Uploaded byChris Evdemon
Introduction to Innovation Works
The document provides an overview of the Chinese internet landscape, highlighting the massive user base, significant growth potential in e-commerce, mobile internet, and cloud computing. It contrasts user demographics in China and the U.S. and discusses the evolution of major Chinese tech companies and entrepreneurs. Additionally, it outlines the funding landscape for startups, emphasizing the role of angel investors and incubators like 'Innovation Works'.
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Introduction to Innovation Works
- 1. Chris Evdemon ( )! Investments & Business Development Manager! November 2009 1 Innovation Works Confidential and Proprietary
- 2. Overview of ChineseInternet Users Millions of Chinese Internet Users ( : )! 338 Data Source: CNNIC, iResearch & Pew Internet
- 3. Differences in UserDemographics Average age in China: 25 Average age in the U.S.: 42 % of new users each year: China 25% - U.S. 3%
- 4. Waves in theChinese Internet Technology companies Baidu, Tencent, Shanda Web portals in late rose from the ashes of 1990’s created the dot-com bust . first boom. We anticipate a recovery in 2010, building base for an explosive third wave which will be propelled by e- commerce, Mobile Internet, Cloud Computing and globalization. First Wave Second Wave Third Wave Mature Market Sina $1.81B! Baidu $12.2B! Sohu $2.39B! Shanda $3.23B! Valua9on of Listed Companies NetEase $5.50B! Giant $1.78B! Tencent $24.1B! Perfect World $1.89B!
- 5. New “Homegrown” Entrepreneurs (Binhao Chen) ! (Alan Guo) ! • CEO, kaixin001.com! • CEO, lightinthebox.com! • SINA 1998 2008! • Google 2005 2008! (Jianguo Liu) ! (Victor Koo) ! • CEO, aibang.com! • CEO, youku.com! • Baidu 2000 2007! • Sohu 1999 2005! (Haibing Wang) ! (Diane Wang) ! • CEO, 51mole.com! • CEO, DHGate.com! • Tencent 2004 2007! • Microsoft 1993 1999! (Nian Chen) ! (Sunny Liu) ! • CEO, Vancl.com! • CEO, 51wan.com! • Joyo 2000 2005! • Kingsoft 2001 2006!
- 6. Three Major FutureOpportunities e-Commerce! Mobile Internet! Cloud Computing!
- 7. Great Potential ofChinese e-Commerce 2008 Per-capita Online Shopping Amount USA! $1,059! CHN! $63! Internet penetra9on Mone9za9on of in China is just about Chinese Internet is 1/3 that of the US 1/16 that of the US 50x poten9al Data Source: CNNIC, iResearch & eMarketer
- 8. e-Commerce Accelerates Advertising DataSource: IAB & eMarketer
- 9. Future of e-Commercein China
- 10. Mobile Internet HasArrived Millions of Chinese Mobile Internet Users 155 In 2009 3G licenses were issued to: • CMCC (TDS-CDMA) • CUTC (WCDMA) • CT (CDMA2000) Data Source: CNNIC
- 11. Powerful, Affordable Devices& Modern UI
- 12. Evolution of MobileInternet News Entertainment & SNS Utilities & e-Commerce
- 13. An Ecosystem ofMobile Opportunity OEMs/ODMs SoQware & Services! Devices & Hardware Users Ads Users
- 14. Cloud Computing -A “New Software” Industry SoQware installa9on / upgrading shiQing from the user to the cloud.! Business model shiQing from expensive upgrades to ads-‐sponsored.! IT management shiQing from end-‐user to cloud-‐services.!
- 15. Future of CloudComputing Google App Engine! Amazon Cloud! Calendar! ERP & CRM! Online Gaming! Finance / Banking! Blogging / IM / Email!
- 16. New Gaming Industry In 1998, sales of gaming soQware were only about $10 million in China.! Online gaming is now a $20 billion industry.!
- 18. Incubation / AngelFunds in U.S. & China Angel Funds in U.S. $28.0 Billion Avg. Investment Size $300K! $19.2 260K Ac9ve Investors! Billion Incuba9on / Angel Funds! Venture Capital! Success Exit! ? Angel Funds in China $7.3 Billion S9ll at an early stage
- 19. What can AngelInvestors do? Mike Markkula:! • Ex-Intel manager • Invested $92,000 • Secured a bank loan of $250,000! • Brought his business expertise • Brought in Apple's first president Andy Bechtolsheim:! • Co-founded Sun Microsystems • Wrote a cheque ($100,000) to "Google Inc." prior to the company even being founded
- 20. “Innovation Works” Model Innova9on Works “Google 20%” model + “Idealab” model + Localization for China Select the best ideas, entrepreneurs and engineers, and combine Idea Selection them optimally into start-up “dream teams”.
- 21. Project Development Lifetime Official Project! Independent En9ty Project Ini9a9ve Project Ini9a9ve Successful Exit! 0 - 6 months 6 - 12 months Incubator Incubator Fund & Fund • Seed / Angel funding • Back-‐office support • Entrepreneur coaching • Top-‐engineer recrui9ng • Shared LAMP-‐based pladorm • Follow-‐up funding
- 22. Portfolio Company Financing Innova9on Works has a $100m fund commieed to funding the start-‐ups that come out of the Incubator. Portfolio Company Founding / IW Incubator Founders Seed Stage Angel IW Incubator & Fund Stage Series A IW Incubator IW Fund Other VC Founders
- 23. Project Development Plan 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 ...…. Formation / Seed Stage Angel Funding Series A Funding
- 24. Thank You! ! Find this presentation at: http://www.slideshare.net/evdemon and connect at: http://t.sina.com.cn/1648204271