Finalleweb londonjune2013-130609075343-phpapp02 (2)

243 views
170 views

Published on

Published in: Technology, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
243
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Finalleweb londonjune2013-130609075343-phpapp02 (2)

  1. 1. The Sharing Economy Mark Suster @msuster LeWeb London, June 2013
  2. 2. What new can a VC really tell you? 1 After 2 days of the sharing economy
  3. 3. 2 I thought I’d give some context to  Why sharing / collaborative consumption?  Why now?  What next?
  4. 4. Prices 3 Network Drivers of our Future World Economics  Un / under- employment  Debt  Globalization  Scarce Resources  Transparency  Demographic Shifts
  5. 5. 1. Prices 4
  6. 6. 5 The common theme of the biggest Internet successes has been “deflation”
  7. 7. 6 Biggest Internet players “disrupted” incumbents on price
  8. 8. 7 Disruptive Technologies are 2 Less Functionality / Performance 3 Lower Margins See “Innovator’s Dilemma - Clayton Christensen 1 Significantly Lower Prices
  9. 9. 8 Disruptive companies offer LESS functionality & compete with “non consumption” See: http://www.bothsidesofthetable.com/2011/12/22/the-amazing-power-of-deflationary-economics-for-startups/
  10. 10. It’s why the TV industry still can’t get its head around 9  1 billion monthly uniques  4 billion hours  > 150 videos watched / year for every human
  11. 11. 10  3.4 billion video views / month  > 25,000 video creators  250 million subscribers  80% audience 13-34  40% mobile
  12. 12. 2. Network 11
  13. 13. Of course we now know that 1/3rd of world is now online 12Sources: U.S. Bureau of the Census, World Bank 44 411 1,019 2,019 2,291 1995 2000 2005 2010 2012 World Internet users (M)
  14. 14. 13 And per Mary Meeker’s slides we know the audience (& opportunity) is now global
  15. 15. 14 In just 4 years 71% of the world’s literate population will have a smart phone Source: Benedict Evans (http://www.slideshare.net/bge20/2013-05-bea)
  16. 16. 15 Incumbents simply find it too hard give up juicy margins NetworkPrices / Margin Startups should focus on non-consumption & they will find it hard to compete
  17. 17. 16 3. Economics
  18. 18. 17 Student debt in US along = $1 trillion. $100 million new / year. 2x rate of 10 years ago.
  19. 19. 18Source: the Atlantic: http://www.theatlantic.com/business/archive/2012/10/europes-most-tragic-graph-greek-youth-unemployment-hits-55/263118/ We are risking an entire generation who don’t get on the career ladder
  20. 20. 19 The sharing economy isn’t new. It’s just more urgent  Un / under-employment  Debt  Globalization  Scarce Resources  Transparency  Demographics And it’s not going away
  21. 21. 20 Trade Guilds Wage Protection / Limited Supply Top down organization struggling to keep up with innovation or needs of the people Universities High-Paid Jobs Government Taxation, Cu rrency
  22. 22. When governments can no longer properly look after their people, people will look for themselves Capitalism. 21
  23. 23. In the past forced migrations were the only answer * 22 Increasingly IT- enabled people can tap into global demand networks * We are of course seeing a world of digital have’s and have-not’s. Mobile phones bridge this gap. Who will develop services for the worlds poorest?
  24. 24. 23 Thomas Friedman said it best some of world’s most talented people live in economies that can’t pay them a “global market price”
  25. 25. The sharing economy will have new “market-makers” Will they all be benevolent in the future? Market forces, transparency & new disruptions must keep them in check 24
  26. 26. 25 Radio. Television. Telephony. Twitter. It’s the natural extension to a global, transparent world. Open = empowered. But also aware. And disenfranchised.
  27. 27. Of course all of this open data can be mined in real time. For business. And government. For marketplaces this can help with trust, authority, safety, marketing, & planning. Note: I’m a proud investor in DataSift
  28. 28. 27 1. THE ECONOMICS OF “GLOBAL”
  29. 29. Comparatively richer countries want to tap into enormous pool of intelligent resources in countries with lower wages 28
  30. 30. Some of the world’s most talented film maker’s can’t just relocate to Los Angeles 29
  31. 31. 30 Artists struggling to earn a global wage suddenly find demand at higher prices  30 million registered users  65 million month uniques  2.5 billion monthly page views
  32. 32. 31 2. EMPOWERING THE UNDER-EMPLOYED
  33. 33. With large underemployment people can earn extra $$ staying at home, while satisfying demand to avoid kennels. 32
  34. 34. And this is true of many of the peer-to-peer marketplaces. 33
  35. 35. 34 3. MOVE FROM HIERARCHIC TO FLAT STRUCTURES
  36. 36. 35 Lending Club now so widely accepted even used by hedge funds to invest directly in consumer loans
  37. 37. 36 And of course startups can now more easily tap into pools of angel investors directly
  38. 38. 37 3. REMOVING PHYSICAL BOUNDARIES
  39. 39. By removing physical boundaries you create win-win opportunities for both instructors & students 38 Example Industries:  Education  Music Lessons  Personal Trainers  Psychologists
  40. 40. 39 4. EFFICIENCY GAINS IN EXISTING MARKETS
  41. 41. Many of these markets exist, the Internet is just making them much more efficient 40
  42. 42. So What’s Next? 41
  43. 43. 42 HELPING BUSINESSES TAP INTO PEER NETWORKS
  44. 44. Entrepreneurs often start with consumer ideas. Helping enterprise tap into peer networks may prove even larger 43
  45. 45. 44 Recap – in a world of economic challenges & large networks … the “sharing economy” will thrive. Will you find your place in it?
  46. 46. The Sharing Economy Thank you! Mark Suster - @msuster LeWeb, June 2013

×