STARTING UP IN CHINA ELI BILDNERPRESENTATION DELIVERED AT GENERAL ASSEMBLY IN NEW YORK CITY, JANUARY 9, 2012
IntroductionsWhy start-up in China?1 system, 2, 3, 4 countriesWhy 联 ≠ the InternetHW: A clicking tour CONTENTSStarting-up in ChinaWhy start-up in China? (2)Discussion/Q&A
WHO AM I AND WHAT AM I DOING HERE? grow up in Fulbright Montclair, NJ research on Co-found (go Cougars)SMEs in rural Transi.st in China Shanghai Work for this foundation in Hong Kong
WHAT WE DOTech meets impact Growing China’s top SEsSeed investments and incubation A fellowship program for seed-stageof social enterprises, with focus Chinese social entrepreneurs, offeringon intersection of technology and training, mentorship and investmentsocial innovation opportunities
WHO WE ARE Bill Scott Calvin Chin Schoenfeld Ballantyne Hi. Simon David Chen Huang Eli Bildner!
FRONT MATTER The Chinese start-up scene...has a frenetic feel similar to those early dot-com boom days. “I’ve worked in Tokyo and in SiliconValley during the dot-com bubble, and that was intense,” he said. “But it’s not even close.” -NY Times Dealbook
“The pressure to take a job with a large prestigious company, or even the government, remains a bighurdle for startups by young Chinese professionals born as the only child of their aging parents.Americans, in contrast, live with the epic stories of Bill Gates, Steve Jobs and Mark Zuckerberg dropping out of college to chase their dreams and become billionaires of companies that literally changed the world.” - Frank Yu
“China’s users are too busy enjoying the Internet they have, rather than lamenting the one they don’t.” - Andrew Lih
“There are three kinds of lies:lies, damned lies, and Chinese statistics.” - Unknown
“WHAT CAN SAVE OUR COUNTRY?” Public poll posted on Kaixin (social network) after Wenzhou train crash in July 2011. Respondents could select up to ﬁve options, ranging from “equality” to “science & technology”. Just 1% of respondents select “the economy.” The response of 73% of those polled: There is no hope. I don’t want to save it anymore. (Source: Kaixin/Sinosplice/John Pasden)
Why start-up in China? LARGEST Internet user base in the1 system, 2, 3, 4 countries worldWhy 联 ≠ the Internet The same rulesHW: A clicking tour DO NOT APPLYStarting-up in China IT’S Like it or notWhy start-up in China? (2) COMINGDiscussion/Q&A We’ve got PROBLEMS
Why start-up in China? MEET CHINA 1 system, 2, 3, 4 countries Why 联 ≠ the Internet HW: A clicking tour Starting-up in China Why start-up in China? (2) Discussion/Q&A(Eli Bildner 1/9/12)
URBAN RURALBeijing & Shanghai: Rural China 15-20% of jobs; 2001: 64% of population~2.5% of population 2011: <50% of population (Source: McKinsey)
PRE-R&O* POST-R&O Came of age during Came of age in a cultural revolution new era Prize stability; the The “Post-80s” vs. “iron rice bowl” The “Post-90s” Parents of the 1- Children of the 1- child policy child policy 4-2-1 generational structure*”Reform & Openness”
HAVES HAVE-NOTS The real divider is not where you live, but how you live. China is one of the most economically inequitable places in the world. And in a connected world, everyone isGuo mei mei. striving for the same “After I watch TV I have a lot of thoughts, but no way to realize them.” Stuff. (Source: Adrian Fisk/Chinasmack)
Why start-up in China?1 system, 2, 3, 4 countriesWhy 联 ≠ the Internet 联 ≠ InternetHW: A clicking tourStarting-up in ChinaWhy start-up in China? (2)Discussion/Q&A
World average: 5.6 MBS China: 1.8 MBS(and often much slower on foreign sites) (Source:Technode)
联 is booming 600 M users 500 400 300 2002007 100 2008 2009 0 2010 2011 (Source: China Internet Watch)
Less than 10% of urbanChinese shopped online in2006. In two years, nearly half willQ2 web revenue = 62.2B RMB 77.5% YoY surgeAnd yet, web users comprise less than1/2 of the population (Source: China Internet Watch)
联 is young & active of Chinese internet users are80% between the age of 10-40 of Chinese social network users80% are between the age of 20-34 average number of hours spent per18.7 day...and then there are the
联 is mobile of Chinese internet users66% access the mobile web
联 was always 2.0100% 75% 50% 25% Ecommerce 0% Blog Gaming IM Music Email News Search USA China (Sources: Google, CNNIC, iResearch, Calvin Chin)
联 was always 2.0100% 75% 50% We b 2.0 25% Ecommerce 0% Blog Gaming IM Music Email News Search USA China (Sources: Google, CNNIC, iResearch, Calvin Chin)
It’s just...different Activity US China Send or read email 92% 55% Use a search engine 92% 84% Get news 76% 79%Use a social networking site 65% 50% Do online banking 61% 33% Play online games 36% 68% Send instant messages 46% 84% (Sources: China internet watch,Tech Rice, Pew)
Why start-up in China?1 system, 2, 3, 4 countries 联Why 联 ≠ the InternetHW: A clicking tourStarting-up in China A Clicking TourWhy start-up in China? (2)Discussion/Q&A
Search is where the internet begins for many in China,where some users have trouble typing due to abothersome input method (“pinyin”).Baidu: 78% of China’s search market
78% marketshare in ChinesesearchBIDU 42.2Bmarket cap (Source:Tech Rice)
TAOBAOTaobao is one of China’s e-commerce kings, holding31% of the country’s B2Cmarket.It also provides an exampleof how foreign companiescan screw up royally inChina: In 2003, EBay held90% of China’s onlineauction market. Today,almost all of that belongs toTaobao.An ugly website? ToAmerican eyes, perhaps. Butmost Chinese would demur.In China, the mouse click isking.
360Buy.com10% of China’s B2C market....And a good example ofhow different a marketChina really is.Where else would a huge e-commerce site send you aconﬁrmation email with thecell phone number and nameof the deliveryman?Or allow you to pay by cashon delivery?
...or you could just use the Tencent weibo English UI
“China only has one ﬁrm that is capable of becoming ChinasFacebook: Tencent. The two (Facebook and Tencent) may be dissimilar in outward appearance, but the core of each is closely related: the social graph.” - Keso
Shanzhai culture One of China’s highest-proﬁle internet radio apps. Available only on “jail-broken” IPhones.
Space to breathe. Space to vent. Space to laugh.
Why start-up in China? You should startup in1 system, 2, 3, 4 countries China if you want toWhy 联 ≠ the Internet SOLVEHW: A clicking tourStarting-up in ChinaWhy start-up in China? (2)Discussion/Q&A PROBLEMS