Chris	
  Evdemon	
  (             )!
Investments	
  &	
  Business	
  Development	
  Manager!


November	
  2009	
  




  ...
Overview of Chinese Internet Users

                                        Millions of Chinese Internet Users
           ...
Differences in User Demographics




    Average age in China: 25       Average age in the U.S.: 42


        % of new use...
Waves in the Chinese Internet

                                         Technology companies
                             ...
New “Homegrown” Entrepreneurs
                   (Binhao Chen)        !                 (Alan Guo)      !
            •   ...
Three Major Future Opportunities




                                              e-Commerce!




                       ...
Great Potential of Chinese e-Commerce

                                                                                   ...
e-Commerce Accelerates Advertising	




Data Source: IAB & eMarketer
Future of e-Commerce in China
Mobile Internet Has Arrived

   Millions of Chinese Mobile Internet Users



                                     155




...
Powerful, Affordable Devices & Modern UI
Evolution of Mobile Internet




     News              Entertainment & SNS   Utilities & e-Commerce
An Ecosystem of Mobile Opportunity
                                        OEMs/ODMs	
  




          SoQware	
  &	
  Ser...
Cloud Computing - A “New Software” Industry



                       SoQware	
  installa9on	
  /	
  upgrading	
  shiQing	...
Future of Cloud Computing




 Google	
  App	
  Engine!   Amazon	
  Cloud!           Calendar!                      ERP	
 ...
New Gaming Industry




In	
  1998,	
  sales	
  of	
  gaming	
  soQware	
  were	
  
       only	
  about	
  $10	
  million...
Incubation / Angel Funds in U.S. & China




                                                          Angel	
  Funds	
  i...
What can Angel Investors do?

                               Mike Markkula:!
                               •  Ex-Intel ma...
“Innovation Works” Model




                            Innova9on	
  
                              Works	
  




       ...
Project Development Lifetime

                                       Official	
  Project!     Independent	
  En9ty	
  
   Pr...
Portfolio Company Financing

          Innova9on	
  Works	
  has	
  a	
  $100m	
  fund	
  commieed	
  to	
  funding	
  the...
Project Development Plan
 2010Q1   2010Q2         2010Q3    2010Q4   2011Q1          2011Q2   2011Q3      2011Q4




     ...
Thank You!               !
Find this presentation at:
http://www.slideshare.net/evdemon

and connect at:
http://t.sina.com...
Introduction to Innovation Works
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Introduction to Innovation Works

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An brief introduction to the current business opportunities in the e-commerce, mobile internet and cloud computing space in China and how Innovation Works can help entrepreneurs who want to startup projects in these areas.

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Transcript of "Introduction to Innovation Works"

  1. 1. Chris  Evdemon  ( )! Investments  &  Business  Development  Manager! November  2009   1 Innovation Works Confidential and Proprietary
  2. 2. Overview of Chinese Internet Users Millions of Chinese Internet Users ( : )! 338 Data Source: CNNIC, iResearch & Pew Internet
  3. 3. Differences in User Demographics Average age in China: 25 Average age in the U.S.: 42 % of new users each year: China 25% - U.S. 3%
  4. 4. Waves in the Chinese Internet Technology companies Baidu, Tencent, Shanda Web portals in late rose from the ashes of 1990’s created the dot-com bust . first boom. We anticipate a recovery in 2010, building base for an explosive third wave which will be propelled by e- commerce, Mobile Internet, Cloud Computing and globalization. First Wave Second Wave Third Wave Mature Market Sina $1.81B! Baidu $12.2B! Sohu $2.39B! Shanda $3.23B! Valua9on  of   Listed  Companies   NetEase $5.50B! Giant $1.78B! Tencent $24.1B! Perfect World $1.89B!
  5. 5. New “Homegrown” Entrepreneurs (Binhao Chen) ! (Alan Guo) ! •  CEO, kaixin001.com! •  CEO, lightinthebox.com! •  SINA 1998 2008! •  Google 2005 2008! (Jianguo Liu) ! (Victor Koo) ! •  CEO, aibang.com! •  CEO, youku.com! •  Baidu 2000 2007! •  Sohu 1999 2005! (Haibing Wang) ! (Diane Wang) ! •  CEO, 51mole.com! •  CEO, DHGate.com! •  Tencent 2004 2007! •  Microsoft 1993 1999! (Nian Chen) ! (Sunny Liu) ! •  CEO, Vancl.com! •  CEO, 51wan.com! •  Joyo 2000 2005! •  Kingsoft 2001 2006!
  6. 6. Three Major Future Opportunities e-Commerce! Mobile Internet! Cloud Computing!
  7. 7. Great Potential of Chinese e-Commerce 2008 Per-capita Online Shopping Amount USA! $1,059! CHN! $63! Internet  penetra9on   Mone9za9on  of   in  China  is  just  about   Chinese  Internet  is   1/3  that  of  the  US   1/16  that  of  the  US   50x  poten9al     Data Source: CNNIC, iResearch & eMarketer
  8. 8. e-Commerce Accelerates Advertising Data Source: IAB & eMarketer
  9. 9. Future of e-Commerce in China
  10. 10. Mobile Internet Has Arrived Millions of Chinese Mobile Internet Users 155 In 2009 3G licenses were issued to: •  CMCC (TDS-CDMA) •  CUTC (WCDMA) •  CT (CDMA2000) Data Source: CNNIC
  11. 11. Powerful, Affordable Devices & Modern UI
  12. 12. Evolution of Mobile Internet News Entertainment & SNS Utilities & e-Commerce
  13. 13. An Ecosystem of Mobile Opportunity OEMs/ODMs   SoQware  &  Services! Devices  &  Hardware   Users   Ads   Users  
  14. 14. Cloud Computing - A “New Software” Industry SoQware  installa9on  /  upgrading  shiQing   from  the  user  to  the  cloud.! Business  model  shiQing  from  expensive   upgrades  to  ads-­‐sponsored.! IT  management  shiQing  from  end-­‐user  to   cloud-­‐services.!
  15. 15. Future of Cloud Computing Google  App  Engine! Amazon  Cloud! Calendar! ERP  &  CRM! Online  Gaming! Finance  /  Banking! Blogging  /  IM  /   Email!
  16. 16. New Gaming Industry In  1998,  sales  of  gaming  soQware  were   only  about  $10  million  in  China.! Online  gaming  is  now  a  $20  billion   industry.!
  17. 17. Incubation / Angel Funds in U.S. & China Angel  Funds  in  U.S.   $28.0   Billion   Avg.  Investment  Size $300K! $19.2   260K  Ac9ve  Investors! Billion   Incuba9on  /  Angel  Funds! Venture  Capital! Success  Exit! ? Angel  Funds  in  China   $7.3   Billion   S9ll  at  an  early  stage  
  18. 18. What can Angel Investors do? Mike Markkula:! •  Ex-Intel manager •  Invested $92,000 •  Secured a bank loan of $250,000! •  Brought his business expertise •  Brought in Apple's first president Andy Bechtolsheim:! •  Co-founded Sun Microsystems •  Wrote a cheque ($100,000) to "Google Inc." prior to the company even being founded
  19. 19. “Innovation Works” Model Innova9on   Works   “Google 20%” model + “Idealab” model + Localization for China Select the best ideas, entrepreneurs and engineers, and combine Idea Selection them optimally into start-up “dream teams”.
  20. 20. Project Development Lifetime Official  Project! Independent  En9ty   Project  Ini9a9ve   Project  Ini9a9ve   Successful  Exit! 0 - 6 months 6 - 12 months Incubator Incubator Fund & Fund •  Seed  /  Angel  funding   •  Back-­‐office  support   •  Entrepreneur  coaching   •  Top-­‐engineer  recrui9ng   •  Shared  LAMP-­‐based  pladorm     •  Follow-­‐up  funding  
  21. 21. Portfolio Company Financing Innova9on  Works  has  a  $100m  fund  commieed  to  funding  the  start-­‐ups     that  come  out  of  the  Incubator.   Portfolio Company Founding / IW Incubator Founders Seed Stage Angel IW Incubator & Fund Stage Series A IW Incubator IW Fund Other VC Founders
  22. 22. Project Development Plan 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 ...…. Formation / Seed Stage Angel Funding Series A Funding
  23. 23. Thank You! ! Find this presentation at: http://www.slideshare.net/evdemon and connect at: http://t.sina.com.cn/1648204271

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