Emerging Trends, Areas & Opportunities in the Online World (Alok Mittal, Canaan Partners) at OMCAR 2009


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Alok Mittal shares his thoughts on Emerging Trends, Areas & Opportunities in the Online World at OMCAR 2009 - The Online Marketing Summit

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  • Emerging Trends, Areas & Opportunities in the Online World (Alok Mittal, Canaan Partners) at OMCAR 2009

    1. 1. Emerging Trends, Areas & Opportunities in the Online World May, 2009
    2. 2. Increasing Internet Penetration © Copyright 2008 Canaan Partners <ul><li>Internet reach is expanding rapidly </li></ul><ul><li>Internet penetration goes beyond top 8 metros </li></ul>* In millions Source:: IAMAI Active Users CAGR = 48% Internet and PC Penetration Geographical Diversification
    3. 3. Encouraging Trends and Indicators © Copyright 2008 Canaan Partners <ul><li>People are spending more time on internet and across diverse applications </li></ul><ul><li>Cheaper and faster access to internet will further proliferate it </li></ul><ul><li>Growing comfort with internet transactions helping eCommerce </li></ul>* Net Revenues in $ millions Source:: IAMAI, Canaan Estimates Successful Internet Businesses Internet Usage
    4. 4. Low Cost Internet Start Ups <ul><li>1-2 MN unique visitors </li></ul><ul><li>Free SEO traffic </li></ul><ul><li>Founder’s skill set </li></ul><ul><li>Initial traction at low cost help the start ups achieve funding </li></ul>© Copyright 2008 Canaan Partners Source: Alexa
    5. 5. Opportunities – Concept Arbitrage © Copyright 2008 Canaan Partners <ul><li>Interesting Areas like Ecommerce , Advertising , Education , Financial Services </li></ul><ul><li>Significant localization is needed even in concept arbitrage </li></ul><ul><li>Quality of execution is the key success factor </li></ul>Internet Sectors by Market Cap in US
    6. 6. Opportunities – What’s different about India? <ul><li>Mobile penetration is far higher than internet penetration </li></ul><ul><li>Internet growth coincides with the consumption growth </li></ul><ul><li>Demographic curve is tilted towards young population </li></ul><ul><li>Cheap labor costs </li></ul><ul><li>Deregulation </li></ul>© Copyright 2008 Canaan Partners
    7. 7. Opportunities – Specific Examples © Copyright 2008 Canaan Partners Financial Services <ul><li>Deregulation </li></ul><ul><li>Increase in disposable income and savings </li></ul><ul><li>Product and Pricing fragmentation </li></ul>Education <ul><li>Young and career oriented population </li></ul><ul><li>Strong long term employment market </li></ul>eCommerce <ul><li>Increase in disposable income </li></ul><ul><li>Increasing comfort with online transaction </li></ul>Social Media <ul><li>Broadband penetration </li></ul><ul><li>Cheaper internet access </li></ul><ul><li>Distinct entertainment categories for Indians </li></ul><ul><li>Growth of mobile internet </li></ul>
    8. 8. Investment Climate © Copyright 2008 Canaan Partners Source:: Business Today (June 2007) Internet Investments <ul><li>Availability of capital likely to shrink over 2009 </li></ul><ul><li>Investors backing experienced entrepreneurs and valid business models </li></ul>Examples of Deals Done
    9. 9. Canaan Investment Focus <ul><li>Consumer Internet </li></ul><ul><ul><li>Internet usage and transactions growing at 40%+ annually </li></ul></ul><ul><li>Mobile </li></ul><ul><ul><li>Existing 400m wireless subs growing at 10M a month </li></ul></ul><ul><li>Enterprise & Managed Services </li></ul><ul><ul><li>Increasing enterprise automation in emerging markets </li></ul></ul><ul><ul><li>Continuing labor cost arbitrage </li></ul></ul>© Copyright 2008 Canaan Partners
    10. 10. Thank You