China Internet Opportunities 2011

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China Internet: Opportunities for 10x Return in the Next 12-24 Months

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China Internet Opportunities 2011

  1. 1. China Internet:Opportunities For 10x Return
  2. 2. Was Youku Worth US$7 Billion? 2
  3. 3. GSR Ventures:Early Stage VC, Long Term Fundamental Investor F ndamental In estor 3
  4. 4. Most Valuable Internet Companies December 31, 2005 vs. December 31, 2010 Market MarketRank Company C Rank Company C Capitalization Capitalization 1 Google $ 122.50 1 Google $ 191.50 2 eBay $ 60.24 2 Amazon $ 82.02 3 Yahoo! Japan $ 60.09 3 Tencent $ 40.55 4 Yahoo! $ 55.59 4 eBay $ 36.67 5 Amazon $ 19.54 5 Baidu $ 34.59 6 Rakuten $ 16.51 6 Yahoo! $ 21.85 7 Apollo (UOP) $ 10.67 7 Yahoo! Japan $ 20.35 8 IAC $ 9 04 9.04 8 Priceline $ 19 85 19.85 9 E*Trade $ 8.55 9 Salesforce $ 17.38 10 Expedia $ 8.22 10 Activision Blizzard $ 15.16 In US$ Billion, excluding some acquired companies Source: Bloomberg 4
  5. 5. Global Leaders Emerging From China Market Capitalization of Selected Internet Companies Worldwide Source: Bloomberg 5
  6. 6. Driven By Internet Users IPO on Dec 2003 Stock Price: $4.24 12x return 2010/12/31 Stock Price: $40.45 Market Cap: $516M Market Cap: $6B Total Internet Users Penetration % (Million) Source: CNNIC, Bloomberg, WSJ.com 6
  7. 7. Driven By Internet Users IPO on June 2004 Stock Price: $0.53 45x return 2010/12/31 Stock Price: $21.73 Market Cap: $894M Market Cap: $40B Total Internet Users Penetration % (Million) Source: CNNIC, Bloomberg, WSJ.com 7
  8. 8. Driven By Internet Users IPO on August 2005 Stock Price: $12.25 9x return 2010/12/31 Stock Price: $96.53 Market Cap: $4.0B Market Cap: $34B Total Internet Users Penetration % (Million) Source: CNNIC, Bloomberg, WSJ.com 8
  9. 9. Is 1% Better Than 7%? 9
  10. 10. YoY GMV Growth Total China Market $75B Taobao $58B 80% Share Others $17B 90% Growth Total U.S. Market $165B eBay $30B 20% Share Others $135B 10% Growth Share of Total eCommerce Market Source: Alibaba, eBay 10
  11. 11. Can OTAs Be Disrupted? 11
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  13. 13. How Many Multi Billion $ Multi-BillionOpportunities are there in eCommerce? 13
  14. 14. 14
  15. 15. Is thI there another th y eBay/Amazon? 15
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  18. 18. Can China Lead Th W ldC Chi L d The World g In Online Advertising? 18
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  20. 20. What About Mobile? 20
  21. 21. In The Next 12-24 Months Online Travel Apparel Brand Cross-Border eCommerce Group BuyingOnline Advertising 21

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