Intro to Qualcomm Ventures    & Trends in Silicon Valley     May / 20111
Agenda              Introduction to Qualcomm Ventures              Mega trends in Silicon Valley VC –               Wire...
Qualcomm : from a start up to a global leader in mobile    communication and computing industry                           ...
Qualcomm Ventures : strategic venture capital investment arm    of Qualcomm         “QCVs mission is to accelerate and inf...
Qualcomm Ventures is a global venture capital with presence in 6    regions/countries       Established in 2000 as a corp...
Qualcomm Ventures focuses on 4 major mobile industry    segments      Wireless components & devices                       ...
Qualcomm Ventures Korea was established in 2010 with    an objective to invest in and foster early stage venture    compan...
Agenda              Introduction to Qualcomm Ventures              Mega trends in Silicon Valley VC –               Wire...
5 Venture capital mega trends in recent years    Mega Trends                              Implications    1. Wireless inve...
2009: VC Investment in Semi Declining Precipitously while     Software Holding Up      Perceived as a “Big boys game”’   ...
2010: Wireless Investment Back at Peak Levels, Driven by SW for     Services & Apps                                       ...
Services/App Startups Create Wealth at an Incredible Pace                            400M users / 200M DAU                ...
Low Barriers to Entry & Success       Average $s Raised in 2010       Tapulous: $12M in revenue + profitable              ...
Freemium and Try-Before-You-Buy Model        Increases ability to scale users – but monetization is a                     ...
VC as an “extension” of R&D for Large Platform Players          Apr 03            Aug 05             Nov 06        Sep 07 ...
Market is Heating Up Again                                          $50B when GS invested and $120B                       ...
Agenda               Introduction to Qualcomm Ventures               Mega trends in Silicon Valley VC –                W...
2010: Where are the VC Dollars Flowing?                                   High $s and Deal Volume                         ...
Gaming: VC Investment Overview                                     Game              Monetization       Social Gaming     ...
Gaming: Going Mainstream      Casual gaming is changing Gamer demographics            67% of American households play co...
Gaming: Moving to the Cloud      Focus shifting from the hardware to the network      Allows flexible pricing models whi...
Social: VC Investment Overview                                Social Content                                      Social G...
Social: Maturing as a Business      Monitor traffic on the social platforms – what are consumer’s saying about a       br...
Location: Overview of VC Investment                                              Location                              Loc...
Video: Overview of VC Investment                                Video projection     Video sharing        Video ad        ...
Marketing/Ads/Data: VC Investment Overview                              Mobile                   Medium                   ...
Core Value is the Data Layer                                    Data layer is the core                                    ...
Payments: VC Investment Overview                              Charge transactions to                                custom...
Payments: Key to Controlling the Ecosystem      Managing the transaction is one of the “control pillars” of the ecosystem...
Payments: Crowded & Set to Consolidate      Mobile payments is       very fragmented –       consolidation likely      R...
Agenda               Introduction to Qualcomm Ventures               Mega trends in Silicon Valley VC –                W...
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퀄컴벤처스 소개 및 실리콘밸리 동향

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퀄컴벤처스 소개 및 실리콘밸리 동향

  1. 1. Intro to Qualcomm Ventures & Trends in Silicon Valley May / 20111
  2. 2. Agenda  Introduction to Qualcomm Ventures  Mega trends in Silicon Valley VC – Wireless Sector  Where are VC dollars flowing?  Q&A2
  3. 3. Qualcomm : from a start up to a global leader in mobile communication and computing industry 2010 • $11B in revenue, $20B market cap. 1985 • Irwin Jacobs founded • ~16,000 FTEs in 53 locations world wide Qualcomm • ~80,000 patents world wide with 300+ licensees • “I hope to grow this company to 30 FTEs” • Listed on NASDAQ 100 • Member of S&P500, Fortune 5003
  4. 4. Qualcomm Ventures : strategic venture capital investment arm of Qualcomm “QCVs mission is to accelerate and influence the growth of the wireless market while supporting Qualcomms corporate and individual business units strategic goals by fueling innovations in venture community” Early stage focus with long Connection to critical term commitment resources • We know what it takes to grow a • Not only financial capital, start up to a global leader portfolio companies instantly gain access to Qualcomm’s global network & business (inside & outside of Qualcomm) Qualcomm Ventures Instant credibility No competing interest • Qualcomm is known for its • We manage global portfolio technology leadership – portfolio without competing investment companies’ technology receives instant validation4
  5. 5. Qualcomm Ventures is a global venture capital with presence in 6 regions/countries  Established in 2000 as a corporate venture capital of Qualcomm Inc.  Currently 16 investment professionals in 6 countries with ~$500M under management  Global access to portfolio companies London San Diego Tel Aviv Beijing Seoul Bangalore5
  6. 6. Qualcomm Ventures focuses on 4 major mobile industry segments Wireless components & devices Enabling technology Infrastructure Applications, software and services6
  7. 7. Qualcomm Ventures Korea was established in 2010 with an objective to invest in and foster early stage venture companies Founded • October, 2010 Investment • Strategic fit with Qualcomm – mutual strategic benefits Criteria • Financial gain on investments Main investment focus Investment Later stages / Seed Series A Series B Practice Pre-IPO • Up to $500K • $1M~$3M • Up to $6M • Up to $10M • Seed stage • ($4M) dedicated fund • sdsds − Seed funding • Less than 20% ownership competition • Co-invest with another FI or SI for early start • Usually no board seat required ups − 2010 winner :7
  8. 8. Agenda  Introduction to Qualcomm Ventures  Mega trends in Silicon Valley VC – Wireless Sector  Where are VC dollars flowing?  Q&A8
  9. 9. 5 Venture capital mega trends in recent years Mega Trends Implications 1. Wireless investment back to peak More innovation, disruption, and big levels exits 2. VCs focused on services/apps that Big R&D budgets no longer an are capital efficient with low advantage vs. nimble start-ups barriers to entry Monetization still challenging for 3. “Try before you buy” or services/apps, unless you have a “Freemium” model dominate platform or “castle” to leverage 4. It is all about the mobile internet VC is an extension of R&D for large platform players (Google, FB, etc. ) 5. Market heating up around mobile More and more funding; speculations of a bubble9
  10. 10. 2009: VC Investment in Semi Declining Precipitously while Software Holding Up  Perceived as a “Big boys game”’  64% of VCs believe that there will be a decline in semiconductor investments in 2010* $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2002 2003 2004 2005 2006 2007 2008 2009 *NVCA Bus Prod & Services CP & Services Financial Services IT Services Semiconductors Software10
  11. 11. 2010: Wireless Investment Back at Peak Levels, Driven by SW for Services & Apps Investment focused on sw Wireless Financings by % of Deal Wireless VC Investment Peaking Again Wireless Financings by Dollars ($Bn) . . . And on the consumer Wireless Financings by % of Deal11 Source: CapIQ, Rutberg & Co Wireless Financings in 2010
  12. 12. Services/App Startups Create Wealth at an Incredible Pace 400M users / 200M DAU Platform for all Social Media Worth ~$15B Which spurred the developer ecosystem Worth ~$5B Which spurred the alternative billing ecosystem Worth ~$3B All the companies mentioned above (except Zong) did not exist prior to 200412
  13. 13. Low Barriers to Entry & Success Average $s Raised in 2010 Tapulous: $12M in revenue + profitable on $2M invested capital Most active Remainder sectors Capital is available for nimble start-ups resulting in low barriers to entry13
  14. 14. Freemium and Try-Before-You-Buy Model Increases ability to scale users – but monetization is a challenge14
  15. 15. VC as an “extension” of R&D for Large Platform Players Apr 03 Aug 05 Nov 06 Sep 07 Mar 10 Google Search Platform (Upstartle) Mar 05 Mar 06 Jun 07 Mar 10 Feb 10  VC investment focused on mobile internet – monetization is from existing “castles”  Google is nimble at acquisitions, with reasonable success – they did 26 acquisitions in 2010, mostly small “tuck in” technology/talent acquisitions. Already done 8 deals in Q1 2011 – picking up the pace . . .15
  16. 16. Market is Heating Up Again $50B when GS invested and $120B at IPO? 2010 At IPO # users 500M 1B (assumed) Rev / user $4 5x $20 Profit / $1 6x $6 user Valuation $50B $120B Valuation / User $100 $120 Val. / rev. 25 6* Val. / prof. 100 20* * Matrix for Google in 201016
  17. 17. Agenda  Introduction to Qualcomm Ventures  Mega trends in Silicon Valley VC – Wireless Sector  Where are VC dollars flowing?  Q&A17
  18. 18. 2010: Where are the VC Dollars Flowing? High $s and Deal Volume VC $s invested in 2010 ($MM) Number of VC deals in 201018 Source: CapIQ, Rutberg & Co Wireless Financings in 2010
  19. 19. Gaming: VC Investment Overview Game Monetization Social Gaming Game Engines Developers Platforms Networks • Provide tools, • Broadening titles • Platforms for • Social gaming platforms for for greater developers to • Provide developers appeal monetize their additional • Social and games via ads discovery geosocial games and virtual • Gate to goods monetization  Area that is exploding is casual gaming (vs. console gaming)  Developers constantly looking for novel experiences19
  20. 20. Gaming: Going Mainstream  Casual gaming is changing Gamer demographics  67% of American households play computer or video games  The average age of the most frequent game purchaser is 40 years old.  40% of all game players are women  Zynga says 60% of their players are women  Gamification: Game-dynamics in all apps to drive engagement  Education/learning  Marketing/branding  Location & social network apps20 Source: IPG Labs, 2011 Trend Presentation, TechCrunch, PopCap Survey, 2011
  21. 21. Gaming: Moving to the Cloud  Focus shifting from the hardware to the network  Allows flexible pricing models which adds accessibility to a broader segment  Lowers friction to consumption - no retail buying of game consoles  Once technical challenges with gaming are resolved, this can be applied to other media – software, etc.21
  22. 22. Social: VC Investment Overview Social Content Social Gaming Geosocial Networks Geosocial Shopping Aggregation Networks • Check-in at local • Aggregate feeds from • Product comparisons • Play with others in merchants Twitter, FB, etc. • Recommendations your social network • Recommendations • Interact across all from the social social networking sites network via one location • See what others are buying22
  23. 23. Social: Maturing as a Business  Monitor traffic on the social platforms – what are consumer’s saying about a brand?  Execute marketing campaigns via social platforms23
  24. 24. Location: Overview of VC Investment Location Location Geosocial Mobile Location-Based platforms for advertising & networks shopping Gaming developers analytics • Check-in at • Product • Help developers • Geo-based • Measure merchants comparisons build location- gaming location-based • Receive • Mobile-checkout based apps analytics for rewards • Many focused advertising • Recommend on local merchants to build local apps/presence  Local merchants looking to develop apps for consumers – serve as marketing & promotion platforms  Geosocial networks both drive traffic to a store as well as verify that a consumers is in the store24
  25. 25. Video: Overview of VC Investment Video projection Video sharing Video ad Infrastructure technologies technologies networks • Optimize • HW+SW • Share video • Serve ads into bandwidth solutions to real-time video services • Manage video enable video • Consumer • Focused on traffic projection service publishers/devel • Focused on opers client & server • Sell to operators  Managing video over networks still a problem to be addressed as video traffic grows over smartphones25
  26. 26. Marketing/Ads/Data: VC Investment Overview Mobile Medium Advertising Location App analytics & marketing & focused platforms & advertising & advertising analytics (video, audio, games, etc.) networks analytics • Application • Internet analytics • Tech platforms • Provide • Location based; focused • Various focused on technology connecting • Moving into ad approaches specific platforms consumers to platform (embedded mediums only • Provide ad physical world to device SW, network drive sales panels, etc.)26
  27. 27. Core Value is the Data Layer Data layer is the core of value driver This is what Google, FB, etc. are focusing on as they continue to strengthen their ad platforms27
  28. 28. Payments: VC Investment Overview Charge transactions to customers’ wireless Carrier Billing carrier bill via mobile web, (for Virtual Goods) app or SMS Hardware/software to Contact/Contactless transfer money between Payment merchants and customers (for Physical Goods) Users send and receive money and redeemable Peer-2-Peer gifts over mobile app and SMS28
  29. 29. Payments: Key to Controlling the Ecosystem  Managing the transaction is one of the “control pillars” of the ecosystem  The player that controls the transaction, also controls the ecosystem by: • Defining the pricing models (and hence the business model) • Defining the framework for developers and consumers to interact • Gaining the consumer trust by handing their money – creates high switching costs • Lowering friction to monetization29
  30. 30. Payments: Crowded & Set to Consolidate  Mobile payments is very fragmented – consolidation likely  Rumors of impending acquisition of key players like Boku, Zong surfacing  Google backing NFC and OEMs responding30 Source: GP Billhound LLP, 2011 Predictions
  31. 31. Agenda  Introduction to Qualcomm Ventures  Mega trends in Silicon Valley VC – Wireless Sector  Where are VC dollars flowing?  Q&A31

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