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China Next-generation Unicorn Startups

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Analyze success of existing Unicorn Companies
Innovation: How to Create a Unicorn Company
Mindset
Enabling Technologies
Unicorn business opportunities for China

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China Next-generation Unicorn Startups

  1. 1. Zhejiang Strategic Outlook Hangzhou, June 7, 2018 Slides: http://slideshare.net/LaBlogga How to Create A Unicorn Company Worth 6.4bn yuan ($1bn) Melanie Swan Philosophy, Purdue University melanie@BlockchainStudies.org 下午好
  2. 2. 7 Jun 2018 Blockchain 1 Melanie Swan, Technology Theorist  Founder, Institute for Blockchain Studies  Philosophy Department, Purdue University, Indiana, USA  Singularity University Instructor; Institute for Ethics and Emerging Technology Affiliate Scholar; EDGE invited contributor; FQXi Advisor Traditional Markets Background Economics and Financial Theory Leadership New Economies research group Source: http://www.melanieswan.com, http://blockchainstudies.org https://www.facebook.com/groups/NewEconomies
  3. 3. 7 Jun 2018 Blockchain My Startups 2 Casbah Couture The California Crepe Company GroupPurchase DIYgenomics DIYelectronics DIYneuroscience Deep Qualia Institute for Blockchain Studies
  4. 4. 7 Jun 2018 Blockchain Agenda  Analyze success of existing Unicorn Companies  Innovation: How to Create a Unicorn Company  Mindset  Enabling Technologies  Unicorn business opportunities for China 3
  5. 5. 7 Jun 2018 Blockchain 4 What is a Unicorn Company?  Private company  Valuation  6.4bn yuan ($1bn) Source: https://en.wikipedia.org/wiki/List_of_unicorn_startup_companies
  6. 6. 7 Jun 2018 Blockchain 5 Mobile Payments and eCommerce  Cashless consumer society of the future  China 50x US mobile payments (6x population)  China $5.5 trillion vs. $112 billion US (2016)  China success factors  Mobile payments trusted (55% China 19% US)  Targeted advertising (31% click- throughs China vs. 16% globally)  Leapfrog technology: rural markets cash-mobile payments Source: Swan, M. 2017. Technology Innovation Management Review. 7(10): 6-13. http://timreview.ca/article/1109
  7. 7. 7 Jun 2018 Blockchain PWC: eCommerce growth trends in China 6 Source: https://www.pwccn.com/en/retail-and-consumer/publications/total-retail-2017-china/total-retail-survey-2017-china-cut.pdf
  8. 8. 7 Jun 2018 Blockchain 7 Platform Economies  Leverage network effects  Uber, Didi  World's largest taxi companies, own no vehicles  Airbnb  World's largest accommodation company, owns no real estate
  9. 9. 7 Jun 2018 Blockchain 8 Unicorns are Platform Companies  7 of top 10 do not produce physical assets  Digital service models Payments Ride-share Ride-share Electronics Batteries Software Books Hardware Home-share eCommerce Source: https://en.wikipedia.org/wiki/List_of_unicorn_startup_companies
  10. 10. 7 Jun 2018 Blockchain 9 Forbes top 10 Innovative Companies 2018 Source: https://www.forbes.com/innovative-companies/#63f6f4921d65, https://www.recode.net/2018/4/9/17204004/amazon- research-development-rd  ServiceNow, Workday, Salesforce: digital transformation  Tesla, Naver, Netflix: disruptive business models  Amazon: $23 billion spend on R&D 2017
  11. 11. 7 Jun 2018 Blockchain Network Effects: Metcalfe’s Law  The value of a network is proportional to the square of the number of connected users (n2)  Two telephones: one connection  Five: 10 connections  Twelve: 66 connections  Critical mass threshold  Value > cost adding a new user 10
  12. 12. 7 Jun 2018 Blockchain infrastructure. 11 Source: https://www.chinamoneynetwork.com/2017/04/27/chinas-fixed-line-broadband-penetration-rate-to-hit-63-this-year  Fixed wireline broadband penetration and download speeds
  13. 13. 7 Jun 2018 Blockchain 12 Platform Economies trend Closed Platforms App Stores Open Platforms Netflix Instagram Facebook Snapchat Apple Android Windows Open Source Software: Linux, GNU, Apache Blockchain Projects: Ethereum One-way network effects (monopoly properties) Partial two-way network effects (revenue-sharing) Two-way network effects (participation remunerated) Closed Open
  14. 14. 7 Jun 2018 Blockchain Closed platforms: growth saturation 13 Source: hhttps://techcrunch.com/2018/01/31/facebook-q4-2017-earnings/
  15. 15. 7 Jun 2018 Blockchain participation. 14 information internet: static information social internet: engage with content crypto internet: participate in the community economy
  16. 16. 7 Jun 2018 Blockchain Agenda  Analyze success of existing Unicorn Companies  Innovation: How to Create a Unicorn Company  Mindset  Enabling Technologies  Unicorn business opportunities for China 15
  17. 17. 7 Jun 2018 Blockchain mindset. 16
  18. 18. 7 Jun 2018 Blockchain 17 better horse and car. new technology. better horse “horseless carriage” => car
  19. 19. 7 Jun 2018 Blockchain 18  Dilemma: successful companies become complacent and do not invest in disruptive technologies  Low-risk innovation: create a solution where no existing solution exists innovation.
  20. 20. 7 Jun 2018 Blockchain 19 1. Name 2. Market 3. Problem 4. Solution 5. Competition 30-second Elevator Pitch Source: https://www.fool.com/investing/2018/01/28/meet-chinas-top-3-streaming-video-platforms.aspx 1. AliVid 2. Total Addressable Market (TAM): • 22 billion yuan ($3.5 billion) 2015 to 96.2 billion ($15.2 billion) yuan by 2020 3. Problem: lightweight mobile on- demand streaming video service 4. Solution: smart app video download 5. Competition: Tencent Video, iQiyi (Baidu), Youku Tudou (Alibaba)
  21. 21. 7 Jun 2018 Blockchain think in possibility. see the world as it could be, not how it is. 20 Actuality Possibility
  22. 22. 7 Jun 2018 Blockchain who are your role models? 21 Elon Musk Peng Lei Jack MaCraig Venter
  23. 23. 7 Jun 2018 Blockchain creativity. 22 Geniuses: Einstein, Edison, daVinci, Darwin, Picasso, Michelangelo, Galileo, Freud, Mozart Source: http://time.com/2907776/strokes-of-genius-heres-how-the-most-creative-people-get-their-ideas/  No one Eureka moment of fully-formed ideas  Iteration of ideas, prototypes, solutions  Lots of sketches of thoughts, pictures, diagrams, words
  24. 24. 7 Jun 2018 Blockchain ideas notebook. 23 Newton’s drawingsAlice: 6 impossible things before breakfast
  25. 25. 7 Jun 2018 Blockchain lean business model canvas. 24  9/10 businesses fail  Not because they did not deliver a product  Because they delivered a product that no one wanted
  26. 26. 7 Jun 2018 Blockchain lean business model canvas. 25 Source: http://howtowriteabusinessplan.com/2018/02/lean-startup-canvas-the-starting-point/  Most important: talk to many real customers about real problems
  27. 27. 7 Jun 2018 Blockchain mission. 26  Organizations driven by purpose and values outperform the market 15 to 1 Source: http://bizshifts-trends.com/power-purpose-driven-business-leadership-management-focus-mission-vision-reason-exist-really- matters/
  28. 28. 7 Jun 2018 Blockchain timing. 27  A clear view is not a short distance  Too early is failure
  29. 29. 7 Jun 2018 Blockchain enabling technologies. 28
  30. 30. 7 Jun 2018 Blockchain infrastructure. 29 Source: https://www.chinamoneynetwork.com/2017/04/27/chinas-fixed-line-broadband-penetration-rate-to-hit-63-this-year https://doi.ieeecomputersociety.org/10.1109/MIC.2006.67  Fixed wireline broadband penetration and download speeds  Backplane
  31. 31. 7 Jun 2018 Blockchain semiconductors. 30 Source: SIA: Semiconductor Industry Association 2017 Factbook, May 2017  Next-gen applications facilitated by downstream technological advance
  32. 32. 7 Jun 2018 Blockchain molecular computation interface. 31 Source: http://futurememes.blogspot.com/2009/05/opportunities-in-level-two-nanoscience.html Structural DNA: Holliday junction Rotaxane Molecular Propeller  Top-down solutions  EUV and block copolymer lithography  CNT transistors  Memristor  Quantum-dot cellular automata  Plasmonic materials & spintronics  Quilt packaging & 3D stacking  Bottom-up solutions  DNA self-assembly  DNA computing  DNA-based transistors  3D DNA nanocrystals  Molecular memory
  33. 33. 7 Jun 2018 Blockchain technology transfer. 32
  34. 34. 7 Jun 2018 Blockchain Agenda  Analyze success of existing Unicorn Companies  Innovation: How to Create a Unicorn Company  Mindset  Enabling Technologies  Unicorn business opportunities for China 33
  35. 35. 7 Jun 2018 Blockchain 34 Unicorn Business Opportunities  Extend consumer success into the enterprise domain  Cashless economy of the future  Apply consumer mobile payments business models, infrastructure, and success to corporate and trade payments market  Streamlined trade finance, collateralization, remittance, invoice processing, purchase orders
  36. 36. 7 Jun 2018 Blockchain 35  Consumer Services  eCommerce, mobile payments, entertainment, job skill development  Personal data security services  Enterprise Services  Cloud services, cybersecurity  eCommerce, corporate payments, supply chain, manufacturing  Connected Car  Vehicle gateway, 3D modeling  IoT Smart Home, Smart City  Smart transportation Unicorn Business Opportunities
  37. 37. 7 Jun 2018 Blockchain 36 Unicorn Business Opportunities  Beyond internet-based commerce, value-added services  Unique value-add requires technical innovation Source: https://www.reuters.com/article/us-sensetime-funding/chinas-sensetime-raises-620-million-its-second-funding-round-in-two- months-idUSKCN1IW07I SenseTime facial recognition software (AI)
  38. 38. 7 Jun 2018 Blockchain China Exports: 16.91 trillion yuan 37 Source: https://atlas.media.mit.edu/en/profile/country/chn/ Destinations
  39. 39. 7 Jun 2018 Blockchain China Imports: 10.89 trillion yuan 38 Source: https://atlas.media.mit.edu/en/profile/country/chn/ Origins
  40. 40. 7 Jun 2018 Blockchain 39 Digital Economy Unicorn Opportunities  Productivity gains  Capital investment in technology  Cloud computing data centers  Blockchain as a Service, Deep Learning nets  Skilled work force development  Train 1000 software developers  Hyperledger, Ethereum, Corda  Machine Learning, AI, Deep Learning  Scale efficiencies  Natural resources, regional strength, large companies  Manage global trade supply chain with blockchain/deep learning
  41. 41. Melanie Swan Philosophy, Purdue University melanie@BlockchainStudies.org 謝謝 Zhejiang Strategic Outlook Hangzhou, June 7, 2018 Slides: http://slideshare.net/LaBlogga How to Create A Unicorn Company Worth 6.4bn yuan ($1bn)

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