Ryan McCarthy Mobile Industry Vice President (415) 766-3864 (t) M1 Summit 2014 Wrap-Up (203) 984-9057 (m) [email protected] July 2014 M1 Summit 2014: Mobile is Becoming Ubiquitous The broad range of topics covered at the M1 Summit drove home the fact that the impact of mobile technology touches virtually every industry. American Express CEO Ken Chenault (right) speaks with Jessi Hempel (left, Fortune) in the opening keynote Attendees take networking breaks inbetween panels Both halls housing panels were packed throughout the conference M1 By the Numbers First and foremost, we would like to thank our sponsors and partners, without whom the event would not have been possible. The inaugural M1 Summit was a wildly successful and highly impactful event. Over 700 mobile industry leaders gathered together at the Grand Hyatt NYC during Internet Week to discuss the most important issues facing the mobile industry today. With 94 speakers leading 28 panel discussions, the event was jam packed with content. The rapidly changing landscape in the mobile industry, as well as strong recent investment and M&A activity in the space resulted in a highly charged atmosphere with many spirited discussions. Topics included mobile payments and commerce, mobile health, internet of things, education, mobile advertising, wearables, and many more. Each session was punctuated by thought-provoking questions from the audience and session moderators, as well as disruptive statements from the speakers. The day moved at a rapid clip, as attendees shuttled between panel discussions, and carved out time for networking and meetings. Panel Discussion and Fireside Chat Highlights Fireside Chat: "How American Express Has Embraced The Mobile Revolution to Become One of Its Leading Innovators" – (Ken Chenault – CEO, American Express) Interviewed by Jessi Hempel – Fortune Mobile is playing a growing role within ecommerce, as well as commerce more broadly. In addition, mobile technology is blurring the line between commerce and payments, and that is contributing to the convergence of online and offline commerce. With all of the change taking place in the ecosystem, plastic is here to stay. Companies like Uber have completely changed payments by making the experience frictionless and seamless, but they have done so without changing the infrastructure. However, in order to avoid being commoditized, companies must focus on the entire customer journey instead of simply processing payments. Companies should strive to become a trusted partner of their customers at each step in the decision making process. Analytics, Data & Engagement for Mobile Publishers Panel features: o Michael Katz – Founder & CEO, mParticle o Raj Aggarwal – Founder & CEO, Localytics o Mark Ghermezian – Founder & CEO, Appboy o Serge Kassardjian – Android Business Development, Google o Laura Marriott – CEO, Neomedia Technologies Moderated by Bo Yaghmaie – Partner, Cooley Profiling users on mobile devices is incredibly important, since there are no cookies on mobile devices. Fortunately, the data available on mobile devices is very different than the data available on PCs. On mobile devices, you have data on location, device type, and operating system that help you to profile users and offer a more customized experience. 1 Mobile Industry M1 Summit 2014 Wrap-Up Marketers can use this data to find specific opportunities to engage with consumers via notifications and messaging. Internet Advertising Research Health and Wellness Lives and Breathes on Mobile Ad:Tech SF 2012 Conference Wrap-up Panel features: o o o o o o Julia Winn – Associate Product Manager, Ginger.io Brian Wang – Founder & CEO, Fitocracy Ramin Bastani – Founder & CEO, Hula Tracy Dennis – Founder, Personal Zen Matt Harris – CEO, Archer Mobile Raj Amin – Executive Chairman & Co-Founder, Mana Health, CEO OysterLabs Moderated by Drake Baer – Business Insider Consumers’ emotional attachment to their phones is an enormous health opportunity. Health is a very intimate subject, and so are mobile devices. Mobile devices can measure data and provide feedback throughout the day, which can lead to changes in behavior. People that understand their health data make decisions that lead to healthier lifestyles. There is also a social aspect to health. People that are part of groups focused on health and fitness have extra incentives and accountability to be healthy. Mobile devices make is possible to be a part of a community even if community members are in different physical locations. Fireside Chat with AT&T and Esther Lee – SVP of Brand & Marketing, AT&T Co-hosts Nihal Mehta (Left, Eniac Ventures), Gary Moon (Right, Headwaters MB) with opening remarks Interviewed by Abbey Klaassen – Editor, Advertising Age Mobile is becoming a part of everyone’s job. There is not a single industry that is not being completely redefined by mobile technology. Many people were fearful of mobile technology initially, however, apps made things so simple and accessible that people really started becoming enthusiastic about technology again. That said, the mobile industry needs to do more to educate its audience, rather than riding the wave of unprecedented growth and assuming that change will happen by itself. At this point, people are both empowered and overwhelmed by mobile technology. Fireside Chat with Leading Venture Capitalist Mark Suster – Partner, UpFront Ventures Interviewed by Rachel Sklar – Founder & CEO, Change The Ratio A lot of companies that are out trying to raise capital say that they are “mobile first” but really they are “mobile only” since they are not doing anything outside of mobile. However, there are very few successful companies, outside of gaming, that are mobile only. Yet people sometimes forget that it is important to have another offering outside of mobile. The web is still really important. The Next Frontier of Mobile Advertising: Cross-Platform Panel features: o Are Traasdahl – Founder & CEO, Tapad o Kamakshi Sivaramakrishnan – Founder & CEO, Drawbridge o Stephanie Bauer Marshall – Precision Marketing Insights, Verizon o Steven Rosenblatt – Chief Revenue Officer, Foursquare o Tom Phillips – CEO, Dstillery Moderated by John McDermott – Digiday Mobile feels very chaotic to marketers. Marketers are overwhelmed with the industry vernacular, technology choices, and rapid pace of change. They are realizing that they need unified marketing solutions across all different devices. However, in order to effectively market to consumers across devices, standardization and measurement around accuracy and coverage of cross-identity are required. 2 Mobile Industry M1 Summit 2014 Wrap-Up Experiments in Mobile Education Panel features: Internet Advertising Research Our Sponsors Ad:Tech SF 2012 o Paul Gollash – Founder & CEO, Voxy o Dan Friedman – Founder, Thinkful Conference Wrap-up o Daniel Seltzer – Director, Center for Technology Innovation and Entrepreneurship at Mount Sinai Health System o Chris Conlin – VP, Software Development, 2U o Brad Hargreaves – Co-Founder, General Assembly Moderated by Peter Bell – Startup Technologist (CTO School, Pearson, Github, General Assembly) Mobile education is catching on much more in emerging markets than in developed markets. Mobile devices are a way to deliver curriculum in situations where people do not have access to laptops and computers. Phones are used for notifications since the display of content over phones is a challenge. However, tablets can display content in an effective way. Mobile can serve as a powerful tool for building community and engagement among online learners, since mobile devices let instructors reach students wherever they are. The Internet of Things (IoT) – Keynote by Omar Hamoui – Sequoia Capital As people understand that software and connectivity made their phones powerful and easy, they want everyday things like washing machines, security systems, sprinklers, and thermostats to have the same connectivity and/or technology. The consumer base no longer needs anyone to explain how the Internet of Things is going to work. They are already expecting it, and just waiting for companies to get there. For example, Nest’s thermostats were adopted quickly by consumers, who seemed to be waiting for the technology to arrive. Challenges of Mobile Monetization A conversation between Sriram Krishnan (Mobile Product, Facebook) & Brian Long (Founder & CEO, TapCommerce) Moderated by Angela Steele – CEO, Ansible What will matter in the future isn’t the number of app installs, but how much revenue is generated from the mobile channel. Currently, more than half of all internet usage is on mobile devices in the U.S., but less than 4% of digital ad spending is on mobile devices. The biggest obstacle that leads to such a disparity is measurement. Being able to track the efficacy of a program makes companies comfortable in moving more budget towards it. It is also challenging to execute well in mobile with the standard banner space. Native/full screen ads work ~2.5x better than small banner ads. Wearable Tech: The Next Fashion Frontier Panel features: o Jeanniey Mullen – Co-Founder, Ringblinz o Margaux Guerard – Co-Founder & CMO, MeMi o Claude Aldridge – Co-Founder & CEO, Trellie o Andrew Mitchell – Managing Partner, Brand Foundry Ventures o Deepa Sood – Founder & CEO, Cuff Moderated by Heidi Lehmann – Trellie Wearables are challenging because they are often considered fashion accessories. Fit and feel become a prerequisite to the actual technology. Wearables are a true extension of a person, which ties them closely to their personality, feelings, and emotions. Therefore, wearable technology must be focused on the marriage of an accessory to an invisible technology. 3 Mobile Industry M1 Summit 2014 Wrap-Up Internet Advertising Research Panel features: Mobility Making Your Life More Productive o Abe Geiger – Founder & CEO, ShakeLaw Our Partners Ad:Tech SF 2012 Conference Wrap-up o Joe Braidwood – CMO, Swiftkey o Raj Singh – Founder & CEO, Tempo AI o Sheetal Jaitly – Pivotal Labs Moderated by Kelly Hoey – Women Innovate Mobile There are two sides of people bringing their own devices to work. It can be a productivity killer as it can require a lot of logins and obstacles so that security is not compromised. It can enhance productivity by giving employees access to powerful apps on their devices. On the other hand, people are going to circumvent security anyway. It is important to recognize that there is a tradeoff between security and productivity, so IT must weigh the benefits against the risks when supporting mobile technology. Girls Who Code, On Mobile A conversation between Jocelyn Leavitt (Founder & CEO, Hopscotch) and Reshma Saujani (Founder & CEO, Girls Who Code) Moderated by Nitasha Tiku – Gawker Media Statistics show that the percentage of female computer science graduates is falling. In order to address this, computer science should be a compulsory subject that all students attend. Project based learning can also be helpful in attracting children to computer programming. This can help generate a competitive advantage. If the majority of the population is able to code, that country will have a huge edge in the global market. Mobile Marketing Transformation: 5 Ideas for the Industry with Shiv Singh - SVP of Brand & Marketing, Visa Mobile marketing presents many issues and challenges. Native advertisements today are like banner ads that pop up when a web page is being browsed. They are pesky advertisements that are harmful to the ecosystem. Mobile marketing and advertising are taking a lot of ideas from print and television advertising, and forcing them onto mobile. Instead, marketers should be thinking about how they can turn consumer behaviors on mobile devices into something meaningful for their brands. Build, Buy, Invest, and Partner with Startups: Open Innovation at Samsung with Sang Ahn, Managing Director Strategic Investments, Samsung Open Innovation Center The open innovation center looks into businesses of startups and adopts and improvises technology. Samsung Open Innovation Center is making seed investments of $0.5M $3M, and looking for technology that can be integrated into Samsung’s technology. Essentially, the Company is looking for a competitive advantage through its investments. xAd Reveals ‘Footprints’ xAd launched a new product called ‘Footprints’. Footprints allows companies to track where consumers are going within the physical world. This helps to bridge the gap between the online and physical world, and allows marketers to reach individuals with relevant messages at the right time. Pushing Mobile Advertising to be More Effective: Innovation in Targeting, Ad Units, Attribution Panel features: o Dipanshu Sharma – Founder & CEO, xAd o Eli Portnoy – General Manager, Thinknear 4 Mobile Industry M1 Summit 2014 Wrap-Up o Peter Hamilton – CEO, Mobile App Tracking [Hasoffers] o Eric Litman – Founder & CEO, Medialets o Mihael Mikek – Founder & CEO, Celtra o Jonah Goodhart – Founder & CEO, Moat Conference Wrap-up Moderated by Polly Lieberman – Drawbridge Mobile is highly interactive, so repurposing TV ads for mobile is not really innovative. There are many differences between mobile and traditional media that advertisers are starting to recognize. For example, location based mobile spending has grown from 10% to 67% in the past few years, which indicates that advertisers have realized the importance of location. Mobile has also created a flood of inventory, driving the need for programmatic buying. Internet Advertising Research Ad:Tech SF 2012 Everything You Need to Know about Connected Device Growth Strategies Panel features: o Tim Chang – Managing Director, Mayfield Fund o Nick Coronges – VP and Technology Partner, R/GA o Katherine Hague – CEO, Shoplocket [PCH] Moderated by Vijay Chattha – VSC PR Crowdfunding is having a major impact on connected devices. However, many companies that receive crowd funding will ultimately lose money. There is a funding gap for companies that receive crowd funding. In order to address this gap, there will need to be a new player like Kickstarter that helps companies post-launch, so that long term companies can be built instead of blips. Mobile Fireside Chat with the Investor Behind AdMob, MoPub, Swiftkey, Rovio, Hasoffers & More: Rich Wong – Accel Interviewed by Spencer Ante – Senior Special Writer, The Wall Street Journal Technology companies like Apple and Google are putting a lot of pressure on startups. The most innovative technological leaders are now being acquired before they have a chance to go public. There are some valuation pressures on mobile startups, but valuations for companies with big ideas are not coming down. There is a lot of strategic value in companies that are able to build valuable pieces of technology. Mobile Discovery: Beyond the Search Box with Matt Wallaert – Bing (Microsoft) If you look at searches on mobile devices, they are far more task and action oriented than searches on desktops and tablets. When people want to access the internet from a desktop or laptop, they use search engines. When people want to access the internet on a mobile device, they use apps. Discovery on mobile devices is an interesting issue, since there are millions of apps available. People often download apps, without knowing exactly what they do. As a result, they end up using the app only once. Mobile Apps with (Hundreds of) Millions of Users & How They Did It Panel features: o Jason Jacobs – Founder & CEO, Runkeeper o Justin McLeod – Founder & CEO, Hinge o Dinesh Moorjani – EIR Warburg Pincus; Co-Founder, Tinder o Ari Roisman – Founder & CEO, Glide o Angela Kim – Co-Founder, Memoir o Michele Tobin – VP Global Brand Partnerships & Advertising, Rovio Moderated by Megan Rose Dickey – Business Insider It can be very difficult for apps to build a user base. Early leaders will consistently show up on lists of top apps, which helps them to procure a larger user base. In the age of growing competition, it is important to be relevant to a large number of users and provide enough value to be on the priority list of mobile apps. With apps, it’s not about the number of 5 Mobile Industry M1 Summit 2014 Wrap-Up features that you can pack in, it’s about doing something well. This is why you are seeing companies like Foursquare and Facebook unbundle their apps. Internet Advertising Research What Mobile Trends are VC's Looking For? Ad:Tech SF 2012 Conference Wrap-up Panel features: o Michael Neril – Managing Director, Webb Investment Network o Hadley Harris – Founding General Partner, Eniac Ventures o Satya Patel – General Partner, Homebrew o Alex Iskold – Managing Director, Techstars NYC o Spencer Lazar – Principal, General Catalyst Partners Moderated by Erin Griffith – Fortune Direct to consumer mobile companies are overvalued and overhyped right now. In particular, there are a number of players going after the food delivery market. There has also been an explosion in hardware startups thanks to crowd funding, but it will be hard for these companies to scale after the campaign. In contrast, there is a huge opportunity in the enterprise and logistics space. As employee bases become more fragmented, with more people working from home, enterprises will shift from desktop apps to mobile apps. Fireside Chat with David Kenny – CEO, The Weather Company Interviewed by David Kirkpatrick – Author of the Facebook Effect; Chief Techonomist at Techonomy Media The Weather Company’s mobile app represents the Company’s growth driver. Mobile has become a larger channel than the web, and will become larger than TV as well. No other media has ever been able to solve the local challenge except mobile. This allows for much more personalized, relevant data. In addition to being an important channel, Mobile allows the Company to get more precise forecasts, because devices can both take in data and publish data. Fireside Chat: Mobile Video with Zain Jaffer – CEO, Vungle Interviewed by Anthony Ha – TechCrunch Advertising has not evolved at the same pace as technology. The range of different devices, different connections, different screen sizes, and different platforms makes video advertising on mobile devices very challenging. However, video is the most important type of mobile advertising. In order to do video advertising well, advertisers must be focused on the user experience. For example, capping video ads at 15 seconds is the ideal amount of time to get information out without being too annoying for users. Presentation by Gil Elbaz – Founder & CEO, Factual Global smartphone penetration is at 22%, and what’s interesting is all of the data being streamed. Mobile devices have become sensor platforms, with GPS location being one of the major data points being tracked. This data allows publishers and app developers to make personalized, contextually relevant search result ads and apps. As a result the data rich companies are getting richer. 8 out of the top 15 mobile apps are owned by Facebook or Google. Similarly 69% of mobile ad revenues are going through the Facebook and Google ad networks. Factual is working on making data available to the whole developer community, allowing them to build rich user profiles based on machine learning and predictive analytics. “App Discovery and The Marketer's New Clothes: Rankings, Advertising & Keywords” by Marcos Sanchez – VP of Global Corporate Communications, App Annie The app ecosystem is a global ecosystem. If you want to play in the global ecosystem, you need to understand that not all markets are the same. For example, Google Play has taken 6 Mobile Industry M1 Summit 2014 Wrap-Up off in Asia since Android has a stronghold there. In addition, there are cultural differences in Asia, where users are much more willing to spend money through mobile devices. Marketers today must track and measure these differences across markets. As a result, marketers need to be analysts as much as they need to be creative. Conference Wrap-up Internet Advertising Research Ad:Tech SF 2012 Mobile Advertising Accelerates to Embrace Programmatic Panel features: o Janae McDonough – Director Exchange, Twitter o Ernie Cormier – Founder & CEO, Nexage o Craig Palli – CSO, Fiksu o Mike Baker – Founder & CEO, DataXu o Bob Walczak – GM, Mobile & Video, PubMatic Moderated by Brandon Berger – Chief Digital Officer, Ogilvy & Mather Worldwide Mobile devices are a marketer’s dream come true, since push notifications can be triggered by geo fending, time of day, and habitual nature. Yet there are several criteria that must be met for mobile ads to be successful as a marketing tool. Rich media, video, and engaging content can all help make a mobile banner ad successful. In addition, ads based on location are much more likely to be successful, and less annoying than other ads, since they are actually based on what the consumer is doing. Mobile Commerce and Payments: Early but Exponential Usage Panel features: o Chieh Huang – Founder & CEO, Boxed o Mung Ki Woo – Executive Vice President, Digital Platforms, MasterCard o Soraya Darabi – Founder, Zady o Teppo Paavola – VP BD & M&A, Paypal Moderated by Moderated by Seema Mody – CNBC In the global payment market ~85% of payments are made with cash or plastic. Right now, online transactions are about 10% of retail in the U.S., and within online, mobile is around 10-15%. This presents a massive opportunity for mobile payments companies. There are a number for ways that mobile technology can add value in the payments ecosystem. For example, there is potential for mobile payments to reduce fraud through biometric fingerprint scanning. Mobile Moments and the Future of Brand Engagement – Brian Wong, Founder & CEO, Kiip Brands need to be cautious about slamming consumers with constant ads, and one way to do this is through serendipitous rewards. By surprising and delighting consumers within games or fitness apps, brands have an opportunity to generate significant goodwill. The mobile experience is a series of moments, and understanding how to add value to those moments is the core concept in mobile advertising. Time, location, and usage data provided by mobile devices allow marketers to reach consumers with the right message at the right time. 7 Mobile Industry M1 Summit 2014 Wrap-Up About Headwaters MB Headwaters MB is an independently owned investment banking and advisory firm. Headwaters has completed over $7 billion of middle market deals, and has 60+ professionals with over $227 billion of deal experience. Headwaters has a national office footprint in the United States, headquartered in Denver, CO, with additional offices in Boise, ID; Burlington, VT; Greenwich, CT; Newport Beach, CA; and San Francisco, CA. Headwaters has a significant international track record, and has local advisory partners in 30 countries, providing our clients with a global reach. Over 20% of Headwaters’ revenue is generated from cross-border transactions. The firm has an established reputation as a quality service provider and trusted long-term advisor to clients with a history of process and transaction excellence. The Headwaters TMT Team Gary Moon John Batdorf Sun Jen Yung Managing Director Head of Technology, Media, and Telecom (415) 766-3862 (office) (650) 515-8734 (mobile) [email protected] Managing Director Head of Software and Internet (415) 926-7454 (office) (415) 847-8805 (mobile) [email protected] Managing Director Head of Digital Media and Internet (917) 297-8716 (mobile) [email protected] Ryan McCarthy Vice President (415) 766-3864 (office) (203) 984-9057 (mobile) [email protected] Deep personal experience completing transactions for companies in the mobile space 8 Mobile Industry M1 Summit 2014 Wrap-Up Appendix: Sample Attendee List Attendee David Skinner Konstantin Zsigo Stephanie Schnabel Corentin Lauret Vikram Viswanathan Matt Shaw Nitasha Mehta Christopher Mahdik Tatyan Zlotsky Tommy Vincent Neil Zamore Tiffiny Vandom Karem Weston Gaddy Charles Smart Greg Smithies Suzanne Skop Shaz Amin Amit Murumkar Dominic Joseph Eduardo Cisneros Rick Prostko Sam Landman Erin Barry Parker Morse Kelly Megel Matan Talmi Curt Raffi Dan Bishop Brad Friedman Brian Linthicum Christian Bendixen Paul Holland Steven Rosenblatt Mark Friedman Alok Rai Jared Zlotnick Jeremy Woodlee Peter Hamilton Darcy Bentley Frisch Brian Sirgutz Carolina Gomes-Casseres Company [x+1] [x+1] Accenture Adcade Adobe Airpush Amazon American Express American Express App Annie Avis Budget Group Bacardi Bain Capital Ventures Battery Ventures Battery Ventures Bazaarvoice Blue Track Media Canvsly LLC Captify Cisneros Corp. Comcast Ventures Comcast Ventures CNBC Demand Media Discover Drippler Endurance International Group Experian FanServ Flipix Fliqq Foundation Capital Foursquare Genesys Goguly Google Google HasOffers Hearst Interactive Media Huffington Post Huffington Post Title SVP, Corporate Development President, Mobile Managing Director, Corporate Development CEO & founder Director, Corporate Development Chief Revenue Officer Promotions Manager, Galaxy Tab Marketing Vice President, Engagement Marketing Vice President, Digital Marketing and Innovation Manager, Business Development VP, Consumer Marketing Director Marketing Principal Associate Associate VP, Sales & Strategic Partnerships Founder & CEO Founder & CEO CEO CEO Principal Principal Producer, Special Units VP, Platform Revenue Sr. Manager, Marketing Communications CEO VP, Mobile Engagement Director, Mobile, Social & Emerging Media Acquisition CEO Founder and CEO Founder/CEO General Partner Chief Revenue Officer SVP & GM, Mobile Marketing CEO Global Product and Sales Strategy, Mobile Ad Platforms Head of Sales, DoubleClick Media Platforms CEO Vice President of Strategic Investments SVP - Social Impact Director of Ad Products 9 Mobile Industry M1 Summit 2014 Wrap-Up Attendee Kristina Bergman Richard Jones Ben Jorgensen Sudhir Chadaga Aaron Reitkopf Kimberly Yarnell Manas Vongsouvanh Adam Broitman Michael Donnelly Vishal Manjalani Richard Glassberg Laura Trumbull David Williams Peter MacDonald Stefan Weitz Mari Balaguer Thomas Karren Priya Nevrekar Henry Li Jennifer Isabella Ric Fulop Fahad Khan John Caine Karen Tepper Richard Titus Evan Adlman Bob Walczak Harry DeMott Jeremy Geiger Tiff Willson Julie Ginches Mark Ryan Paul Capriolo Steve Murray Daniel Gallagher Becca Weigman Stephen Stuut Jim Payne Company Ignition Partners InMobi Klick Push Lenovo Lowe Profero Macy’s Macy's Mastercard Mastercard MEDIA.NET Medialets Meredith Merkle Microsoft Microsoft Mobixi Moki NBC Universal Neustar Nexage North Bridge One Public Priceline.com Priceline.com Prompt.ly PubMatic PubMatic Raptor Ventures Retailigence RoomHints Rubicon Project Snakk Media Social Ingot SoftBank Capital Soleo Communications TM Advertising TruePosition Twitter Ana Ceppi Univision Josh Cella Suzette Tiongson Josh Epstein Kristin Frank Gretchen Effgen Univision Verizon Viacom Viacom Media Networks Zipcar Title Principal Head of Marketing North America CEO & Founder Director, Business development CEO Americas VP, Digital Media Director, Digital Media VP, Global Digital Marketing SVP and Group Head, Global Digital Marketing CTO COO VP, Marketing Applications Technology Chairman & CEO Sr. Director, Business Development Director, Bing Search CEO CEO Director Business Development Director of Business Development CRO & EVP Business Development General Partner CEO Chief Product Officer VP, Mobile Product CEO VP, Publisher Development GM, Mobile and Video General Partner CEO CEO CMO CEO CEO Partner President & CEO CEO CEO VP, Exchange VP, Business Development, HealthCare and Financial Services SVP, Digital Media Sales Associate Director, Product Management SVP Corporate Strategy EVP Connected Content Vice President 10 Mobile Industry M1 Summit 2014 Wrap-Up Disclosure: This newsletter is a periodic compilation of certain economic and corporate information, as well as completed and announced merger and acquisition activity. Information contained in this newsletter should not be construed as a recommendation to sell or buy any security. Any reference to or omission of any reference to any company in this newsletter should not be construed as a recommendation to buy, sell or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this newsletter. The newsletter is published solely for the general information of clients and friends of Headwaters MB, LLC. It does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Certain transactions, including those involving early stage companies, give rise to substantial risk and are not suitable for all investors. This newsletter is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known and unknown risks, and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this newsletter. Opinions expressed are our present opinions only and are subject to change without notice. Additional information is available upon request. The companies mentioned in this newsletter may be clients of Headwaters MB, LLC. The decisions to include any company in this newsletter is unrelated in all respects to any service that Headwaters MB, LLC may provide to such company. This newsletter may not be copied or reproduced in any form, or redistributed without the prior written consent of Headwaters MB, LLC. The information contained herein should not be construed as legal advice. 11
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