與創業者對話 ∣ A Series of TalksIntroduction to CyberAgentCatherine Chang / CyberAgent Ventures, VP4/25/13CyberAgent Ventures, Inc. 1
Who we are…CyberAgent Inc. is one of Japan’s leadinginternet services conglomerates.About us: 1998, established in Tokyo, Japan. 2000, IPO on Tokyo Stock Exchange (Mothers), 4751. Headquartered in Shibuya, Tokyo. 2,600 full-time employees.Products & Services: Internet advertising agency Internet media businesses Smartphone contents and services InvestmentCyberAgent Ventures, Inc. 2
3What we do…Based on the concept of “start small, develop big,” CyberAgent hasestablished and developed a wide network of group businesses from theground up, without any strategic M&As.Online Ad Mobile Ad/ MediaOnline MediaPC & Mobile GamesE-Commerce Finance and InvestmentSEM operation managementAd network and targeting adsSEOBuzz marketingPR AdsCelebrities’ promotionMobile Ad agencyReward adsAgency for national clientsWomen’s media adsBlog and virtual communityPrice comparison media“Groupon” serviceAvatar communityWedding information mediaOnline gamesMobile social appsSmartphone appsSmartphone apps Smartphone appsMobile social apps Smartphone apps and adsMen’s apparelForeign currency exchange Venture capital
44Highlights: Ameba Since launch in 2004 as a blogging service, Ameba has grown to become one ofthe largest diversified social media platforms in Japan, offering avatars and games. 20 million registered members, 30 billion monthly PV, more than 10,000 celebrity users.Blog serviceAvatar service 「Ameba Pigg」Monthly PV GrowthUsers communicate and socialize with their own avatarsin a virtual world.Mobile PVsPC PVs
6Highlight: Mobile Games CyberAgent Inc. and subsidiaries produce and operate 300+ unique mobiletitles, making us one of the largest mobile content providers in Japan. “Rage of Bahamut” leadingJapanese card battle gamedeveloped by CyberAgentsubsidiary Cygames, Inc.,ranked consistently on iOS topgrossing in numerous countries US$15 million revenue / month
CyberAgent Ventures, Inc. 11Alice has more than 15 years of VC experience inTaiwan and China, focusing on electronic,manufacturing, tech and IT, with a track record of 25+investments and 8 successful IPOs. Alice received herMBA in international business from University of Toledo.Alice joined CyberAgent Ventures in 2010.Catherine is a Bay Area native and UC Berkeley graduatewith a background in legal studies. She worked on severalprivate equity deals in Asia before joining CyberAgentVentures in 2011.Alice Fang /General ManagerCatherine Chang / VPLight Lin / AdviserLight is a serial entrepreneur and angel investor. While stilla student at Chiao Tong University, he co-foundedwretch.cc, which became the largest blogging service inTaiwan and was later acquired by Yahoo in 2007. His latestproject is Flying V, a Taiwan-based crowd-funding platform.
CyberAgent Ventures, Inc. 12Technology moves fast, so we don’t tryto do everything ourselves.Invest in local talent, leverage our know-how to grow leading internet businessesin emerging markets.Why we invest…
CyberAgent Ventures, Inc. 13 Identify emerging markets with growth potentialin the tech sector; Narrow down untapped segments and services; Seek out teams with local expertise andexecution ability; Work together to deploy proven business modelsin these markets.How we invest…
CyberAgent Ventures, Inc. 14Win me over as a user (first and foremost)!How we evaluate…Does your product… Fulfill a latent market demand? Show a clear competitive advantage?Is your team… Able to adjust quickly to market feedback? Cohesive and responsive?
CyberAgent Ventures, Inc. 15Japan’s largest recipesharing media 1.2 million recipes 15 million MAU 4% premium users (as% of MAU)Business model: Banner ads Tie-up ads Premium usersBusiness model reference: CookpadFinancials: US$40 million sales (FY2011) US$11 million net profit (FY2011) 60% of revenue comes from premium users
CyberAgent Ventures, Inc. 21Example 1: content / info portalFalse positives• High PV, but not translating to high conversions• Breakdown PV by channel and time of access, found that users were notaccessing the main channel with embedded affiliate links• Adjust content placement across channels, gradually direct users toaffiliate channelIncrease Click Rate• Change UI and placement of “buy” button on content with affiliate links• 30% increase in referral clicks in 1-month periodIncrease Conversion• User behavior analysis – push content to match user’s search history andneeds
CyberAgent Ventures, Inc. 22Takeaways: High PV is meaningless, because it was concentrated in the wrongplace. Unable to monetize this traffic. Could have executed ad-model, but overlooked more promisingaffiliate model. Attention to user needs and behavior and simple redesign offeatures and UI successfully drove PV to desired channel, andincreased click + conversion rates.Example 1: content / info portal
User AcquisitionNew Register user RemarkOrganic growth 1,350,000 X new users daily * X days * X monthsNew user from mobile 780,000 App services in iOS & Android to reach new users,New user integrating from other sites 850,000 FB Fans; Cross acquisition of potential new user and convert theminto register users through integration with other SNS and medias.New users contributing from newfeatures1,020,000 Conversion rate from visitor to new user is at X% when newfeatures launchingTotal 4,000,000CyberAgent Ventures, Inc. 24Example 2: SNS
Back to the basics, identify the team’s strong pointsCalmly, objectively analyze and pinpoint the user’smotivation, figure out where the service’s valueproposition truly liesDesign features and business model based uponthis core value propositionEstablish mutual trust with management teamCyberAgent Ventures, Inc. 27CAV’s value-add:
KPI:UUPOI with review coverageCyberAgent Ventures, Inc. 28iPeen.com.tw （愛評網）
29Annual Portfolio Conference Bring together all portfolio companies across regions, create uniqueopportunities for teams to establish business alliances. Share CyberAgent Group’s know-how in various areas. Discuss dataanalysis techniques， HR and organizational structure, and othermanagement issues.Incubation Events
CyberAgent Ventures, Inc. 30Social Application Conference (Jan 2010, Beijing) Introduce the trend of “open-social” in Japan to Chinese developers CyberAgent, Mixi, and DeNA participated in the conferenceSmartphone Applications Developers Conference (May 2011, Shenzhen) Introduce latest trends in smartphone apps in China, Japan and the US Sina/Tencent/Alibaba from China, and CyberAgent/DeNA from Japangave presentations with more than 400 Chinese developers inattendanceIncubation Events
CyberAgent Ventures, Inc. 31STARTUP BASE CAMP – CyberAgent Ventures’ Tokyo incubation center. 50+person co-working space, est. in Feb. 2012, largest of its kind in Japan.SBC provides access to mentor network of established IT/tech professionals in Japan,on-site HR/legal/accounting advice and pitch events in front of active investors.
CyberAgent Ventures, Inc. 32Incubation at CAV: Takeaways Not about hard “resources.” Tell it like it is. Identify problems and goals from an objective POV. Timing. Focus on one achievable crucial KPI givenfinancial restraints, and push to achieve within a short span of time. Work out growing pains. Leverage CA’s experience growing fromstartup to 2500+ employees, help portfolio manage org. structure,HR and other managerial issues. Trust is everything. KPI. Figure out what is most important at company’s current stage.