Stanford EE402T 2012: Hong Kong Startup & Funding Between Hong Kong and US

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Stanford EE402T 2012: Hong Kong Startup & Funding Between Hong Kong and US

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  • Stanford EE402T 2012: Hong Kong Startup & Funding Between Hong Kong and US

    1. 1. Stanford University US-Asia Technology Management Center School of EngineeringEE402T Entrepreneurship in Asian High Tech IndustriesHong Kong Startup and Investment Funding Between Hong Kong and US Part 1 香 Bess Ho Founding Partner of Archimedes Labs Spring 2012 @Stanford 港
    2. 2. Hong Kong
    3. 3. Hong 香 = FragrantKong 港 = Harbor
    4. 4. Official Language• English • British English (Written) • Hong Kong English (Verbal)• Chinese - • Traditional Chinese (Written) • Cantonese (Verbal)Hong Kong
    5. 5. Language• Hong Kong English 港式英語• British English• American English Hong = Fragrant Kong = Harbor
    6. 6. • Before 1842 The name Hong Kong is referred to Aberdeen Harbor - between the Aberdeen Island and the south side of Hong Kong Island.• This small inlet, Aberdeen Harbor, is nick named as “Little Hong Kong”.• First points of contact between British sailors and local fisherman. Hong Kong
    7. 7. Nick NamePearl of the Orient (東方之珠)
    8. 8. Hong KongChina
    9. 9. China Hong Kong
    10. 10. Hong Kong 香港
    11. 11. Hong Kong • China • Macau 香港 • Hong Kong • Taiwan • Philippines • Malaysia • Brunei • Indonesia • Singapore • Vietnam
    12. 12. Hong Kong 香港South China Sea• One-third of the world’s shipping transiting through its water• Hold huge oil and gas reserves beneath its seabed.
    13. 13. China中國 Hong Kong 香港 South China Sea 南中國海
    14. 14. Hong Kong 香港
    15. 15. Hong Kong 香港 • The New Territories (9 Districts) • Kowloon (5 Districts) • Hong Kong Island (4 Districts)
    16. 16. Hong Kong Macau 香港 澳門 • Hong Kong & Macau are two Special Administrative Regions (SARs) of People’s Republic of China (PRC) 中華人民共和國香港特別行政區 中華人民共和國澳門特別行政區
    17. 17. Macau Hong Kong 香港
    18. 18. Macau 澳門Population: 435,235
    19. 19. Hong Kong 香港 Population: 7,061,200
    20. 20. Hong Kong• Land: 426 sq. miles• Population: 7 Million• British Empire Colony after First Opium War since 1839• British Hong Kong - Crown Colony British dependent territory under British Administration from 1841 to 1997• Return to China in 1997
    21. 21. Hong Kong SF Bay Area China including Silicon Valley• Land: 426 sq. mi • Land: 3,524 sq. mi• Population: 7 Million • Population: 7 Million
    22. 22. • Imperial (221 BC -1800s) - Qin Dynasty• British Hong Kong • Colonial (1800s-1930s) • Occupied (1940s) - 3 years 8 months • Modern Hong Kong (1950s-1997) • Hong Kong SAR (Present)HK History Timeline
    23. 23. • British Hong Kong Before 1997• Old Hong Kong Web 2.0 Era 2004-2008• New Hong Kong Post PC Era After 2008 HK Startup Timeline
    24. 24. British Hong Kong Before 1997
    25. 25. Most Admirable Founder • Richest man in Asia (Bill Gates in Asia) • 9th richest man in the world (US$25 Billions) • Assets in15% of Ka-shing Li HKSE 李嘉誠
    26. 26. His Family • His Son Richard Li is Stanford Drop out studyingRichard Li Computer 李澤楷 Engineering
    27. 27. Founder Celebrity • Martial Artist • Follow Bruce Lee • Action-Film Star in Asia • Hollywood Movie StarJackie Chan • Series 成龍 Entrepreneur
    28. 28. Old Hong Kong After 1997
    29. 29. TOM Online• Chinese version of Skype. Online Advertising. Wireless Internet.• TOM group is controlled by Li Ka Shing.• TOM.com (HKG:2383) listed on Hong Kong Stock Exchange via Growth Enterprise Market HKGEM in 2000.• Listed on NASDAQ in 2004.
    30. 30. SuneVision 新意網集團有限公司• SUNeVision (HKG:8008) listed on Hong Kong Stock Exchange via Growth Enterprise Market (HKGEM) in 2000.• IPO priced at HK$10.38 per price• IT company under Sun Hung Kai properties, largest property developers. Internet services, security surveillance system, etc.
    31. 31. • Alibaba.com • Google.com $1.7 Billion IPO $1.67 Billion IPO in Hong Kong on NASDAQ in Stock Exchange 2004 (HKSE) in 2007
    32. 32. Alibaba 阿里巴巴網絡有限公司• World largest online Business-to-Business (B2B) trading platform for small businesses.• Founded by Jack Ma and 18 people in 1999.• Tony Yiu, Hong Kong co-founder, once CIO• Biggest IPO by a Chinese Internet Company.• Underwritten by Deutsche Bank AG, Goldman Sachs Group Inc. and Morgan Stanley.
    33. 33. Alibaba 阿里巴巴網絡有限公司• IPO raised HK$13.1 Million (US $1.7 Million). Priced at HK$13.5 in 2007• Sold 858.9 Million Shares ~17%• Company valuation HK$8.8 Billion
    34. 34. Belle International Holdings Limited 百丽国际控股有限公司 • No.1 women’s shoe retailer in China • Founded by Deng Yao in 1981 in Shenzhen, Guangdong Province. • IPO raised HK$1.1 Billion on HKSE in 2007
    35. 35. • Chinese version of Skype. Online Advertising. Wireless Internet.• TOM group is controlled by Li Ka Shing.• TOM.com (HKG:2383) listed on Hong Kong Stock Exchange via Growth Enterprise Market HKGEM in 2000.• Listed on NASDAQ in 2004.
    36. 36. New Hong KongPost PC Era 2008-Present
    37. 37. According to Business Weeksreport in 2011, HK topped theWorld Economic Forums 2011index of financial marketdevelopment, supplanting U.S. andU.K. from the highest rankings forthe first time. HK jumped fromfourth making it the first Asianfinancial center to lead the 60-country index, helped by IPOs andinsurance.
    38. 38. Startup Funding Process Micro Seed Angel VCFunding Funding Funding FundingMerger / Acquisition Initial Public Offering (M&A) (IPO)
    39. 39. Successful Startup Micro Seed Angel VCFunding Funding Funding FundingMerger / Acquisition Initial Public Offering (M&A) (IPO)
    40. 40. Successful HK Startup • No.1 in Asia Smart Card supplier • Top 3 in PC- linked smart card reader
    41. 41. Advance Card Systems (ACS) • Found in 1995 • Incubated at HK Science & Technology Park • IPO in HKSE • SEHK:8210 Danny Wong CEO & Founder
    42. 42. Advance Card Systems (ACS) • Winner of Product Quality Leadership Award • Forbes Asia’s “Best Under a Billion” - Sales between US $5M-1Billion
    43. 43. Success Elements • Lowest cost. Closest to manufacturing factory • Go outside HK / China, Worldwide • Go to new markets first & faster worldwide • IPO at HKSE to establish business credits • Good solid business reputation • Spend 60% on R&D Innovation - new products • Family Businss - 300 EE Worldwide
    44. 44. Hong KongStartup Story
    45. 45. Hong KongStartup Story
    46. 46. Research Tour
    47. 47. PearsonHong Kong
    48. 48. GSMAGroupe Speciale Mobile (GSM)
    49. 49. 1GSMA Mobile Asia Congress App Bytes’s MAC App Planet Sponsored by WIP Connector Hong Kong Convention and Exhibition Centre
    50. 50. • The Muther! of all Hackathons at Computer History Thibaut Rouffineau MuseumVP Developer Partnerships attracted over WIP Connector 500 mobile Moderator developers
    51. 51. • Facebook announce to open a Sales office in Hong Kong in Feb 2011 • It’s Facebook David Lim 2nd office inMobile Partner Engineer Asia. 1st office Developer Relations & Asia HQ is in Facebook Singapore. Panelist
    52. 52. • Airpush is first mobile ad network based on push- notification • Android based only Inman BreauxVP of Publisher Relations Airpus Panelist / Sponsor
    53. 53. Mobile Monday Hong Kong MoMo HK
    54. 54. WTIA HKWDCHong Kong Wireless Technology Hong Kong Wireless Industry Association Development Centre
    55. 55. 1
    56. 56. Hong Kong Roles 0 1Book Author Speaker
    57. 57. 2
    58. 58. Hong Kong Roles 0 1 2Book Author Speaker Judge
    59. 59. Where to buildHong Kong Startup Dream
    60. 60. 31st Official Hong Kong Startup Weekend
    61. 61. HK Startup Hero
    62. 62. Fri Sat Sun• Pitch Idea • Hack • Hack• Form Team • Hack • Present • Hack • Judge
    63. 63. Day 1
    64. 64. Fri Sat Sun• Pitch Idea • Hack • Hack• Form Team • Hack • Present • Hack • Judge
    65. 65. 1st Prize Winner AwesomeShip
    66. 66. 3 NO. 1 Engineering HKUST NO. 1 Design HK PolyTech University
    67. 67. Hong Kong Roles 0 1 2 3Book Author Speaker Judge Lecturer
    68. 68. Winning is onlythe beginning
    69. 69. 1st Global Startup Battle48 Winning Teams from each Country
    70. 70. Within 2 Weeks
    71. 71. After Newspaper Reporterwinning
    72. 72. After Media Interviewwinning
    73. 73. 1st Global Startup Battle Grand Prize Winner
    74. 74. Winning is onlythe beginning
    75. 75. Global Startup Battle Prize Demo Asia @Singapore
    76. 76. Hong Kong Roles Within a month of Promotion 0 1 2 3 4Book Author Speaker Judge Lecturer Adviser
    77. 77. Minimal Viable Product (MVP)Within 3 Months
    78. 78. Hong Kong Startup Weakness InsufficientPitch / Stage Demo
    79. 79. Global Startup Battle Prize Launch Conference @SF
    80. 80. Teddy ChanCEO / Hacker
    81. 81. Andrew ChanProduct Marketing
    82. 82. Dante TsangCTO / Hacker
    83. 83. HK Startup Story Video
    84. 84. HK Startup Story Video
    85. 85. AwesomeShip Pitchhttp://youtu.be/6uKLh_7hKgs
    86. 86. AfterShip Producthttp://www.youtube.com/watch?v=Xq8cbCCoC3M
    87. 87. Nov 2011 1st Qtr Feb 2012 3 Month BabyAwesomeShip AfterShip Code Name Official Launch
    88. 88. http://itunes.apple.com/app/aftership/id507014023?ign-mpt=uo%3D6&mt=8
    89. 89. Hong Kong Roles Within a month of Promotion 0 1 2 3 4Book Author Speaker Judge Lecturer Adviser
    90. 90. Winning is onlythe beginning
    91. 91. Hong KongStartup Events
    92. 92. • Organizer of Startup Monday • Organizer of Startup Hong Kong • Organizer of HK Startup Weekend Jonathan Buford • Founder of Boot HKCo-Founder of Makiable
    93. 93. • Organizer of HK Startup CollegeJonathan BufordStartup Founder
    94. 94. • Organizer of HK Startup Weekend • Organizer of Japan Startup Weekend • Former MSFT MSN & Yahoo! Nicholas WangCo-Founder of Makible
    95. 95. • Organizer of Startup Leadership Program Miranda GaoHKUST Business Student
    96. 96. HK Founder Institute • SLP is nonprofit founded by VCs in Boston • Biweekly Session on Sat 2-5pm • Focus on StartupStartup Leadership Program (SLP) Leadership Skill
    97. 97. • Instructor • School of Design at Hong Kong Polytechnic University Gino YuMultimedia & Entertainment Technology HK Polytech University
    98. 98. Hong KongBiggest Developer Event
    99. 99. • Founded in 2007 at Yahoo! HK • Biggest Developer Event - Unconference • Regard as Best Barcamp in Asia Ben Crox • Attract 500Organizer of HK Barcamp Developers
    100. 100. Hong KongHacker Space
    101. 101. HK HackerDojo • Hackers / Makers • Co-working Space • Startup Event • Startup Accelerator Program
    102. 102. Boot HK Silicon Valley • US$100 Membership • US$500 Table Space Boot HK • ~HK$500 (US $64) Membership • ~HK$2,000 (US$256) Table Space
    103. 103. Boot HKBoot HK19 Floor Hang Wai Commercial Building231-233 Queen’s Road EastWan Chai, Hong Kong
    104. 104. Hong KongIncubators
    105. 105. Role of Hong Kong Government in funding Startup
    106. 106. HK Stanford StartX • Co-working Space • Startup Event • Startup Incubator
    107. 107. M-Lab • School of Design at Hong Kong PolytechnicM-Lab UniversityUnit 601 & 604 6/FInnoCentre72 Tat Chee Ave • AppliedKowloon Tong, Hong Kong Research • Digital Entertainment Laboratory
    108. 108. Cyberport • Cyberport Creative Micro Fund • HK$100,000 grants for 5 winning startup • Each HK $20,000 (US $2,564)
    109. 109. Cyberport Creative Micro Fund
    110. 110. HK Science & Technology Park • Co-working Space • Startup Event • Startup Accelerator Program
    111. 111. Attracting Startup Founders Doing Business in HK
    112. 112. Attracting Startup Founders Doing Business in HK • Raised $9M Round • Foundry Group David Merrill • True VenturesCo-Founder of Siftable
    113. 113. Attracting Startup Founders Doing Business in HK • Funded by Archimedes Labs Idan BeckFounder of Incident Tech • Guitar Hero for Guitar Player
    114. 114. HK Startup Challenges Micro Seed Angel VCFunding Funding Funding FundingMerger / Acquisition Initial Public Offering (M&A) (IPO)
    115. 115. Signs of Improvement HK Gov Micro Seed Angel VCFunding Funding Funding Funding
    116. 116. • Cyberport CCMF HK$100K• PolyU Micro Fund HK$100K• Hong Kong Science Park HK$100K Hong Kong Government Supported Micro Funds US$13K Grants / No Equity Matching Fund Not 100% Reimbursement Spend first
    117. 117. Hungry Games Micro Seed Angel VCFunding Funding Funding Funding
    118. 118. Hong Kong BusinessAngel Network (HKBAN) • HK Government supported effort to organize angel investors in investing in HK Startup
    119. 119. Signs of Improvement HK Gov HKBAN Micro Seed Angel VCFunding Funding Funding Funding
    120. 120. Hong Kong BusinessAngel Network (HKBAN) Hong Kong Incubators • Cyberport • HK Science & Technology Partk
    121. 121. Hong Kong BusinessAngel Network (HKBAN) Hong Kong Top 4 Universities • HKUST • CU • HKPU • HKU
    122. 122. China Hong Kong 香港 Euro US$Malaysia Singapore
    123. 123. Wonder why those US tech companies put Singaporefirst, HK second? Heard there are more IT talentsthere. True or not?Google, Linkedin put Singapore as SE Asia’sheadquarterFacebook open Singapore office first then Hong Kong
    124. 124. Signs of Weakness• Not enough mentors to guide HK startup founders• Not attracting experts and talents from Silicon Valley• Good example: HK is losing Jason Hoffman to Singapore Jason Hoffman Co-Founder & CTO of Joyent Angel Investor Conference Speaker
    125. 125. Signs of Improvement HK Gov HKBAN Micro Seed Angel VCFunding Funding Funding Funding
    126. 126. HK Based Startup Micro Seed Angel VC Funding Funding Funding FundingSeries A Series B Series C Series D Roughly within 18 months US$ in range of US$10 Millions or more Mobile First
    127. 127. Pure Metal Cards• British Hong Kong Based Startup founded by Richard Buckley in 2011. From idea to launch is 8 month.• Custom business cards made exclusively out of metal from stainless steel to 22 kt gold.• 2 weeks before arrival in HK to search for company names. A few signatures on arrival with accountant and actuary. 15 min meeting with HSBC to open bank account.• Thailand requires foreigners to hire 2-4 locals for every foreigner to hire. It’s high overhead for startup.
    128. 128. US Hong Kong HIGH TAX LOW TAX• One time corporate tax • Personal Income break 35% Tax 2% - 17%• Corporate tax & • Corporation income tax are 16.5% higher than most countries • Unincorporated 15%
    129. 129. Virtual Office Silicon Valley• Business address • US$100• Access to meeting rooms Hong Kong• Internet access • HK$400 (US $51)
    130. 130. Service Apartment Hong Kong• Month to month • Lowest HK $6,000 (US• No contract $769)• No maid service • Average HK• Living space more $12,000 (US personal than hotel $1,538)• Most are located in popular districts near public transportation
    131. 131. Transportation Hong Kong• Taxi • Travel every part of HK• Mini Bus within an hr• Tram • District to district is• MTR within• Train walking distance • Travel within Asia within 6 hrs flight
    132. 132. Hotel Hong Kong • Average HK• Higher than SF $1,560 (US $200) Rent• Same cost as SF & NYC
    133. 133. Living Expense Hong Kong• Breakfast • Cafe lunch HK $10-20 (US• Lunch $1.3-$2.6)• Dinner • Restaurant lunch HK• No Health Insurance $60-80 (US $7.7-10.3)• No Copay• Doctor Visit HK • Hotel Buffet lunch HK $200-300 (US$25-$38) $120 (US$15) including drugs
    134. 134. Hong Kong BusinessAngel Network (HKBAN) Hong Kong Top 4 Universities Incubation Funding • Hong Kong University of Science & Technology (HKUST) • Chinese University (CU) • Hong Kong Polytech University (HKPU) • Hong Kong University (HKU)
    135. 135. Talents Hong Kong • HK University• Most live with parents Graduate HK $6,000 (US• Or married with two $770) - $10,000 (US$1,282) incomes • Experience• Do Not work for equity Engineer HK $13,000 (US• Indian Engineering US $1,700) - $3K (No exp) - $5K (0-1 $20,000 (US yr) $8K (Exp) $2,600)
    136. 136. Biggest Investors Micro Seed Angel VCFunding Funding Funding Funding
    137. 137. Hong Kong Startup Next Step?
    138. 138. This is my HK Dream 0 1 2 3 4Book Author Speaker Judge Lecturer Adviser
    139. 139. What’s your Dream?
    140. 140. Startup Adviser @Bess Bess@archimed eslabs.com http:// www.slideshar e.net/bess.ho Mobile Architect Instructor Startup Adviser Angel Investor
    141. 141. Archimedes Labs• Seed-stage startup incubator• Founded by Keith Teare & Kambiz Hooshmand as Founding Managing Partners• Focus on Consumer, Social & Mobile• Accept pitch from startup teams looking for angel investor

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