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Asia and the death of
Silicon Valley
Jager McConnell 

CEO of Crunchbase
@jagermcconnell
Source: http://www.laughtraveleat...
Asia has already surpassed Silicon Valley
Amount of capital invested
Amountofcapitalinvested(inBillionsofUSD)
$10B
$20B
$3...
Source: “The Course of the Empire - Destruction” by Thomas Cole,
Disclaimer: Silicon Valley isn’t dead (yet)
how did we get here?
Computer and mathematical occupations
NumberofJobs
800,000
900,000
1,000,000
1,100,000
1,200,000
2006 2007 2008 2009 2010 ...
Increasing Wages in the U.S. matched demand
Median weekly earnings for computer and mathematical occupations
Dollars(USD)
...
Cumulative U.S. jobs displaced by China
OutsourcedJobs
1,850,000
2,200,000
2,550,000
2,900,000
3,250,000
2006 2007 2008 20...
Graduates in Science, Technology, Engineering, and Mathematics in 2016
China
India
United States
Russia
Iran
Indonesia
Jap...
Asian companies tracked in Crunchbase
Numberofcompaniesfounded
900
1,200
1,500
1,800
Year of company’s founding
2007 2008 ...
Number of Unicorns founded per year
Numberofunicorns
5
10
15
20
25
30
Based on year founded, includes exited and private u...
Number of Unicorns founded per year
Numberofunicorns
5
10
15
20
25
30
Based on year founded, includes exited and private u...
who is profiting?
Investor Portfolio of Asian companies
increase in 2016
47%
40%
38%
35%
28%
27%
25%
23%
21%
18%
13%
Top Asian investors lea...
Top Silicon Valley investors’ investment count in Asia
NumberofInvestments
30
60
90
120
2012 2013 2014 2015
Sequoia Capita...
Geographic distribution of lead investors in Asian-based companies
United States
China
India
Singapore
Israel
Japan
Hong K...
what’s next?
Salary hike in 2016 across Asia-Pacific
India
China
Philippines
Malaysia
Hong Kong
Singapore
Australia
Japan
Percent Growth...
China’s working-age population
Percentofthepopulation
55%
60%
65%
70%
75%
1950 1955 1960 1965 1970 1975 1980 1985 1990 199...
Change in working age population (age 15-64)
Millionsofpersons
-100M
-50M
0M
50M
100M
150M
200M
250M
300M
350M
1990 2000 2...
Change in working age population (age 15-64)
Millionsofpersons
-100M
-50M
0M
50M
100M
150M
200M
250M
300M
350M
1990 2000 2...
Source: CIA Factbook
Population under the age of 25 years old
Nigeria
Kenya
Zimbabwe
Ghana
South Africa
USA
UK
Japan
Perce...
Job creation in African start-ups
JobGrowthRate
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
110%
2011 2012 2013 2014
Jobs in ...
Africa primed for the future
Large labor force
29 million workers
enter labor force yearly
Booming entrepreneurship
22% st...
Big players seem to think so
Is Africa China’s China?
Chinese investment in
Africa has risen from $7
billion in 2008 to $26
billion in 2013
(“Knowledge...
And China already seeing the benefits
Source: China Statistical Yearbook, SAIS China Africa Research Initiative
China’s tr...
Will Africa become the world’s next tech hotspot?
Tweet your thoughts @jagermcconnell
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Asia and the decline of Silicon Valley

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Jager McConnell discusses trends in innovation at the Rise Conference in Hong Kong on 13 July 2017 What fueled the environment for the Asian tech scene to flourish? Who will be the next tech hub?

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Asia and the decline of Silicon Valley

  1. 1. Asia and the death of Silicon Valley Jager McConnell 
 CEO of Crunchbase @jagermcconnell Source: http://www.laughtraveleat.com/
  2. 2. Asia has already surpassed Silicon Valley Amount of capital invested Amountofcapitalinvested(inBillionsofUSD) $10B $20B $30B $40B $50B $60B 2008 2009 2010 2011 2012 2013 2014 2015 2016 Silicon Valley Asia Source: Crunchbase Data
  3. 3. Source: “The Course of the Empire - Destruction” by Thomas Cole, Disclaimer: Silicon Valley isn’t dead (yet)
  4. 4. how did we get here?
  5. 5. Computer and mathematical occupations NumberofJobs 800,000 900,000 1,000,000 1,100,000 1,200,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Demand for IT jobs increases in the U.S. Source: U.S. Bureau of Labor Statistics
  6. 6. Increasing Wages in the U.S. matched demand Median weekly earnings for computer and mathematical occupations Dollars(USD) $1,200 $1,250 $1,300 $1,350 $1,400 $1,450 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: U.S. Bureau of Labor Statistics
  7. 7. Cumulative U.S. jobs displaced by China OutsourcedJobs 1,850,000 2,200,000 2,550,000 2,900,000 3,250,000 2006 2007 2008 2009 2010 2011 2012 2013 United States sends its jobs to Asia Source: Economic Policy Institute
  8. 8. Graduates in Science, Technology, Engineering, and Mathematics in 2016 China India United States Russia Iran Indonesia Japan 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 Asia invests in education to meet demand Source: World Economic Forum
  9. 9. Asian companies tracked in Crunchbase Numberofcompaniesfounded 900 1,200 1,500 1,800 Year of company’s founding 2007 2008 2009 2010 2011 2012 2013 2014 Tech companies founded in Asia dramatically increases Source: Crunchbase Data
  10. 10. Number of Unicorns founded per year Numberofunicorns 5 10 15 20 25 30 Based on year founded, includes exited and private unicorns 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Asian unicorns founded Asia starts breeding unicorns Source: Crunchbase Data
  11. 11. Number of Unicorns founded per year Numberofunicorns 5 10 15 20 25 30 Based on year founded, includes exited and private unicorns 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 U.S. unicorns founded Asian unicorns founded Asia outpacing the U.S. in new unicorns Source: Crunchbase Data
  12. 12. who is profiting?
  13. 13. Investor Portfolio of Asian companies increase in 2016 47% 40% 38% 35% 28% 27% 25% 23% 21% 18% 13% Top Asian investors leading the way in Asia Source: Crunchbase Data
  14. 14. Top Silicon Valley investors’ investment count in Asia NumberofInvestments 30 60 90 120 2012 2013 2014 2015 Sequoia Capital Accel Partners Intel Capital Increase since 2012 316% 177% 89% Source: Crunchbase Data Top Silicon Valley investors are jumping onboard
  15. 15. Geographic distribution of lead investors in Asian-based companies United States China India Singapore Israel Japan Hong Kong South Korea United Kingdom Number of investment rounds since 2012 200 400 600 800 1000 1200 1400 1600 The United States is outsourcing its capital Source: Crunchbase Data
  16. 16. what’s next?
  17. 17. Salary hike in 2016 across Asia-Pacific India China Philippines Malaysia Hong Kong Singapore Australia Japan Percent Growth 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% The cycle repeats: wages are starting to increase Source: Aon Hewitt
  18. 18. China’s working-age population Percentofthepopulation 55% 60% 65% 70% 75% 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Available workers are starting to decrease Source: United Nations, National Bureau of Statistics
  19. 19. Change in working age population (age 15-64) Millionsofpersons -100M -50M 0M 50M 100M 150M 200M 250M 300M 350M 1990 2000 2010 2020 2030 2040 2050 2060 Rest of world A global decrease of people entering the workforce Source: IMF, Regional Economic Outlook, Chapter 3, April 2015
  20. 20. Change in working age population (age 15-64) Millionsofpersons -100M -50M 0M 50M 100M 150M 200M 250M 300M 350M 1990 2000 2010 2020 2030 2040 2050 2060 Sub-Saharan Africa Rest of world Creating opportunities for other parts of the world Source: IMF, Regional Economic Outlook, Chapter 3, April 2015
  21. 21. Source: CIA Factbook Population under the age of 25 years old Nigeria Kenya Zimbabwe Ghana South Africa USA UK Japan Percent of population 0% 10% 20% 30% 40% 50% 60% 70% As a generation of young people in Africa grows
  22. 22. Job creation in African start-ups JobGrowthRate 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 2011 2012 2013 2014 Jobs in African tech startups skyrocket Source: The Atlas
  23. 23. Africa primed for the future Large labor force 29 million workers enter labor force yearly Booming entrepreneurship 22% start a business of working age adults Young population 60% of population under 25 Internet readiness 45% of GDP was transacted via mobile in Kenya Source: African Economic Outlook 2017
  24. 24. Big players seem to think so
  25. 25. Is Africa China’s China? Chinese investment in Africa has risen from $7 billion in 2008 to $26 billion in 2013 (“Knowledge@Wharton,” UPenn) Over $100 billion in African roads, telecom, water, power and light industry financed by China over the last 15 years (“Delivered,” DHL)
  26. 26. And China already seeing the benefits Source: China Statistical Yearbook, SAIS China Africa Research Initiative China’s trade with Africa USDollars(Billions) $25B $50B $75B $100B $125B $150B $175B $200B 1995 2000 2005 2010 2015 Exports to Africa Imports from Africa
  27. 27. Will Africa become the world’s next tech hotspot? Tweet your thoughts @jagermcconnell

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