! 
Alexander Jarvis, Operating Partner, Jungle Ventures
8 Myths about Asia
Today we call it
#1 
You need to be in the 
Valley to build a big 
consumer company
China has already created a company of scale 
(Sorry America…) 
• Alibaba’s sales for 2014 are forecasted at $420BN, 2.5x ...
Rocket are building companies of scale across 
SEA, achieving a lot in just 2 years 
• 1m active customers 
• 79m monthly ...
APAC is set dominate ecommerce, 41% larger than 
America in 2016 
B2C Ecommerce Sales Share Worldwide, by Region, 2011-201...
There already are ‘big’ 
consumer companies
#2 
Definitely need to be in 
the Valley for 
ENTERPRISE startups!
Heard of these guys?
There are already APAC 
unicorns in enterprise
Internet penetration in 
Asia is too low 
#3
Almost 200m users online in SEA already 
Source: UBS
How does Asia stack up globally? 
Source: US census bureau, InternetWorldStats, CNNIC, Tencent, Facebook, Vkontakte, ITU, ...
APAC has almost half of global users, 
simply put 
Source: US census bureau, InternetWorldStats, CNNIC, Tencent, Facebook,...
Internet traffic will be double the US in 2015 
2012 2013 2014 2015 2016 2017 
CAGR 
’12-17 
By Geography (PB per Month) 
...
Social media penetration in APAC is the global 
average 
Source: US Census Bureau, CNNIC, Tencent, Facebook
Internet penetration may 
be comparatively low, 
but there’s still a LOT of 
people online
Asians just copy, they 
don’t innovate 
#4
CAGR of tech patents in SEA is 7x USA 
Growth of tech patents in SEA VS USA 
180% 
135% 
90% 
45% 
0% 
-45% 
SEA USA 
2000...
Asia’s share of global tech patents is 
converging 
% of global tech patents in Asia VS USA 
40% 
30% 
20% 
10% 
0% 
Asia ...
2 of Fastcompany’s most innovate companies are 
Asian
India - Zipdial: Missed call innovation led to one of its 
kind partnership with FaceBook
Singapore - Rotimatic: Will lead to female 
empowerment
Have you tried executing in Asia? 
• Remember.. you keep saying you don’t invest in an 
‘idea’ 
• Asia has barriers (AKA p...
Innovation is overrated. 
Think about ‘copying’ 
differently, you have to 
hustle in Asia
You can’t get an exit in 
Asia 
#5
Let’s look at Singapore, last year 
• Approximately 1,000 startups in the preceding 3 
years 
! 
• 12 successful exits wor...
No Unicorns in SEA, but solid acquisitions 
• JobStreet / Seek - A$545 
• Viki / Rakuten - $200m 
• Travelmob / HomeAway -...
We have already had IPOs 
• Australia 
• Atlassian 
• Freelancer 
• iSelect 
• Xero 
• 3P Learning 
• OZForex 
• SEEK 
• C...
You can get an exit, they 
just aren’t as big as the 
US (yet)
Asians aren’t 
entrepreneurs 
#6
There are still big cultural issues 
• A lot of people still want to work for ‘Samsung’ 
• But saying you are a founder is...
But twice as many Philippinos than Israeli’s recon 
they have the skills to startup! 
Perceived Capabilities! 
Percentage ...
Indonesian’s are twice more likely to be founders than in 
America 
Total early-stage Entrepreneurial Activity (TEA)! 
Per...
They aren’t as afraid of failing as you think 
Fear of Failure Rate! 
Percentage of 18-64 population with positive perceiv...
Asians are representing abroad… how much?
…half the US startup jobs
AND… Asian founders in America raise more money 
than white founders, by the way 
Founding team racial composition vs. med...
They see good opportunities locally (As much as 
the US 
Perceived Opportunities! 
Percentage of 18-64 who see good opport...
More of their friends have set up companies 
Know Startup Entrepreneur Rate! 
Percentage of 18-64 population who personall...
More media attention than developed markets 
Media Attention for Entrepreneurship! 
Percentage of 18-64 population who agr...
Far more intend starting up in next 3 years than in US 
and UK 
Entrepreneurial Intention! 
Percentage of 18-64 population...
Asians are 
entrepreneurs, they are 
half of the US ecosystem!
There’s too much seed 
funding in Asia 
#7
Sure, ‘more’ money has come in 
• In 2006, $48 million seed went into 116 deals 
! 
• In 2013, $83 million was deployed ac...
“FFF” investments still half of that in America 
Informal Investors Rate! 
Percentage of 18-64 population who have persona...
There isn’t that much 
seed money
There is no smart money 
in Asia 
#8
Look around the room!
Upcoming SlideShare
Loading in...5
×

8mythsaboutstartupsventurecapitalinasia 140718104433-phpapp01

329

Published on

1 Comment
0 Likes
Statistics
Notes
  • Be the first to like this

No Downloads
Views
Total Views
329
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
2
Comments
1
Likes
0
Embeds 0
No embeds

No notes for slide

8mythsaboutstartupsventurecapitalinasia 140718104433-phpapp01

  1. 1. ! Alexander Jarvis, Operating Partner, Jungle Ventures
  2. 2. 8 Myths about Asia
  3. 3. Today we call it
  4. 4. #1 You need to be in the Valley to build a big consumer company
  5. 5. China has already created a company of scale (Sorry America…) • Alibaba’s sales for 2014 are forecasted at $420BN, 2.5x over 2012. • Amazon reported sales of $74.4BN for fiscal 2013 and EBay… fiscal 2013 of $16 Billion, less than one-tenth Alibaba’s 2012 sales
  6. 6. Rocket are building companies of scale across SEA, achieving a lot in just 2 years • 1m active customers • 79m monthly visits • Millions of Euro per month in revenue ! • 1.6m customers served • 27m monthly visits • Millions of Euro per month in revenue Source: http://www.kinnevik.se/en/Investor/Kinnevik-Rocket-capital-markeys-day-2014/
  7. 7. APAC is set dominate ecommerce, 41% larger than America in 2016 B2C Ecommerce Sales Share Worldwide, by Region, 2011-2016 - % of total 1.6%! 1.9%! 2.1%! 2.2%! 3.1%! 27.9%! 35.9%! 28%! 3.6%! 2011! 3.4%! 30.5%! 33.5%! 26.9%! 3.8%! 2012! 2013! 3.5%! 33.4%! 31.5%! 25.7%! 3.9%! 2014! 3.6%! 36.2%! 29.7%! 24.3%! 3.9%! 2015! 2016! 3.6%! 38.2%! 28.8%! 23.4%! 3.8%! 3.5%! 39.7%! 28.2%! 22.6%!3.7%! Asia-Pacific! North America! Western Europe! 2.3%! 2.3%! Eastern Europe! Latin America! Middle East & Africa! Source: eMarketer, 2013 • 2013: Sales is expected to grow 18.3% to $1.298 trillion with Asia-Pacific surpassing North America to become the world's #1 market for B2C ecommerce sales. • Despite strong growth, North America’s share of global sales will drop from 33.5% in 2012 to 31.5% in 2013 as Asia-Pacific surges ahead. • Asia-Pacific in 2013 will see sales increase by more than 30% to over $433 billion — or more than one-third of all global B2C ecommerce sales. • Three Asia-Pacific markets — China, India and Indonesia — will see faster B2C ecommerce sales growth than all other markets worldwide in 2013.
  8. 8. There already are ‘big’ consumer companies
  9. 9. #2 Definitely need to be in the Valley for ENTERPRISE startups!
  10. 10. Heard of these guys?
  11. 11. There are already APAC unicorns in enterprise
  12. 12. Internet penetration in Asia is too low #3
  13. 13. Almost 200m users online in SEA already Source: UBS
  14. 14. How does Asia stack up globally? Source: US census bureau, InternetWorldStats, CNNIC, Tencent, Facebook, Vkontakte, ITU, CIA
  15. 15. APAC has almost half of global users, simply put Source: US census bureau, InternetWorldStats, CNNIC, Tencent, Facebook, Vkontakte, GSMA Intelligence
  16. 16. Internet traffic will be double the US in 2015 2012 2013 2014 2015 2016 2017 CAGR ’12-17 By Geography (PB per Month) Asia Pacific 310 614 1,168 2,053 3,377 5,257 76% North America 222 380 632 993 1,466 2,087 56% Western Europe 181 276 426 655 976 1,384 50% Middle East and Africa 50 96 182 333 559 861 77% CEE 66 116 211 365 577 845 66% Latin America 55 97 179 304 481 723 67% Total (PB per Month) Mobile data and internet 884 1,579 2,798 4,703 7,436 11,157 65% Source: CISCO VNI, 2013
  17. 17. Social media penetration in APAC is the global average Source: US Census Bureau, CNNIC, Tencent, Facebook
  18. 18. Internet penetration may be comparatively low, but there’s still a LOT of people online
  19. 19. Asians just copy, they don’t innovate #4
  20. 20. CAGR of tech patents in SEA is 7x USA Growth of tech patents in SEA VS USA 180% 135% 90% 45% 0% -45% SEA USA 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Patents by technology, OECD. SEA consists of ID, MY, PH, SG and TH CAGR SEA 14% USA 2%
  21. 21. Asia’s share of global tech patents is converging % of global tech patents in Asia VS USA 40% 30% 20% 10% 0% Asia USA 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Patents by technology, OECD. Asia consists of ID, MY, PH, SG, TH, CN, HK, IN, AU & NZ
  22. 22. 2 of Fastcompany’s most innovate companies are Asian
  23. 23. India - Zipdial: Missed call innovation led to one of its kind partnership with FaceBook
  24. 24. Singapore - Rotimatic: Will lead to female empowerment
  25. 25. Have you tried executing in Asia? • Remember.. you keep saying you don’t invest in an ‘idea’ • Asia has barriers (AKA problems): • Payments • Logistics • Market fragmentation • etc… • In America you can effectively outsource every aspect of your business • In Asia you have to figure out a creative solution to make every aspect of your business work • Why have business model risk when you have execution risk?
  26. 26. Innovation is overrated. Think about ‘copying’ differently, you have to hustle in Asia
  27. 27. You can’t get an exit in Asia #5
  28. 28. Let’s look at Singapore, last year • Approximately 1,000 startups in the preceding 3 years ! • 12 successful exits worth S$600 million in 2013 ! • 1.2% exit rate is not too shabby ! • 2x more exits in 2013 than 2011 ! • We are just getting started
  29. 29. No Unicorns in SEA, but solid acquisitions • JobStreet / Seek - A$545 • Viki / Rakuten - $200m • Travelmob / HomeAway - N/A • Zopim / ZenDesk - ~$30m • SGCarMart / SPH - $48m • TransferTo / Ingenico - $38m • JobCentral / CareerBuilder - N/A • SoundBuzz / Motorola - $27.65m • Detik / Para Group - $60m • Tarad / Rakuten - N/A ! • Reebonz and RedMart worth $100m+ already
  30. 30. We have already had IPOs • Australia • Atlassian • Freelancer • iSelect • Xero • 3P Learning • OZForex • SEEK • Carsales • Malaysia • Jobstreet • iProperty • MyEg • iCar • iBuy • Singapore • AsiaTravel ! ! • Property Guru coming - ~$500m+
  31. 31. You can get an exit, they just aren’t as big as the US (yet)
  32. 32. Asians aren’t entrepreneurs #6
  33. 33. There are still big cultural issues • A lot of people still want to work for ‘Samsung’ • But saying you are a founder is now an acceptable response at a dinner table when asked “What do you do”
  34. 34. But twice as many Philippinos than Israeli’s recon they have the skills to startup! Perceived Capabilities! Percentage of 18-64 population who believe to have the required skills and knowledge to start a business Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer
  35. 35. Indonesian’s are twice more likely to be founders than in America Total early-stage Entrepreneurial Activity (TEA)! Percentage of 18-64 population who are either a nascent entrepreneur or owner-manager of a new business Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer
  36. 36. They aren’t as afraid of failing as you think Fear of Failure Rate! Percentage of 18-64 population with positive perceived opportunities who indicate that fear of failure would prevent them from setting up a business Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer
  37. 37. Asians are representing abroad… how much?
  38. 38. …half the US startup jobs
  39. 39. AND… Asian founders in America raise more money than white founders, by the way Founding team racial composition vs. median funding received ($m) $4.00 $3.00 $2.00 $1.00 $0.00 $1.3 $2.3 $2.2 $4.0 All Asian Pacific All white Mixed All Black Source: CBInsights, 2010. National seed and Series-A - Jan to June 2010
  40. 40. They see good opportunities locally (As much as the US Perceived Opportunities! Percentage of 18-64 who see good opportunities to start a firm in the area where they live Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer
  41. 41. More of their friends have set up companies Know Startup Entrepreneur Rate! Percentage of 18-64 population who personally know someone who started a business in the past two years Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer
  42. 42. More media attention than developed markets Media Attention for Entrepreneurship! Percentage of 18-64 population who agree with the statement that in their country, you will often see stories in the public media about successful new businesses Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer
  43. 43. Far more intend starting up in next 3 years than in US and UK Entrepreneurial Intention! Percentage of 18-64 population (individuals involved in any stage of entrepreneurial activity excluded) who intend to start a business within three years Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer
  44. 44. Asians are entrepreneurs, they are half of the US ecosystem!
  45. 45. There’s too much seed funding in Asia #7
  46. 46. Sure, ‘more’ money has come in • In 2006, $48 million seed went into 116 deals ! • In 2013, $83 million was deployed across 257 transactions ! • Average seed rounds have decreased from $413k to $323k ! • In 2012 in America, there were 1,749 seed deals ! • There are 133 accelerators globally, SEA has 1-2 per country Source: Asia Venture Capital Journal Research. Seed defined as deals under $1 million in size
  47. 47. “FFF” investments still half of that in America Informal Investors Rate! Percentage of 18-64 population who have personally provided funds for a new business, started by someone else, in the past three years Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer
  48. 48. There isn’t that much seed money
  49. 49. There is no smart money in Asia #8
  50. 50. Look around the room!
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×