Barclays Hyperconnected Conference
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Barclays Hyperconnected Conference



Internet changes everything, big business (FTSE, Fortune 500) need to learn have to adapt to the Internet Age using open data, open source and open standards

Internet changes everything, big business (FTSE, Fortune 500) need to learn have to adapt to the Internet Age using open data, open source and open standards



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  • Talking point – you don’t need to own anymore
  • S&P 500 – 40 > 10 years lifespan (1950-2020) – McKinsey <br />
  • £1,549bn market cap (2012)
  • According to the venture impact study, IHS Global Insight, originally VC-backed companies accounted for 11.87m jobs and over $3.1 trn in revenue in the US in 2011—accounting for 21% of GDP and 11% of private-sector employment. <br /> <br /> At Index, our portfolio companies alone have generated $4bn worth of revenue, while growing on average by more than 75%, creating 20k jobs with 1k positions currently open <br /> <br /> <br /> <br /> People say VC doesn’t add anythign but maybe when we look back on this cambrian explosion of innovation from 1960s (semis) to 2020s (cloud connected services in every sector) – the broadscale application and understanding of venture economics will be the true legacy of venture rather than Apple, Cisco, Facebook, Google, Microsoft, Salesforce, Skype and Twitter <br /> DATA:
  • Major corporates are hoarding cash– a more granular look at point you’re making. <br /> In fact, tech titans Apple, Microsoft, Google, Cisco (CSCO), Oracle (ORCL), Intel (INTC) and Big Pharma giants Pfizer (PFE), Merck (MRK), Johnson & Johnson (JNJ) and Amgen (AMGN) collectively have more than $435 billion in cash on their balance sheets. (Feb 2013, Fortune, <br /> <br /> FTSE 100 numbers: market cap: $2.7 trillion <br /> Revenues: $280 billion <br /> Staff: 6.5 million <br /> Cash on balance sheets: $266 billion <br /> IT budgets: 1-8%

Barclays Hyperconnected Conference Barclays Hyperconnected Conference Presentation Transcript

  • Barclays HyperConnected World Conference June 2014
  • Internet Changes Everything The Inter
  • “The Internet isn’t really a technology. It’s a belief system”
  • Internet’s share of GDP is bigger than Health or Education
  • It’s changed how we experience culture
  • It’s changing our social life
  • It’s changing how we work
  • It’s changing politics
  • And the mobile Internet changes everything all over again…
  • In fact mobile will grow more than 100% in the next 5 years
  • Internet has changed our attitude to the ownership of technology
  • How we work with and leverage talent…
  • How we think about our homes and property
  • Even whether we need to own a car…
  • Freemium is the business model of the Internet Open Source
  • Freemium is the business model of the Internet SaaS
  • Freemium is the business model of the Internet Free to Play
  • 10 year S&P lifespan by 2020 Which can be extremely disruptive to established businesses
  • Every FTSE sector will be impacted
  • Innovation can create enormous value in a very short time 1978 1981 1987 1995 1995 1997 1999 1999 2005 and $1.4tn in new market value creating 440k new jobs with $545bn in new annual revenue serving >1bn customers Source: HIS Global Insight 21% US GDP
  • And in Europe we are starting to build waves of similar dimensions
  • So are we asking the right questions as investors?
  • What can we learn from early stage funding in terms of calculated investment risks?
  • £1.7tn in market cap and >6m staff
  • How does the FTSE think about it’s > £40bn IT spend?
  • How digital is the FTSE’s talent pool?
  • Ironically, FTSE can also be learning from government
  • Some key lessons 1. Be Open – Source, Standards, Data, Innovation 2. Buy (from) small innovative companies 3. Enforce and invest in digital learning 4. Be transparent - sunlight is the best disinfectant
  • If GDS can do it….
  • @indexventures @cape
  • But there is so much cash out there…. $266bn FTSE100 ($5k per UK citizen) $85tn global AUM ($12k per human)