1) While consumer internet companies have achieved great scale in Asia, there are also large enterprise companies and the potential for exits through IPOs or acquisitions in the region. 2) Internet penetration and use in Asia is substantial and growing rapidly, with nearly half of global internet users located in Asia, despite some markets having lower penetration rates than more developed areas. 3) Innovation is occurring in Asia, as evidenced by rapidly growing patent filing rates in some Southeast Asian countries and innovative companies being recognized globally. Entrepreneurship is also increasing as perceptions and rates of entrepreneurial activity in some Asian markets exceed those in the US and Europe.

1. !
Alexander Jarvis, Operating Partner, Jungle Ventures

2. 8 Myths about Asia

3. Today we call it

4. #1
You need to be in the
Valley to build a big
consumer company

5. China has already created a company of scale
(Sorry America…)
• Alibaba’s sales for 2014 are forecasted at $420BN, 2.5x over 2012.
• Amazon reported sales of $74.4BN for fiscal 2013 and EBay… fiscal 2013 of $16 Billion,
less than one-tenth Alibaba’s 2012 sales

6. Rocket are building companies of scale across
SEA, achieving a lot in just 2 years
• 1m active customers
• 79m monthly visits
• Millions of Euro per month in
revenue
!
• 1.6m customers served
• 27m monthly visits
• Millions of Euro per month in
revenue
Source: http://www.kinnevik.se/en/Investor/Kinnevik-Rocket-capital-markeys-day-2014/

7. APAC is set dominate ecommerce, 41% larger than
America in 2016
B2C Ecommerce Sales Share Worldwide, by Region, 2011-2016 - % of total
1.6%!
1.9%!
2.1%!
2.2%!
3.1%!
27.9%! 35.9%! 28%! 3.6%!
2011!
3.4%!
30.5%! 33.5%! 26.9%! 3.8%!
2012!
2013! 3.5%!
33.4%! 31.5%! 25.7%! 3.9%!
2014! 3.6%!
36.2%! 29.7%! 24.3%! 3.9%!
2015!
2016!
3.6%!
38.2%! 28.8%! 23.4%! 3.8%!
3.5%!
39.7%! 28.2%! 22.6%!3.7%!
Asia-Pacific! North America! Western Europe!
2.3%!
2.3%!
Eastern Europe! Latin America! Middle East & Africa!
Source: eMarketer, 2013
• 2013: Sales is expected to grow 18.3% to
$1.298 trillion with Asia-Pacific surpassing
North America to become the world's #1
market for B2C ecommerce sales.
• Despite strong growth, North America’s
share of global sales will drop from 33.5% in
2012 to 31.5% in 2013 as Asia-Pacific surges
ahead.
• Asia-Pacific in 2013 will see sales increase by
more than 30% to over $433 billion — or
more than one-third of all global B2C
ecommerce sales.
• Three Asia-Pacific markets — China, India
and Indonesia — will see faster B2C
ecommerce sales growth than all other
markets worldwide in 2013.

8. There already are ‘big’
consumer companies

9. #2
Definitely need to be in
the Valley for
ENTERPRISE startups!

10. Heard of these guys?

11. There are already APAC
unicorns in enterprise

12. Internet penetration in
Asia is too low
#3

13. Almost 200m users online in SEA already
Source: UBS

14. How does Asia stack up globally?
Source: US census bureau, InternetWorldStats, CNNIC, Tencent, Facebook, Vkontakte, ITU, CIA

15. APAC has almost half of global users,
simply put
Source: US census bureau, InternetWorldStats, CNNIC, Tencent, Facebook, Vkontakte, GSMA Intelligence

16. Internet traffic will be double the US in 2015
2012 2013 2014 2015 2016 2017
CAGR
’12-17
By Geography (PB per Month)
Asia Pacific 310 614 1,168 2,053 3,377 5,257 76%
North America 222 380 632 993 1,466 2,087 56%
Western Europe 181 276 426 655 976 1,384 50%
Middle East and Africa 50 96 182 333 559 861 77%
CEE 66 116 211 365 577 845 66%
Latin America 55 97 179 304 481 723 67%
Total (PB per Month)
Mobile data and internet 884 1,579 2,798 4,703 7,436 11,157 65%
Source: CISCO VNI, 2013

17. Social media penetration in APAC is the global
average
Source: US Census Bureau, CNNIC, Tencent, Facebook

18. Internet penetration may
be comparatively low,
but there’s still a LOT of
people online

19. Asians just copy, they
don’t innovate
#4

20. CAGR of tech patents in SEA is 7x USA
Growth of tech patents in SEA VS USA
180%
135%
90%
45%
0%
-45%
SEA USA
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: Patents by technology, OECD. SEA consists of ID, MY, PH, SG and TH
CAGR
SEA
14%
USA
2%

21. Asia’s share of global tech patents is
converging
% of global tech patents in Asia VS USA
40%
30%
20%
10%
0%
Asia USA
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: Patents by technology, OECD. Asia consists of ID, MY, PH, SG, TH, CN, HK, IN, AU & NZ

22. 2 of Fastcompany’s most innovate companies are
Asian

23. India - Zipdial: Missed call innovation led to one of its
kind partnership with FaceBook

24. Singapore - Rotimatic: Will lead to female
empowerment

25. Have you tried executing in Asia?
• Remember.. you keep saying you don’t invest in an
‘idea’
• Asia has barriers (AKA problems):
• Payments
• Logistics
• Market fragmentation
• etc…
• In America you can effectively outsource every
aspect of your business
• In Asia you have to figure out a creative solution to
make every aspect of your business work
• Why have business model risk when you have
execution risk?

26. Innovation is overrated.
Think about ‘copying’
differently, you have to
hustle in Asia

27. You can’t get an exit in
Asia
#5

28. Let’s look at Singapore, last year
• Approximately 1,000 startups in the preceding 3
years
!
• 12 successful exits worth S$600 million in 2013
!
• 1.2% exit rate is not too shabby
!
• 2x more exits in 2013 than 2011
!
• We are just getting started

29. No Unicorns in SEA, but solid acquisitions
• JobStreet / Seek - A$545
• Viki / Rakuten - $200m
• Travelmob / HomeAway - N/A
• Zopim / ZenDesk - ~$30m
• SGCarMart / SPH - $48m
• TransferTo / Ingenico - $38m
• JobCentral / CareerBuilder - N/A
• SoundBuzz / Motorola - $27.65m
• Detik / Para Group - $60m
• Tarad / Rakuten - N/A
!
• Reebonz and RedMart worth $100m+ already

30. We have already had IPOs
• Australia
• Atlassian
• Freelancer
• iSelect
• Xero
• 3P Learning
• OZForex
• SEEK
• Carsales
• Malaysia
• Jobstreet
• iProperty
• MyEg
• iCar
• iBuy
• Singapore
• AsiaTravel
!
!
• Property Guru coming -
~$500m+

31. You can get an exit, they
just aren’t as big as the
US (yet)

32. Asians aren’t
entrepreneurs
#6

33. There are still big cultural issues
• A lot of people still want to work for ‘Samsung’
• But saying you are a founder is now an acceptable response at a
dinner table when asked “What do you do”

34. But twice as many Philippinos than Israeli’s recon
they have the skills to startup!
Perceived Capabilities!
Percentage of 18-64 population who believe to have the required skills and knowledge to start a business
Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer

35. Indonesian’s are twice more likely to be founders than in
America
Total early-stage Entrepreneurial Activity (TEA)!
Percentage of 18-64 population who are either a nascent entrepreneur or owner-manager of a new business
Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer

36. They aren’t as afraid of failing as you think
Fear of Failure Rate!
Percentage of 18-64 population with positive perceived opportunities who indicate that fear of failure would
prevent them from setting up a business
Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer

37. Asians are representing abroad… how much?

38. …half the US startup jobs

39. AND… Asian founders in America raise more money
than white founders, by the way
Founding team racial composition vs. median funding
received ($m)
$4.00
$3.00
$2.00
$1.00
$0.00
$1.3
$2.3 $2.2
$4.0
All Asian Pacific All white Mixed All Black
Source: CBInsights, 2010. National seed and Series-A - Jan to June 2010

40. They see good opportunities locally (As much as
the US
Perceived Opportunities!
Percentage of 18-64 who see good opportunities to start a firm in the area where they live
Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer

41. More of their friends have set up companies
Know Startup Entrepreneur Rate!
Percentage of 18-64 population who personally know someone who started a business in the past two
years
Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer

42. More media attention than developed markets
Media Attention for Entrepreneurship!
Percentage of 18-64 population who agree with the statement that in their country, you will often see stories in the
public media about successful new businesses
Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer

43. Far more intend starting up in next 3 years than in US
and UK
Entrepreneurial Intention!
Percentage of 18-64 population (individuals involved in any stage of entrepreneurial activity excluded) who
intend to start a business within three years
Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer

44. Asians are
entrepreneurs, they are
half of the US ecosystem!

45. There’s too much seed
funding in Asia
#7

46. Sure, ‘more’ money has come in
• In 2006, $48 million seed went into 116 deals
!
• In 2013, $83 million was deployed across 257
transactions
!
• Average seed rounds have decreased from $413k
to $323k
!
• In 2012 in America, there were 1,749 seed deals
!
• There are 133 accelerators globally, SEA has 1-2
per country
Source: Asia Venture Capital Journal Research. Seed defined as deals under $1 million in size

47. “FFF” investments still half of that in America
Informal Investors Rate!
Percentage of 18-64 population who have personally provided funds for a new business, started by someone
else, in the past three years
Source: Global Entrepreneurship Research Association, Jungle analysis through Google Explorer

48. There isn’t that much
seed money

49. There is no smart money
in Asia
#8

50. Look around the room!