (TCV), an investment firm with a long track record of investment in some of today's
most successful technology companies including Splunk, Zillow, Expedia, and Spotify. TCV was joined in the round by existing investors Meritech Capital
Partners and Madrona Venture Group, as well as private investors including Sujal Patel, the former CEO and founder of Isilon Systems.
“Businesses cannot survive without a fast-paced, well-informed, and innovative IT organization. ExtraHop has deep roots in the enterprise, and we’ve identified a
significant market opportunity that will redefine IT operations as we know it today,” said Jesse Rothstein, CEO, ExtraHop. “We’re establishing the entirely new
This newsletter is intended solely for prospective portfolio companies and their agents regarding TCV’s potential financing capabilities, and is not an offer to sell to any person, or
solicitation from any person of any offer to buy, any securities. Certain information contained in this newsletter consists of portions of press releases issued by our portfolio companies.
Such information has not been independently verified by TCV, and TCV does not assume responsibility for the accuracy of such information. The portfolio companies described in this
newsletter are not a complete list of TCV’s investments; for a complete list of TCV investments (other than certain public company investments), visit us at www.tcv.com. ©2014
category of ITOA, which provides an unmatched source of truth about business and IT operations through sophisticated analysis of wire data. The investment
from TCV, known for backing some of the industry’s most notable and disruptive enterprise brands, further validates our mission and will significantly accelerate
our pace of innovation.”
ExtraHop also announced that Ted Coons at Technology Crossover Ventures is joining its board of directors.
Web’s Leading Rewards Community Swagbucks Raises $60 Million Led by Technology Crossover Ventures
El Segundo, CA
RECENT INVESTMENTS (Cont’d)
May 13, 2014 - Swagbucks.com, the web’s leading rewards discovery community and top provider of free gift card awards for everyday digital
life, announced that it raised $60M in its first external financing, led by Technology Crossover Ventures. Swagbucks rewards its members for
everyday web discovery activity – including searching, shopping, entertainment, discounted offers, surveys, and games – delivering a robust
platform for brands, advertisers, and marketers to establish valuable relationships with motivated consumers. The company has distributed over
$60 million in free gift cards to consumers since its 2008 founding.
Swagbucks and Prodege executive chairman Chuck Davis will add the role of chief executive officer while founding CEO Josef Gorowitz
becomes president.
“Swagbucks first caught my interest in 2012 when I observed their impressive, entrepreneurial growth and diversified revenue model,” said
Davis, who joined Swagbucks as executive chairman in January 2013. “Swagbucks has always put the consumer first by helping households
get a little extra back and I am proud to build on that wonderful mission. Furthermore, bringing in TCV as the company’s first strategic
investment partner and building on their experience in scaling leading digital brands is a good fit for Swagbucks and its profitable business.”
Jay Hoag, founding General Partner at Technology Crossover Ventures, will join Prodege’s Board of Directors.
Fastest Growing Marketing Automation Company Secures $42M In Venture Financing Led By TCV
Beaverton, OR
April 15, 2014 – Act-On Software, the leading marketing automation provider for small and mid-market enterprises, announced it has secured
$42 million in new venture financing. Technology Crossover Ventures (TCV) led the round, with existing investors Norwest Venture Partners,
Trinity Ventures, US Venture Partners, and Voyager Capital also participating. Act-On will use the new capital to accelerate its business on all
fronts, including new product development, sales expansion, and brand recognition
“It is very exciting to see marketing automation evolving to move beyond tech companies, and getting broad adoption across all company sizes
and industry verticals,” said Raghu Raghavan, CEO of Act-On Software. “We are the forefront of this movement. We have grown rapidly to over
2,000 customers now, but there are at least 200,000 companies in North America alone that are in our sweet spot. We are very pleased to have
the backing of a long-term investor like TCV as we seek to take full advantage of this enormous opportunity.”
The new $42 million investment is primary capital into the company to further fuel its revenue, customer, and employee growth. In total, Act-On
has raised $74 million since it was founded in 2008. Along with this new round of funding, David Yuan, general partner at TCV, joins Act-On’s
board of directors.
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January 14th, 2014 – Leading online hotel distribution and connectivity platform, SiteMinder, has raised US$30 million in funding led by Palo
Alto based Technology Crossover Ventures (TCV). The partnership was finalized in late December 2013, after a very successful year during
which SiteMinder opened its US operations and grew its revenue very aggressively by more than 70%.
“With an ever-increasing number of people booking online, hotels have truly arrived at a place where SiteMinder’s technology is not just a
luxury, but it’s an absolute necessity to reach a global audience and to remain competitive. There is a relatively low penetration of our kind of
technology in the global hotel market, and with TCV’s wealth of technology and investing experience, we are confident that we have chosen the
ideal partner to help us to capture market share rapidly” said Mike Ford CEO of SiteMinder
This newsletter is intended solely for prospective portfolio companies and their agents regarding TCV’s potential financing capabilities, and is not an offer to sell to any person, or
solicitation from any person of any offer to buy, any securities. Certain information contained in this newsletter consists of portions of press releases issued by our portfolio companies.
Such information has not been independently verified by TCV, and TCV does not assume responsibility for the accuracy of such information. The portfolio companies described in this
newsletter are not a complete list of TCV’s investments; for a complete list of TCV investments (other than certain public company investments), visit us at www.tcv.com. ©2014
,
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David Yuan, TCV General Partner, and Erik Blachford, TCV Venture Partner and former CEO of Expedia, will join the SiteMinder Board.
PORTFOLIO COMPANY NEWS
Spotify Sees Jump In Paying Customers With 10 Million Premium Subscribers
London, UK
May 21, 2014 – Spotify, the Swedish music streaming service, has seen a surge in the number of paying subscribers and active
users over the last year. Today Spotify revealed it had signed up 10 million paying customers for its Spotify Premium service, and
now has more than 40 million active users across the globe.
Zillow Announces Record Q1 Revenue, Driven by Record Traffic Growth
Seattle, WA
May 7, 2014 - Zillow, the leading real estate information marketplace with 79 million monthly unique users, reported strong Q1
results and continued traction across its business lines. Total revenue grew 70% year-over-year, with desktop and mobile traffic
growing 50%, and Premier Agent count growing 56%. Mobile usage continues to surge, with more than 460M homes viewed on
mobile devices during April 2014, equating to 178 homes per second.
EA's Non-GAAP EPS and Operating Cash Flow Doubles Year-Over-Year in FY2014
Redwood City, CA
May 6, 2014 – While navigating a major console transition, EA exceeded revenue guidance, expanded gross margin to 68%,
improved operating margin to 18%, and doubled EPS to $1.69. EA grew digital non-GAAP revenue by 8% YoY to $1.8 billion
through FY2014, with mobile and Ultimate Team contributing $460M and $380M respectively. Calendar year-to-date, EA is the
number one publisher on Playstation 4 and Xbox One with 40% share, led by sales of FIFA 14, Titanfall, Battlefield 4, Need For
Speed Rivals, and Madden NFL 25.
EA and Respawn Entertainment Launch Titanfall
Redwood City, CA
March 11, 2014 – EA and Respawn Entertainment partnered to launch Titanfall exclusively on Xbox One. Since its announcement
last year, Titanfall has been highly anticipated by gamers for its first-person action combining elite assault pilots and heavily-
armored "titans". According to NPD data, Titanfall was the top selling game in March with 925,000 units sold. Through a new
publishing agreement EA will continue to work with Respawn Entertainment to bring new Titanfall experiences to players

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worldwide.
Think Finance Announces Business Restructuring and Spinoff of New Company, Elevate
Ft. Worth, TX
May 1, 2014 – Think Finance, a leading provider of analytics and technology that helps lenders meet the needs of underserved
consumers, today announced a restructuring of its business, resulting in the spinoff of a new independent company called Elevate.
Under the restructuring, Think Finance will spin off its portfolio of branded consumer lending products, including RISE, Elastic and
Sunny. Elevate will own these products and continue innovating new consumer credit solutions that provide immediate relief today
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GoDaddy Continues Global Expansion With Launch Into 21 New Markets And 14 New Languages
Scottsdale, AZ
April 28, 2014 – GoDaddy, the world’s largest technology provider dedicated to small businesses, today announced its continued
expansion into international markets. With today’s announcement, GoDaddy is offering localized products and support in 14 new
languages. New countries served with this expansion include Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Sweden, Switzerland, Turkey and Ukraine. GoDaddy established its presence
earlier in Europe with support for United Kingdom Ireland and Spain
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GoDaddy’s expanded global footprint offers products and support in 42 markets, 44 currencies and 17 languages. GoDaddy’s goal
is to empower small businesses around the world. As part of this effort, the company recently hired new regional heads in EMEA &
LATAM, developed a highly localized marketing and advertising presence, and is adapting appropriate products to int’l markets.
GoDaddy Announces New CIO
Scottsdale, AZ
Jan. 15, 2014 – GoDaddy, the Web’s largest platform for small businesses, has hired technology industry veteran Arne Josefsberg
as its new Executive Vice President, Chief Infrastructure Officer and Chief Information Officer. Josefsberg brings extensive
expertise in building scalable cloud computing environments, data centers, large scale operations and information technology
systems, and will oversee GoDaddy’s global cloud infrastructure and information systems.
Josefsberg, a long-time Microsoft veteran, most recently served as Chief Technology Officer at ServiceNow, where he led
technology advances and drove expansion of the company’s cloud computing strategy. Having built and operated one of the
world’s largest infrastructures at Microsoft, he has a reputation as a strategic technology visionary and innovator.
GoDaddy Acquires (mt) Media Temple To Accelerate Web Pro Expertise
Scottsdale, AZ
Oct 15 2013 GoDaddy the Web’s largest platform for small businesses has acquired (mt) Media Temple a Los Angeles based
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Web hosting and cloud services company focused on the creative class of digital designers, developers, entrepreneurs and
innovators. The strategic acquisition provides GoDaddy with direct access to Media Temple’s hosting gurus, who will share
knowledge and insight on how GoDaddy can better serve Web professionals and developers. GoDaddy provides scale and
investment for (mt) to accelerate its growth and further expand internationally.
This newsletter is intended solely for prospective portfolio companies and their agents regarding TCV’s potential financing capabilities, and is not an offer to sell to any person, or
solicitation from any person of any offer to buy, any securities. Certain information contained in this newsletter consists of portions of press releases issued by our portfolio companies.
Such information has not been independently verified by TCV, and TCV does not assume responsibility for the accuracy of such information. The portfolio companies described in this
newsletter are not a complete list of TCV’s investments; for a complete list of TCV investments (other than certain public company investments), visit us at www.tcv.com. ©2014
Netflix Crosses 48M Global Members and Tops $1Bn in Quarterly Streaming Revenue
Los Gatos, CA
April 21, 2014 - Netflix, the world's leading Internet subscription service for enjoying TV shows and movies, announced that it had
crossed 48M global members. Netflix achieved this mark through US subscriber growth of 22% year-over-year and international
subscriber growth of 78%. The quarter also marked the first quarter it topped $1Bn in streaming revenues.
Additionally, Netflix’s Originals continues to gather critical and member acclaim, particularly with Seasons 1 and 2 of “House of
Cards” and Season 1 of “Orange is the New Black”. “Orange is the New Black” Season 2 will debut on June 6th around the world.
PORTFOLIO COMPANY NEWS (Cont’d)
AppNexus Appoints Jonathan Hsu as CFO and COO and Geir Magnusson, Jr., as CTO
New York, NY
April 7, 2014 – AppNexus, which provides trading solutions and powers marketplaces for internet advertising, announced
Jonathan Hsu will become CFO and COO. Jonathan previously served as CEO of Recyclebank, one of Fast Company’s “50 Most
Innovative Companies,” and as CEO of 24/7 Media, where he helped engineer its $659M sale to WPP in 2007. Also joining
AppNexus’s leadership team is Geir Magnusson, Jr., who led engineering and technical operations for companies including Gilt
Groupe, 10gen, and others.
Merkle Acquires Digital & Direct Agency, New Control
Columbia, MD
April 3, 2014 – Merkle announced that it has acquired Chicago-based New Control, a full-service digital and direct agency. The
acquisition supports Merkle’s strategy for aggressive growth in its digital agency group. In addition, the acquisition reinforces
Merkle’s industry-focused approach to serving world-class brands, adding deep expertise and penetration in many of the markets
served by Merkle, most notably financial services and insurance.
HomeAway Reports Strong Q1 Revenue Growth, Driven by Network Expansion and Monetization
Austin, TX
March 25, 2014 – HomeAway, the world's leading online marketplace for the vacation rental industry, with sites representing
approximately 952,000 paid listings of vacation rental homes in 190 countries, reported Q1 revenue growth of 33%, a significant
acceleration from 2013 levels. On the heels of HomeAway’s pay-per-booking rollout in Q4’13, the subscription business remains
strong, with two consecutive quarters of improving renewal rates. Additionally, HomeAway announced its planned roll out of its
pay-per-booking platform to its largest European sites this coming quarter.
Sitecore Appoints Ahmed Rubaie as Chief Financial Officer
San Francisco, CA
March 25, 2014 – Sitecore announced the appointment of Ahmed Rubaie as its CFO. Based in the Bay area, Rubaie will lead the
company’s global finances and operations. He comes to Sitecore most recently from Fortinet, a leading network security provider,
where he was COO and CFO. Prior to that and since 2008, Rubaie was CFO of Ariba, a leading cloud spend management and
business e-commerce company with over $400 million revenue that was sold to SAP for $4.3 billion in 2012.
Sitecore Acquires Leading E-commerce Vendor commerceserver.net
San Francisco, CA
Nov. 20, 2013 – Sitecore announced that it has acquired commerceserver.net. Sitecore’s acquisition lays the foundation for the
industry’s first .NET based, enterprise-grade Customer Experience Management (CXM) platform with a native, fully integrated e-
commerce engine. The integration of e-commerce functionality with Sitecore’s leading experience platform allows marketers to
truly own the experience they deliver to every customer or prospect that engages with their brand, creating high value customers
for life.
Genesys Completes Four Acquisitions To Extend Cloud-Based Customer Experience Offerings
Daly City, CA
March 18, 2014 – Since November, Gensys has made four acquisitions to extend their market leadership in cloud-based customer
experience offerings. The acquisitions have included Echopass Corporation (November 14, 2013), Voran Tecnologia (December
2, 2013), Ventriloquist Voice Solutions International (January 20, 2014), and Solariat (March 18, 2014).
The Echopass platform, which has incorporated Genesys software since 2000, brings unprecedented scale to the Genesys cloud
offering for large enterprises that require flexible deployment scenarios, including a cloud-only or a hybrid-cloud model. Echopass
also brings a wealth of experience and technologies to the Genesys cloud offerings, including support for voice, chat, email, fax,
SMS and mobile; agent performance optimization; and extensive knowledge about customer experience best practices
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Voran Tecnologia is a market leader of workforce optimization (WFO) as a service in Brazil, and following last year’s acquisition of
LM Sistemas, Voran further strengthens the Genesys presence in Brazil by adding cloud-based Quality Monitoring solutions.
Ventriloquist Voice Solutions International brings additional scale and reach to the Genesys cloud-based proactive
communications offerings, which help companies to deliver persona-based, branded customer interactions over voice, SMS,
email, and mobile to improve the customer experience. Ventriloquist is an existing partner of Genesys with a substantial installed
base of customers in Canada and the U.S.
Solariat is a social customer care and analytics platform company and with the acquisition Genesys is further extending its social
,
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media engagement capabilities to help organizations deliver world-class customer experience. Social media analytics are part of a
growing market for business analytics and related services predicted to reach $81 billion in 2014, according to Gartner.
This newsletter is intended solely for prospective portfolio companies and their agents regarding TCV’s potential financing capabilities, and is not an offer to sell to any person, or
solicitation from any person of any offer to buy, any securities. Certain information contained in this newsletter consists of portions of press releases issued by our portfolio companies.
Such information has not been independently verified by TCV, and TCV does not assume responsibility for the accuracy of such information. The portfolio companies described in this
newsletter are not a complete list of TCV’s investments; for a complete list of TCV investments (other than certain public company investments), visit us at www.tcv.com. ©2014
Adknowledge Acquires Giant Media
Kansas City, MO
March 10, 2014 – Adknowledge, the largest privately owned online advertising marketplace, announced that it acquired Giant
media, an industry leading video ad platform. Giant Media developed a suite of video products designed to maximize earned
media and social sharing, recently showcased by its distribution of a viral video for Dollar Shave Club, which led to 13 million views
and a successful public debut for the shaving supply company. It is the twelfth acquisition made by Adknowledge since it was
founded in 2004. Terms of the acquisition were not disclosed.
PORTFOLIO COMPANY NEWS (Cont’d)
Facebook Announces Acquisitions of WhatsApp, Oculus, and Reports Strong Q1 Earnings
Menlo Park, CA
February 19, 2014 – Facebook, the leading social network that people use to stay connected, discover what's going on, and to
share and express what matters to them, announced the acquisition of WhatsApp, a rapidly growing cross-platform mobile
messaging company with 500M active users, for an approximate $16Bn at the time of announcement. On March 25, Facebook
reported the acquisition of Oculus VR, the leader in immersive virtual reality technology, for an approximate $2Bn at the time of
announcement.
Facebook reported strong Q1 financial results and continued mobile traction. Total revenue grew 72% year-over-year, while
advertising revenue grew 82% year-over-year. Mobile revenue grew to 59% of total quarterly advertising revenue. Additionally,
Mobile MAUs grew to 1.0Bn, an increase of 34% year-over-year.
Lastly, CFO David Ebersman announced his planned departure, with David Wehner, current VP of Corporate Finance and
Business Planning, to take over on June 1, 2014. We are eternally grateful for David’s enormous contribution to the company over
the past five years, and wish him well in his next chapter.
Frost & Sullivan Awards Rapid7 2013 Global Vulnerability Management Market Penetration Leadership Award Boston, MA
February 18, 2014 – Frost & Sullivan has presented Rapid7, the leading provider of IT security risk analytics and insight software
and cloud solutions, with the Vulnerability Management Market Penetration Leadership award. After a careful survey and rigorous
research process, Frost & Sullivan determined that Rapid7's revenue grew at a faster rate from 2011 through 2013 than the other
vendors in the vulnerability management space. "Because Rapid7 has made significant investments to ensure that its offerings
reflect the dynamics of the industry, including the increase of mobility and cloud-based assets and application in networks, the
company's growth continues to exceed that of the total vulnerability management market,” said Chris Kissel, Frost & Sullivan
industry analyst.
Webroot Named as a ‘Visionary’ in Gartner Magic Quadrant for Endpoint Protection Platforms
Broomfield, CO
February 18, 2014 – Webroot, a leader in cloud-based security intelligence solutions, announced it has been named as a
‘Visionary’ in Gartner’s Magic Quadrant for Endpoint Protection Platforms. The annual vendor comparison recognized Webroot
SecureAnywhere Business – Endpoint Protection for its behavior-based threat detection and rollback functionality. Webroot also
received the highest Net Promoter scores of any vendor in the Magic Quadrant. This key metric reflects how likely a customer is to
recommend the company or its service to friends and colleagues.
Alarm.com and iControl Networks Settle Patent Disputes, Announce Cross-Licensing Agreement
McLean, VA
January 14, 2014 – Alarm.com and iControl Networks announced that they have settled and dismissed all patent infringement
lawsuits between the two companies, including litigation involving Telular Corp. and FrontPoint Security. As part of the agreement,
Alarm.com and iControl each retain all ownership and rights to their respective patents and have also expanded their respective
If you are interested in learning more about how we partner with great management teams or know of a business that
might interest us, please contact us at info@tcv.com or +1 (650) 614-8200.
CONTACT US
portfolios of licensed intellectual property via certain cross-licensing agreements.
PALO ALTO
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TEL: +1 (212) 808-0200
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This newsletter is intended solely for prospective portfolio companies and their agents regarding TCV’s potential financing capabilities, and is not an offer to sell to any person, or
solicitation from any person of any offer to buy, any securities. Certain information contained in this newsletter consists of portions of press releases issued by our portfolio companies.
Such information has not been independently verified by TCV, and TCV does not assume responsibility for the accuracy of such information. The portfolio companies described in this
newsletter are not a complete list of TCV’s investments; for a complete list of TCV investments (other than certain public company investments), visit us at www.tcv.com. ©2014