1. ED TECH IN ASIA:
KEY TRENDS
Allison Baum,18 June 2015

2. INTRODUCTION

3. WHY BE HERE?
“We’re here to put a
dent in the universe.
Otherwise, why be
here?”
- Steve Jobs

4. Early stage venture investors supporting
exceptional entrepreneurs to build remarkable
businesses

5. WHO WE ARE
Allison
Baum,
Managing
Director,
Tokyo,
Japan
Ø Experience
in
educa3on
opera3ons
management
including:
curriculum
development,
marke3ng,
teacher
training,
real
estate
expansion,
hiring,
and
business
development
Ø Bootstrapped
and
launched
educa3on
business
in
Asia,
scaled
to
US$1mm
revenue
run
rate,
2,000+
students,
60
teachers,
6
employees
in
nine
months
Ø Ins3tu3onal
sales
and
trading
at
Goldman
Sachs,
8
years
investment
experience
in
public
and
private
markets
Tytus
Michalski,
Managing
Director,
Hong
Kong
SAR,
China
Ø 16
years
in
cross-­‐border
investment
experience
across
Hong
Kong,
Singapore,
Tokyo,
London,
Canada,
and
the
United
States
Ø Previously
Chief
investment
Officer
of
PMA
Investment
Advisors,
where
he
managed
both
regional
funds
and
the
equity
team
Ø Founding
member
of
PMA,
scaled
from
US$600mln
to
US$3bln
in
ins3tu3onal
AUM
and
sold
in
2006
for
US$200mln
Stephen
Forte,
Managing
Director,
Menlo
Park,
CA,
USA
Ø Tech
Strategy
at
Telerik,
US$260mln
exit
Ø Experienced
entrepreneur
with
5
successful
exits
Ø Mentor
at
Thiel
Founda3on,
ChinaAccelerator,
HAXLR8R
Ø Founder
of
Mach5,
a
Silicon
Valley
based
startup
accelerator
and
co-­‐founder
of
AcceleratorHK,
Hong
Kong’s
first
startup
accelerator

6. WHY EARLY STAGE?
RETURNS
ü Target returns 30% IRR / 5x TVPI multiple
ü Current portfolio on track to exceed targets
ACCESS
ü Diverse network of deals & people
ü Over 300 co-investors around the world
INNOVATION
ü Cutting edge technology, teams, businesses

7. THE NEXT FRONTIER

8. 2015 1800

9. THE RISE OF ED TECH
0
500
1,000
1,500
2,000
2,500
2010
2011
2012
2013
2014
Millions
Private
Investment
in
Learning
Technology
Companies
(US$
Millions)

10. THE RISE OF ED TECH

11. HIGH PROFILE EXITS
0
10
20
30
40
50
60
70
80
90
100
2011
2012
2013
2014
(est)
#
Deals
EdTech Exits +200% in 2014
IPO
M&A

12. ü 75% capital invested into edtech in 2014
was U.S.
ü 9/10 largest financings in U.S.
ü 60 million K-12 students
ü 96% of K-12 students in the world are
outside of the U.S.
USA HAS LED THE WAY

13. ASIA IS NEXT
US$59.90bn: Size
of global ed tech
market by 201816
600 million: K-12 students in Asia
5 years: Time until Asia is the
largest regional market 16
300 million:
People learning
English in China
195 million: College graduates in China by 2020
40% income spent on education

14. DEVELOPING ECOSYSTEMS
ü People
ü Connectivity
ü Capital

15. GRASS IS GREENER

16. LOCAL CHALLENGES
ü Localization
ü Business Model
ü Language
ü Culture
ü Values
ü Timing

17. ü B2C business models
ü Mobile
ü Language Learning
ü Exits
KEY OPPORTUNITIES IN ASIA

18. #1: B2C IN ASIA
ü 600 million K-12
students
ü 40% income spent on
education
ü 60-96% of secondary
school students
receive outside
tutoring

20. #2: MOBILE IN ASIA
ü APAC = 57.7% of the world’s
mobile phones
ü 80% of internet users in China
access via the mobile/tablet
ü Highest % mobile payment
users in the world

22. #3: LANGUAGE LEARNING
ü 300 million people
learning English in
China
ü 30% of foreign students
studying in U.S.are
from China
ü English skills correlate
with 30-50% higher
income

23. ü EducationTravel = US$80 billion / year
ü Language Education= US$12 billion /year
ü 80% students sent by agents

24. ü Mobile
ü Publishing/Media
ü Tech/ Gaming
ü Education
ü IPO
#4: EXITS

25. CROSS BORDER ACTIVITY

26. ü Global solutions
ü Local implementations
ü Cross-border collaboration
ü Global, specialized investors
WHAT’S MISSING?

27. GLOBAL CHALLENGES
ACCESS EFFICIENCY
ENGAGEMENT OUTCOMES
ü Limited
ü Quality vs.
scalability
ü High fixed costs
ü No infrastructure
ü Differentiated
learning
ü Motivation
ü Assessment
ü Relevancy

28. GLOBAL SOLUTIONS
ACCESS EFFICIENCY
ENGAGEMENT OUTCOMES

29. WHERE FRESCO FITS IN
ü Bridging the gap
ü Investing in scalable solutions
ü Dedication to sector
ü Early stage Capital
ü People first

30. HOW WE DO IT

31. “If you want to build a ship, don’t drum up the men to
gather wood, divide the work, and give orders. Instead,
teach them to yearn for the vast and endless sea.”
― Antoine de Saint-Exupéry

32. GET INVOLVED
“The people that are
crazy enough to think
they can change the
world are the ones
that do.”
- Steve Jobs

33. KEEP IN TOUCH
ü www.fresco.vc
ü allison@fresco.vc
ü @allison_baum