!
Amit Anand - Founding Partner (@amivedand)
Alexander Jarvis- Partner (@adjblog)!
Singapore - 15th July, 2014
What Jungle Does
Investing and building companies in APAC since 2011
Marketing &
Analytics / Big Data
Marketplaces
FinTech
Cloud / SAAS
7 Myths about Asian
startups and Venture
Capital
You need to be in the
Valley to build a big
consumer company
#1
China has already created a company of scale
(Sorry America…)
• Alibaba’s sales for 2014 are forecasted at $420BN, 2.5x ov...
…India has 4+ consumer unicorns
• 1m active customers
• 79m monthly visits
• Millions of Euro per month in
revenue
!
• 1.6m customers served
• 27m monthly...
APAC is set dominate ecommerce, 41% larger than
America in 2016
2.2%!
Asia-Pacific! North America! Western Europe!
Eastern ...
There already are ‘big’
consumer companies
Definitely need to be in
the Valley for
ENTERPRISE startups!
#2
Heard of these guys in India and Australia?
You will hear of these ones soon
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, C...
APAC has almost half of global users,
simply put
Source: US census bureau, InternetWorldStats, CNNIC, Tencent, Facebook, V...
Internet traffic will be double the US in 2015
2012 2013 2014 2015 2016 2017
CAGR
’12-17
By Geography (PB per Month)
Asia ...
Social media penetration in APAC is the global
average
Source: US Census Bureau, CNNIC, Tencent, Facebook
Internet penetration may
be comparatively low
right now, but that’s still a
LOT of people online
There is no innovation in
Asia
#4
CAGR of tech patents in SEA is 7x USA
Growth of tech patents in SEA VS USA
-45%
0%
45%
90%
135%
180%
2000 2001 2002 2003 2...
Asia’s share of global tech patents is
converging
% of global tech patents in Asia VS USA
0%
10%
20%
30%
40%
2000 2001 200...
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
There is no innovation in
Asia
X
You can’t get an exit in
Asia
#5
• Australia
• Freelancer
• iSelect
• Xero
• 3P Learning
• OZForex
• SEEK
• Carsales
We have already had IPOs
• Malaysia
• ...
• JobStreet / Seek - A$545
• Viki / Rakuten - $200m
• Travelmob / HomeAway - $22
• Zopim / ZenDesk - ~$30m
• SGCarMart / S...
You can get an exit, they
just aren’t as big as the
US (yet)
There’s no
entrepreneurial talent (in
Asia)
#6
Twice as many Philippinos than Israeli’s recon they
have the skills to startup!
Source: Global Entrepreneurship Research A...
Indonesian’s are twice more likely to be founders than in
America
Source: Global Entrepreneurship Research Association, Ju...
They aren’t as afraid of failing as you think
Source: Global Entrepreneurship Research Association, Jungle analysis throug...
Asians are representing abroad… how much?
…half the US startup jobs
AND… Asian founders in America raise more money
Founding team racial composition vs. median funding
received ($m)
$0.00
$1...
They see good opportunities locally (As much as
the US
Source: Global Entrepreneurship Research Association, Jungle analys...
More of their friends have set up companies
Source: Global Entrepreneurship Research Association, Jungle analysis through ...
More media attention than developed markets
Source: Global Entrepreneurship Research Association, Jungle analysis through ...
Far more intend starting up in next 3 years than in US
and UK
Source: Global Entrepreneurship Research Association, Jungle...
Asians are
entrepreneurs, they are
half of the US ecosystem!
There is no smart money
in Asia
#7
Premoney Asia 2014
Active Investors in Asia
Follow us
@jungleventures
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Myths about startups & venture capital in asia

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Overview of the most common misconceptions about investing and operating in Asia.

Myths about startups & venture capital in asia

  1. ! Amit Anand - Founding Partner (@amivedand) Alexander Jarvis- Partner (@adjblog)! Singapore - 15th July, 2014
  2. What Jungle Does
  3. Investing and building companies in APAC since 2011 Marketing & Analytics / Big Data Marketplaces FinTech Cloud / SAAS
  4. 7 Myths about Asian startups and Venture Capital
  5. You need to be in the Valley to build a big consumer company #1
  6. 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
  7. …India has 4+ consumer unicorns
  8. • 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 Rocket are building companies of scale across SEA, achieving a lot in just 2 years Source: http://www.kinnevik.se/en/Investor/Kinnevik-Rocket-capital-markeys-day-2014/
  9. APAC is set dominate ecommerce, 41% larger than America in 2016 2.2%! Asia-Pacific! North America! Western Europe! Eastern Europe! Latin America! Middle East & Africa! 2.1%! 27.9%! 35.9%! 28%! 3.6%! 3.1%! 1.6%! 2011! 30.5%! 33.5%! 26.9%! 3.8%! 3.4%! 1.9%! 2012! 33.4%! 31.5%! 25.7%! 3.9%! 3.5%!2013! 36.2%! 29.7%! 24.3%! 3.9%! 3.6%!2014! 2015! 2016! 2.3%! 38.2%! 28.8%! 23.4%! 3.8%! 3.6%! 2.3%! 39.7%! 28.2%! 22.6%!3.7%! 3.5%! Source: eMarketer, 2013 B2C Ecommerce Sales Share Worldwide, by Region, 2011-2016 - % of total • 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.
  10. There already are ‘big’ consumer companies
  11. Definitely need to be in the Valley for ENTERPRISE startups! #2
  12. Heard of these guys in India and Australia?
  13. You will hear of these ones soon
  14. There are already APAC unicorns in enterprise
  15. Internet penetration in Asia is too low #3
  16. Almost 200m users online in SEA already Source: UBS
  17. How does Asia stack up globally? Source: US census bureau, InternetWorldStats, CNNIC, Tencent, Facebook, Vkontakte, ITU, CIA
  18. APAC has almost half of global users, simply put Source: US census bureau, InternetWorldStats, CNNIC, Tencent, Facebook, Vkontakte, GSMA Intelligence
  19. 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
  20. Social media penetration in APAC is the global average Source: US Census Bureau, CNNIC, Tencent, Facebook
  21. Internet penetration may be comparatively low right now, but that’s still a LOT of people online
  22. There is no innovation in Asia #4
  23. CAGR of tech patents in SEA is 7x USA Growth of tech patents in SEA VS USA -45% 0% 45% 90% 135% 180% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 SEA USA Source: Patents by technology, OECD. SEA consists of ID, MY, PH, SG and TH CAGR SEA 14% USA 2%
  24. Asia’s share of global tech patents is converging % of global tech patents in Asia VS USA 0% 10% 20% 30% 40% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Asia USA Source: Patents by technology, OECD. Asia consists of ID, MY, PH, SG, TH, CN, HK, IN, AU & NZ
  25. 2 of Fastcompany’s most innovate companies are Asian
  26. India - Zipdial: Missed call innovation led to one of its kind partnership with FaceBook
  27. Singapore - Rotimatic: Will lead to female empowerment
  28. There is no innovation in Asia X
  29. You can’t get an exit in Asia #5
  30. • Australia • Freelancer • iSelect • Xero • 3P Learning • OZForex • SEEK • Carsales We have already had IPOs • Malaysia • Jobstreet • iProperty • MyEg • iCar • iBuy ! • Singapore • AsiaTravel • PropertyGuru (Coming) • India • Justdial • MakeMyTrip • InfoEdge
  31. • JobStreet / Seek - A$545 • Viki / Rakuten - $200m • Travelmob / HomeAway - $22 • 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 $100m+ already And solid acquisitions
  32. You can get an exit, they just aren’t as big as the US (yet)
  33. There’s no entrepreneurial talent (in Asia) #6
  34. Twice as many Philippinos than Israeli’s recon they have the skills to startup! Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer Perceived Capabilities! Percentage of 18-64 population who believe to have the required skills and knowledge to start a business
  35. Indonesian’s are twice more likely to be founders than in America Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer Total early-stage Entrepreneurial Activity (TEA)! Percentage of 18-64 population who are either a nascent entrepreneur or owner-manager of a new business
  36. They aren’t as afraid of failing as you think Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer Fear of Failure Rate! Percentage of 18-64 population with positive perceived opportunities who indicate that fear of failure would prevent them from setting up a business
  37. Asians are representing abroad… how much?
  38. …half the US startup jobs
  39. AND… Asian founders in America raise more money Founding team racial composition vs. median funding received ($m) $0.00 $1.00 $2.00 $3.00 $4.00 All Asian Pacific All white Mixed All Black $1.3 $2.2$2.3 $4.0 Source: CBInsights, 2010. National seed and Series-A - Jan to June 2010
  40. They see good opportunities locally (As much as the US Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer Perceived Opportunities! Percentage of 18-64 who see good opportunities to start a firm in the area where they live
  41. More of their friends have set up companies Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer Know Startup Entrepreneur Rate! Percentage of 18-64 population who personally know someone who started a business in the past two years
  42. More media attention than developed markets Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer 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
  43. Far more intend starting up in next 3 years than in US and UK Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer 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
  44. Asians are entrepreneurs, they are half of the US ecosystem!
  45. There is no smart money in Asia #7
  46. Premoney Asia 2014
  47. Active Investors in Asia
  48. Follow us @jungleventures

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