1.
Lessons From China and the US
For Global Entrepreneurs
Hans Tung
Managing Partner, GGV Capital
January 2018

2.
The GGV Advantage: One Team in Two Markets with Global Perspective
§ With investments in China and the U.S., we have gained a deep
understanding of both markets with access to global resources
§ Managing eight funds, $3.8 billion in total
§ Over 280 portfolios, invested in 33 companies with over
$1 billion market cap and 29 public companies
2

3.
Data Replacing Oil and Credit as Most Valuable Commodities
And the Rise of Internet in China
3
Highlighted: Tech Companies; Red Text: Chinese companies;
Source: CapitalIQ. Capitalizations are in millions. Data as of 1/8/2008 and 1/8/2018.

4.
China Accounts for Almost Half of the Valuation of the World’s Unicorns
4

5.
5
What has changed in China?

6.
China Surpassed the US as World’s No.1 Market on iOS App Stores
6 Source: AppAnnie
Top 3 Countries by Quarterly iOS App Store Revenue

7.
China is No. 2 in Online Consumption
7 Source: CNNIC; Internet Live Stats; BCG Analysis
World’s Top 10 Countries by Online Consumption (in $billions)

8.
Millennials & Gen Z Are Driving Online Consumption
8
China:
390M Millennials & Gen Z
54% of total population
US:
107M Millennials & Gen Z
37% of total population

9.
Alibaba’s Sales on 2016 “Singles Day” (11.11)
$18 B > Black Friday + Cyber Monday
9
$3.34B $3.45B $17.8B
Black Friday 2016 (US) Cyber Monday 2016 (US) 11/11 Singles Day 2016 (China)
Total Sales in a Single Shopping Event ($Billions)
(Online + offline)

10.
Chinese Users Congregate Around “Super Apps”
10 Source: Google’s Global Mobile Research, China’s National Census Bureau, Localytics, eMarketer, BCG Analysis
% of Time Users Spent on Apps (2015)
Only 15% of apps
in China are used
more than 10x
33
Number of apps the average
American user has
on their phone
42-46
Number of apps the average
Chinese user has
on their phone

11.
Case Study: Mobile Payment (WeChat Pay): a “Super App” in China
11

12.
Amazon vs. Alibaba
Amazon vs. Alibaba

13.
Chinese Apps Are More Advanced in Content Surfacing & Social
13
Content
Community
Commerce

14.
The Speed of Tech Penetration China
14 Source: BCG Analysis
# of Years for App Penetration to Reach 50% Market Share in US vs China

15.
Uber’s Exponential Growth in China
15

16.
China’s Urbanization Drives the Transportation Revolution
16
New York (5.7M rides/day)
Tokyo (8M rides/day)
Singapore (3M rides/day)
Beijing 2005 Beijing 2015 (9M rides/day)

17.
Hub & Spoke: From High Speed Rail & Subways to Ride & Bike Sharing
17

18.
How Will Your Business Go Global?
Case Study: Airbnb
18

19.
China Tech Takeaways
19
1) Serve the mass market
2) Be a high-frequency entry point (i.e. super app)
3) Join an eco-system
4) Move fast

20.
Want to Learn More on China?
20
Check out “996,” our podcast on entrepreneurship in China
Available on iTunes, Overcast, SoundCloud, XimalayaFM…
Just search “996” in your favorite podcast app.

21.
Thank you.
Hans Tung
Managing Partner, GGV Capital
Hans.vc and 996.ggvc.com